ABBOTT PARK, Ill., July 16, 2020
/PRNewswire/ -- Abbott (NYSE: ABT) today announced financial
results for the second quarter ended June
30, 2020.
- Second-quarter worldwide sales of $7.3
billion decreased 8.2 percent on a reported basis and 5.4
percent on an organic basis, which excludes the impact of foreign
exchange.
- Reported diluted EPS from continuing operations under GAAP was
$0.30 and adjusted diluted EPS from
continuing operations, which excludes specified items, was
$0.57 in the second quarter.
- Abbott projects full-year 2020 diluted EPS from continuing
operations on a GAAP basis of at least $2.00 and full-year adjusted diluted EPS from
continuing operations of at least $3.25.
- In April, Abbott announced CE Mark approval for its
TriClip™ heart valve repair system, the world's
first minimally invasive, clip-based tricuspid heart valve repair
device.
- In June, Abbott announced U.S. FDA approval of
FreeStyle® Libre 2 as an integrated continuous
glucose monitoring (iCGM) system for adults and children ages 4 and
older with diabetes, achieving the highest level of accuracy and
performance standards.1
- Last week, Abbott announced U.S. FDA approval of its
next-generation Gallant™ implantable cardioverter
defibrillator and cardiac resynchronization therapy defibrillator
devices to help manage heart rhythm disorders. These devices offer
Bluetooth technology and a new patient smartphone app for improved
remote monitoring and enhanced patient-physician engagement.
"Our diversified business model has proven to be a true strength
during this time," said Robert B.
Ford, president and chief executive officer, Abbott. "We're
a leader in the global COVID-19 testing efforts, we've continued to
advance our pipeline and, importantly, we saw significant
improvements in growth trends throughout the quarter in the
business areas that were initially most impacted by the
pandemic."
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business. Organic sales growth excludes the
impact of foreign exchange.
Following are sales by business segment and commentary for
the second quarter 2020:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q19
|
|
|
Sales
2Q20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
2,638
|
|
4,690
|
|
7,328
|
|
(7.4)
|
|
(8.6)
|
|
(8.2)
|
|
(7.4)
|
|
(4.2)
|
|
(5.4)
|
Nutrition
|
|
808
|
|
1,075
|
|
1,883
|
|
2.9
|
|
(1.4)
|
|
0.4
|
|
2.9
|
|
3.3
|
|
3.1
|
Diagnostics
|
|
857
|
|
1,137
|
|
1,994
|
|
23.2
|
|
(5.9)
|
|
4.7
|
|
23.2
|
|
(2.2)
|
|
7.1
|
Established
Pharmaceuticals
|
|
--
|
|
1,013
|
|
1,013
|
|
n/a
|
|
(8.6)
|
|
(8.6)
|
|
n/a
|
|
(0.7)
|
|
(0.7)
|
Medical
Devices
|
|
966
|
|
1,457
|
|
2,423
|
|
(29.0)
|
|
(15.0)
|
|
(21.2)
|
|
(29.0)
|
|
(12.7)
|
|
(19.9)
|
|
* Total Q2 2020
Abbott sales from continuing operations include Other Sales of
approximately $15 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H19
|
|
|
Sales
1H20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
5,494
|
|
9,560
|
|
15,054
|
|
(1.9)
|
|
(3.5)
|
|
(3.0)
|
|
(1.9)
|
|
0.0
|
|
(0.7)
|
Nutrition
|
|
1,620
|
|
2,167
|
|
3,787
|
|
5.7
|
|
1.5
|
|
3.3
|
|
5.7
|
|
4.7
|
|
5.1
|
Diagnostics
|
|
1,660
|
|
2,160
|
|
3,820
|
|
16.9
|
|
(7.1)
|
|
2.0
|
|
16.9
|
|
(3.9)
|
|
4.0
|
Established
Pharmaceuticals
|
|
--
|
|
2,057
|
|
2,057
|
|
n/a
|
|
(2.1)
|
|
(2.1)
|
|
n/a
|
|
4.0
|
|
4.0
|
Medical
Devices
|
|
2,199
|
|
3,161
|
|
5,360
|
|
(16.6)
|
|
(5.2)
|
|
(10.2)
|
|
(16.6)
|
|
(2.7)
|
|
(8.8)
|
|
* Total 1H 2020
Abbott sales from continuing operations include Other Sales of
approximately $30 million.
|
|
n/a = Not
Applicable.
|
|
Note: In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates.
|
Second-quarter 2020 worldwide sales of $7.3 billion decreased 8.2 percent on a reported
basis. On an organic basis, worldwide sales decreased 5.4 percent.
First-half 2020 worldwide sales of $15.1
billion decreased 3.0 percent on a reported basis and 0.7
percent on an organic basis.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q19
|
|
|
|
|
|
|
|
Sales
2Q20
|
|
Reported
|
|
Organic
|
|
|
|
|
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
|
|
|
|
|
808
|
|
1,075
|
|
1,883
|
|
2.9
|
|
(1.4)
|
|
0.4
|
|
2.9
|
|
3.3
|
|
3.1
|
Pediatric
|
|
|
|
|
|
|
484
|
|
540
|
|
1,024
|
|
2.1
|
|
(6.4)
|
|
(2.6)
|
|
2.1
|
|
(2.2)
|
|
(0.3)
|
Adult
|
|
|
|
|
|
|
324
|
|
535
|
|
859
|
|
4.2
|
|
4.3
|
|
4.3
|
|
4.2
|
|
9.3
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H19
|
|
|
|
|
|
|
|
Sales
1H20
|
|
Reported
|
|
Organic
|
|
|
|
|
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
|
|
|
|
|
1,620
|
|
2,167
|
|
3,787
|
|
5.7
|
|
1.5
|
|
3.3
|
|
5.7
|
|
4.7
|
|
5.1
|
Pediatric
|
|
|
|
|
|
|
1,002
|
|
1,111
|
|
2,113
|
|
8.0
|
|
(3.6)
|
|
1.6
|
|
8.0
|
|
(1.0)
|
|
3.0
|
Adult
|
|
|
|
|
|
|
618
|
|
1,056
|
|
1,674
|
|
2.2
|
|
7.6
|
|
5.5
|
|
2.2
|
|
11.5
|
|
7.9
|
Worldwide Nutrition sales increased 0.4 percent on a reported
basis and 3.1 percent on an organic basis in the second quarter.
Strong U.S. and international sales performance of
Ensure®, Abbott's market-leading complete and balanced
nutrition brand, led to global Adult Nutrition sales growth of 7.4
percent on an organic basis. In Pediatric Nutrition, sales were led
by U.S. growth of Pedialyte®, Abbott's oral rehydration
brand, as well as growth in Southeast
Asia, which were offset by challenging conditions in
Greater China.
For the first half of 2020, worldwide Nutrition sales increased
3.3 percent on a reported basis and 5.1 percent on an organic
basis, including organic sales growth of 3.0 percent in Pediatric
Nutrition and 7.9 percent in Adult Nutrition.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q19
|
|
|
Sales
2Q20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
857
|
|
1,137
|
|
1,994
|
|
23.2
|
|
(5.9)
|
|
4.7
|
|
23.2
|
|
(2.2)
|
|
7.1
|
Core
Laboratory
|
|
289
|
|
698
|
|
987
|
|
6.4
|
|
(22.2)
|
|
(15.5)
|
|
6.4
|
|
(19.0)
|
|
(13.1)
|
Molecular
|
|
144
|
|
215
|
|
359
|
|
276.7
|
|
209.9
|
|
233.6
|
|
276.7
|
|
222.1
|
|
241.4
|
Point of
Care
|
|
79
|
|
39
|
|
118
|
|
(30.6)
|
|
25.8
|
|
(18.3)
|
|
(30.6)
|
|
29.0
|
|
(17.6)
|
Rapid
Diagnostics
|
|
345
|
|
185
|
|
530
|
|
26.9
|
|
(12.6)
|
|
9.6
|
|
26.9
|
|
(9.2)
|
|
11.0
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H19
|
|
|
Sales
1H20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,660
|
|
2,160
|
|
3,820
|
|
16.9
|
|
(7.1)
|
|
2.0
|
|
16.9
|
|
(3.9)
|
|
4.0
|
Core
Laboratory
|
|
556
|
|
1,420
|
|
1,976
|
|
6.7
|
|
(16.9)
|
|
(11.4)
|
|
6.7
|
|
(14.0)
|
|
(9.2)
|
Molecular
|
|
209
|
|
289
|
|
498
|
|
166.1
|
|
111.1
|
|
131.1
|
|
166.1
|
|
118.2
|
|
135.7
|
Point of
Care
|
|
182
|
|
74
|
|
256
|
|
(18.0)
|
|
28.9
|
|
(8.4)
|
|
(18.0)
|
|
31.4
|
|
(7.8)
|
Rapid
Diagnostics
|
|
713
|
|
377
|
|
1,090
|
|
19.3
|
|
(10.9)
|
|
6.8
|
|
19.3
|
|
(7.8)
|
|
8.1
|
Worldwide Diagnostics sales increased 4.7 percent on a reported
basis in the second quarter, including an unfavorable 2.4 percent
effect of foreign exchange, and increased 7.1 percent on an organic
basis.
In Core Laboratory Diagnostics, lower routine diagnostics
testing due to COVID-19 was partially offset by sales of Abbott's
COVID-19 laboratory-based tests for the detection of the IgG
antibody, which determines if someone was previously infected with
the virus. Core Laboratory IgG antibody testing-related sales on
Abbott's Architect® and Alinity™ i platforms
were $152 million in the quarter.
Molecular Diagnostics sales increased 233.6 percent on a
reported basis and 241.4 percent on an organic basis in the second
quarter. Strong growth was driven by demand for Abbott's
laboratory-based molecular tests for COVID-19 on its
m2000™ and Alinity™ m platforms.
Molecular Diagnostics COVID-19 testing-related sales were
$283 million in the quarter.
Rapid Diagnostics sales increased 9.6 percent on a reported
basis and 11.0 percent on an organic basis in the second quarter.
Lower base business sales were more than offset by strong demand
for Abbott's point-of-care COVID-19 molecular test on its ID
NOW™ platform. Rapid Diagnostics COVID-19
testing-related sales were $180
million in the quarter.
Established Pharmaceuticals
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q19
|
|
|
Sales
2Q20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
1,013
|
|
1,013
|
|
n/a
|
|
(8.6)
|
|
(8.6)
|
|
n/a
|
|
(0.7)
|
|
(0.7)
|
Key Emerging
Markets
|
|
--
|
|
764
|
|
764
|
|
n/a
|
|
(10.3)
|
|
(10.3)
|
|
n/a
|
|
(0.4)
|
|
(0.4)
|
Other
|
|
--
|
|
249
|
|
249
|
|
n/a
|
|
(2.6)
|
|
(2.6)
|
|
n/a
|
|
(1.5)
|
|
(1.5)
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H19
|
|
|
Sales
1H20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
2,057
|
|
2,057
|
|
n/a
|
|
(2.1)
|
|
(2.1)
|
|
n/a
|
|
4.0
|
|
4.0
|
Key Emerging
Markets
|
|
--
|
|
1,577
|
|
1,577
|
|
n/a
|
|
(1.7)
|
|
(1.7)
|
|
n/a
|
|
5.9
|
|
5.9
|
Other
|
|
--
|
|
480
|
|
480
|
|
n/a
|
|
(3.1)
|
|
(3.1)
|
|
n/a
|
|
(2.1)
|
|
(2.1)
|
Established Pharmaceuticals sales decreased 8.6 percent on a
reported basis in the second quarter and decreased 0.7 percent on
an organic basis. For the first half of 2020, Established
Pharmaceuticals sales decreased 2.1 percent on a reported basis and
increased 4.0 percent on an organic basis.
Key Emerging Markets include India, Brazil, Russia and China along with several additional emerging
countries that represent the most attractive long-term growth
opportunities for Abbott's branded generics product portfolio.
Sales in these geographies decreased 10.3 percent on a reported
basis in the second quarter and decreased 0.4 percent on an organic
basis. Sales growth in certain countries, including double-digit
growth in China, was more than
offset by lower demand due to the increased spread of COVID-19
across several emerging market countries, including Russia, Brazil and Colombia.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q19
|
|
|
Sales
2Q20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
966
|
|
1,457
|
|
2,423
|
|
(29.0)
|
|
(15.0)
|
|
(21.2)
|
|
(29.0)
|
|
(12.7)
|
|
(19.9)
|
Rhythm
Management
|
|
185
|
|
216
|
|
401
|
|
(32.2)
|
|
(21.3)
|
|
(26.7)
|
|
(32.2)
|
|
(19.2)
|
|
(25.7)
|
Electrophysiology
|
|
120
|
|
179
|
|
299
|
|
(37.2)
|
|
(25.8)
|
|
(30.8)
|
|
(37.2)
|
|
(24.7)
|
|
(30.2)
|
Heart
Failure
|
|
115
|
|
43
|
|
158
|
|
(22.9)
|
|
(15.2)
|
|
(20.9)
|
|
(22.9)
|
|
(13.3)
|
|
(20.4)
|
Vascular
|
|
168
|
|
313
|
|
481
|
|
(37.6)
|
|
(31.9)
|
|
(34.0)
|
|
(37.6)
|
|
(29.9)
|
|
(32.7)
|
Structural
Heart
|
|
91
|
|
132
|
|
223
|
|
(40.1)
|
|
(34.2)
|
|
(36.7)
|
|
(40.1)
|
|
(33.0)
|
|
(36.0)
|
Neuromodulation
|
|
85
|
|
21
|
|
106
|
|
(49.2)
|
|
(52.0)
|
|
(49.8)
|
|
(49.2)
|
|
(50.3)
|
|
(49.4)
|
Diabetes
Care
|
|
202
|
|
553
|
|
755
|
|
27.2
|
|
24.7
|
|
25.4
|
|
27.2
|
|
28.7
|
|
28.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
and Endovasculara
|
|
155
|
|
311
|
|
466
|
|
(36.5)
|
|
(32.1)
|
|
(33.6)
|
|
(36.5)
|
|
(30.0)
|
|
(32.3)
|
|
|
a)
|
Includes drug-eluting
stents, balloon catheters, guidewires, vascular imaging/diagnostics
products, vessel closure, carotid and other coronary and peripheral
products.
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H19
|
|
|
Sales
1H20
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
2,199
|
|
3,161
|
|
5,360
|
|
(16.6)
|
|
(5.2)
|
|
(10.2)
|
|
(16.6)
|
|
(2.7)
|
|
(8.8)
|
Rhythm
Management
|
|
413
|
|
462
|
|
875
|
|
(21.3)
|
|
(14.0)
|
|
(17.6)
|
|
(21.3)
|
|
(11.7)
|
|
(16.4)
|
Electrophysiology
|
|
284
|
|
403
|
|
687
|
|
(22.2)
|
|
(14.4)
|
|
(17.8)
|
|
(22.2)
|
|
(12.9)
|
|
(17.0)
|
Heart
Failure
|
|
267
|
|
94
|
|
361
|
|
(8.6)
|
|
1.7
|
|
(6.1)
|
|
(8.6)
|
|
4.0
|
|
(5.6)
|
Vascular
|
|
398
|
|
708
|
|
1,106
|
|
(25.7)
|
|
(21.6)
|
|
(23.1)
|
|
(25.7)
|
|
(19.7)
|
|
(21.9)
|
Structural
Heart
|
|
227
|
|
314
|
|
541
|
|
(21.3)
|
|
(19.1)
|
|
(20.0)
|
|
(21.3)
|
|
(17.1)
|
|
(18.9)
|
Neuromodulation
|
|
222
|
|
61
|
|
283
|
|
(30.7)
|
|
(28.1)
|
|
(30.1)
|
|
(30.7)
|
|
(25.2)
|
|
(29.5)
|
Diabetes
Care
|
|
388
|
|
1,119
|
|
1,507
|
|
25.1
|
|
30.4
|
|
29.0
|
|
25.1
|
|
34.3
|
|
31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
and Endovasculara
|
|
366
|
|
703
|
|
1,069
|
|
(23.6)
|
|
(21.8)
|
|
(22.4)
|
|
(23.6)
|
|
(19.8)
|
|
(21.1)
|
|
|
a)
|
Includes drug-eluting
stents, balloon catheters, guidewires, vascular imaging/diagnostics
products, vessel closure, carotid and other coronary and peripheral
products.
|
Worldwide Medical Devices sales decreased 21.2 percent on a
reported basis in the second quarter and decreased 19.9 percent on
an organic basis. Sales growth was negatively impacted by reduced
cardiovascular and neuromodulation procedure volumes due to
COVID-19. Procedure volume trends improved significantly over the
course of the second quarter as both demand for procedures and
availability of healthcare resources began to return to more
normalized levels.
In Diabetes Care, strong growth was led by FreeStyle Libre,
which grew 36.8 percent on a reported basis and 39.9 percent on an
organic basis versus the prior year. In June, Abbott announced U.S.
FDA approval of FreeStyle Libre 2 as an integrated continuous
glucose monitoring (iCGM) system for adults and children ages 4 and
older with diabetes, achieving the highest level of accuracy and
performance standards.1 The FreeStyle Libre 2 system
will be available in the coming weeks at participating pharmacies
and durable medical equipment providers at the same price as the
currently available FreeStyle Libre 14 day system.
ABBOTT'S GUIDANCE FOR 2020
Abbott projects full-year
2020 diluted earnings per share from continuing operations under
GAAP of at least $2.00. Abbott
forecasts specified items for the full-year 2020 of $1.25 primarily related to intangible
amortization, acquisition-related expenses, restructuring and cost
reduction initiatives and other expenses. Excluding specified
items, projected adjusted diluted earnings per share from
continuing operations would be at least $3.25 for full-year 2020.
