Note 3 — Assets and Liabilities Held for Disposition

In September 2016, Abbott announced that it entered into a definitive agreement to sell Abbott Medical Optics (AMO), its vision care business, to Johnson & Johnson for $4.325 billion in cash, subject to customary purchase price adjustments for cash, debt and working capital. The decision to sell AMO reflects Abbott’s proactive shaping of its portfolio in line with its strategic priorities. In February 2017, Abbott completed the sale of AMO to Johnson & Johnson and recognized a pre-tax gain of $1.151 billion, which is reported in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings in the first quarter of 2017. Abbott recorded an after-tax gain of $721 million in the first quarter of 2017 related to the sale of AMO.

The operating results of AMO up through the date of sale continued to be included in Earnings from Continuing Operations as they did not qualify for reporting as discontinued operations. For the three months ended March 31, 2017 and 2016, AMO’s losses before taxes were $18 million and $57 million, respectively. The following assets and liabilities of this business were reported as held for disposition in Abbott’s Condensed Consolidated Balance Sheet as of December 31, 2016:

(in millions)	December 31, 2016
Trade receivables, net	$	222
Total inventories	240
Prepaid expenses and other current assets	51

Current assets held for disposition	513

Net property and equipment	247
Intangible assets, net of amortization	529
Goodwill	1,966
Deferred income taxes and other assets	11

Non-current assets held for disposition	2,753

Total assets held for disposition	$	3,266


Trade accounts payable	$	71
Salaries, wages, commissions and other accrued liabilities	174

Current liabilities held for disposition	245
Post-employment obligations, deferred income taxes and other long-term liabilities	59

Total liabilities held for disposition	$	304