Full Press Release Details
Abbott Reports Strong Fourth-Quarter 2021 Results; Issues 2022 Forecast
| - | Fourth-quarter sales growth of 7.2 percent; organic sales growth of 7.7 percent | |
| - | Global COVID-19 testing-related sales of $2.3 billion in the fourth quarter | |
| - | Excluding COVID-19 testing-related sales, fourth-quarter sales growth of 9.6 percent and organic sales growth of 10.3 percent | |
| - | Full-year 2021 sales growth of 24.5 percent; organic sales growth of 22.9 percent | |
| - | Full-year 2021 GAAP diluted EPS from continuing operations growth of 58.2 percent; adjusted diluted EPS growth of 42.7 percent | |
| - | R&D pipeline continues to deliver a steady cadence of new products, including several in large, fast-growing markets |
ABBOTT PARK, Ill., Jan. 26, 2022 - Abbott today announced financial results for the fourth quarter and full year ended Dec. 31, 2021, and issued its financial outlook for 2022.
| Fourth-quarter sales of $11.5 billion increased 7.2 percent on a reported basis and 7.7 percent on an organic basis, which excludes the impact of foreign exchange. | ||
| Fourth-quarter GAAP diluted EPS was $1.11 and adjusted diluted EPS, which excludes specified items, was $1.32. | ||
| Full-year 2021 GAAP diluted EPS from continuing operations was $3.94 and adjusted diluted EPS from continuing operations was $5.21, reflecting 42.7% growth versus the prior year. 1 | ||
| Global COVID-19 testing-related sales were $2.3 billion in the fourth quarter and $7.7 billion for the full-year. Abbott has distributed more than 1.4 billion COVID-19 tests since the start of the pandemic. | ||
| Abbott issues full-year 2022 guidance for diluted EPS from continuing operations on a GAAP basis of at least $3.43 and full-year adjusted diluted EPS from continuing operations of at least $4.70. | ||
| Full-year 2022 guidance includes an initial COVID-19 testing-related sales forecast of $2.5 billion, which Abbott expects to occur early in the year and will update on a quarterly basis. | ||
| Abbott's R&D pipeline continues to deliver a steady cadence of new products. Select 2021 highlights include U.S. Centers for Medicare & Medicaid Services expanded reimbursement for MitraClip , U.S. launches of Amplatzer Amulet , N euroSphere Virtual Clinic, and Portico transcatheter aortic valve replacement (TAVR) system, along with the international launch of Navitor TAVR system. |
"2021 was an outstanding year for Abbott," said Robert B. Ford, chairman and chief executive officer, Abbott. "We achieved more than 40 percent EPS growth, exceeding the baseline EPS guidance we set at the beginning of last year and, importantly, continued to advance our new product pipeline across the portfolio."
FOURTH-Quarter Business Overview
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the fourth quarter 2021:
($ in millions)
| % Change vs. 4Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 4,855 | 6,613 | 11,468 | 15.6 | 1.7 | 7.2 | 15.6 | 2.7 | 7.7 | |||||||||||||||||||||||||||
| Nutrition | 928 | 1,114 | 2,042 | 10.4 | 1.7 | 5.5 | 10.4 | 2.4 | 5.9 | |||||||||||||||||||||||||||
| Diagnostics | 2,386 | 2,085 | 4,471 | 20.5 | (11.8 | ) | 2.9 | 20.5 | (11.1 | ) | 3.3 | |||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 1,203 | 1,203 | n/a | 4.9 | 4.9 | n/a | 5.8 | 5.8 | |||||||||||||||||||||||||||
| Medical Devices | 1,538 | 2,211 | 3,749 | 12.3 | 17.1 | 15.1 | 12.3 | 18.6 | 15.9 |
* Total Q4 2021 Abbott sales from continuing operations include Other Sales of approximately $3 million.
| % Change vs. 12M20 | ||||||||||||||||||||||||||||||||||||
| Sales 12M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 16,642 | 26,433 | 43,075 | 27.8 | 22.5 | 24.5 | 27.8 | 19.9 | 22.9 | |||||||||||||||||||||||||||
| Nutrition | 3,556 | 4,738 | 8,294 | 8.4 | 8.5 | 8.5 | 8.4 | 7.1 | 7.7 | |||||||||||||||||||||||||||
| Diagnostics | 7,129 | 8,515 | 15,644 | 49.3 | 41.2 | 44.8 | 49.3 | 37.4 | 42.7 | |||||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 4,718 | 4,718 | n/a | 9.6 | 9.6 | n/a | 10.4 | 10.4 | |||||||||||||||||||||||||||
| Medical Devices | 5,923 | 8,444 | 14,367 | 20.1 | 23.2 | 21.9 | 20.1 | 18.8 | 19.4 |
* Total 12M 2021 Abbott sales from continuing operations include Other Sales of approximately $52 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 2021 worldwide sales of $11.5 billion increased 7.2 percent on a reported basis and 7.7 percent on an organic basis. Full-year 2021 worldwide sales increased 24.5 percent on a reported basis and 22.9 percent on an organic basis.
Worldwide sales, excluding COVID-19 testing-related sales, 2 increased 9.6 percent on a reported basis and 10.3 percent on an organic basis in the fourth quarter, and 15.2 percent on a reported basis and 13.7 percent on an organic basis in the full year 2021.
Compared to pre-pandemic sales in 2019, worldwide sales, excluding COVID-19 testing-related sales, 3 increased 10.0 percent on a reported basis and 10.8 percent on an organic basis in the fourth quarter.
($ in millions)
| % Change vs. 4Q20 | |||||||||||||||||||||||||||||||||||||
| Sales 4Q21 | Reported | Organic | |||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||||||||||||||||||
| Total | 928 | 1,114 | 2,042 | 10.4 | 1.7 | 5.5 | 10.4 | 2.4 | 5.9 | ||||||||||||||||||||||||||||
| Pediatric | 570 | 469 | 1,039 | 14.5 | (8.0 | ) | 3.1 | 14.5 | (8.1 | ) | 3.1 | ||||||||||||||||||||||||||
| Adult | 358 | 645 | 1,003 | 4.5 | 10.3 | 8.1 | 4.5 | 11.6 | 9.0 |
| % Change vs. 12M20 | |||||||||||||||||||||||||||||||||||||
| Sales 12M21 | Reported | Organic | |||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||||||||||||||||||
| Total | 3,556 | 4,738 | 8,294 | 8.4 | 8.5 | 8.5 | 8.4 | 7.1 | 7.7 | ||||||||||||||||||||||||||||
| Pediatric | 2,192 | 2,106 | 4,298 | 10.3 | (1.5 | ) | 4.2 | 10.3 | (3.2 | ) | 3.3 | ||||||||||||||||||||||||||
| Adult | 1,364 | 2,632 | 3,996 | 5.6 | 18.1 | 13.5 | 5.6 | 17.0 | 12.8 |
Worldwide Nutrition sales increased 5.5 percent on a reported basis and 5.9 percent on an organic basis in the fourth quarter.
In Adult Nutrition, 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 sales growth of 8.1 percent on a reported basis and 9.0 percent on an organic basis.
Worldwide Pediatric Nutrition sales increased 3.1 percent on both a reported basis and organic basis. Strong performance of Abbott's market-leading oral hydration brand, Pedialyte , and continued share growth in infant nutrition led to U.S. Pediatric Nutrition growth of 14.5 percent. In International Pediatric Nutrition, sales were unfavorably impacted primarily by challenging market conditions in China.
($ in millions)
| % Change vs. 4Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 2,386 | 2,085 | 4,471 | 20.5 | (11.8 | ) | 2.9 | 20.5 | (11.1 | ) | 3.3 | |||||||||||||||||||||||||
| Core Laboratory | 300 | 1,048 | 1,348 | (8.0 | ) | 5.2 | 1.9 | (8.0 | ) | 6.2 | 2.7 | |||||||||||||||||||||||||
| Molecular | 135 | 210 | 345 | (30.0 | ) | (27.5 | ) | (28.5 | ) | (30.0 | ) | (27.3 | ) | (28.4 | ) | |||||||||||||||||||||
| Point of Care | 95 | 40 | 135 | 5.3 | 3.7 | 4.8 | 5.3 | 3.9 | 4.9 | |||||||||||||||||||||||||||
| Rapid Diagnostics | 1,856 | 787 | 2,643 | 35.3 | (24.2 | ) | 9.6 | 35.3 | (23.8 | ) | 9.8 |
| % Change vs. 12M20 | ||||||||||||||||||||||||||||||||||||
| Sales 12M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 7,129 | 8,515 | 15,644 | 49.3 | 41.2 | 44.8 | 49.3 | 37.4 | 42.7 | |||||||||||||||||||||||||||
| Core Laboratory | 1,145 | 3,983 | 5,128 | (1.8 | ) | 20.4 | 14.6 | (1.8 | ) | 17.4 | 12.4 | |||||||||||||||||||||||||
| Molecular | 566 | 861 | 1,427 | (8.9 | ) | 5.4 | (0.8 | ) | (8.9 | ) | 1.7 | (2.9 | ) | |||||||||||||||||||||||
| Point of Care | 384 | 152 | 536 | 4.3 | 2.8 | 3.9 | 4.3 | 0.3 | 3.2 | |||||||||||||||||||||||||||
| Rapid Diagnostics | 5,034 | 3,519 | 8,553 | 92.2 | 100.2 | 95.4 | 92.2 | 95.0 | 93.3 |
Worldwide Diagnostics sales increased 2.9 percent on a reported basis in the fourth quarter and increased 3.3 percent on an organic basis. Global COVID-19 testing-related sales were $2.3 billion in the fourth quarter, including combined sales of $2.1 billion from Abbott's BinaxNOW , Panbio and ID NOW rapid testing platforms.
Excluding COVID-19 testing-related sales, worldwide Diagnostics sales increased 8.2 percent on a reported basis in the fourth quarter and 8.7 percent on an organic basis. 4
In Molecular Diagnostics, fourth-quarter sales growth was negatively impacted by lower COVID-19 testing-related sales compared to the prior year. Excluding COVID-19 testing-related sales, worldwide Molecular Diagnostics sales increased 24.1 percent on a reported basis and 24.5 percent on an organic basis, including 34.6 percent in the U.S. and 20.7 percent internationally. 5
In Rapid Diagnostics, fourth-quarter international sales growth was negatively impacted by lower COVID-19 testing-related sales compared to the prior year. Excluding COVID-19 testing-related sales, international Rapid Diagnostics sales increased 9.7 percent on a reported basis and 10.3 percent on an organic basis. 6
Established Pharmaceuticals
($ in millions)
| % Change vs. 4Q20 | ||||||||||||||||||||||||||||||||||
| Sales 4Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||
| Total | -- | 1,203 | 1,203 | n/a | 4.9 | 4.9 | n/a | 5.8 | 5.8 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 868 | 868 | n/a | 4.1 | 4.1 | n/a | 5.2 | 5.2 | |||||||||||||||||||||||||
| Other | -- | 335 | 335 | n/a | 6.8 | 6.8 | n/a | 7.5 | 7.5 |
| % Change vs. 12M20 | ||||||||||||||||||||||||||||||||||
| Sales 12M21 | Reported | Organic | ||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||
| Total | -- | 4,718 | 4,718 | n/a | 9.6 | 9.6 | n/a | 10.4 | 10.4 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 3,539 | 3,539 | n/a | 10.3 | 10.3 | n/a | 11.9 | 11.9 | |||||||||||||||||||||||||
| Other | -- | 1,179 | 1,179 | n/a | 7.8 | 7.8 | n/a | 6.0 | 6.0 |
Established Pharmaceuticals sales increased 4.9 percent on a reported basis in the fourth quarter and increased 5.8 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 increased 4.1 percent on a reported basis in the quarter and increased 5.2 percent on an organic basis. Organic sales growth was led by strong growth across several geographies, including India, Russia and China.
Other sales increased 6.8 percent on a reported basis in the quarter and increased 7.5 percent on an organic basis.
Medical Devices
($ in millions)
| % Change vs. 4Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 4Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 1,538 | 2,211 | 3,749 | 12.3 | 17.1 | 15.1 | 12.3 | 18.6 | 15.9 | |||||||||||||||||||||||||||
| Rhythm Management | 242 | 299 | 541 | (2.7 | ) | 5.5 | 1.7 | (2.7 | ) | 7.0 | 2.5 | |||||||||||||||||||||||||
| Electrophysiology | 198 | 306 | 504 | 7.2 | 15.4 | 12.0 | 7.2 | 17.8 | 13.5 | |||||||||||||||||||||||||||
| Heart Failure | 171 | 68 | 239 | 25.4 | 30.8 | 26.9 | 25.4 | 33.2 | 27.6 | |||||||||||||||||||||||||||
| Vascular | 231 | 447 | 678 | 3.0 | 18.0 | 12.4 | 3.0 | 19.2 | 13.2 | |||||||||||||||||||||||||||
| Structural Heart | 193 | 226 | 419 | 25.4 | 13.6 | 18.7 | 25.4 | 15.7 | 19.9 | |||||||||||||||||||||||||||
| Neuromodulation | 156 | 41 | 197 | (9.0 | ) | (2.2 | ) | (7.7 | ) | (9.0 | ) | (1.1 | ) | (7.5 | ) | |||||||||||||||||||||
| Diabetes Care | 347 | 824 | 1,171 | 38.8 | 23.5 | 27.6 | 38.8 | 24.3 | 28.3 |
| % Change vs. 12M20 | ||||||||||||||||||||||||||||||||||||
| Sales 12M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 5,923 | 8,444 | 14,367 | 20.1 | 23.2 | 21.9 | 20.1 | 18.8 | 19.4 | |||||||||||||||||||||||||||
| Rhythm Management | 1,018 | 1,180 | 2,198 | 12.7 | 16.8 | 14.8 | 12.7 | 12.7 | 12.7 | |||||||||||||||||||||||||||
| Electrophysiology | 778 | 1,129 | 1,907 | 17.7 | 23.1 | 20.8 | 17.7 | 20.0 | 19.1 | |||||||||||||||||||||||||||
| Heart Failure | 654 | 235 | 889 | 19.5 | 22.0 | 20.1 | 19.5 | 18.1 | 19.1 | |||||||||||||||||||||||||||
| Vascular | 915 | 1,739 | 2,654 | 7.4 | 17.0 | 13.5 | 7.4 | 13.2 | 11.1 | |||||||||||||||||||||||||||
| Structural Heart | 730 | 880 | 1,610 | 35.1 | 24.5 | 29.1 | 35.1 | 20.4 | 26.8 | |||||||||||||||||||||||||||
| Neuromodulation | 616 | 165 | 781 | 9.3 | 19.2 | 11.3 | 9.3 | 14.3 | 10.3 | |||||||||||||||||||||||||||
| Diabetes Care | 1,212 | 3,116 | 4,328 | 40.3 | 29.6 | 32.5 | 40.3 | 24.3 | 28.5 |
Worldwide Medical Devices sales increased 15.1 percent on a reported basis in the fourth quarter and increased 15.9 percent on an organic basis. Strong growth in the quarter was driven by continued recovery from the COVID-19 pandemic and strong growth in Diabetes Care.
Compared to pre-pandemic sales in 2019, Medical Devices sales increased 17.0 percent on a reported basis and 15.8 percent on an organic basis in the fourth quarter, led by double-digit growth in Heart Failure, Structural Heart and Diabetes Care. 7
In Diabetes Care, FreeStyle Libre sales were $1.0 billion in the quarter, which represents sales growth of 35.4 percent on a reported basis and 36.0 percent on an organic basis.
Abbott continued to strengthen its Medical Devices portfolio with several pipeline advancements in 2021, including:
Abbott'S EARNINGS-PER-SHARE guidance
Abbott projects full-year 2022 diluted earnings per share from continuing operations under GAAP of at least $3.43. Abbott forecasts specified items for the full-year 2022 of $1.27 per share primarily related to intangible amortization, restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be at least $4.70 for the full-year 2022.
Abbott projects first-quarter 2022 diluted earnings per share from continuing operations under GAAP of at least $1.20. Abbott forecasts specified items for the first-quarter 2022 of $0.30 per share primarily related to intangible amortization, restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be at least $1.50 for the first quarter.
Abbott declares 392 nd consecutive QUARTERLY DIVIDEND
On Dec. 10, 2021, the board of directors of Abbott declared the company's quarterly dividend of $0.47 per share. Abbott's cash dividend is payable Feb. 15, 2022 to shareholders of record at the close of business on Jan. 14, 2022.
Abbott has increased its dividend payout for 50 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 113,000 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 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, 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, 2021 and 2020
(in millions, except per share data)
| 4Q21 | 4Q20 | % Change | ||||||||||
| Net Sales | $ | 11,468 | $ | 10,701 | 7.2 | |||||||
| Cost of products sold, excluding amortization expense | 4,766 | 4,493 | 6.1 | |||||||||
| Amortization of intangible assets | 514 | 508 | 1.3 | |||||||||
| Research and development | 762 | 698 | 9.1 | |||||||||
| Selling, general, and administrative | 3,048 | 2,570 | 18.6 | |||||||||
| Total Operating Cost and Expenses | 9,090 | 8,269 | 9.9 | |||||||||
| Operating Earnings | 2,378 | 2,432 | (2.2) | |||||||||
| Interest expense, net | 120 | 127 | (5.7) | |||||||||
| Net foreign exchange (gain) loss | (6 | ) | (5 | ) | 22.8 | |||||||
| Other (income) expense, net | (63 | ) | (78 | ) | (19.3) | |||||||
| Earnings from Continuing Operations before taxes | 2,327 | 2,388 | (2.5) | |||||||||
| Tax expense on Earnings from Continuing Operations | 338 | 230 | 47.2 | 1) | ||||||||
| Earnings from Continuing Operations | 1,989 | 2,158 | (7.8) | |||||||||
| Earnings from Discontinued Operations, net of taxes | -- | 4 | n/m | |||||||||
| Net Earnings | $ | 1,989 | $ | 2,162 | (8.0) | |||||||
| Earnings from Continuing Operations, excluding | ||||||||||||
| Specified Items, as described below | $ | 2,366 | $ | 2,612 | (9.4) | 2) | ||||||
| Diluted Earnings per Common Share from: | ||||||||||||
| Continuing Operations | $ | 1.11 | $ | 1.20 | (7.5) | |||||||
| Discontinued Operations | -- | -- | n/m | |||||||||
| Total | $ | 1.11 | $ | 1.20 | (7.5) | |||||||
| Diluted Earnings per Common Share from Continuing | ||||||||||||
| Operations, excluding Specified Items, as described below | $ | 1.32 | $ | 1.45 | (9.0) | 2) | ||||||
| Average Number of Common Shares Outstanding | ||||||||||||
| Plus Dilutive Common Stock Options | 1,782 | 1,789 |
See tables on page 13 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $135 million of tax benefits related to the impairment of certain assets, approximately $25 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $10 million in excess tax benefits associated with share-based compensation.
2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $454 million, or $0.25 per share, for intangible amortization and impairment expenses and other net expenses primarily associated with acquisitions and restructuring actions.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Year Ended December 31, 2021 and 2020
(in millions, except per share data)
| 12M21 | 12M20 | % Change | ||||||||||
| Net Sales | $ | 43,075 | $ | 34,608 | 24.5 | |||||||
| Cost of products sold, excluding amortization expense | 18,537 | 15,003 | 23.6 | |||||||||
| Amortization of intangible assets | 2,047 | 2,132 | (4.0) | |||||||||
| Research and development | 2,742 | 2,420 | 13.3 | |||||||||
| Selling, general, and administrative | 11,324 | 9,696 | 16.8 | |||||||||
| Total Operating Cost and Expenses | 34,650 | 29,251 | 18.5 | |||||||||
| Operating Earnings | 8,425 | 5,357 | 57.3 | |||||||||
| Interest expense, net | 490 | 500 | (2.0) | |||||||||
| Net foreign exchange (gain) loss | 1 | (8 | ) | n/m | ||||||||
| Other (income) expense, net | (277 | ) | (103 | ) | 169.7 | |||||||
| Earnings from Continuing Operations before taxes | 8,211 | 4,968 | 65.3 | |||||||||
| Tax expense on Earnings from Continuing Operations | 1,140 | 497 | 129.4 | 1) | ||||||||
| Earnings from Continuing Operations | 7,071 | 4,471 | 58.2 | |||||||||
| Earnings from Discontinued Operations, net of taxes | -- | 24 | n/m | |||||||||
| Net Earnings | $ | 7,071 | $ | 4,495 | 57.3 | |||||||
| Earnings from Continuing Operations, excluding | ||||||||||||
| Specified Items, as described below | $ | 9,367 | $ | 6,552 | 43.0 | 2) | ||||||
| Diluted Earnings per Common Share from: | ||||||||||||
| Continuing Operations | $ | 3.94 | $ | 2.49 | 58.2 | |||||||
| Discontinued Operations | -- | 0.01 | n/m | |||||||||
| Total | $ | 3.94 | $ | 2.50 | 57.6 | |||||||
| Diluted Earnings per Common Share from Continuing | ||||||||||||
| Operations, excluding Specified Items, as described below | $ | 5.21 | $ | 3.65 | 42.7 | 2) | ||||||
| Average Number of Common Shares Outstanding | ||||||||||||
| Plus Dilutive Common Stock Options | 1,789 | 1,786 |
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.
2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $170 million of tax benefits related to the impairment of certain assets, $140 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $100 million in excess tax benefits associated with share-based compensation.
2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $2.081 billion, or $1.16 per share, for intangible amortization expense, impairment charges and other net expense primarily associated with acquisitions, restructuring actions and income from a litigation settlement.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations