Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Note 3 — 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 March 31, 2024						Three Months Ended March 31, 2023
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	928	$	928	$	—	$	912	$	912
Other	—		298		298		—		277		277
Total	—		1,226		1,226		—		1,189		1,189
Nutritionals —
Pediatric Nutritionals	514		495		1,009		459		465		924
Adult Nutritionals	364		695		1,059		353		690		1,043
Total	878		1,190		2,068		812		1,155		1,967
Diagnostics —
Core Laboratory	310		895		1,205		289		893		1,182
Molecular	42		87		129		47		100		147
Point of Care	98		41		139		93		41		134
Rapid Diagnostics	481		260		741		906		319		1,225
Total	931		1,283		2,214		1,335		1,353		2,688
Medical Devices —
Rhythm Management	271		291		562		260		267		527
Electrophysiology	269		318		587		238		267		505
Heart Failure	237		68		305		218		63		281
Vascular	254		435		689		218		399		617
Structural Heart	233		282		515		210		251		461
Neuromodulation	181		45		226		155		41		196
Diabetes Care	589		980		1,569		479		834		1,313
Total	2,034		2,419		4,453		1,778		2,122		3,900
Other	3		—		3		3		—		3
Total	$	3,846	$	6,118	$	9,964	$	3,928	$	5,819	$	9,747

Products sold by the Diagnostics segment include various types of diagnostic tests to detect the COVID-19 coronavirus. In the first three months of 2024 and 2023, Abbott’s COVID-19 testing-related sales totaled $204 million and $730 million, respectively.

Remaining Performance Obligations

As of March 31, 2024, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $4.5 billion in the Diagnostics segment and approximately $495 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 59 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 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, 2023	$	545
Unearned revenue from cash received during the period	120
Revenue recognized related to contract liability balance	(116)
Balance at March 31, 2024	$	549