10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2011

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                     

Commission File No. 1-2189

ABBOTT LABORATORIES

An Illinois Corporation	I.R.S. Employer Identification No.
	36-0698440

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

Telephone:  (847) 937-6l00

Indicate by check mark whether the registrant: (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large Accelerated Filer x	Accelerated Filer o
Non-Accelerated Filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

As of September 30, 2011, Abbott Laboratories had 1,557,795,578 common shares without par value outstanding.

PART I.  FINANCIAL INFORMATION

Abbott Laboratories and Subsidiaries

Condensed Consolidated Financial Statements

(Unaudited)

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

(dollars and shares in thousands except per share data)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2011			2010			2011			2010
Net Sales	$	9,816,665		$	8,674,505		$	28,473,806		$	25,198,873
Cost of products sold	3,973,250			3,741,116			11,702,705			10,620,152
Research and development	1,009,627			1,078,927			2,977,807			2,666,992
Acquired in-process research and development	—			—			272,500			75,000
Selling, general and administrative	4,238,910			2,673,277			9,851,314			7,579,095
Total Operating Cost and Expenses	9,221,787			7,493,320			24,804,326			20,941,239
Operating Earnings	594,878			1,181,185			3,669,480			4,257,634
Interest expense	124,339			149,102			404,055			401,791
Interest (income)	(20,816		)	(15,590		)	(61,400		)	(83,293		)
Net foreign exchange loss (gain)	(5,018		)	(20,956		)	(48,180		)	8,180
Other (income) expense, net	(5,222		)	4,519			130,068			(14,048		)
Earnings Before Taxes	501,595			1,064,110			3,244,937			3,945,004
Taxes on Earnings	198,414			173,450			135,156			759,679
Net Earnings	$	303,181		$	890,660		$	3,109,781		$	3,185,325
Basic Earnings Per Common Share	$	0.19		$	0.58		$	1.99		$	2.06
Diluted Earnings Per Common Share	$	0.19		$	0.57		$	1.98		$	2.04
Cash Dividends Declared Per Common Share	$	0.48		$	0.44		$	1.44		$	1.32
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,558,556			1,545,413			1,555,482			1,546,147
Dilutive Common Stock Options and Awards	9,731			8,639			8,617			9,838
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards	1,568,287			1,554,052			1,564,099			1,555,985
Outstanding Common Stock Options Having No Dilutive Effect	61,201			66,479			60,653			29,403

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

2

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in thousands)

	Nine Months Ended September 30
	2011			2010
Cash Flow From (Used in) Operating Activities:
Net earnings	$	3,109,781		$	3,185,325
Adjustments to reconcile earnings to net cash from operating activities -
Depreciation	1,154,198			904,219
Amortization of intangibles	1,241,267			1,010,508
Share-based compensation	320,103			330,236
Acquired in-process research and development	272,500			—
Trade receivables	272,530			476,209
Inventories	47,521			(52,884		)
Other, net	1,150,828			565,849
Net Cash From Operating Activities	7,568,728			6,419,462
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(1,216,765		)	(723,742		)
Acquisitions of businesses and technologies, net of cash acquired	(672,500		)	(9,120,043		)
(Purchases of) proceeds from sales of investment securities, net	(1,093,548		)	1,973,697
Release of (deposit of) restricted funds	1,870,000			(1,870,000		)
Other	9,171			(7,838		)
Net Cash (Used in) Investing Activities	(1,103,642		)	(9,747,926		)
Cash Flow From (Used in) Financing Activities:
Repayments of short-term debt and other	(786,830		)	(1,419,671		)
Proceeds from issuance of long-term debt	—			3,000,000
Payment of long-term debt	(2,008,836		)	(1,254		)
Purchases of common shares	(74,428		)	(866,173		)
Proceeds from stock options exercised, including income tax benefit	317,463			272,045
Dividends paid	(2,186,006		)	(1,979,374		)
Net Cash (Used in) Financing Activities	(4,738,637		)	(994,427		)
Effect of exchange rate changes on cash and cash equivalents	(325,521		)	(668,303		)
Net Increase (Decrease) in Cash and Cash Equivalents	1,400,928			(4,991,194		)
Cash and Cash Equivalents, Beginning of Year	3,648,371			8,809,339
Cash and Cash Equivalents, End of Period	$	5,049,299		$	3,818,145

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

3

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in thousands)

	September 30 2011			December 31 2010
				(As Adjusted
				See Note 1)
Assets
Current Assets:
Cash and cash equivalents	$	5,049,299		$	3,648,371
Investments, primarily U.S. treasury bills, time deposits and certificates of deposit	2,927,203			1,803,079
Restricted funds, primarily U.S. treasury bills	—			1,872,490
Trade receivables, less allowances of $470,734 in 2011 and $388,564 in 2010	7,043,542			7,184,034
Inventories:
Finished products	2,295,831			2,058,735
Work in process	389,147			383,580
Materials	584,339			746,419
Total inventories	3,269,317			3,188,734
Prepaid expenses, deferred income taxes, and other receivables	4,805,055			4,620,821
Total Current Assets	23,094,416			22,317,529
Investments	392,788			302,049
Property and Equipment, at Cost	17,519,806			17,374,302
Less: accumulated depreciation and amortization	9,542,346			9,403,346
Net Property and Equipment	7,977,460			7,970,956
Intangible Assets, net of amortization	10,793,177			12,151,628
Goodwill	16,231,185			15,930,077
Deferred Income Taxes and Other Assets	1,139,150			790,027
	$	59,628,176		$	59,462,266
Liabilities and Shareholders’ Investment
Current Liabilities:
Short-term borrowings	$	3,589,563		$	4,349,796
Trade accounts payable	1,601,998			1,535,759
Salaries, wages and commissions	1,323,356			1,328,665
Other accrued liabilities	7,649,429			6,014,772
Dividends payable	747,762			680,749
Income taxes payable	466,855			1,307,723
Current portion of long-term debt	34,998			2,044,970
Total Current Liabilities	15,413,961			17,262,434
Long-term Debt	13,096,767			12,523,517
Post-employment Obligations, Deferred Income Taxes and Other Long-term Liabilities	6,428,476			6,911,184
Commitments and Contingencies
Shareholders’ Investment:
Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued	—			—
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2011: 1,626,357,001; 2010: 1,619,689,876	9,102,857			8,744,703
Common shares held in treasury, at cost - Shares: 2011: 68,561,423; 2010: 72,705,928	(3,691,223		)	(3,916,823		)
Earnings employed in the business	20,052,443			19,215,768
Accumulated other comprehensive income (loss)	(860,277		)	(1,366,846		)
Total Abbott Shareholders’ Investment	24,603,800			22,676,802
Noncontrolling Interests in Subsidiaries	85,172			88,329
Total Shareholders’ Investment	24,688,972			22,765,131
	$	59,628,176		$	59,462,266

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

4

Abbott Laboratories and Subsidiaries

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited)

Note 1 — Basis of Presentation and Change in Accounting Principle

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements.  However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made.  It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2010.

The consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.  Prior to January 1, 2011, the accounts of foreign subsidiaries were consolidated based on a fiscal year ended November 30 due to the time needed to consolidate these subsidiaries.  Effective January 1, 2011, the one month lag in the consolidation of the accounts of foreign subsidiaries was eliminated and the year-end of foreign subsidiaries was changed to December 31.  Abbott believes that the change in accounting principle related to the elimination of the one month reporting lag is preferable because it will result in more contemporaneous reporting of the results of foreign subsidiaries.  In accordance with applicable accounting literature, a change in subsidiaries’ year-end is treated as a change in accounting principle and requires retrospective application.  The cumulative effect of the change was an increase in retained earnings of $289 million as of January 1, 2009 and a corresponding decrease in other long-term liabilities.  The impact of the change was not material to the results of operations for the previously reported annual and interim periods after January 1, 2009, and thus, those results have not been revised.  A charge of $137 million was recorded to Other (income) expense, net in the three months ended March 31, 2011 to recognize the cumulative immaterial impacts to 2009 and 2010.  Had the financial statements been revised, net sales, operating earnings and net earnings in calendar 2009 would have increased by $211 million, $36 million and $38 million, respectively, and net sales, operating earnings and net earnings in calendar 2010 would have decreased by $21 million, $195 million and $175 million, respectively.  In addition, net sales, operating earnings and net earnings for the three months ended September 30, 2010 would have increased by $302 million, $25 million and $15 million, respectively, and net sales, operating earnings and net earnings for the nine months ended September 30, 2010 would have increased by $397 million, $63 million and $50 million, respectively.

Note 2 — Supplemental Financial Information

Unvested restricted stock units that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method.  Under the two-class method, net earnings are allocated between common shares and participating securities.  Net earnings allocated to common shares for the three months and nine months ended September 30, 2011 were $302 million and $3.102 billion, respectively, and net earnings allocated to common shares for the three months and nine months ended September 30, 2010 were $889 million and $3.177 billion, respectively.

Other, net in Net cash from operating activities for 2011 includes the non-cash impact of a litigation reserve of $1.5 billion which was partially offset by $570 million of tax benefits related to the favorable resolution of various tax positions pertaining to prior years.  In addition, Other, net in Net cash from operating activities for 2011 and 2010 includes the effects of contributions to defined benefit plans of $390 million and $510 million, respectively, and to the post-employment medical and dental benefit plans of $40 million and $66 million, respectively.

The judgment entered by the U.S. District Court for the Eastern District of Texas against Abbott in its litigation with New York University and Centocor, Inc. required Abbott to secure the judgment in the event that its appeal to the Federal Circuit court was unsuccessful in overturning the district court’s decision.  In the first quarter of 2010, Abbott deposited $1.87 billion with an escrow agent and considered these assets to be restricted. On February 23, 2011, the Federal Circuit reversed the district court’s final judgment and found Centocor’s patent invalid.  On April 25, 2011 Centocor petitioned the Federal Circuit to rehear and reconsider the decision. In June 2011 the Federal Circuit denied Centocor’s petition and the restrictions on the funds were lifted.

5

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

The components of long-term investments as of September 30, 2011 and December 31, 2010 are as follows:

	September 30		December 31
(dollars in millions)	2011		2010
Equity securities	$	296	$	240
Debt obligations issued by various governments	97		62
Total	$	393	$	302

Note 3 — Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties.  Taxes on earnings in 2011 reflect the effect of the tax rate applied to a litigation reserve in the third quarter and the recognition of $570 million of tax benefits in the first nine months as a result of the favorable resolution of various tax positions pertaining to prior years, which also decreased the gross amount of unrecognized tax benefits by approximately $1.2 billion.  Exclusive of these discrete items, the effective tax rates are less than the statutory U.S. federal income tax rate principally due to the benefit of lower statutory tax rates and tax exemptions in several foreign taxing jurisdictions.  Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by up to $500 million, including cash adjustments, within the next twelve months as a result of concluding various tax matters.

As a result of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act which were signed into law in the first quarter of 2010, Abbott recorded a charge of approximately $60 million in the first quarter 2010 to reduce deferred tax assets associated with retiree health care liabilities related to the Medicare Part D retiree drug subsidy.

Note 4 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations.  Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure.  No individual site cleanup exposure is expected to exceed $3 million, and the aggregate cleanup exposure is not expected to exceed $15 million.

There are a number of patent disputes with third parties who claim Abbott’s products infringe their patents.  In April 2007, New York University (NYU) and Centocor, Inc. filed a lawsuit in the Eastern District of Texas asserting that HUMIRA infringes a patent co-owned by NYU and Centocor and exclusively licensed to Centocor.  In June 2009, a jury found that Abbott had willfully infringed the patent and awarded NYU and Centocor approximately $1.67 billion in past compensatory damages.  In December 2009, the district court issued a final judgment and awarded the plaintiffs an additional $175 million in prejudgment interest.  On February 23, 2011, the Federal Circuit reversed the district court’s final judgment and found Centocor’s patent invalid.  On April 25, 2011 Centocor petitioned the Federal Circuit to rehear and reconsider the decision.  In June 2011 the Federal Circuit denied Centocor’s request to reconsider.  Centocor has until November 10, 2011 to ask the U.S. Supreme Court to review the Federal Circuit’s decision.  Abbott is confident in the merits of its case and, as a result, no reserves have been recorded in this case.

The United States Department of Justice, through the United States Attorney for the Western District of Virginia, is investigating Abbott’s sales and marketing activities for Depakote.  The government is seeking to determine whether any of these activities violated civil and/or criminal laws, including the Federal False Claims Act, the Food and Drug Cosmetic Act, and the anti-Kickback Statute in connection with Medicare and/or Medicaid reimbursement to third parties.  Discussions to resolve potential civil and criminal claims arising from this matter have advanced to a point where Abbott believes a loss is probable and estimable and therefore, Abbott recorded a charge of $1.5 billion in the third quarter of 2011.  If the discussions are successfully concluded, Abbott expects the discussions to result in resolution of the Depakote-related federal claims, as well as similar state Medicaid-related claims.  However, the discussions are ongoing, and until concluded, there can be no certainty about definitive resolution.

Within the next year, legal proceedings may occur that may result in a change in the estimated reserves recorded by Abbott.  For its legal proceedings and environmental exposures Abbott estimates the range of possible loss to be from approximately $1.58 billion to $1.61 billion, which includes the $1.5 billion charge discussed above.  The recorded reserve balance at September 30, 2011 for these proceedings and exposures was approximately $1.6 billion.  These reserves represent management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.”

6

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations except for the government investigation discussed in the third paragraph of this footnote, the resolution of which is expected to be material to cash flows in a given year.

Note 5 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans.  Net cost for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans												Medical and Dental Plans
	Three Months						Nine Months						Three Months						Nine Months
	Ended Sept. 30						Ended Sept. 30						Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010
Service cost — benefits earned during the period	$	95		$	77		$	251		$	234		$	14		$	17		$	41		$	45
Interest cost on projected benefit obligations	131			117			350			351			22			24			66			76
Expected return on plans’ assets	(171		)	(155		)	(471		)	(453		)	(9		)	(9		)	(25		)	(23		)
Settlement	36			—			36			—			—			—			—			—
Net amortization	43			28			125			83			(1		)	2			(3		)	13
Net Cost	$	134		$	67		$	291		$	215		$	26		$	34		$	79		$	111

Abbott funds its domestic defined benefit plans according to IRS funding limitations.  International pension plans are funded according to similar regulations.  In the first nine months of 2011 and 2010, $390 million and $510 million, respectively, was contributed to defined benefit plans and $40 million and $66 million, respectively, was contributed to the post-employment medical and dental benefit plans.

Note 6 — Comprehensive Income, net of tax

	Three Months Ended						Nine Months Ended
	September 30						September 30
(dollars in millions)	2011			2010			2011			2010
Foreign currency translation (loss) gain adjustments	$	(1,494	)	$	1,153		$	479		$	(2,573	)
Amortization of net actuarial losses and prior service cost and credits	28			4			81			1
Unrealized (loss) gains on marketable equity securities	(8		)	20			3			63
Net adjustments for derivative instruments designated as cash flow hedges	36			(30		)	(56		)	172
Other comprehensive (loss) income, net of tax	(1,438		)	1,147			507			(2,337		)
Net Earnings	303			891			3,110			3,185
Comprehensive (Loss) Income	$	(1,135	)	$	2,038		$	3,617		$	848

	Sept. 30 2011			Dec. 31 2010
Supplemental Accumulated Other Comprehensive Income Information, net of tax:
Cumulative foreign currency translation (gain) adjustments	$	(1,223	)	$	(744	)
Net actuarial losses and prior service cost and credits	2,139			2,220
Cumulative unrealized (gains) on marketable equity securities	(27		)	(24		)
Cumulative (gains) on derivative instruments designated as cash flow hedges	(29		)	(85		)

7

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

Note 7 — Segment 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.  Effective January 1, 2011, Abbott’s segments were reorganized to reflect the shift of international branded generic pharmaceutical products to a newly formed division, Established Pharmaceuticals, and the combination of the domestic and international proprietary pharmaceuticals businesses into one global division.  The segment information below has been adjusted to reflect the reorganizations.  Abbott’s reportable segments are as follows:

Proprietary Pharmaceutical Products — Worldwide sales of a broad line of proprietary pharmaceutical products.

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, Molecular Diagnostics, Point of Care and Ibis diagnostic divisions are aggregated and reported as the Diagnostic Products segment.

Vascular Products — Worldwide sales of coronary, endovascular, structural heart, vessel closure and other medical device products.

Non-reportable segments include the Diabetes Care and Medical Optics segments.

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.  Intersegment transfers of inventory are recorded at standard cost and are not a measure of segment operating earnings.  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.  For acquisitions prior to 2006, substantially all intangible assets and related amortization are not allocated to segments.  In addition, no intangible assets or related amortization are allocated to the Established Pharmaceutical Products segment.  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.

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months						Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011		2010		2011		2010		2011			2010			2011			2010
Proprietary Pharmaceutical Products	$	4,298	$	3,787	$	12,242	$	10,852	$	1,879		$	1,684		$	4,919		$	4,456
Established Pharmaceutical Products	1,389		1,133		4,023		3,063		311			233			933			648
Nutritional Products	1,537		1,365		4,450		4,099		205			164			540			591
Diagnostic Products	1,025		916		3,046		2,779		199			137			555			442
Vascular Products	828		790		2,507		2,372		257			261			700			686
Total Reportable Segments	9,077		7,991		26,268		23,165		2,851			2,479			7,647			6,823
Other	740		684		2,206		2,034
Net Sales	$	9,817	$	8,675	$	28,474	$	25,199
Corporate functions and benefit plans costs									(108		)	(114		)	(344		)	(455		)
Non-reportable segments									39			(20		)	173			211
Net interest expense									(104		)	(134		)	(343		)	(318		)
Share-based compensation (a)									(68		)	(73		)	(320		)	(330		)
Acquired in-process research and development									—			—			(273		)	(75		)
Other, net (b)									(2,108		)	(1,074		)	(3,295		)	(1,911		)
Consolidated Earnings Before Taxes									$	502		$	1,064		$	3,245		$	3,945

(a)Approximately 40 to 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b)Other, net for the third quarter and nine months 2011 includes a charge of $1.5 billion related to a previously disclosed government investigation.

8

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

Note 8 — Incentive Stock Programs

In the first nine months of 2011, Abbott granted 1,757,339 stock options, 619,294 replacement stock options, 1,167,570 restricted stock awards and 6,523,222 restricted stock units under these programs.  At September 30, 2011, approximately 180 million shares were reserved for future grants.  Information regarding the number of options outstanding and exercisable at September 30, 2011 is as follows:

	Outstanding		Exercisable
Number of shares	98,662,170		94,774,011
Weighted average remaining life (years)	4.4		4.2
Weighted average exercise price	$	50.61	$	50.61
Aggregate intrinsic value (in millions)	$	276	$	268

The total unrecognized share-based compensation cost at September 30, 2011 amounted to approximately $310 million which is expected to be recognized over the next three years.

Note 9 — Business Combinations and Technology Acquisitions

In February 2010, Abbott acquired Solvay’s pharmaceuticals business (Solvay Pharmaceuticals) for approximately $6.1 billion, in cash, plus additional payments of up to EUR 100 million per year if certain sales milestones are met in 2011, 2012 and 2013.  Contingent consideration of approximately $290 million was recorded.   The acquisition of Solvay Pharmaceuticals provides Abbott with a large and complementary portfolio of pharmaceutical products and expands Abbott’s presence in key global emerging markets.  Abbott acquired control of this business on February 15, 2010 and the financial results of the acquired operations are included in these financial statements beginning on that date.  The acquisition was funded with cash and short-term investments.  The allocation of the fair value of the acquisition is shown in the table below (in billions of dollars).

Goodwill, non-deductible	$	2.2
Acquired intangible assets, non-deductible	4.1
Acquired in-process research and development, non-deductible	0.5
Acquired net tangible assets	0.7
Deferred income taxes recorded at acquisition	(1.1		)
Total allocation of fair value	$	6.4

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 2 to 14 years (average of 11 years).  Acquired in-process research and development projects are accounted for as indefinite lived intangible assets until regulatory approval or discontinuation.  The net tangible assets acquired consist primarily of trade accounts receivable of approximately $675 million, inventory of approximately $390 million, property and equipment of approximately $725 million, net of assumed liabilities, primarily trade accounts payable, accrued compensation and other liabilities.

Had the acquisition of Solvay Pharmaceuticals taken place on January 1, 2010, unaudited pro forma net sales, net earnings and diluted earnings per share for the three months and nine months ended September 30, 2010 would have been $8.7 billion and $25.8 billion, $900 million and $3.2 billion and $0.57 and $2.04, respectively.  The pro forma information includes adjustments for amortization of intangible assets and fair value adjustments to acquisition-date inventory as well as acquisition and integration expenses.  The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date.

In March 2010, Abbott acquired STARLIMS Technologies for approximately $100 million, in cash, net of cash held by STARLIMS, providing Abbott with leading products and expertise to build its position in laboratory informatics.   A substantial portion of the fair value of the acquisition has been allocated to amortizable intangible assets and goodwill.

9

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

In April 2010, Abbott acquired the outstanding shares of Facet Biotech Corporation for approximately $430 million, in cash, net of cash held by Facet.   The acquisition enhances Abbott’s early- and mid-stage pharmaceutical pipeline, including a biologic for multiple sclerosis and compounds that complement Abbott’s oncology program.  A substantial portion of the fair value of the acquisition has been allocated to acquired in-process research and development that is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation.

On September 8, 2010, Abbott acquired Piramal Healthcare Limited’s Healthcare Solutions business, a leader in the Indian branded generics market, for $2.2 billion, in cash, plus additional payments of $400 million annually in 2011, 2012, 2013 and 2014.  Abbott recorded a $1.6 billion liability for the present value of the additional payments at the acquisition date.  The acquisition was financed with cash.  The allocation of the fair value of the acquisition resulted in the recording of $2.7 billion of deductible acquired intangible assets and $1.0 billion of deductible goodwill.  Acquired intangible assets consist primarily of trade names, customer relationships and associated rights and are amortized over an average of 19 years.

In 2010, Abbott entered into an agreement to acquire licensing rights outside the U.S., excluding certain Asian markets, to a product in development for the treatment of chronic kidney disease.  In the first and second quarters of 2011, certain milestones were achieved and charges to acquired in-process research and development of $100 million and $88 million were recorded.  In addition, Abbott also acquired an equity interest of approximately $62 million in the second quarter of 2011.

In the second quarter of 2011, Abbott entered into an agreement to develop and commercialize a treatment for rheumatoid arthritis and psoriasis resulting in a charge to acquired in-process research and development of $85 million.  In the second quarter of 2010, Abbott entered into an agreement to develop and commercialize a product for the treatment of endometriosis resulting in a charge to acquired in-process research and development of $75 million.

Note 10 — Financial Instruments, Derivatives and Fair Value Measures

Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar.  These contracts, totaling $603 million and $1.3 billion at September 30, 2011 and December 31, 2010, respectively, are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value.  Accumulated gains and losses as of September 30, 2011 will be included in Cost of products sold at the time the products are sold, generally through the next twelve months.  The amount of hedge ineffectiveness was not significant in 2011 and 2010.

Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity.  For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies and Japanese yen, in exchange for primarily U.S. dollars and other European currencies.  For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar, European currencies and Japanese yen.  At September 30, 2011 and December 31, 2010, Abbott held $14.7 billion and $10.8 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $690 million and approximately $650 million as of September 30, 2011 and December 31, 2010, respectively.  Accordingly, changes in the fair value of this debt due to changes in exchange rates are recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate swap contracts totaling $6.8 billion at September 30, 2011 and $7.3 billion at December 31, 2010 to manage its exposure to changes in the fair value of fixed-rate debt.  These contracts are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.  The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion of the debt.  Abbott records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.  No hedge ineffectiveness was recorded in income in 2011 or 2010 for these hedges.

10

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

The following table summarizes the amounts and location of certain derivative financial instruments as of September 30, 2011 and December 31, 2010:

	Fair Value - Assets					Fair Value - Liabilities
(dollars in millions)	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	616	$	138	Deferred income taxes and other assets	$	—	$	36	Post-employment obligations, deferred income taxes and other long-term liabilities
Interest rate swaps designated as fair value hedges	—		8		Prepaid expenses, deferred income taxes, and other receivables	—		—		n/a
Foreign currency forward exchange contracts —
Hedging instruments Others not designated as hedges	19 60		16 109		Prepaid expenses, deferred income taxes, and other receivables	6 72		10 120		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	690		650		Short-term borrowings
	$	695	$	271		$	768	$	816

11

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and the amounts and location of income (expense) and gain (loss) reclassified into income in the third quarter and first nine months of 2011 and 2010 and for certain other derivative financial instruments.  The amount of hedge ineffectiveness was not significant in 2011 and 2010 for these hedges.

	Gain (loss) Recognized in Other Comprehensive Income (loss)												Income (expense) and Gain (loss) Reclassified into Income
	Three Months Ended Sept. 30						Nine Months Ended Sept. 30						Three Months Ended Sept. 30						Nine Months Ended Sept. 30					Income Statement
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010		Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(22	)	$	69		$	(98	)	$	130		$	(29	)	$	26		$	14		$	26	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	(30		)	(34		)	(40		)	(60		)	n/a			n/a			n/a			n/a		n/a
Interest rate swaps designated as fair value hedges	n/a			n/a			n/a			n/a			415			272			506			598		Interest expense
Foreign currency forward exchange contracts not designated as hedges	n/a			n/a			n/a			n/a			60			(22		)	(30		)	62		Net foreign exchange loss (gain)

The interest rate swaps are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.  The hedged debt is marked to market, offsetting the effect of marking the interest rate swaps to market.

The carrying values and fair values of certain financial instruments as of September 30, 2011 and December 31, 2010 are shown in the table below. The carrying values of all other financial instruments approximate their estimated fair values.  The counterparties to financial instruments consist of select major international financial institutions.  Abbott does not expect any losses from nonperformance by these counterparties.

	September 30 2011						December 31 2010
(dollars in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Current	$	30		$	30		$	—		$	—
Long-term:
Equity securities	296			296			240			240
Debt obligations issued by various governments	97			74			62			43
Total Long-term Debt	(13,133		)	(15,160		)	(14,568		)	(15,723		)
Foreign Currency Forward Exchange Contracts:
Receivable position	79			79			125			125
(Payable) position	(78		)	(78		)	(130		)	(130		)
Interest Rate Hedge Contracts:
Receivable position	616			616			146			146
(Payable) position	—			—			(36		)	(36		)

12

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:

			Basis of Fair Value Measurement
(dollars in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
September 30, 2011:
Available for sale equity securities	$	76	$	76	$	—	$	—
Debt obligations issued by various governments	97		—		97		—
Interest rate swap derivative financial instruments	616		—		616		—
Foreign currency forward exchange contracts	79		—		79		—
Total Assets	$	868	$	76	$	792	$	—
Fair value of hedged long-term debt	$	7,483	$	—	$	7,483	$	—
Foreign currency forward exchange contracts	78		—		78		—
Contingent consideration related to business combinations	395		—		—		395
Total Liabilities	$	7,956	$	—	$	7,561	$	395
December 31, 2010:
Available for sale equity securities	$	75	$	75	$	—	$	—
Interest rate swap derivative financial instruments	146		—		146		—
Foreign currency forward exchange contracts	125		—		125		—
Total Assets	$	346	$	75	$	271	$	—
Fair value of hedged long-term debt	$	7,444	$	—	$	7,444	$	—
Interest rate swap derivative financial instruments	36		—		36		—
Foreign currency forward exchange contracts	130		—		130		—
Contingent consideration related to business combinations	365		—		—		365
Total Liabilities	$	7,975	$	—	$	7,610	$	365

The fair value of the debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis.  The fair value of the contingent consideration was determined based on an independent appraisal adjusted for the time value of money, exchange and other changes in fair value.

Note 11 — Goodwill and Intangible Assets

Abbott recorded goodwill of approximately $3.3 billion in the first nine months of 2010 related to the acquisitions of Solvay Pharmaceuticals, Piramal Healthcare Limited’s Healthcare Solutions business, STARLIMS Technologies and Facet Biotech.  In addition, in the first quarter of 2010, Abbott paid $250 million to Boston Scientific as a result of the approval to market the Xience V drug-eluting stent in Japan, resulting in an increase in goodwill. In 2010 goodwill related to the Solvay Pharmaceuticals and Piramal acquisitions was allocated to the Pharmaceuticals Products segment and goodwill related to the Boston Scientific payment was allocated to the Vascular Products segment.  Foreign currency translation adjustments and other adjustments increased goodwill in the first nine months of 2011 by approximately $300 million and decreased goodwill in the first nine months of 2010 by approximately $920 million.  The amount of goodwill related to pharmaceutical segments at September 30, 2011 was $9.6 billion and will be allocated to the Proprietary Products and Established Products segments using a relative fair value approach after additional analysis is completed.  Goodwill was $208 million for the Nutritional Products segment, $383 million for the Diagnostic Products segment and $2.7 billion for the Vascular Products segment.  There were no significant reductions of goodwill relating to impairments or disposal of all or a portion of a business.

13

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

The gross amount of amortizable intangible assets, primarily product rights and technology was $17.7 billion as of September 30, 2011 and $17.3 billion as of December 31, 2010, and accumulated amortization was $7.8 billion as of September 30, 2011 and $6.5 billion as of December 31, 2010.  Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $900 million and $1.4 billion at September 30, 2011 and December 31, 2010, respectively.  In the second quarter of 2011, Abbott recorded an impairment charge of $125 million for certain research and development intangible assets related to a non-reportable segment due to changes in the projected development and regulatory timeframes for the project.  The charge was based on a discounted cash flow analysis and is included in research and development expenses. The estimated annual amortization expense for intangible assets is approximately $1.6 billion in 2011, $1.2 billion in 2012, $1.1 billion in 2013, $945 million in 2014 and $825 million in 2015.  Amortizable intangible assets are amortized over 2 to 30 years (average 12 years).

Note 12 — Restructuring Plans

In 2011 and prior years, Abbott management approved plans to realign its worldwide pharmaceutical and vascular manufacturing operations and selected domestic and international commercial and research and development operations in order to reduce costs.  In the first quarter of 2011, Abbott recorded $49 million to Cost of products sold, $18 million to Research and development and $49 million to Selling, general and administrative.  Charges of $12 million and $7 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs.  The following summarizes the activity for these restructurings: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	77		$	145
Restructuring charges	116			—
Payments and other adjustments	(71		)	(96		)
Accrued balance at September 30	$	122		$	49

In the third quarter of 2010, Abbott management approved a restructuring plan primarily related to the acquisition of Solvay Pharmaceuticals.  This plan streamlines operations, improves efficiencies and reduces costs in certain Solvay sites and functions as well as in certain Abbott and Solvay commercial organizations in various countries.  Under this plan, Abbott recorded charges to Cost of products sold, Research and Development and Selling, General and Administrative of approximately $81 million, $133 million and $222 million, respectively. Charges of approximately $95 million were recorded in the first nine months of 2011 relating to this restructuring, primarily for accelerated depreciation.  Additional charges will occur through 2012 primarily related to additional employee-related and asset disposal costs.  The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	410		$	—
Restructuring charges	—			436
Payments and other adjustments	(179		)	(37		)
Accrued balance at September 30	$	231		$	399

In 2011 and 2008, Abbott management approved plans to streamline global manufacturing operations, reduce overall costs, and improve efficiencies in Abbott’s core diagnostic business.  A charge of $31 million was recorded in Cost of products sold for the 2011 restructuring.  Additional charges of approximately $28 million and $45 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs.  Additional charges will occur through 2015 as a result of product re-registration timelines required under manufacturing regulations in a number of countries and product transition timelines.  The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	88		$	98
Restructuring charges	31			—
Payments and other adjustments	(27		)	(9		)
Accrued balance at September 30	$	92		$	89

14

Notes to Condensed Consolidated Financial Statements

September 30, 2011

(Unaudited), continued

Note 13 — Separation into Two Publicly Traded Companies

In October 2011, Abbott announced a plan to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.  To accomplish the separation, Abbott plans to create a new company for its research-based pharmaceuticals business which will include Abbott’s Proprietary Pharmaceutical Products segment.  The transaction is expected to take the form of a tax-free distribution to Abbott shareholders of the stock of the newly created research-based pharmaceutical company and is expected to be completed by the end of 2012.

15

FINANCIAL REVIEW

Results of Operations

The following table details sales by reportable segment for the three months and nine months ended September 30.  Percent changes are versus the prior year and are based on unrounded numbers.

	Net Sales to External Customers
	Three Months Ended September 30					Nine Months Ended September 30
(dollars in millions)	2011		Percent Change	2010		2011		Percent Change	2010
Proprietary Pharmaceutical Products	$	4,298	13.5	$	3,787	$	12,242	12.8	$	10,852
Established Pharmaceutical Products	1,389		22.6	1,133		4,023		31.3	3,063
Nutritional Products	1,537		12.6	1,365		4,450		8.6	4,099
Diagnostic Products	1,025		11.9	916		3,046		9.6	2,779
Vascular Products	828		4.7	790		2,507		5.7	2,372
Total Reportable Segments	9,077		13.6	7,991		26,268		13.4	23,165
Other	740		8.3	684		2,206		8.4	2,034
Net Sales	$	9,817	13.2	$	8,675	$	28,474	13.0	$	25,199
Total U.S.	$	4,088	5.8	$	3,862	$	11,543	5.8	$	10,906
Total International	$	5,729	19.1	$	4,813	$	16,931	18.5	$	14,293

The net sales growth for the third quarter and first nine months of 2011 reflects unit growth, the acquisition of Piramal Healthcare Limited’s Healthcare Solution business in September 2010 and the effect of exchange.  The net sales growth for the first nine months of 2011 also reflects the acquisition of Solvay’s pharmaceuticals business in February 2010.  Excluding 5.3 percent and 3.8 percent of favorable exchange for the third quarter and first nine months of 2011, net sales increased 7.9 percent and 9.2 percent, respectively.  The relatively weaker U.S. dollar increased third quarter 2011 Total International sales by 9.5 percent, Proprietary Pharmaceutical Products segment sales by 4.6 percent, Established Pharmaceutical Products segment sales by 9.5 percent, Nutritional Product segment sales by 3.1 percent, Diagnostic Products segment sales by 6.5 percent and Vascular Products segment sales by 5.3 percent over the third quarter of 2010.  The relatively weaker U.S. dollar increased the first nine months 2011 Total International sales by 6.7 percent, Proprietary Pharmaceutical Products segment sales by 3.2 percent, Established Pharmaceutical Products segment sales by 7.0 percent, Nutritional Product segment sales by 2.7 percent, Diagnostic Products segment sales by 4.6 percent and Vascular Products segment sales by 3.8 percent over the first nine months of 2010.  Sales growth in the Proprietary Pharmaceutical Products segment was impacted by the acquisition of Solvay Pharmaceuticals in February 2010.  Sales growth in the Established Pharmaceutical Products segment and in Total International sales was impacted by the acquisition of Solvay Pharmaceuticals in February 2010 and Piramal Healthcare Limited’s Healthcare Solutions business in September 2010.

16

FINANCIAL REVIEW

(continued)

A comparison of significant product group sales for the nine months ended September 30 is as follows.  Percent changes are versus the prior year and are based on unrounded numbers.

	Nine Months Ended September 30
(dollars in millions)	2011		Percent Change	2010
Proprietary Pharmaceutical Products —
U.S. Proprietary	$	6,649	9.2	$	6,088
International Proprietary	5,593		17.4	4,764
Nutritional Products —
U.S. Pediatric Nutritionals	931		2.9	905
International Pediatric Nutritionals	1,420		14.8	1,237
U.S. Adult Nutritionals	1,030		1.9	1,011
International Adult Nutritionals	1,055		15.4	914
Diagnostics —
Immunochemistry	2,331		8.9	2,140

The increase in U.S. Proprietary product sales in 2011 is due to the acquisition of Solvay Pharmaceuticals in February 2010 and to increased sales of HUMIRA, Niaspan, Synthroid and Lupron and was partially offset by decreased sales of Zemplar.  Increased sales of HUMIRA favorably impacted International Proprietary products sales in 2011.  Abbott expects to exceed its previous forecast of growth in the high teens for worldwide HUMIRA sales in 2011.  International Pediatric and Adult Nutritionals sales increased in 2011 due primarily to volume growth in developing countries.  The relatively weaker U.S. dollar increased International Pediatric sales, International Adult Nutritional and Immunochemistry sales in 2011 by 4.2 percent, 6.2 percent and 5.1 percent, respectively.

The gross profit margin was 59.5 percent for the third quarter 2011, compared to 56.9 percent for the third quarter 2010.  First nine months 2011 gross profit margin was 58.9 percent compared to 57.9 percent for the first nine months 2010.  Excluding charges for the impairment of an intangible asset and for restructuring, the gross profit margins for the third quarter and first nine months of 2010 were 60.0 percent and 58.9 percent, respectively.  Gross profit margins in 2011 were impacted by additional rebates under health care reform, the carryover effect of 2010 pharmaceutical pricing actions by European governments, and an unfavorable impact from foreign exchange rates.

Research and development expenses decreased 6.4 percent in the third quarter 2011 and increased 11.7 percent for the first nine months 2011 over comparable 2010 periods.  Excluding impairment charges and integration expenses in both 2011 and 2010, research and development expensed increased 8.2 percent in the third quarter 2011 and 10.2 percent for the nine months ended September 30, 2011.  The increase for the first nine months 2011 reflects the acquisitions of Solvay Pharmaceuticals in February 2010 and Facet Biotech in April 2010.  These increases also reflect continued pipeline spending, including programs in vascular devices, biologics, neuroscience, oncology and hepatitis C.  The majority of research and development expenditures are concentrated on pharmaceutical products.

Selling, general and administrative expenses for the third quarter and first nine months 2011 includes a litigation reserve of $1.5 billion related to ongoing settlement discussions in the previously disclosed government investigation related to Depakote.  Excluding the effect of this item, Selling, general and administrative expenses for the third quarter and first nine months 2011 increased 2.5 percent and 10.2 percent, respectively, over the comparable 2010 periods.  The increases reflect the acquisitions of Solvay Pharmaceuticals in February of 2010 and Piramal Healthcare in September of 2010 and the impact of the pharmaceutical fees associated with U.S. health care reform.   2011 also reflects increased selling and marketing support for new and existing products, including spending for HUMIRA and inflation.

17

FINANCIAL REVIEW

(continued)

Business Combinations and Technology Acquisitions

In February 2010, Abbott acquired Solvay’s pharmaceuticals business (Solvay Pharmaceuticals) for approximately $6.1 billion, in cash, plus additional payments of up to EUR 100 million per year if certain sales milestones are met in 2011, 2012 and 2013.  Contingent consideration of approximately $290 million was recorded.   The acquisition of Solvay Pharmaceuticals provides Abbott with a large and complementary portfolio of pharmaceutical products and expands Abbott’s presence in key global emerging markets.  Abbott acquired control of this business on February 15, 2010 and the financial results of the acquired operations are included in these financial statements beginning on that date.  The acquisition was funded with cash and short-term investments.  The allocation of the fair value of the acquisition is shown in the table below (in billions of dollars).

Goodwill, non-deductible	$	2.2
Acquired intangible assets, non-deductible	4.1
Acquired in-process research and development, non-deductible	0.5
Acquired net tangible assets	0.7
Deferred income taxes recorded at acquisition	(1.1		)
Total allocation of fair value	$	6.4

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 2 to 14 years (average of 11 years).  Acquired in-process research and development projects are accounted for as indefinite lived intangible assets until regulatory approval or discontinuation.  The net tangible assets acquired consist primarily of trade accounts receivable of approximately $675 million, inventory of approximately $390 million, property and equipment of approximately $725 million, net of assumed liabilities, primarily trade accounts payable, accrued compensation and other liabilities.

Had the acquisition of Solvay Pharmaceuticals taken place on January 1, 2010, unaudited pro forma net sales, net earnings and diluted earnings per share for the three months and nine months ended September 30, 2010 would have been $8.7 billion and $25.8 billion, $900 million and $3.2 billion and $0.57 and $2.04, respectively.  The pro forma information includes adjustments for amortization of intangible assets and fair value adjustments to acquisition-date inventory as well as acquisition and integration expenses.  The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date.

In March 2010, Abbott acquired STARLIMS Technologies for approximately $100 million, in cash, net of cash held by STARLIMS, providing Abbott with leading products and expertise to build its position in laboratory informatics.   A substantial portion of the fair value of the acquisition has been allocated to amortizable intangible assets and goodwill.

In April 2010, Abbott acquired the outstanding shares of Facet Biotech Corporation for approximately $430 million, in cash, net of cash held by Facet.   The acquisition enhances Abbott’s early- and mid-stage pharmaceutical pipeline, including a biologic for multiple sclerosis and compounds that complement Abbott’s oncology program.  A substantial portion of the fair value of the acquisition has been allocated to acquired in-process research and development that is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation.

On September 8, 2010, Abbott acquired Piramal Healthcare Limited’s Healthcare Solutions business, a leader in the Indian branded generics market, for $2.2 billion, in cash, plus additional payments of $400 million annually in 2011, 2012, 2013 and 2014.  Abbott recorded a $1.6 billion liability for the present value of the additional payments at the acquisition date.  The acquisition was financed with cash.  The allocation of the fair value of the acquisition resulted in the recording of $2.7 billion of deductible acquired intangible assets and $1.0 billion of deductible goodwill.  Acquired intangible assets consist primarily of trade names, customer relationships and associated rights and are amortized over an average of 19 years.

18

FINANCIAL REVIEW

(continued)

In 2010, Abbott entered into an agreement to acquire licensing rights outside the U.S., excluding certain Asian markets, to a product in development for the treatment of chronic kidney disease.  In the first and second quarters of 2011, certain milestones were achieved and charges to acquired in-process research and development of $100 million and $88 million were recorded.  In addition, Abbott also acquired an equity interest of approximately $62 million in the second quarter of 2011.

In the second quarter of 2011, Abbott entered into an agreement to develop and commercialize a treatment for rheumatoid arthritis and psoriasis resulting in a charge to acquired in-process research and development of $85 million.  In the second quarter of 2010, Abbott entered into an agreement to develop and commercialize a product for the treatment of endometriosis resulting in a charge to acquired in-process research and development of $75 million.

Restructuring Plans

In 2011 and prior years, Abbott management approved plans to realign its worldwide pharmaceutical and vascular manufacturing operations and selected domestic and international commercial and research and development operations in order to reduce costs.  In the first quarter of 2011, Abbott recorded $49 million to Cost of products sold, $18 million to Research and development and $49 million to Selling, general and administrative.  Charges of $12 million and $7 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs.  The following summarizes the activity for these restructurings: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	77		$	145
Restructuring charges	116			—
Payments and other adjustments	(71		)	(96		)
Accrued balance at September 30	$	122		$	49

In the third quarter of 2010, Abbott management approved a restructuring plan primarily related to the acquisition of Solvay Pharmaceuticals.  This plan streamlines operations, improves efficiencies and reduces costs in certain Solvay sites and functions as well as in certain Abbott and Solvay commercial organizations in various countries.  Under this plan, Abbott recorded charges to Cost of products sold, Research and Development and Selling, General and Administrative of approximately $81 million, $133 million and $222 million, respectively.   Charges of approximately $95 million were recorded in the first nine months of 2011 relating to this restructuring, primarily for accelerated depreciation.  Additional charges will occur through 2012 primarily related to additional employee-related and asset disposal costs.  The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	410		$	—
Restructuring charges	—			436
Payments and other adjustments	(179		)	(37		)
Accrued balance at September 30	$	231		$	399

In 2011 and 2008, Abbott management approved plans to streamline global manufacturing operations, reduce overall costs, and improve efficiencies in Abbott’s core diagnostic business. A charge of $31 million was recorded in Cost of products sold for the 2011 restructuring. Additional charges of approximately $28 million and $45 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs. Additional charges will occur through 2015 as a result of product re-registration timelines required under manufacturing regulations in a number of countries and product transition timelines. The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	88		$	98
Restructuring charges	31			—
Payments and other adjustments	(27		)	(9		)
Accrued balance at September 30	$	92		$	89

19

FINANCIAL REVIEW

(continued)

Interest Expense (Income)

Interest expense decreased in the third quarter 2011 compared to 2010 due to lower interest rates.  Interest income decreased in the first nine months 2011 compared to 2010 primarily as a result of lower rates and investment levels.

Change in Accounting Principle, Other (income) expense, net

Prior to January 1, 2011, the accounts of foreign subsidiaries were consolidated based on a fiscal year ended November 30 due to the time needed to consolidate these subsidiaries.  Effective January 1, 2011, the one month lag in the consolidation of the accounts of foreign subsidiaries was eliminated and the year-end of foreign subsidiaries was changed to December 31.  Abbott believes that the change in accounting principle related to the elimination of the one month reporting lag is preferable because it will result in more contemporaneous reporting of the results of foreign subsidiaries.  In accordance with applicable accounting literature, a change in subsidiaries’ year-end is treated as a change in accounting principle and requires retrospective application.  The cumulative effect of the change was an increase in retained earnings of $289 million as of January 1, 2009 and a corresponding decrease in other long-term liabilities.  The impact of the change was not material to the results of operations for the previously reported annual and interim periods after January 1, 2009, and thus, those results have not been revised.  A charge of $137 million was recorded to Other (income) expense, net in the three months ended March 31, 2011 to recognize the cumulative immaterial impacts to 2009 and 2010.  Had the financial statements been revised, net sales, operating earnings and net earnings in calendar 2009 would have increased by $211 million, $36 million and $38 million, respectively, and net sales, operating earnings and net earnings in calendar 2010 would have decreased by $21 million, $195 million and $175 million, respectively.  In addition, net sales, operating earnings and net earnings for the three months ended September 30, 2010 would have increased by $302 million, $25 million and $15 million, respectively, and net sales, operating earnings and net earnings for the nine months ended September 30, 2010 would have increased by $397 million, $63 million and $50 million, respectively.

Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties.  Taxes on earnings in 2011 reflect the effect of the tax rate applied to a litigation reserve in the third quarter and the recognition of $570 million of tax benefits in the first nine months as a result of the favorable resolution of various tax positions pertaining to prior years, which also decreased the gross amount of unrecognized tax benefits by approximately $1.2 billion.  Exclusive of these discrete items, the effective tax rates are less than the statutory U.S. federal income tax rate principally due to the benefit of lower statutory tax rates and tax exemptions in several foreign taxing jurisdictions.  Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by up to $500 million, including cash adjustments, within the next twelve months as a result of concluding various tax matters.

As a result of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act which were signed into law in the first quarter of 2010, Abbott recorded a charge of approximately $60 million in the first quarter 2010 to reduce deferred tax assets associated with retiree health care liabilities related to the Medicare Part D retiree drug subsidy.

Separation into Two Publicly Traded Companies

In October 2011, Abbott announced a plan to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.  To accomplish the separation, Abbott plans to create a new company for its research-based pharmaceuticals business which will include Abbott’s Proprietary Pharmaceutical Products segment.  The transaction is expected to take the form of a tax-free distribution to Abbott shareholders of the stock of the newly created research-based pharmaceutical company and is expected to be completed by the end of 2012.

20

FINANCIAL REVIEW

(continued)

Liquidity and Capital Resources September 30, 2011 Compared with December 31, 2010

Net cash from operating activities for the first nine months 2011 totaled approximately $7.6 billion. Other, net in Net cash from operating activities for 2011 includes the non-cash impact of a litigation reserve of $1.5 billion which was partially offset by $570 million of tax benefits related to the favorable resolution of various tax positions pertaining to prior years.  In addition, Other, net in Net cash from operating activities for 2011 and 2010 includes the effects of contributions to defined benefit plans of $390 million and $510 million, respectively, and to the post-employment medical and dental benefit plans of $40 million and $66 million, respectively.  Abbott expects annual cash flow from operating activities to continue to exceed Abbott’s capital expenditures and cash dividends.

For the nine months ended September 30, 2011 and 2010, the reductions in cash and cash equivalents due to the effect of exchange rate changes was primarily driven by the impact of changes in the value of the U.S. dollar compared to the euro on non-dollar denominated cash and cash equivalents.  While future fluctuations in the strength of the U.S. dollar against foreign currencies could have a substantial effect on the dollar value of Abbott’s cash and cash equivalents, such fluctuations are not expected to materially impact Abbott’s liquidity.

As discussed in Note 4 to the consolidated financial statements, the United States Department of Justice, through the United States Attorney for the Western District of Virginia, is investigating Abbott’s sales and marketing activities for Depakote.  Abbott recorded a non-cash charge of $1.5 billion in the third quarter of 2011 related to this investigation.  However, the discussions to resolve potential civil and criminal claims related to this matter are ongoing, and until concluded, there can be no certainty about definitive resolution.  The ultimate resolution of this matter in any reporting period is expected to have a material impact on Abbott’s cash flows for that year.

Working capital was $7.7 billion at September 30, 2011 and $5.1 billion at December 31, 2010.

At September 30, 2011 Abbott’s long-term debt rating was AA by Standard & Poor’s Corporation and A1 by Moody’s Investors Service.  Abbott has readily available financial resources, including unused lines of credit of $6.7 billion that support commercial paper borrowing arrangements of which a $3.0 billion facility expires in October 2012 and a $3.7 billion facility expires in 2013.

Under a registration statement filed with the Securities and Exchange Commission in February 2009, Abbott issued $3.0 billion of long-term debt in the second quarter of 2010 that matures in 2015, 2020 and 2040 with interest rates of 2.7 percent, 4.125 percent and 5.3 percent, respectively.  Proceeds from this debt were used to pay down short-term borrowings.  In addition, Abbott repaid $1.5 billion and $500 million of long-term notes that were due in May and March of 2011 using primarily short-term borrowings.

In October 2008, the board of directors authorized the purchase of up to $5 billion of Abbott’s common shares from time to time and no shares were purchased under this authorization in the first nine months of 2011.  In the first nine months of 2010, 14.8 million shares were purchased under this authorization at a cost of approximately $800 million.

Legislative Issues

In the first quarter 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act (collectively referred to herein as “health care reform legislation”) were signed into law in the U.S.  Health care reform legislation includes an increase in the basic Medicaid rebate rate from 15.1% to 23.1% and extends the rebate to drugs provided through Medicaid managed care organizations.  As a result, Abbott recorded an additional provision of approximately $60 million against gross sales in the first quarter 2010 for the impact of the rebate charges on first quarter sales as well as other products in the distribution channel.  In 2011, Abbott also began incurring additional rebates related to the Medicare Part D coverage gap “donut hole.”  These rebate changes will continue to have a negative effect on the gross profit margin of the Proprietary Pharmaceutical Products segment in future quarters.

Beginning in 2013, health care reform legislation will eliminate the federal income tax deduction for prescription drug expenses of retirees for which Abbott receives reimbursement under the Medicare Part D retiree drug subsidy program.  As a result, Abbott recorded a charge of approximately $60 million in the first quarter 2010 to reduce deferred tax assets associated with retiree health care liabilities.

21

FINANCIAL REVIEW

(continued)

In 2011, Abbott began recording the annual fee imposed by health care reform legislation on companies that sell branded prescription drugs to specified government programs.  The amount of the annual fee is based on the ratio of certain of Abbott’s sales as compared to the total such sales of all covered entities multiplied by a fixed dollar amount specified in the legislation by year.  Beginning in 2013, Abbott will record the 2.3% excise tax imposed by health care reform legislation on the sale of certain medical devices.

Abbott’s primary markets are highly competitive and subject to substantial government regulations throughout the world.  Abbott expects debate to continue over the availability, method of delivery, and payment for health care products and services.  It is not possible to predict the extent to which Abbott or the health care industry in general might be adversely affected by these factors in the future.  A more complete discussion of these factors is contained in Item 1, Business, and Item 1A, Risk Factors, in the 2010 Annual Report on Form 10-K.

Private Securities Litigation Reform Act of 1995 — A Caution Concerning Forward-Looking Statements

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Abbott cautions investors that any forward-looking statements or projections made by Abbott, including those made in this document, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, Risk Factors, in the 2010 Annual Report on Form 10-K.

22

PART I.FINANCIAL INFORMATION

Item 4.Controls and Procedures

(a)Evaluation of disclosure controls and procedures.  The Chief Executive Officer, Miles D. White, and Chief Financial Officer, Thomas C. Freyman, evaluated the effectiveness of Abbott Laboratories’ disclosure controls and procedures as of the end of the period covered by this report, and concluded that Abbott Laboratories’ disclosure controls and procedures were effective to ensure that information Abbott is required to disclose in the reports that it files or submits with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and to ensure that information required to be disclosed by Abbott in the reports that it files or submits under the Exchange Act is accumulated and communicated to Abbott’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)Changes in internal control over financial reporting.  During the quarter ended September 30, 2011, there were no changes in Abbott’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, Abbott’s internal control over financial reporting.

PART II.OTHER INFORMATION

Item 1.Legal Proceedings

Abbott is involved in various claims, legal proceedings and investigations, including (as of September 30, 2011) those described below.  While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations, except for the investigation discussed in the third paragraph of Note 4 to Abbott’s financial statements, the resolution of which is expected to be material to cash flows in a given year.

In its 2010 Form 10-K, Abbott reported that litigation is pending in The Netherlands in which Medinol Limited (Medinol) asserts that Abbott’s Vision, Xience V, Xience Prime and Multi-Link 8 stent systems infringe one of Medinol’s European stent design patents, and that in December 2009, the Dutch court found that Abbott’s stent systems do not infringe Medinol’s patent.  In July 2011, Medinol appealed to The Hague Court of Appeal.

In its 2010 Form 10-K, Abbott reported that litigation is pending in the High Court of Justice in the United Kingdom in which Abbott asserts that its stent systems do not infringe three Medinol European patents and that these patents are invalid.  Abbott also reported that, in

23

October 2010, the High Court found that Abbott’s products do not infringe the three Medinol patents and that one of the patents was invalid in the United Kingdom.  Both parties have appealed aspects of this decision.  In a separate proceeding, the European Patent Office (EPO) revoked the patent that had also been found invalid by the High Court.  In September 2011, Medinol withdrew its appeal of the EPO’s decision, which caused the patent’s revocation to become final in all the countries that are members of the EPO, including the United Kingdom.

In September 2011, Abbott filed a lawsuit in the United States District Court for the District of New Jersey in which Abbott and its subsidiary, Laboratoires Fournier, S.A. (Fournier), the patent owner, allege infringement of three patents relating to fenofibrate tablets (a drug Abbott sells under the trademark Tricor®) and seek injunctive relief against Mylan Inc. and Mylan Pharmaceuticals Inc. (Mylan).  Abbott’s subsidiary, Fournier Laboratories Ireland Ltd., also filed a lawsuit with joint patent owner, EDT Pharma Holdings Ltd., alleging infringement of two jointly-owned patents relating to fenofibrate tablets and seeking injunctive relief against Mylan.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(c)Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
July 1, 2011 – July 31, 2011	24,000	(1)	$	52.842	0	$	3,392,180,505	(2)
August 1, 2011 – August 31, 2011	64,833	(1)	$	50.948	0	$	3,392,180,505	(2)
September 1, 2011 – September 30, 2011	66,016	(1)	$	51.566	0	$	3,392,180,505	(2)
Total	154,849	(1)	$	51.505	0	$	3,392,180,505	(2)

1.These shares include:

(i)the shares deemed surrendered to Abbott to pay the exercise price in connection with the exercise of employee stock options -  24,000 in July, 41,833 in August, and 43,016 in September; and

24

(ii)the shares purchased on the open market for the benefit of participants in the Abbott Laboratories, Limited Employee Stock Purchase Plan - 0 in July, 23,000 in August, and 23,000 in September.

These shares do not include the shares surrendered to Abbott to satisfy tax withholding obligations in connection with the vesting of restricted stock or restricted stock units.

2.On October 13, 2008, Abbott announced that its board of directors approved the purchase of up to $5 billion of its common shares, from time to time.

Item 6.Exhibits

Incorporated by reference to the Exhibit Index included herewith.

25

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ABBOTT LABORATORIES
By:	/s/ Thomas C. Freyman
	Thomas C. Freyman
	Executive Vice President,
	Finance and Chief Financial Officer

Date: November 4, 2011

26

EXHIBIT INDEX

Exhibit No.	Exhibit
12	Statement re: computation of ratio of earnings to fixed charges.
31.1	Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).
31.2	Certification of Chief Financial Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).
Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed” under the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements and notes from the Abbott Laboratories Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, filed on November 4, 2011, formatted in XBRL: (i)  Condensed Consolidated Statement of Earnings; (ii) Condensed Consolidated Statement of Cash Flows; (iii) Condensed Consolidated Balance Sheet; and (iv) the notes to the condensed consolidated financial statements.

27

EX-12

Exhibit 12

Abbott Laboratories

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

	Nine Months Ended
	September 30, 2011
Net Earnings	$	3,110
Add (deduct):
Taxes on earnings	135
Noncontrolling interests	6
Earnings from Operations, as adjusted	3,251
Fixed Charges:
Interest on long-term and short-term debt	404
Capitalized interest cost	16
Rental expense representative of an interest factor	92
Total Fixed Charges	512
Total adjusted earnings available for payment of fixed charges	$	3,763
Ratio of earnings to fixed charges	7.3

NOTE:    For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting earnings for taxes on earnings; interest expense; capitalized interest cost, net of amortization; noncontrolling interests; and the portion of rentals representative of the interest factor, (ii) Abbott considers one-third of rental expense to be the amount representing return on capital, and (iii) fixed charges comprise total interest expense, including capitalized interest and such portion of rentals.

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))

I, Miles D. White, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Abbott Laboratories;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Abbott as of, and for, the periods presented in this report;

4.Abbott’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Abbott and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Abbott, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of Abbott’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in Abbott’s internal control over financial reporting that occurred during Abbott’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Abbott’s internal control over financial reporting; and

5.Abbott’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Abbott’s auditors and the audit committee of Abbott’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Abbott’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Abbott’s internal control over financial reporting.

Date:  November 4, 2011	/s/ Miles D. White
	Miles D. White, Chairman of the Board
	and Chief Executive Officer

2

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))

I, Thomas C. Freyman, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Abbott Laboratories;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Abbott as of, and for, the periods presented in this report;

4.Abbott’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Abbott and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Abbott, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of Abbott’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in Abbott’s internal control over financial reporting that occurred during Abbott’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Abbott’s internal control over financial reporting; and

5.Abbott’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Abbott’s auditors and the audit committee of Abbott’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Abbott’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Abbott’s internal control over financial reporting.

Date: November 4, 2011	/s/ Thomas C. Freyman
	Thomas C. Freyman, Executive Vice President,
	Finance and Chief Financial Officer

2

EX-32.1

Exhibit 32.1

Certification Pursuant To

18 U.S.C. Section 1350

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Abbott Laboratories (the “Company”) on Form 10-Q for the period ended September 30, 2011 as filed with the Securities and Exchange Commission (the “Report”), I, Miles D. White, Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Miles D. White

Miles D. White

Chairman of the Board and

Chief Executive Officer

November 4, 2011

A signed original of this written statement required by Section 906 has been provided to Abbott Laboratories and will be retained by Abbott Laboratories and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant To

18 U.S.C. Section 1350

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Abbott Laboratories (the “Company”) on Form 10-Q for the period ended September 30, 2011 as filed with the Securities and Exchange Commission (the “Report”), I, Thomas C. Freyman, Executive Vice President, Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas C. Freyman

Thomas C. Freyman

Executive Vice President, Finance

and Chief Financial Officer

November 4, 2011

A signed original of this written statement required by Section 906 has been provided to Abbott Laboratories and will be retained by Abbott Laboratories and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Condensed Consolidated Balance Sheet (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 5,049,299	$ 3,648,371
Investments, primarily U.S. treasury bills, time deposits and certificates of deposit	2,927,203	1,803,079
Restricted funds, primarily U.S. treasury bills		1,872,490
Trade receivables, less allowances of $470,734 in 2011 and $388,564 in 2010	7,043,542	7,184,034
Inventories:
Finished products	2,295,831	2,058,735
Work in process	389,147	383,580
Materials	584,339	746,419
Total inventories	3,269,317	3,188,734
Prepaid expenses, deferred income taxes, and other receivables	4,805,055	4,620,821
Total Current Assets	23,094,416	22,317,529
Investments	392,788	302,049
Property and Equipment, at Cost	17,519,806	17,374,302
Less: accumulated depreciation and amortization	9,542,346	9,403,346
Net Property and Equipment	7,977,460	7,970,956
Intangible Assets, net of amortization	10,793,177	12,151,628
Goodwill	16,231,185	15,930,077
Deferred Income Taxes and Other Assets	1,139,150	790,027
Total Assets	59,628,176	59,462,266
Current Liabilities:
Short-term borrowings	3,589,563	4,349,796
Trade accounts payable	1,601,998	1,535,759
Salaries, wages and commissions	1,323,356	1,328,665
Other accrued liabilities	7,649,429	6,014,772
Dividends payable	747,762	680,749
Income taxes payable	466,855	1,307,723
Current portion of long-term debt	34,998	2,044,970
Total Current Liabilities	15,413,961	17,262,434
Long-term Debt	13,096,767	12,523,517
Post-employment Obligations, Deferred Income Taxes and Other Long-term Liabilities	6,428,476	6,911,184
Commitments and Contingencies
Shareholders' Investment:
Preferred shares, one dollar par value Authorized - 1,000,000 shares, none issued
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2011: 1,626,357,001; 2010: 1,619,689,876	9,102,857	8,744,703
Common shares held in treasury, at cost - Shares: 2011: 68,561,423; 2010: 72,705,928	(3,691,223)	(3,916,823)
Earnings employed in the business	20,052,443	19,215,768
Accumulated other comprehensive income (loss)	(860,277)	(1,366,846)
Total Abbott Shareholders' Investment	24,603,800	22,676,802
Noncontrolling Interests in Subsidiaries	85,172	88,329
Total Shareholders' Investment	24,688,972	22,765,131
Total Liabilities and Shareholders' Investment	$ 59,628,176	$ 59,462,266

