Note 14 — Segment and Geographic Area Information
Abbott's principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott's products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians' offices and government agencies throughout the world. As a result of the separation of AbbVie, Abbott no longer has a Proprietary Pharmaceutical Products segment and this business has been removed from the 2012 and 2011 historical information presented below. Abbott's reportable segments are as follows:
Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products.
Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products.
Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. For segment reporting purposes, the Core Laboratories Diagnostics, 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. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, effective January 1, 2013, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment's assets. The segment information below for 2012 and 2011 has been adjusted to exclude intangible asset amortization from operating earnings and intangible assets and goodwill from the total segment asset information. 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 (a) | Operating Earnings (a) | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in millions) |
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Established Pharmaceuticals |
$ | 4,974 | $ | 5,121 | $ | 5,355 | $ | 1,182 | $ | 1,237 | $ | 1,254 | |||||||
Nutritionals |
6,740 | 6,461 | 5,989 | 1,263 | 1,020 | 792 | |||||||||||||
Diagnostics |
4,545 | 4,292 | 4,126 | 1,008 | 825 | 794 | |||||||||||||
Vascular |
3,012 | 3,071 | 3,333 | 962 | 1,020 | 1,111 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total Reportable Segments |
19,271 | 18,945 | 18,803 | $ | 4,415 | $ | 4,102 | $ | 3,951 | ||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Other |
2,577 | 2,549 | 2,604 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total |
$ | 21,848 | $ | 21,494 | $ | 21,407 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
2013 | 2012 | 2011 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
|
(in millions) |
|||||||||
Total Reportable Segment Operating Earnings |
$ | 4,415 | $ | 4,102 | $ | 3,951 | ||||
Corporate functions and benefit plans costs |
(514 | ) | (598 | ) | (529 | ) | ||||
Non-reportable segments |
423 | 443 | 457 | |||||||
Net interest expense |
(90 | ) | (288 | ) | (294 | ) | ||||
Net loss on extinguishment of debt |
— | (1,351 | ) | — | ||||||
Share-based compensation |
(262 | ) | (284 | ) | (256 | ) | ||||
Amortization of intangible assets |
(791 | ) | (795 | ) | (884 | ) | ||||
Other, net (b) |
(660 | ) | (924 | ) | (1,209 | ) | ||||
| | | | | | | | | | |
Earnings from Continuing Operations before Taxes |
$ | 2,521 | $ | 305 | $ | 1,236 | ||||
| | | | | | | | | | |
| | | | | | | | | | |
|
Depreciation | Additions to Long-term Assets |
Total Assets | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in millions) |
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Established Pharmaceuticals |
$ | 84 | $ | 156 | $ | 169 | $ | 128 | $ | 237 | $ | 122 | $ | 2,637 | $ | 2,805 | $ | 4,348 | ||||||||||
Nutritionals |
190 | 175 | 167 | 340 | 428 | 205 | 3,518 | 3,211 | 2,939 | |||||||||||||||||||
Diagnostics |
368 | 295 | 313 | 394 | 349 | 394 | 3,312 | 3,286 | 3,218 | |||||||||||||||||||
Vascular |
122 | 76 | 99 | 62 | 69 | 109 | 1,711 | 1,834 | 1,400 | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Reportable Segments |
764 | 702 | 748 | 924 | 1,083 | 830 | $ | 11,178 | $ | 11,136 | $ | 11,905 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other |
164 | 661 | 647 | 982 | 902 | 845 | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total |
$ | 928 | $ | 1,363 | $ | 1,395 | $ | 1,906 | $ | 1,985 | $ | 1,675 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2013 | 2012 | 2011 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
|
(in millions) |
|||||||||
Total Reportable Segment Assets |
$ | 11,178 | $ | 11,136 | $ | 11,905 | ||||
Cash, investments and restricted funds (c) |
8,217 | 15,448 | 8,476 | |||||||
Current deferred income taxes (c) |
2,528 | 2,986 | 2,701 | |||||||
Non-reportable segments |
1,181 | 1,167 | 1,148 | |||||||
Goodwill and intangible assets (c) |
15,507 | 24,362 | 25,695 | |||||||
All other (c) |
4,342 | 12,136 | 10,352 | |||||||
| | | | | | | | | | |
Total Assets |
$ | 42,953 | $ | 67,235 | $ | 60,277 | ||||
| | | | | | | | | | |
| | | | | | | | | | |
|
Net Sales to External Customers (d) |
Long-term Assets (e) | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
|
(in millions) |
||||||||||||||||||
United States |
$ | 6,269 | $ | 6,349 | $ | 6,302 | $ | 7,884 | $ | 15,244 | $ | 15,867 | |||||||
Japan |
1,442 | 1,723 | 1,726 | 902 | 1,169 | 1,225 | |||||||||||||
Germany |
1,070 | 984 | 1,058 | 1,040 | 6,173 | 5,909 | |||||||||||||
The Netherlands |
960 | 1,107 | 1,204 | 560 | 532 | 462 | |||||||||||||
China |
1,083 | 859 | 625 | 356 | 259 | 127 | |||||||||||||
India |
922 | 919 | 917 | 3,080 | 3,467 | 3,160 | |||||||||||||
Brazil |
470 | 448 | 470 | 216 | 200 | 186 | |||||||||||||
Switzerland |
792 | 693 | 591 | 1,117 | 1,214 | 1,045 | |||||||||||||
Canada |
734 | 753 | 652 | 368 | 352 | 237 | |||||||||||||
Italy |
726 | 719 | 761 | 100 | 222 | 229 | |||||||||||||
France |
680 | 667 | 781 | 213 | 220 | 214 | |||||||||||||
Russia |
525 | 485 | 427 | 30 | 37 | 21 | |||||||||||||
Spain |
413 | 417 | 447 | 326 | 314 | 293 | |||||||||||||
United Kingdom |
479 | 497 | 475 | 1,380 | 1,345 | 1,273 | |||||||||||||
All Other Countries |
5,283 | 4,874 | 4,971 | 6,133 | 5,164 | 6,260 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Consolidated |
$ | 21,848 | $ | 21,494 | $ | 21,407 | $ | 23,705 | $ | 35,912 | $ | 36,508 | |||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |