Abbott Laboratories (ABT) 10-K risk factor changes: FY2022 vs FY2021

[removed: Business] [added: Business] and Operational [removed: Risks][added: Risks]

[removed: *Abbott] [added: Abbott] may acquire other businesses, license rights to technologies or products, form alliances, or dispose of or spin-off businesses, which could cause it to incur significant expenses and could negatively affect [removed: profitability.*][added: profitability.]

[added: From time to time,] Abbott [removed: may pursue] [added: pursues] acquisitions, licensing arrangements, and strategic alliances, or dispose of or spin-off some of its businesses, as part of its business strategy.

[removed: *Abbott] [added: Abbott] depends on sophisticated information technology systems and maintains protected personal data, and a cyber attack or other breach affecting these information technology systems or protected data could have a material adverse effect on Abbott’s results of [removed: operations.*][added: operations.]

Similar to other large multi-national companies, the size and complexity of the information technology systems on which Abbott relies for both its infrastructure and products [removed: makes] [added: make] them susceptible to a cyber attack, malicious intrusion, breakdown, destruction, loss of data privacy, or other significant disruption.

A significant attack or other disruption could result in adverse consequences, including increased costs and expenses, manufacturing challenges or disruption, problems with product [removed: functionality,] [added: availability, functionality or safety,] damage to customer relations, reputational damage, lost revenue, and legal or regulatory penalties.

Similarly, there can be no assurance that third party information technology providers [added: or other partners] with whom Abbott contracts will not suffer a significant attack or disruption that impacts customers like Abbott.

[removed: *Abbott’s] [added: Abbott’s] research and development efforts may not succeed in developing commercially successful products and technologies, which may cause Abbott’s revenue and profitability to [removed: decline.*][added: decline.]

The manufacture of many of [removed: Abbott’s] [added: Abbott's] products is a highly exacting and complex process, and if Abbott or one of its suppliers [added: or manufacturers] encounters problems manufacturing products, Abbott’s business could suffer.

Problems may arise during manufacturing for a variety of reasons, including equipment malfunction, failure to follow specific protocols and procedures, problems with raw materials or the global supply chain, [added: failure to meet product specifications,] cyber attacks, natural disasters, and environmental factors.

Any of these events could, among other things, lead to increased costs, lost revenue, damage to customer relations, [added: reputational damage,] time and expense spent investigating the cause [removed: and,] [added: and remediating the problem, if any, a production stoppage at a manufacturing facility, and] depending on the cause, similar losses with respect to other lots, batches or products.

To the extent Abbott or one of its suppliers [added: or manufacturers] experiences significant manufacturing problems, this could have a material adverse effect on Abbott’s revenues and profitability.

As of December 31, [removed: 2021,] [added: 2022,] Abbott's consolidated indebtedness was approximately [removed: $18.1] [added: $16.8] billion.

Abbott is subject to numerous governmental regulations and it [removed: can be] [added: is] costly to comply with these regulations and to develop compliant products and processes.

Possible regulatory actions for non-compliance [removed: could] include warning letters, fines, damages, injunctions, civil penalties, recalls, [added: consent decrees,] seizures of Abbott’s products, and criminal prosecution.

Any of these events could disrupt Abbott’s business and have a material adverse effect on Abbott’s revenues, [removed: profitability] [added: profitability, cash flows,] and financial condition.

Laws and regulations affecting government benefit programs could impose new obligations on Abbott, require Abbott to change its business practices, and restrict its [removed: operations in the future.][added: operations.]

Changes in the health care regulatory environment may adversely [removed: affect] [added: impact the demand for and price of] Abbott’s [removed: business.][added: products.]

[removed: If] [added: When] new safety [removed: issues] [added: concerns] are reported, Abbott may be required to amend the conditions of use for a product.

If serious safety [removed: issues] [added: concerns] arise with an Abbott product, sales of the product [added: have been and] could be halted by Abbott or by regulatory authorities.

Safety [removed: issues] [added: concerns] affecting suppliers’ or competitors’ products also may reduce the market acceptance of Abbott’s products.

Product liability [removed: claims] [added: losses are self-insured and] could have a material adverse effect on Abbott’s [removed: profitability] [added: profitability, cash flows,] and financial condition.

Abbott is subject to risks related to public health crises, such as widespread outbreaks of infectious diseases like the COVID-19 [removed: pandemic.][added: pandemic, which has had, and may continue to have, a material effect on Abbott’s business, financial condition and results of operations.]

As a global healthcare company, public health crises, such as the widespread outbreaks of infectious diseases like the COVID-19 pandemic, may negatively impact [added: certain of] Abbott's operations.

Health concerns and significant changes in political or economic conditions caused by such outbreaks can [removed: cause] [added: cause, and during the COVID-19 pandemic have caused,] significant reductions in demand for certain products, increased difficulty in serving customers, [removed: disrupt] [added: disruptions to] manufacturing and supply chains, and [removed: negatively affect] [added: negative effects on certain of] Abbott’s operations as well as the operations of its suppliers, distributors and other third-party partners.

Furthermore, such widespread outbreaks may [removed: impact] [added: impact, and during] the [added: COVID-19 pandemic have impacted, the] broader economies of affected countries, including negatively impacting economic growth, the proper functioning of financial and capital markets, [added: inflation rates (including in the U.S.),] foreign currency exchange rates, and interest rates.

With regard to COVID-19 diagnostic testing, the FDA issued Emergency Use Authorizations (EUAs) for several [removed: COVID-19] [added: COVID‑19] related products in 2020 and 2021, including Abbott diagnostic tests.

Abbott is actively pursuing the FDA’s customary regulatory approval process for various COVID-19 diagnostic tests which has uncertainty as discussed in [removed: “_Abbott] [added: “*Abbott] is subject to numerous governmental regulations and it can be costly to comply with these regulations and to develop compliant products and [removed: processes._”] [added: processes.*”] in “Legal and Regulatory Risks” under “Item 1A.

In addition, the COVID-19 pandemic has contributed to global supply chain disruptions, which [removed: has] [added: have] adversely impacted the cost and availability of certain raw materials, supplies, and services.

Further, Abbott has experienced, and may continue to experience, availability issues with some [removed: services] [added: services, operations,] and materials used in its products.

To date, Abbott has been able to manage [removed: these] [added: the various supply chain] challenges without significant supply disruption or shortage for services, raw materials and [removed: supplies, however, no assurance can be given that these efforts will continue to be successful.][added: supplies.]

Due to the unpredictability of the [removed: duration and impact of the current] COVID-19 pandemic, [added: including how and when it will shift to an endemic state,] the extent to which [removed: the] COVID-19 [removed: pandemic] will [added: continue to] have a material effect on Abbott’s business, financial condition or results of operations is uncertain.

In the United States and other countries, Abbott’s businesses have experienced downward pressure on [added: certain] product pricing.

Fluctuation in foreign currency exchange rates [added: has adversely affected and] may [added: continue to] adversely affect Abbott’s financial statements and its ability to realize projected sales and earnings.

Sales outside of the United States in [removed: 2021] [added: 2022] made up approximately [removed: 61] [added: 58] percent of Abbott’s net sales.

A discussion of the steps taken to mitigate the impact of foreign exchange is contained in Item 7A, Quantitative and Qualitative Disclosures about Market Risk in Abbott’s [removed: 2021] [added: 2022] Form 10-K.

[removed: | | ● |] [added: -] differing local product preferences and product requirements; [removed: |]

[removed: | | ● |] [added: -] trade protection measures, including tariffs, import or export licensing requirements, other governmental [removed: restrictions,] [added: restrictions such as trade sanctions,] and changes to international trade agreements; [removed: |]

[removed: | | ● |] [added: -] difficulty in establishing, staffing, and managing operations; [removed: |]

[removed: | | ● |] [added: -] differing labor regulations; [removed: |]

Disruptions to Abbott’s global supply chain, which is large and complex, could negatively affect Abbott’s results of operations.

Abbott’s operations and performance depend on its ability to manage its large and complex global supply chain.

The COVID-19 pandemic has contributed to global supply chain disruptions, which have adversely impacted the cost and availability of certain raw materials, supplies, and services.

The future extent to which supply chain disruptions may have a material effect on Abbott’s operating results is uncertain.

A more detailed discussion on the supply chain disruptions impact on Abbott’s business is contained in the “Financial Review” section in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

For information on Abbott’s voluntary recall in February 2022 of certain powder infant formula products manufactured at its facility in Sturgis, Michigan, the manufacturing stoppage at such facility, and the consent decree that Abbott entered into with the FDA on May 16, 2022, see the discussion in the “Financial Review” section in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

EUAs are authorized pursuant to an EUA Declaration under the U.S. Food, Drug, and Cosmetic Act and remain in effect until the Secretary of the U.S. Department of Health and Human Services terminates the EUA Declaration or unless sooner terminated or revoked.

Risk Factors.” On January 30, 2023, the U.S. announced that it plans to end the public health emergency on May 11, 2023.

Abbott is evaluating the potential impacts of the end of the public health emergency, and it will continue to monitor further regulatory actions from relevant U.S. government agencies and assess potential impacts on pandemic-related government policies and product authorizations.

Further, the demand for COVID-19 tests has been volatile over the last two years as the number of COVID-19 cases has fluctuated during the period.

Abbott expects the COVID-19 pandemic to shift to an endemic state in 2023, which would likely result in significantly lower demand for COVID-19 tests.

Sales outside of the United States in 2022 made up approximately 58 percent of Abbott’s net sales.

Many of these factors may manifest individually or collectively, such as Russia’s invasion of Ukraine which resulted in political instability, sanctions, economic and currency volatility, inflation and other operational and supply disruptions.

To date, Abbott has been able to manage these disruptions without material impact to its results of operations.

However, it is difficult to predict the future implications and consequences of the situation on local, regional or global economies and Abbott’s operations.

There could be additional sanctions, economic volatility, cybersecurity threats, political instability, transportation and other supply disruptions, as well as collection default risk or limited availability of resources to conduct essential business processes that could have a material adverse impact to Abbott’s operations and financial condition.

The resolution and long-term impact of this matter are uncertain and difficult to predict.

Product liability losses are self-insured.

To date, the COVID-19 pandemic has affected Abbott's diversified health care business in various ways, with some businesses performing at the levels required to successfully meet new demands, other having faced challenges during periods when the number of COVID-19 cases significantly increased, and still others being relatively less impacted by the pandemic.

EUAs are authorized for the duration of the COVID-19 public health emergency unless sooner terminated or revoked.

Risk Factors.” Further, the demand for COVID-19 tests has been, and Abbott expects it to continue to be, highly volatile, primarily driven by the emergence and severity of new variants, which are unpredictable.

Significant disruptions or shortages may result in Abbott’s inability to meet customer demand for certain of its products.

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[removed: Financial Review][added: Financial Review]

Sales in international markets comprise [removed: approximately 61] [added: 58] percent of consolidated net sales.

[removed: In 2020 and 2021, the] [added: The] coronavirus (COVID-19) pandemic affected Abbott’s diversified health care businesses in various [removed: ways.][added: ways over the 2020 through 2022 period.]

Abbott’s Diagnostics segment experienced the most significant change in sales from [removed: 2019] [added: 2020] to [removed: 2021] [added: 2022] as a result of the COVID-19 pandemic.

[added: (The Diagnostics segment includes the Rapid Diagnostics, Core Laboratory Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions.)] In 2020 and 2021, Abbott mobilized its teams across multiple fronts to develop and launch various new diagnostic tests [removed: for] [added: to detect] COVID-19.

[removed: In March 2020, Rapid Diagnostics launched] [added: -] a molecular test [removed: to detect COVID-19] on [removed: its] [added: Abbott’s] ID NOW® rapid point-of-care platform [added: launched] in [removed: the U.S. pursuant to an Emergency Use Authorization (EUA).][added: March 2020,]

[removed: In August 2020, Abbott launched its] [added: - the professional] BinaxNOW® COVID-19 Ag Card test, a portable, lateral flow rapid test [removed: to detect COVID-19 pursuant to an EUA] [added: launched] in [removed: the U.S. In December] [added: August] 2020, [removed: Abbott received an EUA in the U.S. for virtually guided at-home use of its BinaxNOW COVID-19 Ag Card rapid test] and [removed: launched the product for at-home use.]

[removed: In March 2021, Abbott announced that it had received] [added: -] an [removed: EUA in the U.S. for its] over-the-counter, non-prescription BinaxNOW COVID-19 Ag Self Test for individuals with or without [removed: symptoms.][added: symptoms launched in March 2021.]

In 2020, Molecular Diagnostics developed and launched molecular tests to detect COVID-19 using polymerase chain reaction (PCR) methods on its m2000® [removed: RealTi_m_e] [added: RealTi*m*e] lab-based platform and its Alinity® m system pursuant to EUAs in the U.S. and CE Marks.

In 2020 and 2021, Core Laboratory Diagnostics developed and launched various lab-based serology blood tests on its ARCHITECT® i1000SR® and ARCHITECT i2000SR® laboratory instruments and on its Alinity i system for the detection of an antibody to determine if someone was previously infected with the [added: COVID-19] virus.

[removed: In 2020 and 2021,] Abbott’s COVID-19 testing-related sales totaled approximately [removed: $3.9] [added: $8.4] billion [removed: and] [added: in 2022,] $7.7 [removed: billion, respectively,] [added: billion in 2021, and $3.9 billion in 2020,] led by sales related to Abbott’s BinaxNOW, Panbio and ID NOW rapid testing platforms.

With respect to other products sold by the Diagnostics segment, demand for routine diagnostic testing generally fluctuated [removed: as] [added: with changes in] the number of COVID-19 cases [removed: changed] in various geographic regions throughout the [removed: two-year] [added: 2020 - 2022] period.

[removed: While routine diagnostic testing and] [added: In 2021, while procedure volumes across Abbott’s] cardiovascular and neuromodulation [removed: procedure volumes] [added: businesses] were negatively impacted early in [removed: 2021] [added: the year] by elevated COVID-19 case [removed: rates,] [added: rates in certain countries, including the U.S.,] overall volumes improved over the course of [removed: the year until the latter part of] 2021 [removed: when demand softened in several geographies with the emergence of another variant.][added: across various businesses.]

While Abbott’s branded generic pharmaceuticals business was also negatively affected by the pandemic in 2020 as COVID-19 spread across emerging market [removed: countries in the second and third quarters of 2020,] [added: countries,] volumes recovered and grew in [removed: 2021.][added: 2021 and 2022.]

Abbott’s nutritional and diabetes care businesses were the least affected by the [removed: pandemic as is further discussed below.][added: pandemic.]

Due to the unpredictability of the [removed: duration and impact of the COVID-19] pandemic, [added: including how and when it will shift to an endemic state,] the extent to which [removed: the pandemic] [added: COVID-19] will have a material effect on [removed: Abbott’s] [added: Abbott's] business, financial condition or results of operations is uncertain.

While Abbott’s [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] sales were most significantly affected by the COVID-19 pandemic, the increase in total sales [removed: over the last three years] [added: since 2020] also reflects the introduction of new products across various businesses as well as higher sales of various existing products.

Sales in emerging markets, which represent approximately 35 percent of total company sales, increased [removed: 19.6] [added: 5.6] percent in [removed: 2021] [added: 2022] and [removed: 2.0] [added: 19.6] percent in [removed: 2020,] [added: 2021,] excluding the impact of foreign exchange.

Over the last three years, Abbott’s operating margin as a percentage of sales increased from [removed: 14.2] [added: 15.5] percent in [removed: 2019] [added: 2020] to [removed: 15.5] [added: 19.6] percent in [removed: 2020] [added: 2021] and [removed: 19.6] [added: then decreased to 19.2] percent in [removed: 2021.][added: 2022.]

The increase in 2021 from 2020 reflects the impact of sales volume increases for COVID-19 tests in Rapid Diagnostics and growth across virtually all of Abbott’s businesses due, in part, to [added: partial] recovery from the COVID-19 pandemic, partially offset by the impact of inflation and supply chain challenges on various manufacturing inputs and transportation [removed: costs,] [added: costs and] an increase in restructuring [removed: costs, and the unfavorable effect of foreign exchange.][added: costs.]

In [added: 2022 and] 2021, Abbott experienced availability issues with some services and materials used in its products.

While Abbott expects inflationary pressures on various raw materials, packaging materials and transportation costs to continue in [removed: 2022,] [added: 2023,] the impact of such cost increases is expected to be at least partially mitigated by price increases in certain businesses and the impact of continued gross margin improvement initiatives.

With respect to the performance of each reportable segment over the last three years, sales in the Medical Devices segment, excluding the impact of foreign exchange, increased [removed: 19.4] [added: 8.1] percent in [removed: 2021] [added: 2022] and [removed: decreased 3.8] [added: 19.4] percent in [removed: 2020.][added: 2021.]

The sales increase in 2021 was driven by double-digit growth across all of Abbott’s Medical Devices divisions, led by Diabetes Care, Structural Heart and [removed: Electrophysiology.][added: Electrophysiology, due, in part, to a partial recovery from the COVID-19 pandemic.]

In [removed: 2021,] [added: 2022,] operating earnings for the Medical Devices segment [removed: increased 48.6] [added: decreased 2.3] percent.

In [removed: 2021,] [added: 2022,] key product approvals in the Medical Devices segment included:

In Abbott’s [removed: worldwide diagnostics business,] [added: Diagnostics segment,] sales increased [removed: 42.7] [added: 10.4] percent in [removed: 2021] [added: 2022] and [removed: 40.6] [added: 42.7] percent in [removed: 2020,] [added: 2021,] excluding the impact of foreign exchange.

As was discussed above, sales growth in [added: 2022 and] 2021 was driven by demand for Abbott's portfolio of rapid diagnostics tests for COVID-19 and higher routine diagnostics testing in the core laboratory business, partially offset by lower demand for Abbott’s laboratory-based tests for COVID-19 in the molecular diagnostics business.

Abbott has obtained regulatory approval for the “Alinity h” [removed: instrument] [added: system] for hematology in [removed: Europe] [added: Europe, Japan] and [removed: Japan.][added: other regions.]

In [removed: 2021,] [added: 2022,] operating earnings for the Diagnostics segment increased [removed: 68.0] [added: 6.6] percent.

The operating margin profile increased from [removed: 24.8] [added: 34.3] percent of sales in [removed: 2019] [added: 2020] to [removed: 40.0] [added: 40.2] percent in [removed: 2021] [added: 2022] primarily due to higher sales in Rapid Diagnostics [removed: in 2020] and [removed: 2021 and] [added: the impact of] increased routine diagnostics testing [removed: in 2021 in] [added: on] Core Laboratory [removed: Diagnostics.][added: Diagnostics versus 2020 levels.]

Excluding the impact of foreign exchange, total adult nutrition sales increased [removed: 12.8] [added: 4.8] percent in [removed: 2021] [added: 2022] and [removed: 10.3] [added: 12.8] percent in [removed: 2020,] [added: 2021,] led by the continued growth of Ensure®, Abbott’s market-leading complete and balanced nutrition brand, and Glucerna®, Abbott’s market-leading diabetes-specific nutrition brand, across several countries.