XML

Condensed Consolidated Balance Sheet (Parenthetical) (USD $) In Thousands, except Share data	Sep. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 470,734	$ 388,564
Preferred shares, par value (in dollars per share)	$ 1	$ 1
Preferred shares, Authorized shares	1,000,000	1,000,000
Preferred shares, issued shares	0	0
Common shares, Authorized shares	2,400,000,000	2,400,000,000
Common shares, Issued shares	1,626,357,001	1,619,689,876
Common shares held in treasury, shares	68,561,423	72,705,928

XML

Business Combinations and Technology Acquisitions (Tables)

9 Months Ended

Sep. 30, 2011

Business Combinations and Technology Acquisitions

Allocation of the fair value of the acquisition

Goodwill, non-deductible	$	2.2
Acquired intangible assets, non-deductible	4.1
Acquired in-process research and development, non-deductible	0.5
Acquired net tangible assets	0.7
Deferred income taxes recorded at acquisition	(1.1		)
Total allocation of fair value	$	6.4

XML

Condensed Consolidated Statement of Earnings (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net Sales	$ 9,816,665	$ 8,674,505	$ 28,473,806	$ 25,198,873
Cost of products sold	3,973,250	3,741,116	11,702,705	10,620,152
Research and development	1,009,627	1,078,927	2,977,807	2,666,992
Acquired in-process research and development			272,500	75,000
Selling, general and administrative	4,238,910	2,673,277	9,851,314	7,579,095
Total Operating Cost and Expenses	9,221,787	7,493,320	24,804,326	20,941,239
Operating Earnings	594,878	1,181,185	3,669,480	4,257,634
Interest expense	124,339	149,102	404,055	401,791
Interest (income)	(20,816)	(15,590)	(61,400)	(83,293)
Net foreign exchange loss (gain)	(5,018)	(20,956)	(48,180)	8,180
Other (income) expense, net	(5,222)	4,519	130,068	(14,048)
Earnings Before Taxes	501,595	1,064,110	3,244,937	3,945,004
Taxes on Earnings	198,414	173,450	135,156	759,679
Net Earnings	$ 303,181	$ 890,660	$ 3,109,781	$ 3,185,325
Basic Earnings Per Common Share (in dollars per share)	$ 0.19	$ 0.58	$ 1.99	$ 2.06
Diluted Earnings Per Common Share (in dollars per share)	$ 0.19	$ 0.57	$ 1.98	$ 2.04
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.48	$ 0.44	$ 1.44	$ 1.32
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,558,556	1,545,413	1,555,482	1,546,147
Dilutive Common Stock Options and Awards (in shares)	9,731	8,639	8,617	9,838
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards (in shares)	1,568,287	1,554,052	1,564,099	1,555,985
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	61,201	66,479	60,653	29,403

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Basis of Presentation and Change in Accounting Principle (Details) (USD $) In Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010	Dec. 31, 2009	Jan. 02, 2009
Basis of Presentation and Change in Accounting Principle
Reporting period lag for consolidation of financial results (in months)			1 month
Increase in retained earnings due to change in accounting principle							$ 289
Charge recorded to other (income) expense	137
Increase (decrease) in net sales, if financial statements had been revised		302		397	(21)	211
Increase (decrease) in operating earnings, if financial statements had been revised		25		63	(195)	36
Increase (decrease) in net earnings, if financial statements had been revised		$ 15		$ 50	$ (175)	$ 38

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Incentive Stock Programs

9 Months Ended

Sep. 30, 2011

Incentive Stock Programs

Incentive Stock Programs

Note 8 — Incentive Stock Programs

In the first nine months of 2011, Abbott granted 1,757,339 stock options, 619,294 replacement stock options, 1,167,570 restricted stock awards and 6,523,222 restricted stock units under these programs.  At September 30, 2011, approximately 180 million shares were reserved for future grants.  Information regarding the number of options outstanding and exercisable at September 30, 2011 is as follows:

	Outstanding		Exercisable
Number of shares	98,662,170		94,774,011
Weighted average remaining life (years)	4.4		4.2
Weighted average exercise price	$	50.61	$	50.61
Aggregate intrinsic value (in millions)	$	276	$	268

The total unrecognized share-based compensation cost at September 30, 2011 amounted to approximately $310 million which is expected to be recognized over the next three years.

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Supplemental Financial Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010	Mar. 31, 2010
Supplemental Financial Information
Net earnings allocated to common shares	$ 302,000,000	$ 889,000,000	$ 3,102,000,000	$ 3,177,000,000
Non-cash impact of litigation reserve	1,500,000,000		1,500,000,000
Non-cash impact of tax benefits related to prior period tax positions			570,000,000
Restricted assets, escrow deposit from litigation						1,870,000,000
Component of long-term investment
Long-term Investment Securities	392,788,000		392,788,000		302,049,000
Defined Benefit Plans
Component of long-term investment
Benefit plan contributions by employer			390,000,000	510,000,000
Medical and Dental Plans
Component of long-term investment
Benefit plan contributions by employer			40,000,000	66,000,000
Equity securities
Component of long-term investment
Long-term Investment Securities	296,000,000		296,000,000		240,000,000
Debt obligations issued by various governments
Component of long-term investment
Long-term Investment Securities	$ 97,000,000		$ 97,000,000		$ 62,000,000

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Separation into Two Publicly Traded Companies (Details)	10 Months Ended
	Oct. 31, 2011 Entities
Separation into Two Publicly Traded Companies
Number of publicly traded companies to be splitted in a separation plan	2
Number of companies diversified into medical products	1

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Financial Instruments, Derivatives and Fair Value Measures (Details 3) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Fair value, asset and liability measures
Long-term Investment Securities	$ 392,788,000	$ 302,049,000
Investment Securities, Current	2,927,203,000	1,803,079,000
Equity securities | Carrying value
Fair value, asset and liability measures
Long-term Investment Securities	296,000,000	240,000,000
Debt obligations issued by various governments | Carrying value
Fair value, asset and liability measures
Long-term Investment Securities	97,000,000	62,000,000
Carrying value
Fair value, asset and liability measures
Investment Securities, Current	30,000,000
Total long-term debt	(13,133,000,000)	(14,568,000,000)
Foreign currency forward exchange contracts, assets	79,000,000	125,000,000
Foreign currency forward exchange contracts, liabilities	(78,000,000)	(130,000,000)
Interest rate swap derivative financial instruments, assets	616,000,000	146,000,000
Interest rate swap derivative financial instruments, liabilities		(36,000,000)
Equity securities | Fair value
Fair value, asset and liability measures
Long-term Investment Securities	296,000,000	240,000,000
Debt obligations issued by various governments | Fair value
Fair value, asset and liability measures
Long-term Investment Securities	74,000,000	43,000,000
Fair value
Fair value, asset and liability measures
Investment Securities, Current	30,000,000
Total long-term debt	(15,160,000,000)	(15,723,000,000)
Foreign currency forward exchange contracts, assets	79,000,000	125,000,000
Foreign currency forward exchange contracts, liabilities	(78,000,000)	(130,000,000)
Interest rate swap derivative financial instruments, assets	616,000,000	146,000,000
Interest rate swap derivative financial instruments, liabilities		(36,000,000)
Equity securities
Fair value, asset and liability measures
Long-term Investment Securities	296,000,000	240,000,000
Debt obligations issued by various governments
Fair value, asset and liability measures
Long-term Investment Securities	$ 97,000,000	$ 62,000,000

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Restructuring Plans (Tables)

9 Months Ended

Sep. 30, 2011

Restructuring Plan 2011 and Prior Years

Restructuring costs

Schedule of restructuring activity

	2011			2010
Accrued balance at January 1	$	77		$	145
Restructuring charges	116			—
Payments and other adjustments	(71		)	(96		)
Accrued balance at September 30	$	122		$	49

Restructuring Plan 2010

Restructuring costs

Schedule of restructuring activity

	2011			2010
Accrued balance at January 1	$	410		$	—
Restructuring charges	—			436
Payments and other adjustments	(179		)	(37		)
Accrued balance at September 30	$	231		$	399

Restructuring Plan 2008

Restructuring costs

Schedule of restructuring activity

	2011			2010
Accrued balance at January 1	$	88		$	98
Restructuring charges	31			—
Payments and other adjustments	(27		)	(9		)
Accrued balance at September 30	$	92		$	89

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Separation into Two Publicly Traded Companies

9 Months Ended

Sep. 30, 2011

Separation into Two Publicly Traded Companies

Separation into Two Publicly Traded Companies

Note 13 — Separation into Two Publicly Traded Companies

In October 2011, Abbott announced a plan to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.  To accomplish the separation, Abbott plans to create a new company for its research-based pharmaceuticals business which will include Abbott’s Proprietary Pharmaceutical Products segment.  The transaction is expected to take the form of a tax-free distribution to Abbott shareholders of the stock of the newly created research-based pharmaceutical company and is expected to be completed by the end of 2012.

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Litigation and Environmental Matters

9 Months Ended

Sep. 30, 2011

Litigation and Environmental Matters

Litigation and Environmental Matters

Note 4 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations.  Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure.  No individual site cleanup exposure is expected to exceed $3 million, and the aggregate cleanup exposure is not expected to exceed $15 million.

There are a number of patent disputes with third parties who claim Abbott’s products infringe their patents.  In April 2007, New York University (NYU) and Centocor, Inc. filed a lawsuit in the Eastern District of Texas asserting that HUMIRA infringes a patent co-owned by NYU and Centocor and exclusively licensed to Centocor.  In June 2009, a jury found that Abbott had willfully infringed the patent and awarded NYU and Centocor approximately $1.67 billion in past compensatory damages.  In December 2009, the district court issued a final judgment and awarded the plaintiffs an additional $175 million in prejudgment interest.  On February 23, 2011, the Federal Circuit reversed the district court’s final judgment and found Centocor’s patent invalid.  On April 25, 2011 Centocor petitioned the Federal Circuit to rehear and reconsider the decision.  In June 2011 the Federal Circuit denied Centocor’s request to reconsider.  Centocor has until November 10, 2011 to ask the U.S. Supreme Court to review the Federal Circuit’s decision.  Abbott is confident in the merits of its case and, as a result, no reserves have been recorded in this case.

The United States Department of Justice, through the United States Attorney for the Western District of Virginia, is investigating Abbott’s sales and marketing activities for Depakote.  The government is seeking to determine whether any of these activities violated civil and/or criminal laws, including the Federal False Claims Act, the Food and Drug Cosmetic Act, and the anti-Kickback Statute in connection with Medicare and/or Medicaid reimbursement to third parties.  Discussions to resolve potential civil and criminal claims arising from this matter have advanced to a point where Abbott believes a loss is probable and estimable and therefore, Abbott recorded a charge of $1.5 billion in the third quarter of 2011.  If the discussions are successfully concluded, Abbott expects the discussions to result in resolution of the Depakote-related federal claims, as well as similar state Medicaid-related claims.  However, the discussions are ongoing, and until concluded, there can be no certainty about definitive resolution.

Within the next year, legal proceedings may occur that may result in a change in the estimated reserves recorded by Abbott.  For its legal proceedings and environmental exposures Abbott estimates the range of possible loss to be from approximately $1.58 billion to $1.61 billion, which includes the $1.5 billion charge discussed above.  The recorded reserve balance at September 30, 2011 for these proceedings and exposures was approximately $1.6 billion.  These reserves represent management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.”

While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations except for the government investigation discussed in the third paragraph of this footnote, the resolution of which is expected to be material to cash flows in a given year.

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Business Combinations and Technology Acquisitions (Details)	9 Months Ended		1 Months Ended		3 Months Ended	9 Months Ended			1 Months Ended		3 Months Ended
	Sep. 30, 2011 USD ($) Y	Sep. 30, 2010 USD ($)	Feb. 28, 2010 Solvay Pharmaceuticals USD ($) Y	Feb. 28, 2010 Solvay Pharmaceuticals EUR (€) Y	Sep. 30, 2010 Solvay Pharmaceuticals USD ($)	Sep. 30, 2010 Solvay Pharmaceuticals USD ($)	Mar. 31, 2010 STARLIMS USD ($)	Apr. 30, 2010 Facet Biotech Corporation USD ($)	Sep. 30, 2010 Piramal Healthcare Limited's Healthcare Solutions USD ($) Y	Sep. 08, 2010 Piramal Healthcare Limited's Healthcare Solutions USD ($)	Jun. 30, 2011 Agreement to acquire licensing rights outside the U.S. to a product in development for the treatment of chronic kidney disease USD ($)	Mar. 31, 2011 Agreement to acquire licensing rights outside the U.S. to a product in development for the treatment of chronic kidney disease USD ($)	Jun. 30, 2011 Agreement to develop and commercialize a product for the treatment of endometriosis USD ($)	Jun. 30, 2010 Agreement to develop and commercialize a product for the treatment of endometriosis USD ($)
Business acquisitions
Cash paid for business acquisition			$ 6,100,000,000				$ 100,000,000	$ 430,000,000		$ 2,200,000,000
Potential additional annual payments for business acquisition if milestones are met in 2011, 2012, 2013 (EUR per year)				100,000,000
Additional annual payments in 2011, 2012, 2013, 2014 for business acquisition										400,000,000
Liability for the present value of the additional payments at the acquisition date									1,600,000,000
Contingent consideration recorded			290,000,000
Allocation of purchase price
Goodwill, non-deductible			2,200,000,000
Acquired intangible assets, non-deductible			4,100,000,000
Acquired in-process research and development, non-deductible			500,000,000
Acquired net tangible assets			700,000,000
Deferred income taxes recorded at acquisition			(1,100,000,000)
Total allocation of fair value			6,400,000,000
Minimum amortization period, intangible assets (in years)	2		2	2
Maximum amortization period, intangible assets (in years)	30		14	14
Average amortization period for acquired intangible assets (in years)			11	11					19
Acquired net tangible assets, net trade accounts receivable			675,000,000
Acquired net tangible assets, inventory			390,000,000
Acquired net tangible assets, property and equipment			725,000,000
Pro forma net sales					8,700,000,000	25,800,000,000
Pro forma net earnings					900,000,000	3,200,000,000
Pro forma diluted earnings per common share (in dollars per share)					$ 0.57	$ 2.04
Acquired intangible assets										2,700,000,000
Acquired goodwill										1,000,000,000
Acquired in-process research and development	272,500,000	75,000,000									88,000,000	100,000,000	85,000,000	75,000,000
Equity interest acquired											$ 62,000,000

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Financial Instruments, Derivatives and Fair Value Measures

9 Months Ended

Sep. 30, 2011

Financial Instruments, Derivatives and Fair Value Measures

Financial Instruments, Derivatives and Fair Value Measures

Note 10 — Financial Instruments, Derivatives and Fair Value Measures

Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar.  These contracts, totaling $603 million and $1.3 billion at September 30, 2011 and December 31, 2010, respectively, are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value.  Accumulated gains and losses as of September 30, 2011 will be included in Cost of products sold at the time the products are sold, generally through the next twelve months.  The amount of hedge ineffectiveness was not significant in 2011 and 2010.

Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity.  For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies and Japanese yen, in exchange for primarily U.S. dollars and other European currencies.  For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar, European currencies and Japanese yen.  At September 30, 2011 and December 31, 2010, Abbott held $14.7 billion and $10.8 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $690 million and approximately $650 million as of September 30, 2011 and December 31, 2010, respectively.  Accordingly, changes in the fair value of this debt due to changes in exchange rates are recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate swap contracts totaling $6.8 billion at September 30, 2011 and $7.3 billion at December 31, 2010 to manage its exposure to changes in the fair value of fixed-rate debt.  These contracts are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.  The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion of the debt.  Abbott records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.  No hedge ineffectiveness was recorded in income in 2011 or 2010 for these hedges.

The following table summarizes the amounts and location of certain derivative financial instruments as of September 30, 2011 and December 31, 2010:

	Fair Value - Assets					Fair Value - Liabilities
(dollars in millions)	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	616	$	138	Deferred income taxes and other assets	$	—	$	36	Post-employment obligations, deferred income taxes and other long-term liabilities
Interest rate swaps designated as fair value hedges	—		8		Prepaid expenses, deferred income taxes, and other receivables	—		—		n/a
Foreign currency forward exchange contracts —
Hedging instruments Others not designated as hedges	19 60		16 109		Prepaid expenses, deferred income taxes, and other receivables	6 72		10 120		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	690		650		Short-term borrowings
	$	695	$	271		$	768	$	816

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and the amounts and location of income (expense) and gain (loss) reclassified into income in the third quarter and first nine months of 2011 and 2010 and for certain other derivative financial instruments.  The amount of hedge ineffectiveness was not significant in 2011 and 2010 for these hedges.

	Gain (loss) Recognized in Other Comprehensive Income (loss)												Income (expense) and Gain (loss) Reclassified into Income
	Three Months Ended Sept. 30						Nine Months Ended Sept. 30						Three Months Ended Sept. 30						Nine Months Ended Sept. 30					Income Statement
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010		Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(22	)	$	69		$	(98	)	$	130		$	(29	)	$	26		$	14		$	26	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	(30		)	(34		)	(40		)	(60		)	n/a			n/a			n/a			n/a		n/a
Interest rate swaps designated as fair value hedges	n/a			n/a			n/a			n/a			415			272			506			598		Interest expense
Foreign currency forward exchange contracts not designated as hedges	n/a			n/a			n/a			n/a			60			(22		)	(30		)	62		Net foreign exchange loss (gain)

The interest rate swaps are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.  The hedged debt is marked to market, offsetting the effect of marking the interest rate swaps to market.

The carrying values and fair values of certain financial instruments as of September 30, 2011 and December 31, 2010 are shown in the table below. The carrying values of all other financial instruments approximate their estimated fair values.  The counterparties to financial instruments consist of select major international financial institutions.  Abbott does not expect any losses from nonperformance by these counterparties.

	September 30 2011						December 31 2010
(dollars in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Current	$	30		$	30		$	—		$	—
Long-term:
Equity securities	296			296			240			240
Debt obligations issued by various governments	97			74			62			43
Total Long-term Debt	(13,133		)	(15,160		)	(14,568		)	(15,723		)
Foreign Currency Forward Exchange Contracts:
Receivable position	79			79			125			125
(Payable) position	(78		)	(78		)	(130		)	(130		)
Interest Rate Hedge Contracts:
Receivable position	616			616			146			146
(Payable) position	—			—			(36		)	(36		)

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:

			Basis of Fair Value Measurement
(dollars in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
September 30, 2011:
Available for sale equity securities	$	76	$	76	$	—	$	—
Debt obligations issued by various governments	97		—		97		—
Interest rate swap derivative financial instruments	616		—		616		—
Foreign currency forward exchange contracts	79		—		79		—
Total Assets	$	868	$	76	$	792	$	—
Fair value of hedged long-term debt	$	7,483	$	—	$	7,483	$	—
Foreign currency forward exchange contracts	78		—		78		—
Contingent consideration related to business combinations	395		—		—		395
Total Liabilities	$	7,956	$	—	$	7,561	$	395
December 31, 2010:
Available for sale equity securities	$	75	$	75	$	—	$	—
Interest rate swap derivative financial instruments	146		—		146		—
Foreign currency forward exchange contracts	125		—		125		—
Total Assets	$	346	$	75	$	271	$	—
Fair value of hedged long-term debt	$	7,444	$	—	$	7,444	$	—
Interest rate swap derivative financial instruments	36		—		36		—
Foreign currency forward exchange contracts	130		—		130		—
Contingent consideration related to business combinations	365		—		—		365
Total Liabilities	$	7,975	$	—	$	7,610	$	365

The fair value of the debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis.  The fair value of the contingent consideration was determined based on an independent appraisal adjusted for the time value of money, exchange and other changes in fair value.

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Post-Employment Benefits (Tables)

9 Months Ended

Sep. 30, 2011

Post-Employment Benefits

Net cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans

	Defined Benefit Plans												Medical and Dental Plans
	Three Months						Nine Months						Three Months						Nine Months
	Ended Sept. 30						Ended Sept. 30						Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010
Service cost — benefits earned during the period	$	95		$	77		$	251		$	234		$	14		$	17		$	41		$	45
Interest cost on projected benefit obligations	131			117			350			351			22			24			66			76
Expected return on plans’ assets	(171		)	(155		)	(471		)	(453		)	(9		)	(9		)	(25		)	(23		)
Settlement	36			—			36			—			—			—			—			—
Net amortization	43			28			125			83			(1		)	2			(3		)	13
Net Cost	$	134		$	67		$	291		$	215		$	26		$	34		$	79		$	111

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 11 — Goodwill and Intangible Assets

Abbott recorded goodwill of approximately $3.3 billion in the first nine months of 2010 related to the acquisitions of Solvay Pharmaceuticals, Piramal Healthcare Limited’s Healthcare Solutions business, STARLIMS Technologies and Facet Biotech.  In addition, in the first quarter of 2010, Abbott paid $250 million to Boston Scientific as a result of the approval to market the Xience V drug-eluting stent in Japan, resulting in an increase in goodwill. In 2010 goodwill related to the Solvay Pharmaceuticals and Piramal acquisitions was allocated to the Pharmaceuticals Products segment and goodwill related to the Boston Scientific payment was allocated to the Vascular Products segment.  Foreign currency translation adjustments and other adjustments increased goodwill in the first nine months of 2011 by approximately $300 million and decreased goodwill in the first nine months of 2010 by approximately $920 million.  The amount of goodwill related to pharmaceutical segments at September 30, 2011 was $9.6 billion and will be allocated to the Proprietary Products and Established Products segments using a relative fair value approach after additional analysis is completed.  Goodwill was $208 million for the Nutritional Products segment, $383 million for the Diagnostic Products segment and $2.7 billion for the Vascular Products segment.  There were no significant reductions of goodwill relating to impairments or disposal of all or a portion of a business.

The gross amount of amortizable intangible assets, primarily product rights and technology was $17.7 billion as of September 30, 2011 and $17.3 billion as of December 31, 2010, and accumulated amortization was $7.8 billion as of September 30, 2011 and $6.5 billion as of December 31, 2010.  Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $900 million and $1.4 billion at September 30, 2011 and December 31, 2010, respectively.  In the second quarter of 2011, Abbott recorded an impairment charge of $125 million for certain research and development intangible assets related to a non-reportable segment due to changes in the projected development and regulatory timeframes for the project.  The charge was based on a discounted cash flow analysis and is included in research and development expenses. The estimated annual amortization expense for intangible assets is approximately $1.6 billion in 2011, $1.2 billion in 2012, $1.1 billion in 2013, $945 million in 2014 and $825 million in 2015.  Amortizable intangible assets are amortized over 2 to 30 years (average 12 years).

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Segment Information (Details) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information
Net Sales to External Customers	$ 9,816,665	$ 8,674,505	$ 28,473,806	$ 25,198,873
Operating Earnings	501,595	1,064,110	3,244,937	3,945,004
Total Reportable Segments
Segment Reporting Information
Net Sales to External Customers	9,077,000	7,991,000	26,268,000	23,165,000
Operating Earnings	2,851,000	2,479,000	7,647,000	6,823,000
Proprietary Pharmaceutical Products
Segment Reporting Information
Net Sales to External Customers	4,298,000	3,787,000	12,242,000	10,852,000
Operating Earnings	1,879,000	1,684,000	4,919,000	4,456,000
Established Pharmaceutical Products
Segment Reporting Information
Net Sales to External Customers	1,389,000	1,133,000	4,023,000	3,063,000
Operating Earnings	311,000	233,000	933,000	648,000
Nutritional Products
Segment Reporting Information
Net Sales to External Customers	1,537,000	1,365,000	4,450,000	4,099,000
Operating Earnings	205,000	164,000	540,000	591,000
Diagnostic Products
Segment Reporting Information
Net Sales to External Customers	1,025,000	916,000	3,046,000	2,779,000
Operating Earnings	199,000	137,000	555,000	442,000
Vascular Products
Segment Reporting Information
Net Sales to External Customers	828,000	790,000	2,507,000	2,372,000
Operating Earnings	257,000	261,000	700,000	686,000
Unallocated amount
Segment Reporting Information
Net Sales to External Customers	$ 740,000	$ 684,000	$ 2,206,000	$ 2,034,000

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Business Combinations and Technology Acquisitions

9 Months Ended

Sep. 30, 2011

Business Combinations and Technology Acquisitions

Business Combinations and Technology Acquisitions

Note 9 — Business Combinations and Technology Acquisitions

In February 2010, Abbott acquired Solvay’s pharmaceuticals business (Solvay Pharmaceuticals) for approximately $6.1 billion, in cash, plus additional payments of up to EUR 100 million per year if certain sales milestones are met in 2011, 2012 and 2013.  Contingent consideration of approximately $290 million was recorded.   The acquisition of Solvay Pharmaceuticals provides Abbott with a large and complementary portfolio of pharmaceutical products and expands Abbott’s presence in key global emerging markets.  Abbott acquired control of this business on February 15, 2010 and the financial results of the acquired operations are included in these financial statements beginning on that date.  The acquisition was funded with cash and short-term investments.  The allocation of the fair value of the acquisition is shown in the table below (in billions of dollars).

Goodwill, non-deductible	$	2.2
Acquired intangible assets, non-deductible	4.1
Acquired in-process research and development, non-deductible	0.5
Acquired net tangible assets	0.7
Deferred income taxes recorded at acquisition	(1.1		)
Total allocation of fair value	$	6.4

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 2 to 14 years (average of 11 years).  Acquired in-process research and development projects are accounted for as indefinite lived intangible assets until regulatory approval or discontinuation.  The net tangible assets acquired consist primarily of trade accounts receivable of approximately $675 million, inventory of approximately $390 million, property and equipment of approximately $725 million, net of assumed liabilities, primarily trade accounts payable, accrued compensation and other liabilities.

Had the acquisition of Solvay Pharmaceuticals taken place on January 1, 2010, unaudited pro forma net sales, net earnings and diluted earnings per share for the three months and nine months ended September 30, 2010 would have been $8.7 billion and $25.8 billion, $900 million and $3.2 billion and $0.57 and $2.04, respectively.  The pro forma information includes adjustments for amortization of intangible assets and fair value adjustments to acquisition-date inventory as well as acquisition and integration expenses.  The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date.

In March 2010, Abbott acquired STARLIMS Technologies for approximately $100 million, in cash, net of cash held by STARLIMS, providing Abbott with leading products and expertise to build its position in laboratory informatics.   A substantial portion of the fair value of the acquisition has been allocated to amortizable intangible assets and goodwill.

In April 2010, Abbott acquired the outstanding shares of Facet Biotech Corporation for approximately $430 million, in cash, net of cash held by Facet.   The acquisition enhances Abbott’s early- and mid-stage pharmaceutical pipeline, including a biologic for multiple sclerosis and compounds that complement Abbott’s oncology program.  A substantial portion of the fair value of the acquisition has been allocated to acquired in-process research and development that is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation.

On September 8, 2010, Abbott acquired Piramal Healthcare Limited’s Healthcare Solutions business, a leader in the Indian branded generics market, for $2.2 billion, in cash, plus additional payments of $400 million annually in 2011, 2012, 2013 and 2014.  Abbott recorded a $1.6 billion liability for the present value of the additional payments at the acquisition date.  The acquisition was financed with cash.  The allocation of the fair value of the acquisition resulted in the recording of $2.7 billion of deductible acquired intangible assets and $1.0 billion of deductible goodwill.  Acquired intangible assets consist primarily of trade names, customer relationships and associated rights and are amortized over an average of 19 years.

In 2010, Abbott entered into an agreement to acquire licensing rights outside the U.S., excluding certain Asian markets, to a product in development for the treatment of chronic kidney disease.  In the first and second quarters of 2011, certain milestones were achieved and charges to acquired in-process research and development of $100 million and $88 million were recorded.  In addition, Abbott also acquired an equity interest of approximately $62 million in the second quarter of 2011.

In the second quarter of 2011, Abbott entered into an agreement to develop and commercialize a treatment for rheumatoid arthritis and psoriasis resulting in a charge to acquired in-process research and development of $85 million.  In the second quarter of 2010, Abbott entered into an agreement to develop and commercialize a product for the treatment of endometriosis resulting in a charge to acquired in-process research and development of $75 million.

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Supplemental Financial Information

9 Months Ended

Sep. 30, 2011

Supplemental Financial Information

Supplemental Financial Information

Note 2 — Supplemental Financial Information

Unvested restricted stock units that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method.  Under the two-class method, net earnings are allocated between common shares and participating securities.  Net earnings allocated to common shares for the three months and nine months ended September 30, 2011 were $302 million and $3.102 billion, respectively, and net earnings allocated to common shares for the three months and nine months ended September 30, 2010 were $889 million and $3.177 billion, respectively.

Other, net in Net cash from operating activities for 2011 includes the non-cash impact of a litigation reserve of $1.5 billion which was partially offset by $570 million of tax benefits related to the favorable resolution of various tax positions pertaining to prior years.  In addition, Other, net in Net cash from operating activities for 2011 and 2010 includes the effects of contributions to defined benefit plans of $390 million and $510 million, respectively, and to the post-employment medical and dental benefit plans of $40 million and $66 million, respectively.

