Full Press Release Details
Abbott Reports Fourth-Quarter 2020 Results; Issues Strong Double-Digit Growth Forecast for 2021
ABBOTT PARK, Ill., Jan. 27, 2021 - Abbott today announced financial results for the fourth quarter and full year ended Dec. 31, 2020, and issued its financial outlook for 2021.
"Despite challenging conditions, we achieved double-digit EPS growth, delivered ground-breaking innovation and advanced our new product pipeline in 2020," said Robert B. Ford, president and chief executive officer, Abbott. "We exited the year with a lot of momentum and are forecasting EPS growth of more than 35 percent in 2021."
Fourth-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 fourth quarter 2020:
($ in millions)
| % Change vs. 4Q19 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 4,199 | 6,502 | 10,701 | 41.8 | 21.4 | 28.7 | 41.8 | 20.9 | 28.4 | |||||||||||||||||||||||||||
| Nutrition | 841 | 1,095 | 1,936 | 6.5 | 1.4 | 3.6 | 6.5 | 2.9 | 4.4 | |||||||||||||||||||||||||||
| Diagnostics | 1,981 | 2,364 | 4,345 | 158.5 | 83.0 | 111.1 | 158.5 | 79.6 | 108.9 | |||||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 1,147 | 1,147 | n/a | (2.3 | ) | (2.3 | ) | n/a | 3.4 | 3.4 | |||||||||||||||||||||||||
| Medical Devices | 1,369 | 1,888 | 3,257 | (2.5 | ) | 4.9 | 1.7 | (2.5 | ) | 1.2 | (0.4 | ) |
* Total Q4 2020 Abbott sales from continuing operations include Other Sales of approximately $16 million.
| % Change vs. 12M19 | ||||||||||||||||||||||||||||||||||||
| Sales 12M20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 13,022 | 21,586 | 34,608 | 14.2 | 5.3 | 8.5 | 14.2 | 7.3 | 9.8 | |||||||||||||||||||||||||||
| Nutrition | 3,279 | 4,368 | 7,647 | 5.4 | 1.6 | 3.2 | 5.4 | 4.2 | 4.7 | |||||||||||||||||||||||||||
| Diagnostics | 4,774 | 6,031 | 10,805 | 65.3 | 25.0 | 40.1 | 65.3 | 25.8 | 40.6 | |||||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 4,303 | 4,303 | n/a | (4.1 | ) | (4.1 | ) | n/a | 1.9 | 1.9 | |||||||||||||||||||||||||
| Medical Devices | 4,931 | 6,856 | 11,787 | (8.2 | ) | (0.1 | ) | (3.7 | ) | (8.2 | ) | (0.3 | ) | (3.8 | ) |
* Total 12M 2020 Abbott sales from continuing operations include Other Sales of approximately $66 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.
Fourth-quarter 2020 worldwide sales of $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis.
($ in millions)
| % Change vs. 4Q19 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 841 | 1,095 | 1,936 | 6.5 | 1.4 | 3.6 | 6.5 | 2.9 | 4.4 | |||||||||||||||||||||||||||
| Pediatric | 497 | 511 | 1,008 | 5.2 | (9.5 | ) | (2.8 | ) | 5.2 | (8.4 | ) | (2.2 | ) | |||||||||||||||||||||||
| Adult | 344 | 584 | 928 | 8.4 | 13.4 | 11.5 | 8.4 | 15.3 | 12.7 |
| % Change vs. 12M19 | ||||||||||||||||||||||||||||||||||||
| Sales 12M20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 3,279 | 4,368 | 7,647 | 5.4 | 1.6 | 3.2 | 5.4 | 4.2 | 4.7 | |||||||||||||||||||||||||||
| Pediatric | 1,987 | 2,140 | 4,127 | 5.8 | (6.2 | ) | (0.8 | ) | 5.8 | (4.1 | ) | 0.3 | ||||||||||||||||||||||||
| Adult | 1,292 | 2,228 | 3,520 | 4.9 | 10.5 | 8.4 | 4.9 | 13.6 | 10.3 |
Worldwide Nutrition sales increased 3.6 percent on a reported basis and 4.4 percent on an organic basis in the fourth quarter. Strong performance of Ensure , Abbott's market-leading complete and balanced nutrition brand, and Glucerna , Abbott's market-leading diabetes nutrition brand, led to global Adult Nutrition sales growth of 11.5 percent on a reported basis and 12.7 percent on an organic basis. In Pediatric Nutrition, U.S. sales growth of 5.2 percent was led by share growth of Similac , Abbott ' s infant formula brand, which was offset by challenging conditions in Greater China.
($ in millions)
| % Change vs. 4Q19 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 1,981 | 2,364 | 4,345 | 158.5 | 83.0 | 111.1 | 158.5 | 79.6 | 108.9 | |||||||||||||||||||||||||||
| Core Laboratory | 326 | 997 | 1,323 | 10.9 | 4.3 | 5.9 | 10.9 | 3.3 | 5.1 | |||||||||||||||||||||||||||
| Molecular | 192 | 290 | 482 | 427.0 | 263.1 | 314.5 | 427.0 | 254.2 | 308.3 | |||||||||||||||||||||||||||
| Point of Care | 91 | 38 | 129 | (11.9 | ) | 14.2 | (5.5 | ) | (11.9 | ) | 12.3 | (6.0 | ) | |||||||||||||||||||||||
| Rapid Diagnostics | 1,372 | 1,039 | 2,411 | 312.2 | 366.2 | 333.9 | 312.2 | 354.0 | 329.0 |
| % Change vs. 12M19 | ||||||||||||||||||||||||||||||||||||
| Sales 12M20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 4,774 | 6,031 | 10,805 | 65.3 | 25.0 | 40.1 | 65.3 | 25.8 | 40.6 | |||||||||||||||||||||||||||
| Core Laboratory | 1,166 | 3,309 | 4,475 | 7.3 | (7.3 | ) | (3.9 | ) | 7.3 | (5.9 | ) | (2.8 | ) | |||||||||||||||||||||||
| Molecular | 621 | 817 | 1,438 | 315.5 | 178.8 | 224.9 | 315.5 | 179.9 | 225.7 | |||||||||||||||||||||||||||
| Point of Care | 369 | 147 | 516 | (15.9 | ) | 20.2 | (8.0 | ) | (15.9 | ) | 20.6 | (7.9 | ) | |||||||||||||||||||||||
| Rapid Diagnostics | 2,618 | 1,758 | 4,376 | 115.7 | 109.2 | 113.0 | 115.7 | 107.4 | 112.3 |
Worldwide Diagnostics sales increased 111.1 percent on a reported basis in the fourth quarter and increased 108.9 percent on an organic basis. Strong growth in the quarter was driven by demand for Abbott's portfolio of COVID-19 diagnostics tests across its rapid and lab-based platforms. Global COVID-19 testing-related sales were $2.4 billion in the fourth quarter, led by combined sales of $1.9 billion from Abbott's BinaxNOW, Panbio and ID NOW rapid testing platforms.
During 2020, Abbott mobilized its teams across multiple fronts to develop and launch multiple diagnostic tests for COVID-19:
Established Pharmaceuticals
($ in millions)
| % Change vs. 4Q19 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | -- | 1,147 | 1,147 | n/a | (2.3 | ) | (2.3 | ) | n/a | 3.4 | 3.4 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 833 | 833 | n/a | (7.1 | ) | (7.1 | ) | n/a | 1.1 | 1.1 | |||||||||||||||||||||||||
| Other | -- | 314 | 314 | n/a | 13.0 | 13.0 | n/a | 10.8 | 10.8 |
| % Change vs. 12M19 | ||||||||||||||||||||||||||||||||||||
| Sales 12M20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | -- | 4,303 | 4,303 | n/a | (4.1 | ) | (4.1 | ) | n/a | 1.9 | 1.9 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 3,209 | 3,209 | n/a | (5.4 | ) | (5.4 | ) | n/a | 2.6 | 2.6 | |||||||||||||||||||||||||
| Other | -- | 1,094 | 1,094 | n/a | - | - | n/a | (0.5 | ) | (0.5 | ) |
Established Pharmaceuticals sales decreased 2.3 percent on a reported basis in the fourth quarter and increased 3.4 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 7.1 percent on a reported basis in the quarter and increased 1.1 percent on an organic basis. Organic sales growth in India, Russia and Brazil was partially offset by market softness across several countries as a result of COVID-19.