Excluding the impact of foreign exchange, total pediatric nutrition sales increased 3.3 percent in 2021 [removed: and 0.3 percent in 2020] driven by the Pedialyte®, PediaSure® and [removed: Similac®] [added: Similac] brands in the U.S. as well as infant and toddler product growth across several international markets, partially offset by challenging market dynamics in the [removed: infant category in] Greater [removed: China.][added: China infant category.]

Operating margins for the worldwide nutritional products business decreased from [removed: 23.0] [added: 22.9] percent in [removed: 2019] [added: 2020] to [removed: 21.3] [added: 9.5] percent in [removed: 2021.][added: 2022.]

The decrease was driven by [added: the impact of the voluntary infant product recall and manufacturing stoppage as well as] higher manufacturing and distribution costs, including commodity prices, partially offset by the impact of gross margin improvement [removed: initiatives.][added: initiatives and select product price increases.]

Excluding the impact of foreign exchange, Established Pharmaceutical sales increased [removed: 10.4] [added: 10.6] percent in [removed: 2021] [added: 2022] and [removed: 1.9] [added: 10.4] percent in [removed: 2020.][added: 2021.]

The sales increases in [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] reflect higher sales in several geographies including India, China, [removed: Brazil] and [removed: Russia.][added: Brazil.]

Operating margins [removed: decreased] [added: increased] from [removed: 20.1] [added: 18.5] percent of sales in [removed: 2019] [added: 2020] to [removed: 18.8] [added: 21.4] percent in [removed: 2021] [added: 2022] primarily due to the [removed: unfavorable] impact of [removed: foreign exchange, higher product costs] [added: gross margin improvement initiatives] and [removed: product mix,] [added: higher selling prices] partially offset by [removed: the impact of gross margin improvement initiatives.][added: inflation on various product inputs.]

With respect to Abbott’s financial position, at December 31, [added: 2022 and] 2021, Abbott’s cash and cash equivalents and short-term investments total approximately $10.2 [removed: billion compared to $7.1 billion at December 31, 2020.][added: billion.]

Abbott’s long-term debt [removed: and short-term borrowings total $18.1] [added: totals $16.8] billion and [removed: $18.7] [added: $18.1] billion at December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively.

Rapid diagnostic tests developed by Abbott to detect COVID-19 included, among others, the following:

Each of these tests was launched in the U.S. pursuant to an Emergency Use Authorization (EUA).

The demand for COVID-19 tests has been volatile over the last two years as the number of COVID-19 cases, especially in the U.S., has fluctuated during this period.

On January 30, 2023, the U.S. government announced that it plans to end the COVID-19 public health emergency on May 11, 2023.

Abbott is evaluating the potential impacts of the end of the public health emergency, and it will continue to monitor further regulatory actions from relevant U.S. government agencies and assess potential impacts on pandemic-related government policies and product authorizations.

Abbott expects the COVID-19 pandemic to shift to an endemic state in 2023, which would likely result in significantly lower demand for COVID-19 tests.

Across Abbott’s cardiovascular and neuromodulation businesses, procedure volumes were negatively impacted in 2021 and 2022 by surges of COVID-19 in various geographies as well as intermittent COVID-19 lockdown restrictions and healthcare staffing challenges.

Despite such challenges, overall volume trends improved in several cardiovascular businesses in 2021 and 2022.

In U.S. Pediatric Nutritionals, Abbott initiated a voluntary recall in February 2022 of certain infant powder formula products manufactured at its facility in Sturgis, Michigan and stopped production at the facility.

On May 16, 2022, Abbott entered into a consent decree with the U.S. Food and Drug Administration (FDA) on the steps necessary to resume production and maintain the Sturgis facility and operations.

On July 1, Abbott restarted partial production at the facility beginning with its specialty formula EleCare® and metabolic formulas.

Subsequently, Abbott restarted Similac® production.

The consent decree does not affect any other Abbott plants or operations.

In 2022, Abbott took various actions to mitigate the impact of the recall on the supply of formula in the U.S. These actions included the shipment of infant formula powder into the U.S. from Abbott's FDA-registered facility in Ireland; prioritization of infant formula production at its Columbus, Ohio facility; conversion of other liquid manufacturing lines into manufacturing Similac liquid ready-to-feed product; increased production of powder infant formula at its Casa Grande, Arizona manufacturing site; and importation of product from its facility in Spain as permitted by the FDA.

The decrease in 2022 from 2021 reflects the impact of the voluntary infant product recall and manufacturing stoppage in U.S. Pediatric Nutritionals and the impact of inflation and supply chain challenges on various manufacturing inputs and transportation costs across Abbott's businesses, partially offset by the favorable impact of margin improvement initiatives.

The future extent to which inflation, supply chain disruptions, and unfavorable foreign exchange rates may have a material effect on Abbott's operating results is uncertain.

The sales increase in 2022 was driven by growth in Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure.

Excluding the impact of foreign exchange, Medical Devices operating earnings increased 9.3 percent.

The operating margin profile for the Medical Devices segment increased from 25.8 percent of sales in 2020 to 31.4 percent in 2021 and then decreased to 30.0 percent in 2022.

The overall increase over the two years reflects the impact of higher sales volumes across the Medical Device businesses, partially offset by continued pricing pressures on drug eluting stents (DES) and other products.

The decrease in 2022 from 2021 reflects various factors, including the impacts of inflationary pressures and supply chain challenges related to various manufacturing inputs and processes.

- FDA clearance for the EnSite® X EP System with EnSite OT, which leverages the Advisor® HD Grid Catheter to provide a 360‑degree view of the heart without regard to the orientation of the catheter in the heart,

- FDA clearance of the Freestyle Libre® 3 system which automatically delivers up-to-the minute glucose readings and 14-day accuracy in a wearable sensor,

- FDA approval for an expanded indication for the CardioMEMS® HF system, a small implantable pulmonary artery sensor and remote monitoring system that can detect early warning signs of worsening heart failure,

- FDA approval for the Aveir® single-chamber leadless pacemaker for the treatment of patients with slow heart rhythms, and

- FDA approval of the EternaTM rechargeable spinal cord stimulation system for the treatment of chronic pain.

In Abbott’s Nutritional Products segment, total pediatric nutrition sales, excluding the impact of foreign exchange, decreased 16.6 percent in 2022 as a result of the voluntary recall and manufacturing stoppage discussed above as well as challenging market dynamics in Greater China.

In December 2022, Abbott initiated steps to exit its pediatric nutrition business in China.

In 2022, operating earnings for the Nutritional Products segment decreased 60.0 percent.

In 2022, operating earnings for the Established Pharmaceutical Products segment increased 18.0 percent.

Abbott declared dividends of $1.92 per share in 2022 and $1.82 per share in 2021, an increase of approximately 5.5 percent.

On February 8, 2023, Abbott entered into a definitive agreement to acquire Cardiovascular Systems, Inc. (CSI).

CSI sells an atherectomy system used in treating peripheral and coronary artery disease.

The acquisition, which is expected to add complementary technologies to Abbott’s portfolio of vascular device offerings, is subject to the approval of CSI shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Under the terms of the agreement, Abbott will pay $20 per common share at a total expected equity value of approximately $890 million.

The acquisition is expected to be funded with cash on hand.

In its diagnostics business, Abbott's focus will include driving sales growth from its Alinity suite of diagnostics instruments and its portfolio of rapid diagnostic testing systems as well as continuing to meet COVID-19 test demand.

In its nutritional business, Abbott will continue to focus on executing the actions needed to achieve a recovery in its infant formula business and growth globally.

The significant net actuarial gains for these plans in 2022 reflects the impact of higher discount rates on the measurement of plan liabilities, partially offset by lower asset returns during the year.

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As is further described below, some businesses have performed at the levels required to successfully meet new demands, others have faced challenges during periods when the number of COVID-19 cases significantly increased, and still others have been relatively less impacted by the pandemic.

In the first quarter of 2021, Abbott also received EUAs in the U.S. that allow the non-prescription use of the BinaxNOW COVID-19 Ag Card Home Test and the BinaxNOW COVID-19 Ag Card test for professional use for individuals with or without symptoms.

In October 2020, Abbott received approval by the World Health Organization for emergency use listing for the Panbio antigen test.

In January 2021, Abbott received CE Mark for two new uses of its Panbio rapid antigen test: asymptomatic testing and self-swabbing under the supervision of a healthcare worker.

2021 volumes were affected by fluctuations in the number of COVID-19 cases, especially in the U.S., over the course of the year.

In the second quarter of 2021, demand for COVID-19 tests decreased from the previous quarter as COVID-19 vaccines were administered, COVID-19 cases and hospitalizations declined, and the U.S. health authority updated its guidance on testing for fully vaccinated individuals.

However, in the second half of 2021, as the Delta and Omicron variants of COVID-19 spread and the number of new COVID-19 cases increased, demand for rapid COVID-19 tests increased significantly.

In 2020, in addition to negatively impacting routine core diagnostic testing volumes, the pandemic negatively affected the number of cardiovascular and neuromodulation procedures performed by health care providers globally, thereby reducing the demand for Abbott’s cardiovascular and neuromodulation devices and routine diagnostic tests.

The decrease began in February 2020 in China as that country implemented quarantine restrictions and postponed non-emergency health care activities.

The negative impact on cardiovascular and neuromodulation procedures and routine diagnostic tests expanded to other countries and geographic regions as COVID-19 spread geographically in the first half of 2020 and health care systems in these countries shifted their focus to fighting COVID-19.

The extent of the impact and the timing of a recovery in the number of procedures and routine testing in a particular country or geographic region depended upon the progression of COVID-19 cases in that country or region as well as the actions taken by the government in that country related to COVID-19.

In 2020, the recovery in procedures and routine testing volumes in China began in March 2020.

In other parts of the world, such as the U.S. and Europe, volumes improved across Abbott’s hospital-based businesses as the second quarter progressed and the improvement continued in the third quarter.

However, in the fourth quarter of 2020, the improving trends in the demand for procedures and routine testing flattened or were negatively impacted depending upon the business and the region as many countries, including the U.S., experienced an increase in the number of COVID-19 cases and hospitalizations.

The demand for COVID-19 tests has been highly volatile.

Abbott expects this volatility to continue as the possible emergence and severity of new variants are unpredictable.

The increase in 2020 reflects the sales volume increases in the rapid and molecular diagnostics businesses, partially offset by lower Medical Devices sales due to the impact of the pandemic and the unfavorable effect of foreign exchange.

In addition, a reduction in the costs associated with business acquisitions and restructuring activities drove an improvement in operating margins from 2019 to 2020.

The sales decrease in 2020 was driven by Abbott’s cardiovascular and neuromodulation businesses due primarily to reduced procedure volumes as a result of the COVID-19 pandemic.

These decreases were partially offset by double-digit growth in Diabetes Care.

The operating margin profile increased from 30.8 percent of sales in 2019 to 31.4 percent in 2021 primarily due to higher sales volumes in Diabetes Care and Abbott’s cardiovascular and neuromodulation businesses.

This growth was partially offset by pricing pressures on drug eluting stents (DES) as a result of market competition in the U.S. and other major markets.

| | ● | CE Mark in Europe for Navitor™, Abbott’s latest-generation transcatheter aortic valve implantation (TAVI) system for patients with severe aortic stenosis who are at high or extreme surgical risk, |

| --- | --- | --- |

| | ● | U.S. Food and Drug Administration (FDA) approval of the Amplatzer® Amulet® Left Atrial Appendage Occluder, which offers immediate closure of the left atrial appendage, an area in the heart where blood clots can form, |

| | ● | FDA approval of the Portico® with FlexNav® TAVI system to treat people with symptomatic, severe aortic stenosis who are at high or extreme risk for open heart surgery, and |

| | ● | FDA approval of the Amplatzer Talisman™ PFO Occlusion System to treat people with a patent foramen ovale – a small opening between the upper chambers of the heart – who are at risk of recurrent ischemic stroke. |

Growth in 2020 was driven by demand for Abbott's portfolio of COVID-19 diagnostics tests across its rapid and lab-based platforms, partially offset by lower volumes of routine laboratory testing due to the pandemic.

In Abbott’s worldwide nutritional products business, sales over the last three years were positively impacted by numerous new product introductions, including the roll-outs of human milk oligosaccharide, or HMO, in infant formula, that leveraged Abbott’s strong brands.

Sales over the last two years were also positively impacted by consumers’ interest in nutrients that help support their immune systems.

In its diagnostics business, Abbott will continue to focus on driving market adoption and geographic expansion of its Alinity suite of diagnostics instruments.

In its nutritionals business, Abbott will continue to focus on driving growth globally and further enhancing its portfolio with the introduction of line extensions of its science-based products.

Inventory in the retail distribution channel does not vary substantially.

The impact of higher interest rates and improved asset returns during 2021 significantly decreased the net actuarial losses for these plans.

​

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2020 vs. 2019 | | 8.5 | | (0.4) | | 10.2 | | (1.3) |

| Total U.S. | | ​ | | ​ | | ​ | | ​ |

| 2020 vs. 2019 | | 14.2 | | (1.1) | | 15.3 | | — |

[removed: Financial] [added: Financial] Instruments and Risk [removed: Management][added: Management]

[removed: Market] [added: Market] Price Sensitive [removed: Investments][added: Investments]

The fair value of equity securities held by Abbott with a readily determinable fair value was approximately [removed: $11] [added: $9] million and [removed: $20] [added: $11] million as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively.

A hypothetical 20 percent decrease in the share prices of these investments would decrease their fair value at December 31, [removed: 2021] [added: 2022] by approximately $2 million.

The fair value of investments in mutual funds that are held in a rabbi trust for the purpose of paying benefits under a deferred compensation plan was approximately [removed: $391] [added: $298] million and [removed: $366] [added: $391] million as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively.

[removed: Non-Publicly] [added: Non-Publicly] Traded Equity [removed: Securities][added: Securities]

The carrying value of these investments was [removed: $90] [added: $83] million and [removed: $113] [added: $90] million as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively.

[removed: Interest] [added: Interest] Rate Sensitive Financial [removed: Instruments][added: Instruments]

At December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] Abbott had interest rate hedge contracts totaling $2.9 billion to manage its exposure to changes in the fair value of debt.

The fair value of long-term debt at December 31, [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] amounted to [removed: $21.2] [added: $16.3] billion and [removed: $22.8] [added: $21.2] billion, respectively (average interest rates of [removed: 3.4%] [added: 3.5%] and [removed: 3.3%] [added: 3.4%] as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively) with maturities through 2046.

At December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] the fair value of current and long-term investment securities amounted to approximately [removed: $1.3] [added: $1.1] billion and [removed: $1.1] [added: $1.3] billion, respectively.

[removed: Foreign] [added: Foreign] Currency Sensitive Financial [removed: Instruments][added: Instruments]

At December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] Abbott held [removed: $8.6] [added: $7.7] billion and [removed: $8.1] [added: $8.6] billion, respectively, of such contracts.

Contracts held at December 31, 2021 [removed: will mature] [added: matured] in 2022 or [added: will mature in] 2023 depending upon the contract.

Contracts held at December 31, [removed: 2020 matured in 2021 or] [added: 2022] will mature in [removed: 2022] [added: 2023 or 2024] depending [removed: upon] [added: on] the contract.

At December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] Abbott held [removed: $12.2] [added: $12.0] billion and [removed: $11.0] [added: $12.2] billion, respectively, of such contracts, which mature in the next 13 months.

[removed: In November 2019,] Abbott [removed: borrowed ¥59.8 billion under] [added: has designated] a [added: yen-denominated,] 5-year term loan [added: of approximately $446 million] and [removed: designated the yen-denominated loan] [added: $521 million] as [added: of December 31, 2022 and December 31, 2021, respectively, as] a hedge of the net investment in certain foreign subsidiaries.

The change in the value of the debt, which is due to changes in foreign exchange rates, [removed: was] [added: is] recorded in Accumulated other comprehensive income (loss), net of tax.

The following table reflects the total foreign currency forward exchange contracts outstanding at December 31, [removed: 2021] [added: 2022] and [removed: 2020:][added: 2021:]

| Primarily U.S. dollars to be exchanged for the following currencies: | | [removed: ​] | | | | | [removed: ​] | | | [removed: ​] | | | | | [removed: ​] | | [added: | | | | | | | | | | | | | | | | | | | | | |]

| Euro | [removed: ​] | [added: | | | |] $ | [removed: 8,698] [added: 7,656] | | [removed: 1.1360] | [removed: ​] | [added: | 1.0664 | | | | | |] $ | [removed: 90] [added: 92] | [removed: ​] | [added: | | |] $ | [removed: 7,781] [added: 8,698] | | [removed: 1.1821] | [removed: ​] | [added: | 1.1360 | | | | | |] $ | [removed: (91)] [added: 90] | [added: |]

| Chinese Yuan | [removed: ​] | | [added: | | | 2,264 | | | | | | 6.8825 | | | | | | 12 | | | | | |] 2,148 | | [removed: 6.5744] | [removed: ​] | | [removed: (35)] | [removed: ​] [added: 6.5744] | | [removed: 2,401] | | [removed: 6.4900] | [removed: ​] | [added: (35)] | [removed: (99)] | [added: |]

| Japanese Yen | [removed: ​] | | [added: | | | 1,797 | | | | | | 133.0344 | | | | | | (7) | | | | | |] 1,497 | | [removed: 111.7260] | [removed: ​] | | [removed: 31] | [removed: ​] [added: 111.7260] | | [removed: 1,589] | | [removed: 105.3861] | [removed: ​] | [added: 31] | [removed: (20)] | [added: |]

| All other currencies | [removed: ​] | | [removed: 8,426] | | [added: | 8,029 | | | | | |] n/a | [removed: ​] | | [removed: 109] | [removed: ​] | | [removed: 7,369] [added: 89] | | [added: | | | | 8,426 | | | | | |] n/a | [removed: ​] | | [removed: (198)] | [added: | | 109 | | |]

| Total | [removed: ​] | [added: | | | |] $ | [removed: 20,769] [added: 19,746] | | [removed: ​] | [removed: ​] | [added: | | | | | | |] $ | [removed: 195] [added: 186] | [removed: ​] | [added: | | |] $ | [removed: 19,140] [added: 20,769] | | | [removed: ​] | [added: | | | | | | |] $ | [removed: (408)] [added: 195] | [added: |]

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | 2022 | | | | | | | | | | | | | | | | | | 2021 | | | | | | | | | | | | | | |

| (dollars in millions) | | | | | | Contract Amount | | | | | | Weighted Average Exchange Rate | | | | | | Fair and Carrying Value Receivable/ (Payable) | | | | | | Contract Amount | | | | | | Weighted Average Exchange Rate | | | | | | Fair and Carrying Value Receivable/ (Payable) | | |

The proceeds equated to approximately $550 million.

The value of this long-term debt was approximately $521 million and $577 million as of December 31, 2021 and December 31, 2020, respectively.

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | 2021 | | | | | | | ​ | 2020 | | | | | | |

| ​ | | ​ | ​ | | Weighted | | Fair and | | | ​ | ​ | | Weighted | | Fair and | |

| ​ | ​ | ​ | ​ | ​ | Average | ​ | Carrying Value | | ​ | ​ | ​ | ​ | Average | ​ | Carrying Value | |

| ​ | ​ | Contract | | ​ | Exchange | ​ | Receivable/ | | ​ | Contract | | ​ | Exchange | ​ | Receivable/ | |

| (dollars in millions) | ​ | Amount | | ​ | Rate | ​ | (Payable) | | ​ | Amount | | ​ | Rate | ​ | (Payable) | |

[removed: GENERAL] [added: GENERAL] DEVELOPMENT OF [removed: BUSINESS][added: BUSINESS]

[removed: NARRATIVE] [added: NARRATIVE] DESCRIPTION OF [removed: BUSINESS][added: BUSINESS]

[removed: Established] [added: Established] Pharmaceutical [removed: Products][added: Products]

These products are generally sold directly to wholesalers, distributors, government agencies, health care facilities, pharmacies, and independent retailers from Abbott-owned distribution centers [removed: and] [added: or] public warehouses, depending on the market served.

[removed: | | ● |] [added: -] gastroenterology products, including Creon™, for the treatment of pancreatic exocrine insufficiency associated with several underlying conditions, including cystic fibrosis and chronic pancreatitis; Duspatal™ and Dicetel™, for the treatment of irritable bowel syndrome or biliary spasm; Heptral™, Transmetil™, and Samyr™, for the treatment of intrahepatic cholestasis (associated with liver disease) or depressive symptoms; and Duphalac™, for regulation of the physiological rhythm of the colon; [removed: |]

[removed: | | ● |] [added: -] women’s health products, including Duphaston™, for the treatment of many different gynecological disorders; and Femoston™, a hormone replacement therapy for postmenopausal women; [removed: |]

[removed: | | ● |] [added: -] cardiovascular and metabolic products, including Lipanthyl™ and TriCor™, for the treatment of dyslipidemia; Teveten™ and Teveten™ Plus, for the treatment of essential hypertension, and Physiotens™, for the treatment of hypertension; and Synthroid™, for the treatment of hypothyroidism; [removed: |]

[removed: | | ● |] [added: -] pain and central nervous system products, including Serc™, for the treatment of Ménière’s disease and vestibular vertigo; Brufen™, for the treatment of pain, fever, and inflammation; and Sevedol™, for the treatment of severe migraines; and [removed: |]

[removed: | | ● |] [added: -] respiratory drugs and vaccines, including the anti-infective clarithromycin (sold under the trademarks Biaxin™, Klacid™, and Klaricid™); and Influvac™, an influenza vaccine. [removed: |]

[removed: * As] [added: *As] used throughout the text of this report on Form 10-K, the term “Abbott” refers to Abbott Laboratories, an Illinois corporation, or Abbott Laboratories and its consolidated subsidiaries, as the context requires.

[removed: Diagnostic Products][added: Diagnostic Products]

[removed: | | ● | core laboratory] [added: These] systems [removed: in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine, including the Alinity® family of instruments, ARCHITECT®, ABBOTT PRISM®, and Cell-Dyn®, with assays] [added: are] used for screening and/or diagnosis for cancer, [removed: cardiac, metabolics,] [added: cardiac and metabolic disorders,] drugs of abuse, [added: thyroid function,] fertility, [added: neurologic and] general chemistries, infectious diseases such as hepatitis and HIV, therapeutic drug monitoring, and a suite of SARS-CoV-2 serology assays; [removed: |]

[removed: | | ● |] [added: -] molecular diagnostics polymerase chain reaction (PCR) instrument systems, including Alinity® m and [removed: m2000®] [added: m2000™] that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents including HIV, hepatitis, HPV, sexually transmitted infections, SARS-CoV-2 and influenza A & B, and respiratory syncytial virus [removed: (RSV);and] [added: (RSV); and] products for oncology with the Vysis® FISH product line of genomic-based tests; [removed: |]

[removed: | | ● |] [added: -] point of care systems, including the i-STAT® and next-generation i-STAT® Alinity® and cartridges for testing blood gas, chemistry, electrolytes, coagulation and immunoassay; [removed: |]

[removed: | | ● |] [added: -] rapid diagnostics lateral flow testing products in the area of infectious diseases such as SARS-CoV-2, including the BinaxNOW® and Panbio® rapid testing platforms, influenza, HIV, hepatitis, and tropical diseases such as malaria and dengue fever; molecular point-of-care testing for HIV, including the m-PIMA® HIV-1/2 Viral Load Test, and for SARS-CoV-2 and influenza A & B, RSV and strep A, including the ID NOW® rapid molecular system; cardiometabolic testing, including Afinion® and Cholestech LDX® platforms and tests; a toxicology business for drug and alcohol testing; and [removed: remote patient monitoring and] consumer self-testing; and [removed: |]

[removed: | | ● |] [added: -] informatics and automation solutions for use in laboratories, including laboratory automation systems such as the GLP [removed: track system,the] [added: systems track™, the] RALS® point of care solution, and AlinIQ®, a suite of informatics tools and professional services. [removed: |]

[removed: Nutritional Products][added: Nutritional Products]

[removed: | | ● |] [added: -] various forms of infant formula and follow-on formula, including Similac®, Similac® 360 Total Care®, Similac Pro-Advance®, Similac® Advance®, Similac® [removed: Advance® Non-GMO,] [added: 360 Total Care® Sensitive,] Similac Pro-Sensitive®, Similac Sensitive®, [removed: Similac Sensitive® Non-GMO, Go&Grow] [added: Go & Grow] by Similac®, Similac® NeoSure®, Similac® Organic, Similac® Special Care®, Similac Total Comfort®, Similac® [removed: For Supplementation, Isomil® Advance®,] [added: Soy] Isomil®, [added: Similac®] Alimentum®, [added: EleCare®,] Gain™, [removed: Grow™, Similac En Mei Li™,] and [removed: Eleva™; |][added: Grow™;]

[removed: | | ● |] [added: -] adult and other pediatric nutritional products, including Ensure®, Ensure Plus®, Ensure® Enlive®, Ensure® (with NutriVigor®), Ensure® Max Protein, Ensure® High Protein, Glucerna®, Glucerna Hunger Smart®, ProSure™, PediaSure®, PediaSure SideKicks®, PediaSure® Peptide, [removed: EleCare®,] Juven®, Abound™, Pedialyte® and Zone Perfect®; and [removed: |]

[removed: | | ● |] [added: -] nutritional products used in enteral feeding in health care institutions, including Jevity®, Glucerna® 1.2 Cal, Glucerna® 1.5 Cal, Osmolite®, Oxepa®, Freego™ (Enteral Pump) and Freego™ sets, Nepro®, and Vital®. [removed: |]

[removed: Medical Devices][added: Medical Devices]

[removed: | | ● |] [added: -] rhythm management products, including Assurity MRI® and Endurity MRI® pacemaker [removed: systems;] [added: systems, and Aveir® VR single-chamber VR leadless pacemaker system;] Ellipse®, Fortify Assura®, and [removed: Gallant™] [added: Gallant®] implantable cardioverter defibrillators and Gallant and Quadra Assura MP® implantable cardioverter defibrillator with cardiac resynchronization therapy and [removed: MultiPoint®] [added: MultiPoint™] Pacing technology; and Confirm Rx® and Jot [removed: Dx™] [added: Dx®] implantable cardiac monitors; [removed: |]

[removed: | | ● |] [added: -] electrophysiology products, including the [added: TactiFlex™ and] TactiCath® [removed: family] [added: families] of ablation [removed: catheters] [added: catheters,] and FlexAbility® irrigated ablation catheters; [removed: Ampere® RF ablation generator;] EnSite® family of cardiac mapping systems; [removed: Agilis™] [added: Agilis®] NxT [removed: Steerable Introducer;] [added: and Swartz™ introducer catheters;] the Advisor® HD Grid mapping catheter; [added: and] ViewFlex™ family of intracardiac echocardiography catheters; [removed: and ViewMate™ Ultrasound System; |]

[removed: | | ● |] [added: -] heart failure related products, including the HeartMate® left ventricular [added: assist] device family, the CardioMEMS® HF System pulmonary artery sensor, a heart failure monitoring system, and the CentriMag® System, an acute [added: mechanical] circulatory support system; [removed: |]

[removed: | | ● |] [added: -] vascular products, including the XIENCE® family of drug-eluting coronary stent systems developed on the Multi-Link Vision® platform; StarClose SE®, Perclose ProGlide® and Perclose ProStyle® vessel closure devices, TREK® coronary balloon dilatation products, Hi-Torque Balance Middleweight Universal II® guidewires, Supera® Peripheral Stent System, a peripheral vascular stent system; Acculink®/Accunet® and Xact®/Emboshield NAV6®, carotid stent systems; the OPTIS® integrated systems with Ultreon™ 1.0 Software, compatible with the Dragonfly OPTIS® imaging catheter and PressureWire® fractional flow reserve measurement systems; and the [removed: JETi™] [added: JETi®] peripheral thrombectomy systems for clot removal; [removed: |]

[removed: | | ● |] [added: -] structural heart products, including MitraClip®, a [removed: transcatheter] mitral valve [added: transcatheter edge-to-edge] repair system; [removed: Trifecta® Valve with Glide™ Technology,] [added: TriClip®,] a [added: tricuspid valve transcatheter edge-to-edge repair system; Epic®, a] surgical [removed: tissue heart valve;] [added: family of aortic valve and mitral valve replacement devices;] Portico® and Navitor™ transcatheter aortic heart valves; Regent™ [added: and Masters Series™] mechanical heart valves; Amplatzer® PFO occluders; Amplatzer Amulet® occluder devices; [added: and] the Tendyne® [removed: Transcatheter Mitral Valve Implantation (TMVI)] [added: transcatheter mitral valve replacement] system; [removed: and the TriClip® Transcatheter Tricuspid Valve Repair System; |]

[removed: | | ● |] [added: -] continuous glucose and blood glucose monitoring [removed: systems,] [added: systems under the FreeStyle® brand such as the FreeStyle Libre® system,] including [removed: test strips,] sensors, data management decision software, [added: test strips,] and accessories for people with [removed: diabetes, under the FreeStyle® brand such as the FreeStyle Libre® system;] [added: diabetes;] and [removed: |]

[removed: | | ● |] [added: -] neuromodulation products, including spinal cord stimulators Proclaim® Elite and Proclaim® XR Recharge-free implantable pulse generators (IPG) and Prodigy MRI® IPG, each with BurstDR® stimulation, and Proclaim® DRG IPG, a neurostimulation device designed for dorsal root ganglion therapy, for the treatment of chronic pain disorders; and the Infinity® Deep Brain Stimulation System with directional lead technology for the treatment of movement disorders. [removed: |]

[removed: INFORMATION] [added: INFORMATION] WITH RESPECT TO ABBOTT’S BUSINESS IN [removed: GENERAL][added: GENERAL]

[removed: Sources] [added: Sources] and Availability of Raw [removed: Materials][added: Materials]

Due to disruptions to the global supply chain caused in part by the COVID-19 [removed: pandemic,] [added: pandemic and macroeconomic conditions such as inflationary pressures and labor shortages,] Abbott has experienced availability issues with some materials and electronic components.

A more detailed discussion on the [removed: COVID-19 pandemic’s disruption of the] global supply chain [added: disruptions] and its resulting impact on Abbott’s business is contained in [removed: “_Abbott is subject to risks related to public health crises, such as widespread outbreaks of infectious diseases like the COVID-19 pandemic._” in “Economic and Industry Risk” under “Item] [added: Item] 1A.

[removed: Patents,] [added: Patents,] Trademarks, and [removed: Licenses][added: Licenses]

Principal trademarks and the products they cover are discussed in the Narrative Description of Business on pages 1 through [removed: 3.][added: 4.]

These, and various patents which expire during the period [removed: 2022] [added: 2023] to [removed: 2042,] [added: 2043,] in the aggregate, are believed to be of material importance in the operation of Abbott’s business.

[removed: Seasonal] [added: Seasonal] Aspects, Customers, and [removed: Renegotiation][added: Renegotiation]

[removed: Environmental Matters][added: Environmental Matters]

Abbott’s capital and operating expenditures for pollution control in [removed: 2021] [added: 2022] were not material and are not expected to be material in [removed: 2022.][added: 2023.]

[removed: Human Capital][added: Human Capital]

As of December 31, [removed: 2021,] [added: 2022,] Abbott employed approximately [removed: 113,000] [added: 115,000] people, [removed: 70%] [added: 69%] of whom were employed outside of the U.S. Women represented 47% of Abbott’s U.S. workforce, [removed: 45%] [added: 46%] of its global workforce, and [removed: 40%] [added: 41%] of its managers.

________________________________________________________

- core laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing, including the Alinity® family of instruments along with the ARCHITECT® and Cell-Dyn® systems.

Risk Factors and in the "Financial Review” section in Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

All networks are open to all Abbott employees.

On January 30, 2023, the U.S. announced that it plans to end the public health emergency on May 11, 2023.

Abbott is evaluating the potential impacts of the end of the public health emergency, and it will continue to monitor further regulatory actions from relevant U.S. government agencies and assess potential impacts on pandemic-related government policies and product authorizations.

| --- | --- | --- |

Risk Factors.”

During the COVID-19 pandemic, Abbott has taken aggressive steps to limit exposure and enhance the safety of facilities for its employees, including providing and requiring the use of personal protective equipment and at many facilities, providing vaccinations, providing and requiring onsite COVID-19 testing, and implementing social distancing.

In some locations, employees also have received free over-the-counter COVID-19 tests for at-home use.

All Abbott employees are encouraged to join any of the employee networks.

It is uncertain when the public health emergency will end and to what extent these policies will continue or revert back to previous policies.

Abbott is involved in various claims, legal proceedings, and investigations, including (as of January 31, [removed: 2022)] [added: 2023)] those described below.

As of January 31, [removed: 2022,] [added: 2023,] there were [removed: 68] [added: 399] lawsuits pending in federal and state courts in which Abbott is a party.

In [removed: January] [added: April] 2022, the U.S. Judicial Panel on Multidistrict Litigation [removed: was asked to consolidate the] [added: ordered all] federal court cases [added: consolidated] for pretrial [removed: purposes.][added: purposes in the U.S. District Court for the Northern District of Illinois.]

In addition, [removed: on] [added: in] December [removed: 15,] 2021, a purported class of Canadian preterm infants filed suit in British Columbia [removed: making] [added: and, in October 2022, a purported class of Israeli preterm infants filed suit in Tel Aviv, both of which make] similar allegations [added: as those made in the United States] against Abbott.

In all cases, Abbott asserts that it has a license to each of [removed: Dexcom’s] [added: Dexcom' s] asserted patents and that the patents are invalid and not infringed.

In the U.S., DexCom’s patent infringement case is stayed pending resolution of Abbott’s breach of license case, which is currently set for trial on July 10, 2023.

Abbott’s U.S. patent infringement trial against DexCom is currently scheduled for October 23, 2023.

In November 2022, Abbott learned that the United States Department of Justice, through the United States Attorney’s Office for the Western District of Michigan, is conducting a criminal investigation related to Abbott’s manufacturing of infant formula.

In December 2022, Abbott received a subpoena from the Enforcement Division of the Commission requesting information relating to Abbott’s powder infant formula business and related public disclosures.

In January 2023, Abbott received a civil investigative demand from the United States Federal Trade Commission seeking information in connection with its investigation of companies who participate in bids for Women, Infants, and Children infant formula contracts.

In addition, multiple civil lawsuits have been filed against Abbott regarding Abbott’s manufacturing of certain powder infant formula products.

[removed: FORM 10-K][added: FORM 10-K]

| (MARK ONE) | [removed: ​] | [added: | | | |]

| [removed: ☒] [added: x] | [added: | |] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

| [removed: ☐] [added: o] | [added: | |] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

| For the fiscal year [removed: ended December] [added: ended December] 31, [removed: 2021] [added: 2022] | [added: | |] Commission file [removed: number 1-2189] [added: number 1-2189] | [added: | |]

| [removed: An Illinois Corporation] [added: An Illinois Corporation] | [added: | |] 36-0698440 | [added: | |]

| 100 Abbott Park [removed: RoadAbbott Park, Illinois 60064-6400] [added: Road Abbott Park, Illinois 60064-6400] | [added: | |] (I.R.S. employer identification number) [removed: (224) 667-6100(telephone] [added: (224) 667-6100 (telephone] number) | [added: | |]

| Title of Each Class | [added: | |] Trading Symbol(s) | [added: | |] Name of Each Exchange on Which Registered | [added: | |]

| Common Shares, Without Par Value | [added: | |] ABT | [added: | |] New York Stock Exchange Chicago Stock Exchange, Inc. | [added: | |]

| Yes [removed: ⌧] [added: x] | | [added: | | | |] No [removed: ☐] [added: o] | [added: | |]

| Yes [removed: ☐] [added: o] | | [added: | | | |] No [removed: ⌧] [added: x] | [added: | |]

| Large Accelerated Filer [removed: ⌧] [added: x] | [added: | |] Accelerated Filer [removed: ☐] [added: o] | [added: | |] Non-Accelerated Filer [removed: ☐] [added: o] | [added: | |] Smaller reporting company [removed: ☐Emerging] [added: o Emerging] growth company [removed: ☐] [added: o] | [added: | |]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [removed: ☐][added: o]

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [removed: ☒][added: x]

| Yes [removed: ☐] [added: x] | | [added: | | | |] No [removed: ☒] [added: o] | [added: | |]

The aggregate market value of the [removed: 1,730,623,501] [added: 1,712,885,837] shares of voting stock held by nonaffiliates of the registrant, computed by reference to the closing price as reported on the New York Stock Exchange, as of the last business day of Abbott Laboratories’ most recently completed second fiscal quarter (June 30, [removed: 2021), was $200,631,182,471.][added: 2022), was $186,105,046,190.]

Portions of the [removed: 2022] [added: 2023] Abbott Laboratories Proxy Statement are incorporated by reference into Part III.

The Proxy Statement will be filed on or about March [removed: 18, 2022.][added: 17, 2023.]