ABBOTT DECLARES 386TH CONSECUTIVE QUARTERLY
DIVIDEND
On June 12, 2020,
the board of directors of Abbott declared the company's quarterly
dividend of $0.36 per share. Abbott's
cash dividend is payable August 17,
2020, to shareholders of record at the close of business on
July 15, 2020.
Abbott has increased its dividend payout for 48 consecutive
years and is a member of the S&P 500 Dividend Aristocrats
Index, which tracks companies that have annually increased their
dividend for at least 25 consecutive years.
About Abbott:
Abbott is a global healthcare leader that helps people live more
fully at all stages of life. Our portfolio of life-changing
technologies spans the spectrum of healthcare, with leading
businesses and products in diagnostics, medical devices,
nutritionals and branded generic medicines. Our 107,000 colleagues
serve people in more than 160 countries.
Connect with us at www.abbott.com, on LinkedIn at
www.linkedin.com/company/abbott-/, on Facebook at
www.facebook.com/Abbott and on Twitter @AbbottNews and
@AbbottGlobal.
Abbott will webcast its live second-quarter earnings conference
call through its Investor Relations website at
www.abbottinvestor.com at 8:30 a.m.
Central time today. An archived edition of the webcast will
be available later that day.
— Private Securities Litigation
Reform Act of 1995 —
A Caution Concerning Forward-Looking
Statements
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties, including the impact of the
COVID-19 pandemic on Abbott's operations and financial results,
that may cause actual results to differ materially from those
indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect
Abbott's operations are discussed in Item 1A, "Risk Factors" in our
Annual Report on Form 10-K for the year ended Dec. 31, 2019 and in Item 1A, "Risk Factors" in
our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020, and are incorporated
herein by reference. Abbott undertakes no obligation to release
publicly any revisions to forward-looking statements as a result of
subsequent events or developments, except as required by
law.
1 Based on
FDA iCGM special controls.
|
Abbott Laboratories
and Subsidiaries
|
Condensed
Consolidated Statement of Earnings
|
Second Quarter Ended
June 30, 2020 and 2019
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
2Q20
|
|
2Q19
|
|
%
Change
|
|
Net Sales
|
|
$7,328
|
|
$7,979
|
|
(8.2)
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
3,263
|
|
3,279
|
|
(0.5)
|
|
Amortization of
intangible assets
|
|
553
|
|
483
|
|
14.7
|
|
Research and
development
|
|
564
|
|
577
|
|
(2.1)
|
|
Selling, general, and
administrative
|
|
2,276
|
|
2,434
|
|
(6.5)
|
|
Total Operating Cost
and Expenses
|
|
6,656
|
|
6,773
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
672
|
|
1,206
|
|
(44.3)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
125
|
|
146
|
|
(15.3)
|
|
Net foreign exchange
(gain) loss
|
|
(1)
|
|
(4)
|
|
(81.2)
|
|
Other (income)
expense, net
|
|
22
|
|
(38)
|
|
n/m
|
|
Earnings from
Continuing Operations before taxes
|
|
526
|
|
1,102
|
|
(52.3)
|
|
|
|
|
|
|
|
|
|
Tax expense (benefit)
on Earnings from Continuing Operations
|
|
(11)
|
|
96
|
|
n/m
|
1)
|
Earnings from
Continuing Operations
|
|
537
|
|
1,006
|
|
(46.6)
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
--
|
|
--
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$537
|
|
$1,006
|
|
(46.6)
|
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$1,018
|
|
$1,465
|
|
(30.5)
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.30
|
|
$0.56
|
|
(46.4)
|
|
Discontinued
Operations
|
|
--
|
|
--
|
|
n/m
|
|
Total
|
|
$0.30
|
|
$0.56
|
|
(46.4)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.57
|
|
$0.82
|
|
(30.5)
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,785
|
|
1,781
|
|
|
|
|
NOTES:
|
See
tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations" for an explanation of
certain non-GAAP financial information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
|
1)
|
2020 Tax expense
(benefit) on Earnings from Continuing Operations includes the
recognition of approximately $80 million of net tax benefits as a
result of the resolution of various tax positions related to prior
years and approximately $20 million in excess tax benefits
associated with share-based compensation.
|
|
|
2)
|
2020 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $481
million, or $0.27 per share, for intangible amortization expense,
other expenses primarily associated with acquisitions and
restructuring actions and charges for equity investment
impairments.
|
|
|
|
2019 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $459
million, or $0.26 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
Abbott Laboratories
and Subsidiaries
|
Condensed
Consolidated Statement of Earnings
|
First Half Ended June
30, 2020 and 2019
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1H20
|
|
1H19
|
|
%
Change
|
|
Net Sales
|
|
$15,054
|
|
$15,514
|
|
(3.0)
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
6,544
|
|
6,439
|
|
1.6
|
|
Amortization of
intangible assets
|
|
1,114
|
|
969
|
|
15.0
|
|
Research and
development
|
|
1,142
|
|
1,249
|
|
(8.6)
|
1)
|
Selling, general, and
administrative
|
|
4,824
|
|
4,912
|
|
(1.8)
|
|
Total Operating Cost
and Expenses
|
|
13,624
|
|
13,569
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
1,430
|
|
1,945
|
|
(26.5)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
246
|
|
294
|
|
(16.5)
|
|
Net foreign exchange
(gain) loss
|
|
4
|
|
2
|
|
n/m
|
|
Other (income)
expense, net
|
|
21
|
|
(85)
|
|
n/m
|
|
Earnings from
Continuing Operations before taxes
|
|
1,159
|
|
1,734
|
|
(33.2)
|
|
|
|
|
|
|
|
|
|
Tax expense (benefit)
on Earnings from Continuing Operations
|
|
78
|
|
56
|
|
40.3
|
2)
|
Earnings from
Continuing Operations
|
|
1,081
|
|
1,678
|
|
(35.6)
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
20
|
|
--
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$1,101
|
|
$1,678
|
|
(34.4)
|
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$2,180
|
|
$2,591
|
|
(15.8)
|
3)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.60
|
|
$0.94
|
|
(36.2)
|
|
Discontinued
Operations
|
|
0.01
|
|
--
|
|
n/m
|
|
Total
|
|
$0.61
|
|
$0.94
|
|
(35.1)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$1.22
|
|
$1.45
|
|
(15.9)
|
3)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,783
|
|
1,779
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
See
tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations" for an explanation of
certain non-GAAP financial information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
1)
|
In the first six
months of 2019, in conjunction with the acquisition of Cephea Valve
Technologies, Inc., Abbott acquired an R&D asset valued at $102
million, which was immediately expensed.
|
|
|
2)
|
2020 Tax expense
(benefit) on Earnings from Continuing Operations includes the
recognition of approximately $80 million of net tax benefits as a
result of the resolution of various tax positions related to prior
years and approximately $70 million in excess tax benefits
associated with share-based compensation.
|
|
|
|
2019 Tax expense
(benefit) on Earnings from Continuing Operations includes the
impact of a $78 million reduction of the transition tax associated
with the Tax Cuts and Jobs Act (TCJA) and approximately $90 million
in excess tax benefits associated with share-based
compensation.
|
|
|
3)
|
2020 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $1.099
billion, or $0.62 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
|
|
|
2019 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $913
million, or $0.51 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
Abbott Laboratories
and Subsidiaries
|
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
|
Second Quarter Ended
June 30, 2020 and 2019
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
|
|
2Q20
|
|
|
|
As Reported
(GAAP)
|
|
Specified
Items
|
|
As Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
553
|
|
$
(553)
|
|
$
-
|
|
|
|
Gross
Margin
|
|
3,512
|
|
591
|
|
4,103
|
|
56.0%
|
|
R&D
|
|
564
|
|
(28)
|
|
536
|
|
7.3%
|
|
SG&A
|
|
2,276
|
|
(24)
|
|
2,252
|
|
30.7%
|
|
Other (income)
expense, net
|
|
22
|
|
(68)
|
|
(46)
|
|
|
|
Earnings from Continuing
Operations before taxes
|
|
526
|
|
711
|
|
1,237
|
|
|
|
Tax expense (benefit) on
Earnings from Continuing Operations
|
|
(11)
|
|
230
|
|
219
|
|
|
|
Earnings from
Continuing Operations
|
|
537
|
|
481
|
|
1,018
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.30
|
|
$0.27
|
|
$0.57
|
|
|
|
|
|
Specified items
reflect intangible amortization expense of $553 million and other
expenses of $158 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
|
|
|
2Q19
|
|
|
|
As Reported
(GAAP)
|
|
Specified
Items
|
|
As Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
483
|
|
$
(483)
|
|
$
-
|
|
|
|
Gross
Margin
|
|
4,217
|
|
522
|
|
4,739
|
|
59.4%
|
|
R&D
|
|
577
|
|
(12)
|
|
565
|
|
7.1%
|
|
SG&A
|
|
2,434
|
|
(46)
|
|
2,388
|
|
29.9%
|
|
Other (income)
expense, net
|
|
(38)
|
|
(16)
|
|
(54)
|
|
|
|
Earnings from Continuing
Operations before taxes
|
|
1,102
|
|
596
|
|
1,698
|
|
|
|
Tax expense (benefit) on
Earnings from Continuing Operations
|
|
96
|
|
137
|
|
233
|
|
|
|
Earnings from
Continuing Operations
|
|
1,006
|
|
459
|
|
1,465
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.56
|
|
$0.26
|
|
$0.82
|
|
|
|
|
|
Specified items
reflect intangible amortization expense of $483 million and other
expenses of $113 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
|
Abbott Laboratories
and Subsidiaries
|
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
|
First Half Ended June
30, 2020 and 2019
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
|
|
1H20
|
|
|
|
As Reported (GAAP)
|
|
Specified
Items
|
|
As Adjusted
|
|
%
to Sales
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
1,114
|
|
$
(1,114)
|
|
$
-
|
|
|
|
Gross
Margin
|
|
7,396
|
|
1,190
|
|
8,586
|
|
57.0%
|
|
R&D
|
|
1,142
|
|
(43)
|
|
1,099
|
|
7.3%
|
|
SG&A
|
|
4,824
|
|
(82)
|
|
4,742
|
|
31.5%
|
|
Other (income)
expense, net
|
|
21
|
|
(110)
|
|
(89)
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,159
|
|
1,425
|
|
2,584
|
|
|
|
Tax expense (benefit)
on Earnings from Continuing Operations
|
|
78
|
|
326
|
|
404
|
|
|
|
Earnings from
Continuing Operations
|
|
1,081
|
|
1,099
|
|
2,180
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.60
|
|
$0.62
|
|
$1.22
|
|
|
|
|
|
Specified items
reflect intangible amortization expense of $1.114 billion and other
expenses of $311 million, primarily associated with acquisitions,
restructuring actions and other expenses. See table titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
|
|
|
1H19
|
|
|
|
As Reported
(GAAP)
|
|
Specified
Items
|
|
As Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
969
|
|
$
(969)
|
|
$
-
|
|
|
|
Gross
Margin
|
|
8,106
|
|
1,049
|
|
9,155
|
|
59.0%
|
|
R&D
|
|
1,249
|
|
(127)
|
|
1,122
|
|
7.2%
|
|
SG&A
|
|
4,912
|
|
(91)
|
|
4,821
|
|
31.1%
|
|
Other (income)
expense, net
|
|
(85)
|
|
(29)
|
|
(114)
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,734
|
|
1,296
|
|
3,030
|
|
|
|
Tax expense (benefit)
on Earnings from Continuing Operations
|
|
56
|
|
383
|
|
439
|
|
|
|
Earnings from
Continuing Operations
|
|
1,678
|
|
913
|
|
2,591
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.94
|
|
$0.51
|
|
$1.45
|
|
|
|
|
|
Specified items
reflect intangible amortization expense of $969 million and other
expenses of $327 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
A reconciliation of
the second-quarter tax rates for continuing operations for 2020 and
2019 is shown below:
|
|
|
|
|
2Q20
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax Rate
|
|
As reported
(GAAP)
|
|
$526
|
|
$
(11)
|
|
(2.1%)
|
1)
|
Specified
items
|
|
711
|
|
230
|
|
|
|
Excluding
specified items
|
|
$1,237
|
|
$219
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q19
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax Rate
|
|
As reported
(GAAP)
|
|
$1,102
|
|
$96
|
|
8.7%
|
|
Specified
items
|
|
596
|
|
137
|
|
|
|
Excluding
specified items
|
|
$1,698
|
|
$233
|
|
13.7%
|
|
|
1)
|
2020 Tax expense on
Earnings from Continuing Operations includes the recognition of
approximately $80 million of net tax benefits as a result of the
resolution of various tax positions related to prior years and
approximately $20 million in excess tax benefits associated
with share-based compensation.
|
|
|
A reconciliation of
the year-to-date tax rates for continuing operations for 2020 and
2019 is shown below:
|
|
|
|
|
1H20
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax Rate
|
|
As reported
(GAAP)
|
|
$1,159
|
|
$78
|
|
6.7%
|
2)
|
Specified
items
|
|
1,425
|
|
326
|
|
|
|
Excluding
specified items
|
|
$2,584
|
|
$404
|
|
15.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1H19
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax Rate
|
|
As reported
(GAAP)
|
|
$1,734
|
|
$56
|
|
3.2%
|
3)
|
Specified
items
|
|
1,296
|
|
383
|
|
|
|
Excluding
specified items
|
|
$3,030
|
|
$439
|
|
14.5%
|
|
|
|
2)
|
2020 Tax expense on
Earnings from Continuing Operations includes the recognition of
approximately $80 million of net tax benefits as a result of the
resolution of various tax positions related to prior years and
approximately $70 million in excess tax benefits associated with
share-based compensation.
|
|
|
3)
|
Reported tax rate on
a GAAP basis for 2019 includes the impact of a $78 million
reduction of the transition tax associated with the TCJA and
approximately $90 million in excess tax benefits associated with
share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
Second Quarter Ended
June 30, 2020
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
|
$
22
|
|
$
15
|
|
$
553
|
|
$
1
|
|
$
591
|
R&D
|
|
(3)
|
|
(2)
|
|
--
|
|
(23)
|
|
(28)
|
SG&A
|
|
(27)
|
|
3
|
|
--
|
|
--
|
|
(24)
|
Other (income)
expense, net
|
|
(3)
|
|
--
|
|
--
|
|
(65)
|
|
(68)
|
Earnings from
Continuing Operations before taxes
|
|
$
55
|
|
$
14
|
|
$
553
|
|
$
89
|
|
711
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
230
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
481
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on the tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations."
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for retention, severance, and the integration
of systems, processes and business activities.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other primarily
relates to the impairment of equity investments and the costs to
acquire research and development assets.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items, the resolution of
prior years' tax positions and excess tax benefits associated with
share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
Second Quarter Ended
June 30, 2019
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
|
$
18
|
|
$
21
|
|
$
483
|
|
$
--
|
|
$
522
|
R&D
|
|
(7)
|
|
(5)
|
|
--
|
|
--
|
|
(12)
|
SG&A
|
|
(44)
|
|
(2)
|
|
--
|
|
--
|
|
(46)
|
Other (income)
expense, net
|
|
(7)
|
|
--
|
|
--
|
|
(9)
|
|
(16)
|
Earnings from
Continuing Operations before taxes
|
|
$
76
|
|
$
28
|
|
$
483
|
|
$
9
|
|
596
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
137
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
459
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.26
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
a)
|
Acquisition-related
expenses include costs for tax and other services related to
business acquisitions, integration costs which represent
incremental costs directly related to integrating the acquired
businesses and include expenditures for retention, severance, and
the integration of systems, processes and business activities, and
fair value adjustments to contingent consideration related to a
business acquisition.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other primarily
relates to the impairment of an equity investment.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
First Half Ended June
30, 2020
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
|
$
45
|
|
$
30
|
|
$
1,114
|
|
$
1
|
|
$
1,190
|
R&D
|
|
(7)
|
|
(8)
|
|
--
|
|
$
(28)
|
|
(43)
|
SG&A
|
|
(55)
|
|
(27)
|
|
--
|
|
--
|
|
(82)
|
Other (income)
expense, net
|
|
(1)
|
|
--
|
|
--
|
|
(109)
|
|
(110)
|
Earnings from
Continuing Operations before taxes
|
|
$
108
|
|
$
65
|
|
$
1,114
|
|
$
138
|
|
1,425
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
326
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
1,099
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for retention, severance, and the integration
of systems, processes and business activities.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other primarily
relates to the impairment of equity investments and the costs to
acquire research and development assets.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items, the resolution of
prior years' tax positions and excess tax benefits associated with
share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
First Half Ended June
30, 2019
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
|
$
37
|
|
$
43
|
|
$
969
|
|
$
--
|
|
$
1,049
|
R&D
|
|
(14)
|
|
(10)
|
|
--
|
|
(103)
|
|
(127)
|
SG&A
|
|
(87)
|
|
(4)
|
|
--
|
|
--
|
|
(91)
|
Other (income)
expense, net
|
|
(10)
|
|
--
|
|
--
|
|
(19)
|
|
(29)
|
Earnings from
Continuing Operations before taxes
|
|
$
148
|
|
$
57
|
|
$
969
|
|
$
122
|
|
1,296
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
383
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
913
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include costs for tax and other services related to
business acquisitions, integration costs which represent
incremental costs directly related to integrating the acquired
businesses and include expenditures for retention, severance, and
the integration of systems, processes and business activities, and
fair value adjustments to contingent consideration related to a
business acquisition.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other relates to the
acquisition of an R&D asset and charges related to the
impairment of certain assets.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items, a reduction in the
transition tax associated with the TCJA and excess tax benefits
associated with share-based compensation.
|
View original
content:http://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2020-results-exceeds-analysts-expectations-301094737.html
SOURCE Abbott