Other sales increased 13.0 percent on a reported basis in the quarter and increased 10.8 percent on an organic basis, led by strong sales of Influvac .
Medical Devices
($ in millions)
| % Change vs. 4Q19 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 1,369 | 1,888 | 3,257 | (2.5 | ) | 4.9 | 1.7 | (2.5 | ) | 1.2 | (0.4 | ) | ||||||||||||||||||||||||
| Rhythm Management | 248 | 284 | 532 | (6.8 | ) | 2.1 | (2.3 | ) | (6.8 | ) | (1.7 | ) | (4.2 | ) | ||||||||||||||||||||||
| Electrophysiology | 184 | 266 | 450 | (4.5 | ) | 0.1 | (1.9 | ) | (4.5 | ) | (3.6 | ) | (4.0 | ) | ||||||||||||||||||||||
| Heart Failure | 136 | 53 | 189 | (6.7 | ) | 0.4 | (4.8 | ) | (6.7 | ) | (2.3 | ) | (5.5 | ) | ||||||||||||||||||||||
| Vascular | 225 | 378 | 603 | (14.0 | ) | (16.6 | ) | (15.6 | ) | (14.0 | ) | (19.0 | ) | (17.1 | ) | |||||||||||||||||||||
| Structural Heart | 154 | 199 | 353 | (9.1 | ) | (3.3 | ) | (5.9 | ) | (9.1 | ) | (7.0 | ) | (7.9 | ) | |||||||||||||||||||||
| Neuromodulation | 172 | 41 | 213 | (1.6 | ) | (12.7 | ) | (4.0 | ) | (1.6 | ) | (15.7 | ) | (4.6 | ) | |||||||||||||||||||||
| Diabetes Care | 250 | 667 | 917 | 29.3 | 34.1 | 32.7 | 29.3 | 29.1 | 29.2 | |||||||||||||||||||||||||||
| Vascular Product Lines: | ||||||||||||||||||||||||||||||||||||
| Coronary and Endovascular a) | 210 | 377 | 587 | (12.3 | ) | (16.4 | ) | (15.0 | ) | (12.3 | ) | (18.8 | ) | (16.5 | ) |
| % Change vs. 12M19 | ||||||||||||||||||||||||||||||||||||
| Sales 12M20 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 4,931 | 6,856 | 11,787 | (8.2 | ) | (0.1 | ) | (3.7 | ) | (8.2 | ) | (0.3 | ) | (3.8 | ) | |||||||||||||||||||||
| Rhythm Management | 903 | 1,011 | 1,914 | (14.5 | ) | (7.1 | ) | (10.7 | ) | (14.5 | ) | (7.2 | ) | (10.8 | ) | |||||||||||||||||||||
| Electrophysiology | 660 | 918 | 1,578 | (11.0 | ) | (6.2 | ) | (8.3 | ) | (11.0 | ) | (6.8 | ) | (8.6 | ) | |||||||||||||||||||||
| Heart Failure | 547 | 193 | 740 | (4.7 | ) | (1.3 | ) | (3.9 | ) | (4.7 | ) | (1.3 | ) | (3.9 | ) | |||||||||||||||||||||
| Vascular | 853 | 1,486 | 2,339 | (18.6 | ) | (17.6 | ) | (18.0 | ) | (18.6 | ) | (17.4 | ) | (17.8 | ) | |||||||||||||||||||||
| Structural Heart | 540 | 707 | 1,247 | (12.2 | ) | (9.9 | ) | (10.9 | ) | (12.2 | ) | (10.3 | ) | (11.2 | ) | |||||||||||||||||||||
| Neuromodulation | 564 | 138 | 702 | (14.6 | ) | (19.2 | ) | (15.5 | ) | (14.6 | ) | (19.0 | ) | (15.5 | ) | |||||||||||||||||||||
| Diabetes Care | 864 | 2,403 | 3,267 | 27.4 | 30.2 | 29.5 | 27.4 | 30.1 | 29.4 | |||||||||||||||||||||||||||
| Vascular Product Lines: | ||||||||||||||||||||||||||||||||||||
| Coronary and Endovascular a) | 785 | 1,478 | 2,263 | (17.1 | ) | (17.5 | ) | (17.4 | ) | (17.1 | ) | (17.3 | ) | (17.3 | ) |
Worldwide Medical Devices sales increased 1.7 percent on a reported basis in the fourth quarter and decreased 0.4 percent on an organic basis. Strong growth in Diabetes Care, led by FreeStyle Libre, was offset by reduced cardiovascular and neuromodulation procedure volumes due to the COVID-19 pandemic and lower Vascular sales in China, as a result of a new national tender program in that country. Excluding Vascular sales in China, global Vascular sales decreased 10.4 percent on an organic basis, and Medical Devices sales increased 1.4 percent on an organic basis in the fourth quarter.
In Diabetes Care, strong growth in the quarter was led by FreeStyle Libre, which grew 41.3 percent on a reported basis and 37.1 percent on an organic basis. For the full year, FreeStyle Libre grew 43.1 percent on a reported basis and 42.6 percent on an organic basis.
Abbott continues to strengthen its Medical Devices portfolio, with several key product approvals in 2020, including:
| U.S. FDA clearance 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. 4 | |
| CE Mark of FreeStyle Libre 3, which automatically delivers up-to-the-minute glucose readings, unsurpassed 14-day accuracy 5 and real-time glucose alarms in the world ' s smallest and thinnest 6 wearable glucose sensor. | |
| CE Mark of Libre Sense Glucose Sport Biosensor, a small wearable sensor that helps athletes better understand the efficacy of their nutritional choices on training and athletic performance. | |
| CE Mark of MitraClip G4, Abbott ' s next-generation MitraClip heart system, the leading minimally invasive mitral heart valve repair device in the world. | |
| CE Mark of TriClip, the world ' s first minimally invasive, clip-based device for repair of a leaky tricuspid heart valve. | |
| CE Mark of Tendyne, a first-of-its-kind technology to replace a faulty mitral heart valve. | |
| U.S. approval of Gallant implantable cardioverter defibrillator (ICD) and cardiac resynchronization therapy defibrillator (CRT-D) devices, which include Bluetooth technology and a new patient smartphone app for improved remote monitoring and enhanced patient-physician engagement to help manage heart rhythm disorders. | |
| CE Mark of EnSite X EP System, a next-generation 3D cardiac mapping platform used for ablation therapy to treat abnormal heart rhythms. | |
| U.S. FDA clearance and CE Mark of the IonicRF Generator, a non-surgical, minimally invasive device that uses heat to target specific nerves for the management of chronic pain. |
Abbott ISSUES guidance for 2021
Abbott projects full-year 2021 diluted earnings per share from continuing operations under GAAP of at least $3.74. Abbott forecasts specified items for the full-year 2021 of $1.26 primarily related to intangible amortization, expenses associated with acquisitions, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be at least $5.00 for full-year 2021.
Abbott declares 388 th consecutive QUARTERLY DIVIDEND
On Dec. 11, 2020, the board of directors of Abbott increased the company's quarterly dividend to $0.45 per share from $0.36 per share, an increase of 25 percent. Abbott's cash dividend is payable Feb. 16, 2021, to shareholders of record at the close of business on Jan. 15, 2021.
Abbott has increased its dividend payout for 49 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.
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 109,000 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.
Abbott will live webcast its fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 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.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Fourth Quarter Ended December 31, 2020 and 2019
(in millions, except per share data)
| 4Q20 | 4Q19 | % Change | |||||||||
| Net Sales | $ | 10,701 | $ | 8,314 | 28.7 | ||||||
| Cost of products sold, excluding amortization expense | 4,493 | 3,434 | 30.8 | ||||||||
| Amortization of intangible assets | 508 | 483 | 5.2 | ||||||||
| Research and development | 698 | 595 | 17.5 | ||||||||
| Selling, general, and administrative | 2,570 | 2,413 | 6.5 | ||||||||
| Total Operating Cost and Expenses | 8,269 | 6,925 | 19.4 | ||||||||
| Operating Earnings | 2,432 | 1,389 | 75.0 | ||||||||
| Interest expense, net | 127 | 139 | (8.3) | ||||||||
| Net foreign exchange (gain) loss | (5 | ) | (2 | ) | n/m | ||||||
| Debt extinguishment costs | -- | 63 | n/m | ||||||||
| Other (income) expense, net | (78 | ) | (51 | ) | 49.6 | ||||||
| Earnings from Continuing Operations before taxes | 2,388 | 1,240 | 92.4 | ||||||||
| Tax expense on Earnings from Continuing Operations | 230 | 191 | 20.2 | 1) | |||||||
| Earnings from Continuing Operations | 2,158 | 1,049 | 105.5 | ||||||||
| Earnings from Discontinued Operations, net of taxes | 4 | -- | n/m | ||||||||
| Net Earnings | $ | 2,162 | $ | 1,049 | 105.9 | ||||||
| Earnings from Continuing Operations, excluding | |||||||||||
| Specified Items, as described below | $ | 2,612 | $ | 1,705 | 53.2 | 2) | |||||
| Diluted Earnings per Common Share from: | |||||||||||
| Continuing Operations | $ | 1.20 | $ | 0.59 | 103.4 | ||||||
| Discontinued Operations | -- | -- | n/m | ||||||||
| Total | $ | 1.20 | $ | 0.59 | 103.4 | ||||||
| Diluted Earnings per Common Share from Continuing | |||||||||||
| Operations, excluding Specified Items, as described below | $ | 1.45 | $ | 0.95 | 52.6 | 2) | |||||
| Average Number of Common Shares Outstanding | |||||||||||
| Plus Dilutive Common Stock Options | 1,789 | 1,781 |
See tables on page 14 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
2019 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $656 million, or $0.36 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
Year Ended December 31, 2020 and 2019
(in millions, except per share data)
| 12M20 | 12M19 | % Change | |||||||||
| Net Sales | $ | 34,608 | $ | 31,904 | 8.5 | ||||||
| Cost of products sold, excluding amortization expense | 15,003 | 13,231 | 13.4 | ||||||||
| Amortization of intangible assets | 2,132 | 1,936 | 10.1 | ||||||||
| Research and development | 2,420 | 2,440 | (0.8) | 1) | |||||||
| Selling, general, and administrative | 9,696 | 9,765 | (0.7) | ||||||||
| Total Operating Cost and Expenses | 29,251 | 27,372 | 6.9 | ||||||||
| Operating Earnings | 5,357 | 4,532 | 18.2 | ||||||||
| Interest expense, net | 500 | 576 | (13.2) | ||||||||
| Net foreign exchange (gain) loss | (8 | ) | 7 | n/m | |||||||
| Debt extinguishment costs | -- | 63 | n/m | ||||||||
| Other (income) expense, net | (103 | ) | (191 | ) | (46.5) | ||||||
| Earnings from Continuing Operations before taxes | 4,968 | 4,077 | 21.8 | ||||||||
| Tax expense on Earnings from Continuing Operations | 497 | 390 | 27.3 | 2) | |||||||
| Earnings from Continuing Operations | 4,471 | 3,687 | 21.2 | ||||||||
| Earnings from Discontinued Operations, net of taxes | 24 | -- | n/m | ||||||||
| Net Earnings | $ | 4,495 | $ | 3,687 | 21.9 | ||||||
| Earnings from Continuing Operations, excluding | |||||||||||
| Specified Items, as described below | $ | 6,552 | $ | 5,810 | 12.8 | 3) | |||||
| Diluted Earnings per Common Share from: | |||||||||||
| Continuing Operations | $ | 2.49 | $ | 2.06 | 20.9 | ||||||
| Discontinued Operations | 0.01 | -- | n/m | ||||||||
| Total | $ | 2.50 | $ | 2.06 | 21.4 | ||||||
| Diluted Earnings per Common Share from Continuing | |||||||||||
| Operations, excluding Specified Items, as described below | $ | 3.65 | $ | 3.24 | 12.7 | 3) | |||||
| Average Number of Common Shares Outstanding | |||||||||||
| Plus Dilutive Common Stock Options | 1,786 | 1,781 |
See tables on page 15 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
2019 Tax expense on Earnings from Continuing Operations includes the impact of a $86 million reduction of the transition tax associated with the Tax Cuts and Jobs Act (TCJA) and approximately $100 million in excess tax benefits associated with share-based compensation.
2019 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $2.123 billion, or $1.18 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
Fourth Quarter Ended December 31, 2020 and 2019
(in millions, except per share data)
| 4Q20 | ||||||||||||||||
| As Reported (GAAP) | Specified Items | As Adjusted | % to Sales | |||||||||||||
| Intangible Amortization | $ | 508 | $ | (508 | ) | $ | -- | |||||||||
| Gross Margin | 5,700 | 557 | 6,257 | 58.5 | % | |||||||||||
| R&D | 698 | (61 | ) | 637 | 6.0 | % | ||||||||||
| SG&A | 2,570 | (56 | ) | 2,514 | 23.5 | % | ||||||||||
| Other (income) expense, net | (78 | ) | 23 | (55 | ) | |||||||||||
| Earnings from Continuing Operations before taxes | 2,388 | 651 | 3,039 | |||||||||||||
| Tax expense on Earnings from Continuing Operations | 230 | 197 | 427 | |||||||||||||
| Earnings from Continuing Operations | 2,158 | 454 | 2,612 | |||||||||||||
| Diluted Earnings per Share from Continuing Operations | $ | 1.20 | $ | 0.25 | $ | 1.45 |
Specified items reflect intangible amortization expense of $508 million and other net expenses of $143 million, primarily associated with acquisitions, restructuring actions and other expenses. See page 17 for additional details regarding specified items.
| 4Q19 | ||||||||||||||||
| As Reported (GAAP) | Specified Items | As Adjusted | % to Sales | |||||||||||||
| Intangible Amortization | $ | 483 | $ | (483 | ) | $ | -- | |||||||||
| Gross Margin | 4,397 | 545 | 4,942 | 59.4 | % | |||||||||||
| R&D | 595 | (39 | ) | 556 | 6.7 | % | ||||||||||
| SG&A | 2,413 | (62 | ) | 2,351 | 28.3 | % | ||||||||||
| Debt extinguishment costs | 63 | (63 | ) | -- | ||||||||||||
| Other (income) expense, net | (51 | ) | (5 | ) | (56 | ) | ||||||||||
| Earnings from Continuing Operations before taxes | 1,240 | 714 | 1,954 | |||||||||||||
| Tax expense on Earnings from Continuing Operations | 191 | 58 | 249 | |||||||||||||
| Earnings from Continuing Operations | 1,049 | 656 | 1,705 | |||||||||||||
| Diluted Earnings per Share from Continuing Operations | $ | 0.59 | $ | 0.36 | $ | 0.95 |
Specified items reflect intangible amortization expense of $483 million and other expenses of $231 million, primarily associated with acquisitions, restructuring actions and other expenses. See page 18 for additional details regarding specified items.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations
Year Ended December 31, 2020 and 2019
(in millions, except per share data)