The judgment entered by the U.S. District Court for the Eastern District of Texas against Abbott in its litigation with New York University and Centocor, Inc. required Abbott to secure the judgment in the event that its appeal to the Federal Circuit court was unsuccessful in overturning the district court’s decision.  In the first quarter of 2010, Abbott deposited $1.87 billion with an escrow agent and considered these assets to be restricted. On February 23, 2011, the Federal Circuit reversed the district court’s final judgment and found Centocor’s patent invalid.  On April 25, 2011 Centocor petitioned the Federal Circuit to rehear and reconsider the decision. In June 2011 the Federal Circuit denied Centocor’s petition and the restrictions on the funds were lifted.

The components of long-term investments as of September 30, 2011 and December 31, 2010 are as follows:

	September 30		December 31
(dollars in millions)	2011		2010
Equity securities	$	296	$	240
Debt obligations issued by various governments	97		62
Total	$	393	$	302

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Post-Employment Benefits

9 Months Ended

Sep. 30, 2011

Post-Employment Benefits

Post-Employment Benefits

Note 5 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans.  Net cost for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans												Medical and Dental Plans
	Three Months						Nine Months						Three Months						Nine Months
	Ended Sept. 30						Ended Sept. 30						Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010
Service cost — benefits earned during the period	$	95		$	77		$	251		$	234		$	14		$	17		$	41		$	45
Interest cost on projected benefit obligations	131			117			350			351			22			24			66			76
Expected return on plans’ assets	(171		)	(155		)	(471		)	(453		)	(9		)	(9		)	(25		)	(23		)
Settlement	36			—			36			—			—			—			—			—
Net amortization	43			28			125			83			(1		)	2			(3		)	13
Net Cost	$	134		$	67		$	291		$	215		$	26		$	34		$	79		$	111

Abbott funds its domestic defined benefit plans according to IRS funding limitations.  International pension plans are funded according to similar regulations.  In the first nine months of 2011 and 2010, $390 million and $510 million, respectively, was contributed to defined benefit plans and $40 million and $66 million, respectively, was contributed to the post-employment medical and dental benefit plans.

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Goodwill and Intangible Assets (Details) (USD $)	3 Months Ended	9 Months Ended			9 Months Ended	1 Months Ended	3 Months Ended
	Jun. 30, 2011	Sep. 30, 2011 Y	Sep. 30, 2010	Dec. 31, 2010	Sep. 30, 2010 Solvay Pharmaceuticals, Healthcare Limited's Healthcare Solutions business, STARLIMS Technologies, and Facet Biotech	Feb. 28, 2010 Solvay Pharmaceuticals Y	Mar. 31, 2010 Boston Scientific, Xience V drug-eluting stent in Japan
Goodwill and intangible assets information
Goodwill on acquisition					$ 3,300,000,000		$ 250,000,000
Change in goodwill due to foreign currency translation and other adjustments		300,000,000	(920,000,000)
Gross amount of amortizable intangible assets		17,700,000,000		17,300,000,000
Accumulated amortization of intangible assets		7,800,000,000		6,500,000,000
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination		900,000,000		1,400,000,000
Impairment charge for acquired in-process research and development intangible assets	125,000,000
Estimated annual amortization expense, intangible assets, 2011		1,600,000,000
Estimated annual amortization expense, intangible assets, 2012		1,200,000,000
Estimated annual amortization expense, intangible assets, 2013		1,100,000,000
Estimated annual amortization expense, intangible assets, 2014		945,000,000
Estimated annual amortization expense, intangible assets, 2015		$ 825,000,000
Minimum amortization period, intangible assets (in years)		2				2
Maximum amortization period, intangible assets (in years)		30				14
Average amortization period, intangible assets (in years)		12

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Comprehensive Income, net of tax (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Comprehensive Income, net of tax
Foreign currency translation (loss) gain adjustments	$ (1,494,000,000)	$ 1,153,000,000	$ 479,000,000	$ (2,573,000,000)
Amortization of net actuarial losses and prior service cost and credits	28,000,000	4,000,000	81,000,000	1,000,000
Unrealized (loss) gains on marketable equity securities	(8,000,000)	20,000,000	3,000,000	63,000,000
Net adjustments for derivative instruments designated as cash flow hedges	36,000,000	(30,000,000)	(56,000,000)	172,000,000
Other comprehensive (loss) income, net of tax	(1,438,000,000)	1,147,000,000	507,000,000	(2,337,000,000)
Net earnings	303,181,000	890,660,000	3,109,781,000	3,185,325,000
Comprehensive (Loss) Income	(1,135,000,000)	2,038,000,000	3,617,000,000	848,000,000
Supplemental Accumulated Other Comprehensive Income Information, net of tax:
Cumulative foreign currency translation (gain) adjustments	(1,223,000,000)		(1,223,000,000)		(744,000,000)
Net actuarial losses and prior service cost and credits	2,139,000,000		2,139,000,000		2,220,000,000
Cumulative unrealized (gains) on marketable equity securities	(27,000,000)		(27,000,000)		(24,000,000)
Cumulative (gains) on derivative instruments designated as cash flow hedges	$ (29,000,000)		$ (29,000,000)		$ (85,000,000)

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Comprehensive Income, net of tax

9 Months Ended

Sep. 30, 2011

Comprehensive Income, net of tax

Comprehensive Income, net of tax

Note 6 — Comprehensive Income, net of tax

	Three Months Ended						Nine Months Ended
	September 30						September 30
(dollars in millions)	2011			2010			2011			2010
Foreign currency translation (loss) gain adjustments	$	(1,494	)	$	1,153		$	479		$	(2,573	)
Amortization of net actuarial losses and prior service cost and credits	28			4			81			1
Unrealized (loss) gains on marketable equity securities	(8		)	20			3			63
Net adjustments for derivative instruments designated as cash flow hedges	36			(30		)	(56		)	172
Other comprehensive (loss) income, net of tax	(1,438		)	1,147			507			(2,337		)
Net Earnings	303			891			3,110			3,185
Comprehensive (Loss) Income	$	(1,135	)	$	2,038		$	3,617		$	848

	Sept. 30 2011			Dec. 31 2010
Supplemental Accumulated Other Comprehensive Income Information, net of tax:
Cumulative foreign currency translation (gain) adjustments	$	(1,223	)	$	(744	)
Net actuarial losses and prior service cost and credits	2,139			2,220
Cumulative unrealized (gains) on marketable equity securities	(27		)	(24		)
Cumulative (gains) on derivative instruments designated as cash flow hedges	(29		)	(85		)

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Restructuring Plans (Details) (USD $) In Millions	3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended
	Mar. 31, 2011	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2010 Restructuring Plan 2010	Sep. 30, 2011 Restructuring Plan 2010	Sep. 30, 2010 Restructuring Plan 2010	Sep. 30, 2011 Restructuring Plan 2011and 2008	Sep. 30, 2010 Restructuring Plan 2011and 2008	Sep. 30, 2011 Restructuring Plan 2011
Restructuring costs
Restructuring charges recorded to Cost of products sold	$ 49			$ 81					$ 31
Restructuring charges Recorded to Research and Development	18			133
Restructuring charges recorded to Selling, General and Administrative	49			222
Accelerated depreciation in restructuring charges						95
Restructuring charges		12	7				28	45
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	77	77	145		410		88	98
Restructuring charges		116				436	31
Payments and other adjustments		(71)	(96)		(179)	(37)	(27)	(9)
Restructuring reserve, ending balance of the period		$ 122	$ 49	$ 399	$ 231	$ 399	$ 92	$ 89

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Taxes on Earnings (Details) (USD $)	3 Months Ended	9 Months Ended
	Mar. 31, 2010	Sep. 30, 2011
Taxes on Earnings
Non-cash impact of tax benefits related to prior period tax positions		$ 570,000,000
Decrease in unrecognized tax benefits		1,200,000,000
Impact of various tax matters on gross unrecognized tax benefits		500,000,000
Charge to income tax expense related to retiree health care liabilities	$ 60,000,000

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Segment Information (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information [Line Items]
Earnings Before Taxes	$ 501,595,000	$ 1,064,110,000	$ 3,244,937,000	$ 3,945,004,000
Annual share-based awards recognized in first quarter, low end of range (as a percent)			40.00%
Annual share-based awards recognized in first quarter, high end of range (as a percent)			45.00%
Previously disclosed government investigation	1,500,000,000		1,500,000,000
Non-reportable segments
Segment Reporting Information [Line Items]
Earnings Before Taxes	39,000,000	(20,000,000)	173,000,000	211,000,000
Unallocated amount
Segment Reporting Information [Line Items]
Corporate functions and benefit plans costs	(108,000,000)	(114,000,000)	(344,000,000)	(455,000,000)
Net interest expense	(104,000,000)	(134,000,000)	(343,000,000)	(318,000,000)
Share-based compensation	(68,000,000)	(73,000,000)	(320,000,000)	(330,000,000)
Acquired in-process research and development			(273,000,000)	(75,000,000)
Other, net	$ (2,108,000,000)	$ (1,074,000,000)	$ (3,295,000,000)	$ (1,911,000,000)

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Goodwill and Intangible Assets (Details 2) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Goodwill and intangible assets information
Goodwill	$ 16,231,185	$ 15,930,077
Proprietary and Established Pharmaceutical Products
Goodwill and intangible assets information
Goodwill	9,600,000
Nutritional Products
Goodwill and intangible assets information
Goodwill	208,000
Diagnostic Products
Goodwill and intangible assets information
Goodwill	383,000
Vascular Products
Goodwill and intangible assets information
Goodwill	$ 2,700,000

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Post-Employment Benefits (Details) (USD $) In Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the year	$ 95	$ 77	$ 251	$ 234
Interest cost on projected benefit obligations	131	117	350	351
Expected return on plans' assets	(171)	(155)	(471)	(453)
Settlement	36		36
Net amortization	43	28	125	83
Net Cost	134	67	291	215
Benefit plan contributions by employer			390	510
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the year	14	17	41	45
Interest cost on projected benefit obligations	22	24	66	76
Expected return on plans' assets	(9)	(9)	(25)	(23)
Net amortization	(1)	2	(3)	13
Net Cost	26	34	79	111
Benefit plan contributions by employer			$ 40	$ 66

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Supplemental Financial Information

Components of long-term investments

	September 30		December 31
(dollars in millions)	2011		2010
Equity securities	$	296	$	240
Debt obligations issued by various governments	97		62
Total	$	393	$	302

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Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information

Segment Information

Note 7 — Segment 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.  Effective January 1, 2011, Abbott’s segments were reorganized to reflect the shift of international branded generic pharmaceutical products to a newly formed division, Established Pharmaceuticals, and the combination of the domestic and international proprietary pharmaceuticals businesses into one global division.  The segment information below has been adjusted to reflect the reorganizations.  Abbott’s reportable segments are as follows:

Proprietary Pharmaceutical Products — Worldwide sales of a broad line of proprietary pharmaceutical products.

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, Molecular Diagnostics, Point of Care and Ibis diagnostic divisions are aggregated and reported as the Diagnostic Products segment.

Vascular Products — Worldwide sales of coronary, endovascular, structural heart, vessel closure and other medical device products.

Non-reportable segments include the Diabetes Care and Medical Optics segments.

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.  Intersegment transfers of inventory are recorded at standard cost and are not a measure of segment operating earnings.  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.  For acquisitions prior to 2006, substantially all intangible assets and related amortization are not allocated to segments.  In addition, no intangible assets or related amortization are allocated to the Established Pharmaceutical Products segment.  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.

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months						Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011		2010		2011		2010		2011			2010			2011			2010
Proprietary Pharmaceutical Products	$	4,298	$	3,787	$	12,242	$	10,852	$	1,879		$	1,684		$	4,919		$	4,456
Established Pharmaceutical Products	1,389		1,133		4,023		3,063		311			233			933			648
Nutritional Products	1,537		1,365		4,450		4,099		205			164			540			591
Diagnostic Products	1,025		916		3,046		2,779		199			137			555			442
Vascular Products	828		790		2,507		2,372		257			261			700			686
Total Reportable Segments	9,077		7,991		26,268		23,165		2,851			2,479			7,647			6,823
Other	740		684		2,206		2,034
Net Sales	$	9,817	$	8,675	$	28,474	$	25,199
Corporate functions and benefit plans costs									(108		)	(114		)	(344		)	(455		)
Non-reportable segments									39			(20		)	173			211
Net interest expense									(104		)	(134		)	(343		)	(318		)
Share-based compensation (a)									(68		)	(73		)	(320		)	(330		)
Acquired in-process research and development									—			—			(273		)	(75		)
Other, net (b)									(2,108		)	(1,074		)	(3,295		)	(1,911		)
Consolidated Earnings Before Taxes									$	502		$	1,064		$	3,245		$	3,945

(a) Approximately 40 to 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b) Other, net for the third quarter and nine months 2011 includes a charge of $1.5 billion related to a previously disclosed government investigation.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2011

Segment Information

Schedule of segment and geographic area information

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months						Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2011		2010		2011		2010		2011			2010			2011			2010
Proprietary Pharmaceutical Products	$	4,298	$	3,787	$	12,242	$	10,852	$	1,879		$	1,684		$	4,919		$	4,456
Established Pharmaceutical Products	1,389		1,133		4,023		3,063		311			233			933			648
Nutritional Products	1,537		1,365		4,450		4,099		205			164			540			591
Diagnostic Products	1,025		916		3,046		2,779		199			137			555			442
Vascular Products	828		790		2,507		2,372		257			261			700			686
Total Reportable Segments	9,077		7,991		26,268		23,165		2,851			2,479			7,647			6,823
Other	740		684		2,206		2,034
Net Sales	$	9,817	$	8,675	$	28,474	$	25,199
Corporate functions and benefit plans costs									(108		)	(114		)	(344		)	(455		)
Non-reportable segments									39			(20		)	173			211
Net interest expense									(104		)	(134		)	(343		)	(318		)
Share-based compensation (a)									(68		)	(73		)	(320		)	(330		)
Acquired in-process research and development									—			—			(273		)	(75		)
Other, net (b)									(2,108		)	(1,074		)	(3,295		)	(1,911		)
Consolidated Earnings Before Taxes									$	502		$	1,064		$	3,245		$	3,945

(a) Approximately 40 to 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b) Other, net for the third quarter and nine months 2011 includes a charge of $1.5 billion related to a previously disclosed government investigation.

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Financial Instruments, Derivatives and Fair Value Measures (Details 4) (Recurring, USD $) In Millions	Sep. 30, 2011	Dec. 31, 2010
Fair value
Fair value, asset and liability measures
Available for sale equity securities	$ 76	$ 75
Debt obligations issued by various governments	97
Interest rate swap derivative financial instruments, assets	616	146
Foreign currency forward exchange contracts, assets	79	125
Total Assets	868	346
Fair value of hedged long-term debt	7,483	7,444
Interest rate swap derivative financial instruments, liabilities		36
Foreign currency forward exchange contracts, liabilities	78	130
Contingent consideration related to business combinations	395	365
Total Liabilities	7,956	7,975
Quoted Prices in Active Markets
Fair value, asset and liability measures
Available for sale equity securities	76	75
Total Assets	76	75
Significant Other Observable Inputs
Fair value, asset and liability measures
Debt obligations issued by various governments	97
Interest rate swap derivative financial instruments, assets	616	146
Foreign currency forward exchange contracts, assets	79	125
Total Assets	792	271
Fair value of hedged long-term debt	7,483	7,444
Interest rate swap derivative financial instruments, liabilities		36
Foreign currency forward exchange contracts, liabilities	78	130
Total Liabilities	7,561	7,610
Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	395	365
Total Liabilities	$ 395	$ 365

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Litigation and Environmental Matters (Details) (USD $)	Sep. 30, 2011	Dec. 31, 2009 HUMIRA patent infringement claim, NYU and Centocor	Jun. 30, 2009 HUMIRA patent infringement claim, NYU and Centocor
Loss Contingencies
Cleanup exposure for individual site	$ 3,000,000
Cleanup exposure in aggregate	15,000,000
Damages awarded to plaintiff, to be appealed by Abbott			1,670,000,000
Additional prejudgment interest		175,000,000
Probable and estimable losses due to civil and criminal claims	1,500,000,000
Other legal proceedings or environmental exposure, minimum	1,580,000,000
Other legal proceedings or environmental exposure, maximum	1,610,000,000
Recorded reserve balance for legal proceedings and exposures	$ 1,600,000,000

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Basis of Presentation and Change in Accounting Principle

9 Months Ended

Sep. 30, 2011

Basis of Presentation and Change in Accounting Principle

Basis of Presentation and Change in Accounting Principle

Note 1 — Basis of Presentation and Change in Accounting Principle

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements.  However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made.  It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2010.

The consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.  Prior to January 1, 2011, the accounts of foreign subsidiaries were consolidated based on a fiscal year ended November 30 due to the time needed to consolidate these subsidiaries.  Effective January 1, 2011, the one month lag in the consolidation of the accounts of foreign subsidiaries was eliminated and the year-end of foreign subsidiaries was changed to December 31.  Abbott believes that the change in accounting principle related to the elimination of the one month reporting lag is preferable because it will result in more contemporaneous reporting of the results of foreign subsidiaries.  In accordance with applicable accounting literature, a change in subsidiaries’ year-end is treated as a change in accounting principle and requires retrospective application.  The cumulative effect of the change was an increase in retained earnings of $289 million as of January 1, 2009 and a corresponding decrease in other long-term liabilities.  The impact of the change was not material to the results of operations for the previously reported annual and interim periods after January 1, 2009, and thus, those results have not been revised.  A charge of $137 million was recorded to Other (income) expense, net in the three months ended March 31, 2011 to recognize the cumulative immaterial impacts to 2009 and 2010.  Had the financial statements been revised, net sales, operating earnings and net earnings in calendar 2009 would have increased by $211 million, $36 million and $38 million, respectively, and net sales, operating earnings and net earnings in calendar 2010 would have decreased by $21 million, $195 million and $175 million, respectively.  In addition, net sales, operating earnings and net earnings for the three months ended September 30, 2010 would have increased by $302 million, $25 million and $15 million, respectively, and net sales, operating earnings and net earnings for the nine months ended September 30, 2010 would have increased by $397 million, $63 million and $50 million, respectively.

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Incentive Stock Programs (Tables)

9 Months Ended

Sep. 30, 2011

Incentive Stock Programs

Options outstanding and exercisable

Information regarding the number of options outstanding and exercisable at September 30, 2011 is as follows:

	Outstanding		Exercisable
Number of shares	98,662,170		94,774,011
Weighted average remaining life (years)	4.4		4.2
Weighted average exercise price	$	50.61	$	50.61
Aggregate intrinsic value (in millions)	$	276	$	268

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Document and Entity Information	9 Months Ended
	Sep. 30, 2011
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	0000001800
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,557,795,578
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3

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Financial Instruments, Derivatives and Fair Value Measures (Tables)

9 Months Ended

Sep. 30, 2011

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value - Assets					Fair Value - Liabilities
(dollars in millions)	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption	Sept. 30 2011		Dec. 31 2010		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	616	$	138	Deferred income taxes and other assets	$	—	$	36	Post-employment obligations, deferred income taxes and other long-term liabilities
Interest rate swaps designated as fair value hedges	—		8		Prepaid expenses, deferred income taxes, and other receivables	—		—		n/a
Foreign currency forward exchange contracts —
Hedging instruments Others not designated as hedges	19 60		16 109		Prepaid expenses, deferred income taxes, and other receivables	6 72		10 120		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	690		650		Short-term borrowings
	$	695	$	271		$	768	$	816

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in Other Comprehensive Income (loss)												Income (expense) and Gain (loss) Reclassified into Income
	Three Months Ended Sept. 30						Nine Months Ended Sept. 30						Three Months Ended Sept. 30						Nine Months Ended Sept. 30					Income Statement
(dollars in millions)	2011			2010			2011			2010			2011			2010			2011			2010		Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(22	)	$	69		$	(98	)	$	130		$	(29	)	$	26		$	14		$	26	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	(30		)	(34		)	(40		)	(60		)	n/a			n/a			n/a			n/a		n/a
Interest rate swaps designated as fair value hedges	n/a			n/a			n/a			n/a			415			272			506			598		Interest expense
Foreign currency forward exchange contracts not designated as hedges	n/a			n/a			n/a			n/a			60			(22		)	(30		)	62		Net foreign exchange loss (gain)

Schedule of carrying values and fair values of certain financial instruments

	September 30 2011						December 31 2010
(dollars in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Current	$	30		$	30		$	—		$	—
Long-term:
Equity securities	296			296			240			240
Debt obligations issued by various governments	97			74			62			43
Total Long-term Debt	(13,133		)	(15,160		)	(14,568		)	(15,723		)
Foreign Currency Forward Exchange Contracts:
Receivable position	79			79			125			125
(Payable) position	(78		)	(78		)	(130		)	(130		)
Interest Rate Hedge Contracts:
Receivable position	616			616			146			146
(Payable) position	—			—			(36		)	(36		)

Schedule of assets and liabilities measured at fair value on a recurring basis

			Basis of Fair Value Measurement
(dollars in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
September 30, 2011:
Available for sale equity securities	$	76	$	76	$	—	$	—
Debt obligations issued by various governments	97		—		97		—
Interest rate swap derivative financial instruments	616		—		616		—
Foreign currency forward exchange contracts	79		—		79		—
Total Assets	$	868	$	76	$	792	$	—
Fair value of hedged long-term debt	$	7,483	$	—	$	7,483	$	—
Foreign currency forward exchange contracts	78		—		78		—
Contingent consideration related to business combinations	395		—		—		395
Total Liabilities	$	7,956	$	—	$	7,561	$	395
December 31, 2010:
Available for sale equity securities	$	75	$	75	$	—	$	—
Interest rate swap derivative financial instruments	146		—		146		—
Foreign currency forward exchange contracts	125		—		125		—
Total Assets	$	346	$	75	$	271	$	—
Fair value of hedged long-term debt	$	7,444	$	—	$	7,444	$	—
Interest rate swap derivative financial instruments	36		—		36		—
Foreign currency forward exchange contracts	130		—		130		—
Contingent consideration related to business combinations	365		—		—		365
Total Liabilities	$	7,975	$	—	$	7,610	$	365

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Taxes on Earnings

9 Months Ended

Sep. 30, 2011

Taxes on Earnings

Taxes on Earnings

Note 3 — Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties.  Taxes on earnings in 2011 reflect the effect of the tax rate applied to a litigation reserve in the third quarter and the recognition of $570 million of tax benefits in the first nine months as a result of the favorable resolution of various tax positions pertaining to prior years, which also decreased the gross amount of unrecognized tax benefits by approximately $1.2 billion.  Exclusive of these discrete items, the effective tax rates are less than the statutory U.S. federal income tax rate principally due to the benefit of lower statutory tax rates and tax exemptions in several foreign taxing jurisdictions.  Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by up to $500 million, including cash adjustments, within the next twelve months as a result of concluding various tax matters.

As a result of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act which were signed into law in the first quarter of 2010, Abbott recorded a charge of approximately $60 million in the first quarter 2010 to reduce deferred tax assets associated with retiree health care liabilities related to the Medicare Part D retiree drug subsidy.

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Restructuring Plans

9 Months Ended

Sep. 30, 2011

Restructuring Plans

Restructuring Plans

Note 12 — Restructuring Plans

In 2011 and prior years, Abbott management approved plans to realign its worldwide pharmaceutical and vascular manufacturing operations and selected domestic and international commercial and research and development operations in order to reduce costs.  In the first quarter of 2011, Abbott recorded $49 million to Cost of products sold, $18 million to Research and development and $49 million to Selling, general and administrative.  Charges of $12 million and $7 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs.  The following summarizes the activity for these restructurings: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	77		$	145
Restructuring charges	116			—
Payments and other adjustments	(71		)	(96		)
Accrued balance at September 30	$	122		$	49

In the third quarter of 2010, Abbott management approved a restructuring plan primarily related to the acquisition of Solvay Pharmaceuticals.  This plan streamlines operations, improves efficiencies and reduces costs in certain Solvay sites and functions as well as in certain Abbott and Solvay commercial organizations in various countries.  Under this plan, Abbott recorded charges to Cost of products sold, Research and Development and Selling, General and Administrative of approximately $81 million, $133 million and $222 million, respectively. Charges of approximately $95 million were recorded in the first nine months of 2011 relating to this restructuring, primarily for accelerated depreciation.  Additional charges will occur through 2012 primarily related to additional employee-related and asset disposal costs.  The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	410		$	—
Restructuring charges	—			436
Payments and other adjustments	(179		)	(37		)
Accrued balance at September 30	$	231		$	399

In 2011 and 2008, Abbott management approved plans to streamline global manufacturing operations, reduce overall costs, and improve efficiencies in Abbott’s core diagnostic business.  A charge of $31 million was recorded in Cost of products sold for the 2011 restructuring.  Additional charges of approximately $28 million and $45 million were recorded in the first nine months of 2011 and 2010, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs.  Additional charges will occur through 2015 as a result of product re-registration timelines required under manufacturing regulations in a number of countries and product transition timelines.  The following summarizes the activity for this restructuring: (dollars in millions)

	2011			2010
Accrued balance at January 1	$	88		$	98
Restructuring charges	31			—
Payments and other adjustments	(27		)	(9		)
Accrued balance at September 30	$	92		$	89

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Incentive Stock Programs (Details) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2011 Y
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock programs, shares reserved for future grants	180,000,000
Stock options outstanding, number of shares	98,662,170
Exercisable options, number of shares	94,774,011
Stock options outstanding, weighted-average remaining life (in years)	4.4
Exercisable options, weighted-average remaining life (in years)	4.2
Stock options outstanding, weighted-average exercise price (in dollars per share)	$ 50.61
Exercisable options, weighted-average exercise price (in dollars per share)	$ 50.61
Aggregate intrinsic value of options outstanding	$ 276
Aggregate intrinsic value of options exercisable	268
Total unrecognized compensation cost	$ 310
Total unrecognized compensation cost, recognition period (in years)	3
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	1,757,339
Replacement stock options
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	619,294
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	1,167,570
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	6,523,222

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Comprehensive Income, net of tax (Tables)

9 Months Ended

Sep. 30, 2011

Comprehensive Income, net of tax

Schedule of comprehensive income, net of tax

	Three Months Ended						Nine Months Ended
	September 30						September 30
(dollars in millions)	2011			2010			2011			2010
Foreign currency translation (loss) gain adjustments	$	(1,494	)	$	1,153		$	479		$	(2,573	)
Amortization of net actuarial losses and prior service cost and credits	28			4			81			1
Unrealized (loss) gains on marketable equity securities	(8		)	20			3			63
Net adjustments for derivative instruments designated as cash flow hedges	36			(30		)	(56		)	172
Other comprehensive (loss) income, net of tax	(1,438		)	1,147			507			(2,337		)
Net Earnings	303			891			3,110			3,185
Comprehensive (Loss) Income	$	(1,135	)	$	2,038		$	3,617		$	848

	Sept. 30 2011			Dec. 31 2010
Supplemental Accumulated Other Comprehensive Income Information, net of tax:
Cumulative foreign currency translation (gain) adjustments	$	(1,223	)	$	(744	)
Net actuarial losses and prior service cost and credits	2,139			2,220
Cumulative unrealized (gains) on marketable equity securities	(27		)	(24		)
Cumulative (gains) on derivative instruments designated as cash flow hedges	(29		)	(85		)

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Condensed Consolidated Statement of Cash Flows (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 3,109,781	$ 3,185,325
Adjustments to reconcile earnings to net cash from operating activities -
Depreciation	1,154,198	904,219
Amortization of intangibles	1,241,267	1,010,508
Share-based compensation	320,103	330,236
Acquired in-process research and development	272,500
Trade receivables	272,530	476,209
Inventories	47,521	(52,884)
Other, net	1,150,828	565,849
Net Cash From Operating Activities	7,568,728	6,419,462
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(1,216,765)	(723,742)
Acquisitions of businesses and technologies, net of cash acquired	(672,500)	(9,120,043)
(Purchases of) proceeds from sales of investment securities, net	(1,093,548)	1,973,697
Release of (deposit of) restricted funds	1,870,000	(1,870,000)
Other	9,171	(7,838)
Net Cash (Used in) Investing Activities	(1,103,642)	(9,747,926)
Cash Flow From (Used in) Financing Activities:
Repayments of short-term debt and other	(786,830)	(1,419,671)
Proceeds from issuance of long-term debt		3,000,000
Payment of long-term debt	(2,008,836)	(1,254)
Purchases of common shares	(74,428)	(866,173)
Proceeds from stock options exercised, including income tax benefit	317,463	272,045
Dividends paid	(2,186,006)	(1,979,374)
Net Cash (Used in) Financing Activities	(4,738,637)	(994,427)
Effect of exchange rate changes on cash and cash equivalents	(325,521)	(668,303)
Net Increase (Decrease) in Cash and Cash Equivalents	1,400,928	(4,991,194)
Cash and Cash Equivalents, Beginning of Year	3,648,371	8,809,339
Cash and Cash Equivalents, End of Period	$ 5,049,299	$ 3,818,145

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Financial Instruments, Derivatives and Fair Value Measures (Details) (USD $) In Millions	9 Months Ended
	Sep. 30, 2011	Dec. 31, 2010
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 695	$ 271
Fair Value - Liabilities	768	816
Designated as hedging instrument | Interest rate swaps | Deferred income taxes and other assets
Derivative instruments, notional amount and fair value
Fair Value - Assets	616	138
Designated as hedging instrument | Interest rate swaps | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets		8
Designated as hedging instrument | Interest rate swaps | Post-employment obligations, deferred income taxes and other long-term liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities		36
Designated as hedging instrument | Interest rate swaps | Fair value hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	6,800	7,300
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	19	16
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	6	10
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	603	1,300
Approximate length of time over which accumulated gains and losses will be recognized in Cost of products sold (in months)	12M
Designated as hedging instrument | Net investment hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	690	650
Fair Value - Liabilities	690	650
Not designated as hedging instrument | Foreign currency forward exchange contracts
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	14,700	10,800
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	60	109
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 72	$ 120

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Financial Instruments, Derivatives and Fair Value Measures (Details 2) (USD $) In Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Interest rate swaps | Fair value hedges
Gain (loss) on derivatives
Income (expense) and Gain (loss) Reclassified into Income	$ 415	$ 272	$ 506	$ 598
Not designated as hedging instrument | Foreign currency forward exchange contracts
Gain (loss) on derivatives
Income (expense) and Gain (loss) Reclassified into Income	60	(22)	(30)	62
Foreign currency forward exchange contracts | Cash flow hedges
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	(22)	69	(98)	130
Income (expense) and Gain (loss) Reclassified into Income	(29)	26	14	26
Net investment hedges
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	$ (30)	$ (34)	$ (40)	$ (60)