Supplemental Financial Information

3 Months Ended

Mar. 31, 2024

Disclosure Text Block Supplement [Abstract]

Note 4 — Supplemental Financial Information

Shares of unvested restricted stock 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 ended March 31, 2024 and 2023 were $1.220 billion and $1.313 billion, respectively.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first three months of 2024 includes $280 million of pension contributions and the payment of cash taxes of approximately $225 million. The first three months of 2023 includes $282 million of pension contributions and the payment of cash taxes of approximately $122 million.

The following summarizes the activity for the first three months of 2024 related to the allowance for doubtful accounts as of March 31, 2024:


(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2023	$	241
Provisions/charges to income	14
Amounts charged off and other adjustments	(8)
Balance at March 31, 2024	$	247

The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.

The components of long-term investments as of March 31, 2024 and December 31, 2023 are as follows:


(in millions)	March 31, 2024		December 31, 2023
Long-term Investments:
Equity securities	$	547	$	555
Other	271		244
Total	$	818	$	799

The increase in Abbott’s long-term investments as of March 31, 2024 versus the balance as of December 31, 2023 primarily relates to additional investments and earnings from equity method investments, partially offset by the impairment of certain securities.

Abbott’s equity securities as of March 31, 2024, include $317 million of investments in mutual funds that are held in a rabbi trust. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott also holds certain investments as of March 31, 2024 with a carrying value of $154 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $66 million that do not have a readily determinable fair value.