Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 2 — Revenue

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

The following tables provide detail by sales category:

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	993	$	993	$	—	$	936	$	936
Other	—		333		333		—		329		329
Total	—		1,326		1,326		—		1,265		1,265
Nutritionals —
Pediatric Nutritionals	357		470		827		586		514		1,100
Adult Nutritionals	329		639		968		333		675		1,008
Total	686		1,109		1,795		919		1,189		2,108
Diagnostics —
Core Laboratory	281		938		1,219		291		1,001		1,292
Molecular	65		118		183		162		183		345
Point of Care	92		35		127		100		35		135
Rapid Diagnostics	1,303		839		2,142		1,394		746		2,140
Total	1,741		1,930		3,671		1,947		1,965		3,912
Medical Devices —
Rhythm Management	263		270		533		266		305		571
Electrophysiology	225		244		469		192		293		485
Heart Failure	177		51		228		170		59		229
Vascular	213		393		606		219		425		644
Structural Heart	207		213		420		177		215		392
Neuromodulation	156		36		192		149		41		190
Diabetes Care	423		744		1,167		323		798		1,121
Total	1,664		1,951		3,615		1,496		2,136		3,632
Other	3		—		3		6		5		11
Total	$	4,094	$	6,316	$	10,410	$	4,368	$	6,560	$	10,928

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,826	$	2,826	$	—	$	2,672	$	2,672
Other	—		870		870		—		843		843
Total	—		3,696		3,696		—		3,515		3,515
Nutritionals —
Pediatric Nutritionals	1,108		1,491		2,599		1,622		1,637		3,259
Adult Nutritionals	1,016		2,027		3,043		1,006		1,987		2,993
Total	2,124		3,518		5,642		2,628		3,624		6,252
Diagnostics —
Core Laboratory	836		2,788		3,624		845		2,935		3,780
Molecular	308		507		815		431		651		1,082
Point of Care	284		110		394		289		112		401
Rapid Diagnostics	5,523		2,923		8,446		3,178		2,732		5,910
Total	6,951		6,328		13,279		4,743		6,430		11,173
Medical Devices —
Rhythm Management	775		830		1,605		776		881		1,657
Electrophysiology	667		773		1,440		580		823		1,403
Heart Failure	523		167		690		483		167		650
Vascular	650		1,228		1,878		684		1,292		1,976
Structural Heart	604		667		1,271		537		654		1,191
Neuromodulation	456		112		568		460		124		584
Diabetes Care	1,165		2,320		3,485		865		2,292		3,157
Total	4,840		6,097		10,937		4,385		6,233		10,618
Other	8		—		8		31		18		49
Total	$	13,923	$	19,639	$	33,562	$	11,787	$	19,820	$	31,607

Remaining Performance Obligations

As of September 30, 2022, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $3.9 billion in the Diagnostics segment and approximately $433 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 60 percent of these remaining performance obligations over the next 24 months, approximately 16 percent over the subsequent 12 months and the remainder thereafter.

These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices. Abbott has applied the practical expedient described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above.

Other Contract Assets and Liabilities

Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were not significant.

Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Abbott’s contract liabilities arise primarily in the Medical Devices reportable segment when payment is received upfront for various multi-period extended service arrangements.

Changes in the contract liabilities during the period are as follows:

(in millions)
Contract Liabilities:
Balance at December 31, 2021	$	520
Unearned revenue from cash received during the period	466
Revenue recognized related to contract liability balance	(508)
Balance at September 30, 2022	$	478