[removed: PART I][added: PART I]

______________________________________________

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________________________________________________________

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| Yes o | | | | | | No x | | |

Number of common shares outstanding as of January 31, 2023: 1,737,946,233

Table of Contents

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | Page | | |

| [PART I.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_10) | | | | | | | | |

| [Item 1.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_13) | | | [Business](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_13) | | | [1](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_13) | | |

| [Item 1A.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_16) | | | [Risk Factors](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_16) | | | [9](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_16) | | |

| [Item 1B.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_19) | | | [Unresolved Staff Comments](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_19) | | | [15](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_19) | | |

| [Item 2.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_22) | | | [Properties](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_22) | | | [15](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_22) | | |

| [Item 3.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_25) | | | [Legal Proceedings](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_25) | | | [16](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_25) | | |

| [Item 4.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_28) | | | [Mine Safety Disclosures](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_28) | | | [16](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_28) | | |

| | | | | | | | | |

| [PART II.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_31) | | | | | | | | |

| [Item 5.](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_34) | | | [Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_34) | | | [20](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_34) | | |

​

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| OR | |

| ​ | ​ | ​ |

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Number of common shares outstanding as of January 31, 2022: 1,763,482,267

As of December 31, [removed: 2021,] [added: 2022,] Abbott owned or leased properties totaling approximately 43 million square feet, of which approximately 65% is owned by Abbott.

Abbott operates [removed: 90] [added: 88] manufacturing facilities globally.

| Reportable Segments | [removed: ​] | [removed: Sites] | [added: | | | Manufacturing Sites | | |]

| Medical Devices | | [removed: 27] | [added: | | | 28 | | |]

| Diagnostic Products | | [removed: 24] | [added: | | | 22 | | |]

| Established Pharmaceutical Products | | [removed: 25] | [added: | | | 24 | | |]

| Nutritional Products | | [added: | | | |] 14 | [added: | |]

| Worldwide Total | | [removed: 90] | [added: | | | 88 | | |]

Abbott also has research and development facilities in various other countries, including [removed: China,] Colombia, India, Singapore, Spain, and the United Kingdom.

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | ​ |

| --- | --- | --- |

| ​ | | Manufacturing |

[removed: INFORMATION] [added: INFORMATION] ABOUT OUR EXECUTIVE [removed: OFFICERS][added: OFFICERS]

Abbott’s executive officers, their ages as of February [removed: 18, 2022,] [added: 17, 2023,] and the dates of their first election as officers of Abbott are listed below.

Ford, [removed: 48][added: 49]

Allen, [removed: 56][added: 57]

Capek, [removed: 60][added: 61]

Earnhardt, [removed: 52][added: 53]

Funck, Jr., [removed: 60][added: 61]

Ginascol, [removed: 63][added: 64]

Joseph Manning, [removed: 53][added: 54]

Moreland, [removed: 55][added: 56]

Daniel Salvadori, [removed: 43][added: 44]

Andrea Wainer, [removed: 53][added: 54]

Ahlberg, [removed: 55][added: 56]

Calamari, [removed: 51][added: 52]

Dale, [removed: 62][added: 63]

Sammy Karam, [removed: 60][added: 61]

Fernando Mateus, [removed: 47][added: 48]

Morrone, [removed: 45][added: 46]

Pederson, [removed: 60][added: 61]

2021 to present — Senior Vice President, [removed: Electrophysiology][added: Electrophysiology.]

Tyler, [removed: 52][added: 53]

April 2021 to July 2021 — Divisional Vice President, U.S. Commercial, [removed: ADC.][added: Abbott Diabetes Care.]

2019 to 2021 — Divisional Vice President, Global Marketing, [removed: AVD.][added: Abbott Vascular.]

2017 to 2019 — Divisional Vice President, U.S. Sales and Marketing Endovascular, [removed: AVD.][added: Abbott Vascular.]

Watkin, [removed: 54][added: 55]

Wellisch, [removed: 47][added: 48]

Woodgrift, [removed: 60][added: 61]

2019 to present — Senior Vice President, [removed: CRM.][added: Cardio Rhythm Management.]

Boudreau, [removed: 49][added: 50]

[removed: PART II][added: PART II]

2015 to 2017 — Vice President, Nutrition, Asia Pacific.

2014 to 2017 — Senior Vice President, Established Pharmaceuticals, Latin America.

2012 to 2017 — Divisional Vice President, USA, Abbott Diagnostics Division.

2014 to 2017 — Divisional Vice President and General Manager, Pediatric Nutrition.

2016 to 2017 — Divisional Vice President and General Manager, Structural Heart.

2014 to 2016 — President and Chief Executive Officer, GI Dynamics, Inc. (a medical device company focused on developing gastrointestinal therapies).

2015 to 2017 — Divisional Vice President and General Manager, Transfusion Medicine, ADD.

​

2015 to 2017 — Divisional Vice President and General Manager, Abbott Electrophysiology.

2014 to 2017 — General Manager, Argentina, Bolivia, Paraguay and Uruguay, Established Pharmaceuticals.

2015 to 2017 — Vice President, Operations and R&D, Abbott Vascular.

2012 to 2017 — Divisional Vice President, Controller and Commercial Support, Point of Care.

[removed: Principal Market][added: Principal Market]

[removed: Shareholders][added: Shareholders]

There were [removed: 35,926] [added: 33,984] shareholders of record of Abbott common shares as of [removed: December] [added: January] 31, [removed: 2021.][added: 2023.]

[removed: Tax] [added: Tax] Information for [removed: Shareholders][added: Shareholders]

[removed: In 2001, the] [added: The] Illinois Department of Commerce and Economic Opportunity (DCEO) designated Abbott as an Illinois High Impact Business (HIB) [removed: for a period not to exceed twenty years.][added: through June 2023.]

[removed: In 2020,] [added: Abbott intends to apply to] the DCEO [removed: granted a two year extension] for [removed: Abbott's] [added: a renewal of its] HIB designation.

Abbott certified that the HIB requirements were met for the calendar year ending December 31, [removed: 2021.][added: 2022.]

[removed: Issuer] [added: Issuer] Purchases of Equity [removed: Securities][added: Securities]

[removed: These] [added: (1)These] shares do not include the shares surrendered to Abbott to satisfy tax withholding obligations in connection with the vesting of restricted stock or restricted stock units.

[removed: | (2) | On October 11, 2019, the board of directors authorized the repurchase of up to $3 billion of Abbott common shares, from time to time (the “2019 Plan”). On] [added: (2)On] December 10, 2021, [removed: the] [added: Abbott announced that its] board of directors authorized the repurchase of up to $5 billion of Abbott common shares, from time to [removed: time (the “2021 Plan”). The 2021 Plan is in addition to the unused portion of the 2019 Plan. |][added: time.]

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| Period | | | | | | (a) Total Number of Shares (or Units) Purchased | | | | | | (b) Average Price Paid per Share (or Unit) | | | | | | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | | | | | | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | | | | | |

| October 1, 2022 — October 31, 2022 | | | | | | 2,000,000 | | | (1) | | | $ | 98.258 | | | | | 2,000,000 | | | | | | $ | 2,919,279,803 | | (2) | | |

| November 1, 2022 — November 30, 2022 | | | | | | 800,000 | | | (1) | | | $ | 98.103 | | | | | 800,000 | | | | | | $ | 2,840,797,543 | | (2) | | |

| December 1, 2022 — December 31, 2022 | | | | | | 3,750,000 | | | (1) | | | $ | 108.455 | | | | | 3,750,000 | | | | | | $ | 2,434,092,348 | | (2) | | |

| Total | | | | | | 6,550,000 | | | (1) | | | $ | 104.077 | | | | | 6,550,000 | | | | | | $ | 2,434,092,348 | | (2) | | |

_______________________________________________________

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | | ​ | | ​ | ​ | | (c) Total Number of | | (d) Maximum Number (or | | |

| ​ | ​ | (a) Total Number | ​ | ​ | ​ | ​ | Shares (or Units) | ​ | Approximate Dollar Value) of | | |

| ​ | ​ | of Shares | ​ | (b) Average Price | | ​ | Purchased as Part of | ​ | Shares (or Units) that May | | |

| ​ | ​ | (or Units) | ​ | Paid per Share | | ​ | Publicly Announced | ​ | Yet Be Purchased Under the | | |

| Period | ​ | Purchased | ​ | (or Unit) | | ​ | Plans or Programs | ​ | Plans or Programs | | |

| October 1, 2021 — October 31, 2021 | | 1,767,000 | (1) | $ | 127.811 | | 1,750,000 | ​ | $ | 1,686,728,997 | (2) |

| November 1, 2021 — November 30, 2021 | | 4,750,000 | (1) | $ | 127.486 | | 4,750,000 | ​ | $ | 1,081,169,672 | (2) |

| December 1, 2021 — December 31, 2021 | | 135 | (1) | $ | 141.000 | | 0 | ​ | $ | 6,081,169,672 | (2) |

| Total | | 6,517,135 | (1) | $ | 127.575 | | 6,500,000 | ​ | $ | 6,081,169,672 | (2) |

| (1) | These shares include the shares deemed surrendered to Abbott to pay the exercise price in connection with the exercise of employee stock options – 17,000 in October, 0 in November, and 135 in December. |

| --- | --- |

| [removed: ​] | | [added: |] Page | [added: | |]

| [Consolidated Statement of [removed: Earnings](#ConsolidatedStatementofEarnings_756832)] [added: Earnings](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_109)] | [removed: ​] | [removed: 41] | [added: [41](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_109) | | |]

| [Consolidated Statement of Comprehensive [removed: Income](#ComprehensiveIncome_527351)] [added: Income](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_112)] | [removed: ​] | [removed: 42] | [added: [42](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_112) | | |]

| [Consolidated Statement of Cash [removed: Flows](#CashFlows_598485)] [added: Flows](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_115)] | [removed: ​] | [removed: 43] | [added: [43](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_115) | | |]

| [Consolidated Balance [removed: Sheet](#ConsolidatedBalanceSheet_69561)] [added: Sheet](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_118)] | [removed: ​] | [removed: 44] | [added: [44](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_118) | | |]

| [Consolidated Statement of Shareholders’ [removed: Investment](#ShareholdersInvestment_387504)] [added: Investment](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_121)] | [removed: ​] | [removed: 46] | [added: [46](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_121) | | |]

| [Notes to Consolidated Financial [removed: Statements](#Note1SummaryofSignificantAccountingPolic)] [added: Statements](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_124)] | [removed: ​] | [removed: 47] | [added: [47](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_124) | | |]

[removed: | [Management] [added: Management] Report on Internal Control Over Financial [removed: Reporting](#ManagementReportonInternal_357767) | ​ | 75 |][added: Reporting]

[removed: | [Report] [added: Report] of Independent Registered Public Accounting [removed: Firm](#ReportofIndependent_5199) (PCAOB ID: 42) | ​ | 76 |][added: Firm]

[removed: | [Report] [added: Report] of Independent Registered Public Accounting [removed: Firm](#PublicAccountingFirm_660147) | ​ | 78 |][added: Firm]

[removed: (in] [added: (in] millions except per share [removed: data)][added: data)]

| [removed: ​] | [removed: ​] | [added: |] Year Ended December 31 | | | | | | | | [added: | | | | | | |]

| [removed: ​] | | [added: | 2022 | | | | | |] 2021 | | | [removed: 2020] | | | [removed: 2019] [added: 2020] | | [added: |]

| Net Sales | [removed: ​] | [added: |] $ | [removed: 43,075] [added: 43,653] | [removed: ​] | [added: | | |] $ | [removed: 34,608] [added: 43,075] | [removed: ​] | [added: | | |] $ | [removed: 31,904] [added: 34,608] | [added: |]

| Cost of products sold, excluding amortization of intangible assets | [removed: ​] | | [added: 19,142 | | | | | |] 18,537 | [removed: ​] | | [removed: 15,003] | [removed: ​] | | [removed: 13,231] [added: 15,003] | [added: | |]

| Amortization of intangible assets | [removed: ​] | | [added: 2,013 | | | | | |] 2,047 | [removed: ​] | | [removed: 2,132] | [removed: ​] | | [removed: 1,936] [added: 2,132] | [added: | |]

| Research and development | [removed: ​] | | [added: 2,888 | | | | | |] 2,742 | [removed: ​] | | [removed: 2,420] | [removed: ​] | | [removed: 2,440] [added: 2,420] | [added: | |]

| Selling, general and administrative | [removed: ​] | | [added: 11,248 | | | | | |] 11,324 | [removed: ​] | | [removed: 9,696] | [removed: ​] | | [removed: 9,765] [added: 9,696] | [added: | |]

| Total Operating Cost and Expenses | [removed: ​] | | [added: 35,291 | | | | | |] 34,650 | [removed: ​] | | [removed: 29,251] | [removed: ​] | | [removed: 27,372] [added: 29,251] | [added: | |]

| Operating Earnings | [removed: ​] | | [added: 8,362 | | | | | |] 8,425 | [removed: ​] | | [removed: 5,357] | [removed: ​] | | [removed: 4,532] [added: 5,357] | [added: | |]

| Interest expense | [removed: ​] | | [added: 558 | | | | | |] 533 | [removed: ​] | | [removed: 546] | [removed: ​] | | [removed: 670] [added: 546] | [added: | |]

| Interest income | [removed: ​] | | [added: (183) | | | | | |] (43) | [removed: ​] | | [removed: (46)] | [removed: ​] | | [removed: (94)] [added: (46)] | [added: | |]

| Net foreign exchange (gain) loss | [removed: ​] | | [added: 2 | | | | | |] 1 | [removed: ​] | | [removed: (8)] | [removed: ​] | | [removed: 7] [added: (8)] | [added: | |]

| [removed: Debt extinguishment] [added: Unamortized debt issuance] costs | [removed: ​] | [removed: ​] | [removed: —] [added: (71)] | [removed: ​] | [removed: ​] | [removed: —] | [removed: ​] | [removed: ​] | [removed: 63] [added: (78)] | [added: | |]

| Other (income) expense, net | [removed: ​] | | [added: (321) | | | | | |] (277) | [removed: ​] | | [removed: (103)] | [removed: ​] | | [removed: (191)] [added: (103)] | [added: | |]

| Earnings from Continuing Operations Before Taxes | [removed: ​] | | [added: 8,306 | | | | | |] 8,211 | [removed: ​] | | [removed: 4,968] | [removed: ​] | | [removed: 4,077] [added: 4,968] | [added: | |]

| Taxes on Earnings from Continuing Operations | [removed: ​] | | [added: 1,373 | | | | | |] 1,140 | [removed: ​] | | [removed: 497] | [removed: ​] | | [removed: 390] [added: 497] | [added: | |]

| Earnings from Continuing Operations | [removed: ​] | | [added: 6,933 | | | | | |] 7,071 | [removed: ​] | | [removed: 4,471] | [removed: ​] | | [removed: 3,687] [added: 4,471] | [added: | |]

| Net Earnings from Discontinued Operations, net of taxes | [removed: ​] | [removed: ​] | — | [removed: ​] | [removed: ​] | [removed: 24] | [removed: ​] | [removed: ​] | — | [added: | | | | | 24 | | |]

| Net Earnings | [removed: ​] | [added: |] $ | [removed: 7,071] [added: 6,933] | [removed: ​] | [added: | | |] $ | [removed: 4,495] [added: 7,071] | [removed: ​] | [added: | | |] $ | [removed: 3,687] [added: 4,495] | [added: |]

| Basic Earnings Per Common Share -- | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [added: | | | | | | | |]

| Continuing Operations | [removed: ​] | [added: |] $ | [removed: 3.97] [added: 3.94] | [removed: ​] | [added: | | |] $ | [removed: 2.51] [added: 3.97] | [removed: ​] | [added: | | |] $ | [removed: 2.07] [added: 2.51] | [added: |]

| Discontinued Operations | [removed: ​] | | — | [removed: ​] | | [removed: 0.01] | [removed: ​] | | — | [added: | | | | | 0.01 | | |]

| Net Earnings | [removed: ​] | [added: |] $ | [removed: 3.97] [added: 3.94] | [removed: ​] | [added: | | |] $ | [removed: 2.52] [added: 3.97] | [removed: ​] | [added: | | |] $ | [removed: 2.07] [added: 2.52] | [added: |]

| Diluted Earnings Per Common Share -- | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [removed: ​] | [added: | | | | | | | |]

| Continuing Operations | [removed: ​] | [added: |] $ | [removed: 3.94] [added: 3.91] | [removed: ​] | [added: | | |] $ | [removed: 2.49] [added: 3.94] | [removed: ​] | [added: | | |] $ | [removed: 2.06] [added: 2.49] | [added: |]

| Net Earnings | [removed: ​] | [added: |] $ | [removed: 3.94] [added: 3.91] | [removed: ​] | [added: | | |] $ | [removed: 2.50] [added: 3.94] | [removed: ​] | [added: | | |] $ | [removed: 2.06] [added: 2.50] | [added: |]

| Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share | [removed: ​] | | [added: 1,753 | | | | | |] 1,775 | [removed: ​] | | [removed: 1,773] | [removed: ​] | | [removed: 1,768] [added: 1,773] | [added: | |]

| Dilutive Common Stock Options | [removed: ​] | | [added: 11 | | | | | |] 14 | [removed: ​] | | [removed: 13] | [removed: ​] | | 13 | [added: | |]

| Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | [removed: ​] | | [added: 1,764 | | | | | |] 1,789 | [removed: ​] | | [removed: 1,786] | [removed: ​] | | [removed: 1,781] [added: 1,786] | [added: | |]

| | | | | | |

| [Report of Independent Registered Public Accounting Firm](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_181) (PCAOB ID: 42) | | | [75](#i9fb00ae5e49d4896ae5ec2cd75f5ec9b_181) | | |

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| Discontinued Operations | | | — | | | | | | — | | | | | | 0.01 | | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | Year Ended December 31 | | | | | | | | | | | | | | |

| Net earnings | | | $ | 6,933 | | | | | $ | 7,071 | | | | | $ | 4,495 | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2022 | | | | | | 2021 | | |

| | | | 20,212 | | | | | | 19,364 | | |

| | | | $ | 74,438 | | | | | $ | 75,196 | |

(dollars in millions)

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2022 | | | | | | 2021 | | |

| | | | | | | | | | | | |

| Common shares held in treasury, at cost — Shares: 2022: 248,724,257; 2021: 221,191,228 | | | (15,229) | | | | | | (11,822) | | |

| | | | $ | 74,438 | | | | | $ | 75,196 | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | Year Ended December 31 | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | |

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Abbott Laboratories and Subsidiaries

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Loss on extinguishment of debt | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 63 |

​

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | | 19,364 | ​ | | 18,793 |

| ​ | ​ | $ | 75,196 | ​ | $ | 72,548 |

| Shares: 2021: 209,926,622; 2020: 214,351,838; 2019: 215,570,043 | ​ | $ | (10,042) | ​ | $ | (10,147) | ​ | $ | (9,962) |

Notes to Consolidated Financial Statements (Continued)

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In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, _Financial Instruments – Credit Losses_, which changes the methodology to be used to measure credit losses for certain financial instruments and financial assets, including trade receivables.

The new methodology requires the recognition of an allowance that reflects the current estimate of credit losses expected to be incurred over the life of the financial asset.

Abbott adopted the standard on January 1, 2020 and recorded a cumulative adjustment that was not significant to Earnings employed in the business in the Consolidated Balance Sheet.

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