Full Press Release Details
Abbott Reports Third-Quarter 2021 Results; Achieves Strong Double-Digit Earnings Growth and Raises Guidance
ABBOTT PARK, Ill., Oct. 20, 2021 - Abbott today announced financial results for the third quarter ended Sept. 30, 2021.
"We achieved another quarter of strong growth overall and across all four of our major business areas," said Robert B. Ford, president and chief executive officer, Abbott. "We're particularly pleased with the continued advancements of our new product pipeline, including several recent launches in large, high-growth markets."
THIRD-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 third quarter 2021:
($ in millions)
| % Change vs. 3Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 3Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 4,368 | 6,560 | 10,928 | 31.2 | 18.7 | 23.4 | 31.2 | 17.0 | 22.4 | |||||||||||||||||||||||||||
| Nutrition | 919 | 1,189 | 2,108 | 12.3 | 7.6 | 9.6 | 12.3 | 6.5 | 8.9 | |||||||||||||||||||||||||||
| Diagnostics | 1,947 | 1,965 | 3,912 | 71.8 | 30.5 | 48.2 | 71.8 | 28.0 | 46.8 | |||||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 1,265 | 1,265 | n/a | 15.1 | 15.1 | n/a | 15.3 | 15.3 | |||||||||||||||||||||||||||
| Medical Devices | 1,496 | 2,136 | 3,632 | 9.7 | 18.2 | 14.6 | 9.7 | 15.7 | 13.1 |
* Total Q3 2021 Abbott sales from continuing operations include Other Sales of approximately $11 million.
| % Change vs. 9M20 | ||||||||||||||||||||||||||||||||||||
| Sales 9M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total * | 11,787 | 19,820 | 31,607 | 33.6 | 31.4 | 32.2 | 33.6 | 27.3 | 29.6 | |||||||||||||||||||||||||||
| Nutrition | 2,628 | 3,624 | 6,252 | 7.8 | 10.7 | 9.5 | 7.8 | 8.7 | 8.3 | |||||||||||||||||||||||||||
| Diagnostics | 4,743 | 6,430 | 11,173 | 69.8 | 75.3 | 73.0 | 69.8 | 68.7 | 69.2 | |||||||||||||||||||||||||||
| Established Pharmaceuticals | -- | 3,515 | 3,515 | n/a | 11.4 | 11.4 | n/a | 12.0 | 12.0 | |||||||||||||||||||||||||||
| Medical Devices | 4,385 | 6,233 | 10,618 | 23.1 | 25.5 | 24.5 | 23.1 | 19.0 | 20.7 |
* Total 9M 2021 Abbott sales from continuing operations include Other Sales of approximately $49 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.
Third-quarter 2021 worldwide sales of $10.9 billion increased 23.4 percent on a reported basis and 22.4 percent on an organic basis.
Compared to pre-pandemic sales in 2019, worldwide sales, excluding COVID-19 testing-related sales 3 , increased 11.7 percent on both a reported and organic basis in the third quarter.
($ in millions)
| % Change vs. 3Q20 | ||||||||||||||||||||||||||||||||||||||
| Sales 3Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||||
| Total | 919 | 1,189 | 2,108 | 12.3 | 7.6 | 9.6 | 12.3 | 6.5 | 8.9 | |||||||||||||||||||||||||||||
| Pediatric | 586 | 514 | 1,100 | 20.2 | (0.8 | ) | 9.4 | 20.2 | (2.2 | ) | 8.6 | |||||||||||||||||||||||||||
| Adult | 333 | 675 | 1,008 | 0.6 | 15.0 | 9.8 | 0.6 | 14.1 | 9.3 |
| % Change vs. 9M20 | ||||||||||||||||||||||||||||||||||||||
| Sales 9M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||||
| Total | 2,628 | 3,624 | 6,252 | 7.8 | 10.7 | 9.5 | 7.8 | 8.7 | 8.3 | |||||||||||||||||||||||||||||
| Pediatric | 1,622 | 1,637 | 3,259 | 8.9 | 0.5 | 4.5 | 8.9 | (1.7 | ) | 3.4 | ||||||||||||||||||||||||||||
| Adult | 1,006 | 1,987 | 2,993 | 6.0 | 20.9 | 15.5 | 6.0 | 18.9 | 14.2 |
Worldwide Nutrition sales increased 9.6 percent on a reported basis and 8.9 percent on an organic basis in the third 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 9.8 percent on a reported basis and 9.3 percent on an organic basis.
