v3.22.0.1
Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2021
Segment Information  
Segment and Geographic Area Information

Note 15 — Segment and Geographic Area Information

Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world.

Abbott’s reportable segments are as follows:

Established Pharmaceutical Products—International sales of a broad line of branded generic pharmaceutical products.

Nutritional Products—Worldwide sales of a broad line of adult and pediatric nutritional products.

Diagnostic Products—Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. For segment reporting purposes, the Core Laboratories Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care divisions are aggregated and reported as the Diagnostic Products segment.

Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology and Heart Failure, Vascular, Neuromodulation, Structural Heart and Diabetes Care divisions are aggregated and reported as the Medical Devices segment.

Abbott’s underlying accounting records are maintained on a legal entity basis for government and public reporting requirements. Segment disclosures are on a performance basis consistent with internal management reporting. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets.

The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and are not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements.

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Net Sales to External Customers (a)

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Operating Earnings (a)

(in millions)

    

2021

    

2020

    

2019

    

2021

    

2020

    

2019

Established Pharmaceutical Products

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$

4,718

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$

4,303

​

$

4,486

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$

889

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$

794

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$

904

Nutritional Products

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8,294

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7,647

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7,409

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1,763

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1,751

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1,705

Diagnostic Products

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15,644

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10,805

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7,713

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6,256

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3,725

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1,912

Medical Devices

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14,367

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11,787

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12,239

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4,514

​

 

3,038

​

 

3,769

Total Reportable Segments

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43,023

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34,542

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31,487

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$

13,422

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$

9,308

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$

8,290

Other

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52

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66

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57

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Total

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$

43,075

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$

34,608

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$

31,904

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(a)In 2021, the impact of foreign exchange favorably impacted net sales and unfavorably impacted operating earnings. In 2020 and 2019, the impact of foreign exchange unfavorably impacted net sales and operating earnings.

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Note 15 — Segment and Geographic Area Information (Continued)

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(in millions)

    

2021

    

2020

    

2019

Total Reportable Segment Operating Earnings

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$

13,422

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$

9,308

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$

8,290

Corporate functions and benefit plan costs

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(801)

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(518)

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(468)

Net interest expense

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(490)

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(500)

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(576)

Loss on extinguishment of debt

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—

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—

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(63)

Share-based compensation

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(640)

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(546)

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(519)

Amortization of intangible assets

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(2,047)

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(2,132)

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(1,936)

Other, net (b)

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(1,233)

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(644)

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(651)

Earnings from Continuing Operations Before Taxes

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$

8,211

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$

4,968

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$

4,077

(b)Other, net includes integration costs associated with the acquisition of St. Jude Medical and Alere and restructuring charges in 2021, 2020 and 2019. 2021 restructuring charges include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for 2021 also includes costs related to certain litigation. Other, net in 2020 also includes costs related to asset impairments, partially offset by income from the settlement of litigation. Charges for restructuring actions and other cost reduction initiatives were approximately $375 million in 2021, $125 million in 2020 and $215 million in 2019.

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Additions to

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Depreciation

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Property and Equipment

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Total Assets

(in millions)

    

2021

    

2020

    

2019

    

2021

    

2020

    

2019

    

2021

    

2020

    

2019

Established Pharmaceuticals

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$

94

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$

88

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$

98

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$

169

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$

109

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$

109

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$

2,789

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$

2,888

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$

2,858

Nutritionals

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151

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143

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139

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174

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201

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141

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3,425

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3,478

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3,274

Diagnostics

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760

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488

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403

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980

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1,263

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726

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7,699

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7,696

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5,235

Medical Devices

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285

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281

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266

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348

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402

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532

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7,261

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6,893

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6,640

Total Reportable Segments

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1,290

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1,000

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906

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1,671

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1,975

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1,508

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$

21,174

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$

20,955

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$

18,007

Other

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201

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195

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172

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201

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218

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160

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Total

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$

1,491

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$

1,195

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$

1,078

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$

1,872

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$

2,193

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$

1,668

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(in millions)

    

2021

    

2020

Total Reportable Segment Assets

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$

21,174

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$

20,955

Cash and investments

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11,065

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7,969

Goodwill and intangible assets

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35,970

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38,528

All other (c)

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6,987

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5,096

Total Assets

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$

75,196

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$

72,548

(c)All other includes the long-term assets associated with the defined benefit plans of $2.27 billion in 2021 and $824 million in 2020.

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Note 15 — Segment and Geographic Area Information (Continued)

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Net Sales to External

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Customers (d)

(in millions)

    

2021

    

2020

    

2019

United States

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$

16,642

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$

13,022

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$

11,398

Germany

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2,572

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2,108

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​

1,751

China

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2,392

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1,965

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2,346

Japan

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1,695

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1,386

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1,435

India

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1,561

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1,323

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1,397

Canada

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1,385

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841

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573

Switzerland

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1,313

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1,140

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1,068

All Other Countries

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15,515

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12,823

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11,936

Consolidated

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$

43,075

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$

34,608

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$

31,904

(d)Sales by country are based on the country that sold the product.

Long-lived assets on a geographic basis primarily include property and equipment. It excludes goodwill, intangible assets, deferred tax assets, and financial instruments. At December 31, 2021 and 2020, long-lived assets totaled $13.1 billion and $11.7 billion, respectively, and in the United States such assets totaled $6.8 billion and $6.1 billion, respectively. Long-lived asset balances associated with other countries were not material on an individual country basis in either of the two years.