Worldwide Pediatric Nutrition sales increased 9.4 percent on a reported basis and 8.6 percent on an 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 20.2 percent.
($ in millions)
| % Change vs. 3Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 3Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 1,947 | 1,965 | 3,912 | 71.8 | 30.5 | 48.2 | 71.8 | 28.0 | 46.8 | |||||||||||||||||||||||||||
| Core Laboratory | 291 | 1,001 | 1,292 | 2.4 | 12.2 | 9.9 | 2.4 | 9.9 | 8.1 | |||||||||||||||||||||||||||
| Molecular | 162 | 183 | 345 | (26.2 | ) | (23.1 | ) | (24.6 | ) | (26.2 | ) | (25.0 | ) | (25.6 | ) | |||||||||||||||||||||
| Point of Care | 100 | 35 | 135 | 3.9 | 1.5 | 3.3 | 3.9 | (0.1 | ) | 2.8 | ||||||||||||||||||||||||||
| Rapid Diagnostics | 1,394 | 746 | 2,140 | 161.4 | 118.5 | 144.7 | 161.4 | 115.0 | 143.3 |
| % Change vs. 9M20 | ||||||||||||||||||||||||||||||||||||
| Sales 9M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 4,743 | 6,430 | 11,173 | 69.8 | 75.3 | 73.0 | 69.8 | 68.7 | 69.2 | |||||||||||||||||||||||||||
| Core Laboratory | 845 | 2,935 | 3,780 | 0.6 | 26.9 | 19.9 | 0.6 | 22.1 | 16.4 | |||||||||||||||||||||||||||
| Molecular | 431 | 651 | 1,082 | 0.5 | 23.5 | 13.2 | 0.5 | 17.6 | 9.9 | |||||||||||||||||||||||||||
| Point of Care | 289 | 112 | 401 | 4.0 | 2.5 | 3.6 | 4.0 | (1.0 | ) | 2.6 | ||||||||||||||||||||||||||
| Rapid Diagnostics | 3,178 | 2,732 | 5,910 | 154.9 | 280.1 | 200.7 | 154.9 | 266.6 | 195.8 |
Worldwide Diagnostics sales increased 48.2 percent on a reported basis in the third quarter and increased 46.8 percent on an organic basis. Global COVID-19 testing-related sales were $1.9 billion in the third quarter, led by combined sales of $1.6 billion from Abbott 's BinaxNOW , Panbio and ID NOW rapid testing platforms. Excluding COVID-19 testing-related sales, worldwide diagnostics sales increased 14.1 percent on a reported basis in the third quarter and 12.5 percent on an organic basis. 4
Compared to the pre-pandemic 2019 baseline, sales in Core Laboratory and Molecular Diagnostics, excluding COVID-19 testing-related sales, grew 5.8 percent and 14.9 percent, respectively, on a reported basis in the third quarter and grew 4.9 percent and 13.6 percent, respectively, on an organic basis. 5
Established Pharmaceuticals
($ in millions)
| % Change vs. 3Q20 | ||||||||||||||||||||||||||||||||||
| Sales 3Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||
| Total | -- | 1,265 | 1,265 | n/a | 15.1 | 15.1 | n/a | 15.3 | 15.3 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 936 | 936 | n/a | 17.1 | 17.1 | n/a | 17.9 | 17.9 | |||||||||||||||||||||||||
| Other | -- | 329 | 329 | n/a | 9.7 | 9.7 | n/a | 8.5 | 8.5 |
| % Change vs. 9M20 | ||||||||||||||||||||||||||||||||||
| Sales 9M21 | Reported | Organic | ||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||
| Total | -- | 3,515 | 3,515 | n/a | 11.4 | 11.4 | n/a | 12.0 | 12.0 | |||||||||||||||||||||||||
| Key Emerging Markets | -- | 2,672 | 2,672 | n/a | 12.4 | 12.4 | n/a | 14.2 | 14.2 | |||||||||||||||||||||||||
| Other | -- | 843 | 843 | n/a | 8.1 | 8.1 | n/a | 5.4 | 5.4 |
Established Pharmaceuticals sales increased 15.1 percent on a reported basis in the third quarter and increased 15.3 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 17.1 percent on a reported basis in the quarter and increased 17.9 percent on an organic basis. Organic sales growth was led by strong growth across several geographies, including China, Russia and India.
Other sales increased 9.7 percent on a reported basis in the quarter and increased 8.5 percent on an organic basis.
Medical Devices
($ in millions)
| % Change vs. 3Q20 | ||||||||||||||||||||||||||||||||||||
| Sales 3Q21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 1,496 | 2,136 | 3,632 | 9.7 | 18.2 | 14.6 | 9.7 | 15.7 | 13.1 | |||||||||||||||||||||||||||
| Rhythm Management | 266 | 305 | 571 | 9.6 | 15.3 | 12.6 | 9.6 | 12.7 | 11.2 | |||||||||||||||||||||||||||
| Electrophysiology | 192 | 293 | 485 | (0.1 | ) | 17.6 | 9.9 | (0.1 | ) | 15.9 | 8.9 | |||||||||||||||||||||||||
| Heart Failure | 170 | 59 | 229 | 17.6 | 28.0 | 20.1 | 17.6 | 25.4 | 19.5 | |||||||||||||||||||||||||||
| Vascular | 219 | 425 | 644 | (4.3 | ) | 6.3 | 2.5 | (4.3 | ) | 3.9 | 0.9 | |||||||||||||||||||||||||
| Structural Heart | 177 | 215 | 392 | 11.2 | 10.9 | 11.0 | 11.2 | 9.2 | 10.1 | |||||||||||||||||||||||||||
| Neuromodulation | 149 | 41 | 190 | (12.5 | ) | 13.8 | (7.9 | ) | (12.5 | ) | 11.5 | (8.3 | ) | |||||||||||||||||||||||
| Diabetes Care | 323 | 798 | 1,121 | 43.1 | 29.4 | 33.0 | 43.1 | 26.0 | 30.6 |
| % Change vs. 9M20 | ||||||||||||||||||||||||||||||||||||
| Sales 9M21 | Reported | Organic | ||||||||||||||||||||||||||||||||||
| U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||||||||||
| Total | 4,385 | 6,233 | 10,618 | 23.1 | 25.5 | 24.5 | 23.1 | 19.0 | 20.7 | |||||||||||||||||||||||||||
| Rhythm Management | 776 | 881 | 1,657 | 18.5 | 21.2 | 19.9 | 18.5 | 14.9 | 16.6 | |||||||||||||||||||||||||||
| Electrophysiology | 580 | 823 | 1,403 | 21.8 | 26.2 | 24.4 | 21.8 | 20.9 | 21.3 | |||||||||||||||||||||||||||
| Heart Failure | 483 | 167 | 650 | 17.5 | 18.7 | 17.8 | 17.5 | 12.5 | 16.2 | |||||||||||||||||||||||||||
| Vascular | 684 | 1,292 | 1,976 | 8.9 | 16.7 | 13.9 | 8.9 | 11.2 | 10.4 | |||||||||||||||||||||||||||
| Structural Heart | 537 | 654 | 1,191 | 39.0 | 28.8 | 33.2 | 39.0 | 22.3 | 29.5 | |||||||||||||||||||||||||||
| Neuromodulation | 460 | 124 | 584 | 17.4 | 28.3 | 19.6 | 17.4 | 20.8 | 18.1 | |||||||||||||||||||||||||||
| Diabetes Care | 865 | 2,292 | 3,157 | 41.0 | 32.0 | 34.3 | 41.0 | 24.3 | 28.7 |
Worldwide Medical Devices sales increased 14.6 percent on a reported basis in the third quarter and increased 13.1 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 18.5 percent on a reported basis and 16.1 percent on an organic basis in the third quarter, led by double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care. 6
In Diabetes Care, FreeStyle Libre and Libre Sense sales were $968 million in the quarter, which represents sales growth of 41.6 percent on a reported basis and 38.8 percent on an organic basis.
During the quarter, Abbott continued to strengthen its Medical Devices portfolio with several new products, including:
Abbott'S EARNINGS-PER-SHARE guidance
Abbott projects 2021 diluted earnings per share from continuing operations under GAAP of $3.55 to $3.65. Abbott forecasts specified items for the full-year 2021 of $1.45 per share primarily related to intangible amortization, restructuring and cost reduction initiatives, including expenses to align its COVID-19 testing-related business with changes during the year in current and projected testing demand, expenses associated with acquisitions and other net expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $5.00 to $5.10 for full-year 2021.
Abbott declares 391 st consecutive QUARTERLY DIVIDEND
On Sept. 15, 2021, the board of directors of Abbott declared the company's quarterly dividend of $0.45 per share. Abbott's cash dividend is payable Nov. 15, 2021 to shareholders of record at the close of business on Oct. 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 third-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
Third Quarter Ended September 30, 2021 and 2020
(in millions, except per share data)
| 3Q21 | 3Q20 | % Change | ||||||||||
| Net Sales | $ | 10,928 | $ | 8,853 | 23.4 | |||||||
| Cost of products sold, excluding amortization expense | 4,423 | 3,966 | 11.5 | |||||||||
| Amortization of intangible assets | 520 | 510 | 1.8 | |||||||||
| Research and development | 672 | 580 | 16.1 | |||||||||
| Selling, general, and administrative | 2,767 | 2,302 | 20.2 | |||||||||
| Total Operating Cost and Expenses | 8,382 | 7,358 | 13.9 | |||||||||
| Operating Earnings | 2,546 | 1,495 | 70.2 | |||||||||
| Interest expense, net | 123 | 127 | (3.3) | |||||||||
| Net foreign exchange (gain) loss | 4 | (7 | ) | n/m | ||||||||
| Other (income) expense, net | (74 | ) | (46 | ) | 63.1 | |||||||
| Earnings from Continuing Operations before taxes | 2,493 | 1,421 | 75.3 | |||||||||
| Tax expense on Earnings from Continuing Operations | 393 | 189 | 107.3 | 1) | ||||||||
| Earnings from Continuing Operations | 2,100 | 1,232 | 70.4 | |||||||||
| Earnings from Discontinued Operations, net of taxes | -- | -- | n/m | |||||||||
| Net Earnings | $ | 2,100 | $ | 1,232 | 70.4 | |||||||
| Earnings from Continuing Operations, excluding | ||||||||||||
| Specified Items, as described below | $ | 2,518 | $ | 1,760 | 43.1 | 2) | ||||||
| Diluted Earnings per Common Share from: | ||||||||||||
| Continuing Operations | $ | 1.17 | $ | 0.69 | 69.6 | |||||||
| Discontinued Operations | -- | -- | n/m | |||||||||
| Total | $ | 1.17 | $ | 0.69 | 69.6 | |||||||
| Diluted Earnings per Common Share from Continuing | ||||||||||||
| Operations, excluding Specified Items, as described below | $ | 1.40 | $ | 0.98 | 42.9 | 2) | ||||||
| Average Number of Common Shares Outstanding | ||||||||||||
| Plus Dilutive Common Stock Options | 1,789 | 1,788 |
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 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $528 million, or $0.29 per share, for intangible amortization and impairment expenses and other net expenses primarily associated with acquisitions, restructuring actions and income from a litigation settlement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Nine Months Ended September 30, 2021 and 2020
(in millions, except per share data)
| 9M21 | 9M20 | % Change | |||||||||
| Net Sales | $ | 31,607 | $ | 23,907 | 32.2 | ||||||
| Cost of products sold, excluding amortization expense | 13,771 | 10,510 | 31.0 | ||||||||
| Amortization of intangible assets | 1,533 | 1,624 | (5.7) | ||||||||
| Research and development | 1,980 | 1,722 | 15.0 | ||||||||
| Selling, general, and administrative | 8,276 | 7,126 | 16.1 | ||||||||
| Total Operating Cost and Expenses | 25,560 | 20,982 | 21.8 | ||||||||
| Operating Earnings | 6,047 | 2,925 | 106.7 | ||||||||
| Interest expense, net | 370 | 373 | (0.7) | ||||||||
| Net foreign exchange (gain) loss | 7 | (3 | ) | n/m | |||||||
| Other (income) expense, net | (214 | ) | (25 | ) | n/m | ||||||
| Earnings from Continuing Operations before taxes | 5,884 | 2,580 | 128.0 | ||||||||
| Tax expense on Earnings from Continuing Operations | 802 | 267 | n/m | 1) | |||||||
| Earnings from Continuing Operations | 5,082 | 2,313 | 119.7 | ||||||||
| Earnings from Discontinued Operations, net of taxes | -- | 20 | n/m | ||||||||
| Net Earnings | $ | 5,082 | $ | 2,333 | 117.8 | ||||||
| Earnings from Continuing Operations, excluding | |||||||||||
| Specified Items, as described below | $ | 7,001 | $ | 3,940 | 77.7 | 2) | |||||
| Diluted Earnings per Common Share from: | |||||||||||
| Continuing Operations | $ | 2.83 | $ | 1.29 | 119.4 | ||||||
| Discontinued Operations | -- | 0.01 | n/m | ||||||||
| Total | $ | 2.83 | $ | 1.30 | 117.7 | ||||||
| Diluted Earnings per Common Share from Continuing | |||||||||||
| Operations, excluding Specified Items, as described below | $ | 3.89 | $ | 2.20 | 76.8 | 2) | |||||
| Average Number of Common Shares Outstanding | |||||||||||
| Plus Dilutive Common Stock Options | 1,791 | 1,785 |
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 $80 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $87 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 $1.627 billion, or $0.91 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
Third Quarter Ended September 30, 2021 and 2020
(in millions, except per share data)
| 3Q21 | ||||||||||||||||
| As Reported (GAAP) | Specified Items | As Adjusted | % to Sales | |||||||||||||
| Intangible Amortization | $ | 520 | $ | (520 | ) | $ | -- | |||||||||
| Gross Margin | 5,985 | 445 | 6,430 | 58.8 | % | |||||||||||
| R&D | 672 | (21 | ) | 651 | 6.0 | % | ||||||||||
| SG&A | 2,767 | (30 | ) | 2,737 | 25.0 | % | ||||||||||
| Other (income) expense, net | (74 | ) | 7 | (67 | ) | |||||||||||
| Earnings from Continuing Operations before taxes | 2,493 | 489 | 2,982 | |||||||||||||
| Tax expense on Earnings from Continuing Operations | 393 | 71 | 464 | |||||||||||||
| Earnings from Continuing Operations | 2,100 | 418 | 2,518 | |||||||||||||
| Diluted Earnings per Share from Continuing Operations | $ | 1.17 | $ | 0.23 | $ | 1.40 |
Specified items reflect intangible amortization expense of $520 million and net pretax income of $31 million, primarily associated with a change in estimate to the restructuring actions recognized in the second quarter, partially offset by costs associated with acquisitions and other expenses. See page 16 for additional details regarding specified items.
| 3Q20 | ||||||||||||||||
| As Reported (GAAP) | Specified Items | As Adjusted | % to Sales | |||||||||||||
| Intangible Amortization | $ | 510 | $ | (510 | ) | $ | -- | |||||||||
| Gross Margin | 4,377 | 705 | 5,082 | 57.4 | % | |||||||||||
| R&D | 580 | (21 | ) | 559 | 6.3 | % | ||||||||||
| SG&A | 2,302 | 63 | 2,365 | 26.7 | % | |||||||||||
| Other (income) expense, net | (46 | ) | (1 | ) | (47 | ) | ||||||||||
| Earnings from Continuing Operations before taxes | 1,421 | 664 | 2,085 | |||||||||||||
| Tax expense on Earnings from Continuing Operations | 189 | 136 | 325 | |||||||||||||
| Earnings from Continuing Operations | 1,232 | 528 | 1,760 | |||||||||||||
| Diluted Earnings per Share from Continuing Operations | $ | 0.69 | $ | 0.29 | $ | 0.98 |
Specified items reflect intangible amortization expense of $510 million and other net expenses of $154 million, primarily associated with acquisitions, restructuring actions and other expenses and litigation settlement income. See page 17 for additional details regarding specified items.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations