In March, Abbott announced MitraClip was granted national reimbursement in Japan, which enables greater access for patients to this therapy. Reflects net expense for the estimated tax impact of the TCJA, the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation. Abbott has retained all liabilities for all U.S. federal and foreign income taxes on income prior to the separation, as well as certain non-income related taxes attributable to AbbVies business prior to the separation. Upfront commission fees paid to sales personnel as a result of obtaining or renewing contracts with customers are incremental to obtaining the contract. For the three months ended March 31, 2018, research and development expenditures totaled $246 million for the Cardiovascular and Neuromodulation Products segment, $147 million for the Diagnostic Products segment, $44 million for the Established Pharmaceutical Products segment and $48 million for the Nutritional Products segment. Under the two-class method, net earnings are allocated between common shares and participating securities. The carrying values of all other financial instruments approximate their estimated fair values. Adult Nutrition business, which was discontinued during the third quarter 2018. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Targeted Improvements to Accounting for Hedging Activities In Rhythm Management, market share gains in the new patient segment were offset by replacement cycle dynamics. Abbott Powered by Madgex Job Board Software. , which requires the recognition of the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. Following are sales by business segment and commentary for the fourth quarter and full year 2018: * Total Q4 2018 Abbott sales from continuing operations include Other Sales of $17 million. Evaluation of disclosure controls and procedures. Total Change On July 17, 2017, Abbott commenced a tender offer to purchase for cash the 1.77 million outstanding shares of Aleres Series B Convertible Perpetual Preferred Stock at a price of $402 per share, plus accrued but unpaid dividends to, but not including, the settlement date of the tender offer. * Rapid Diagnostics reflects sales from Alere Inc., which was acquired on Oct. 3, 2017. in the retail and institutional market segments. (a) x Revenue from Contracts with Customers All conditions to the offer were satisfied and Abbott accepted for payment the 1.748 million shares of Preferred Stock that were validly tendered (and not properly withdrawn). Income (loss), Income (expense) and In the third quarter of 2017, Alere entered into agreements to sell its Triage MeterPro cardiovascular and toxicology business and the assets and liabilities related to its B-type Natriuretic Peptide assay business run on Beckman Coulter analyzers to Quidel Corporation (Quidel). 2017 Other (income) expense, net includes a pretax gain of $1.163 billion from the sale of the AMO business. Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)). Other, net in 2018 includes inventory step-up amortization, restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Abbott incurred a net charge of $14 million related to the early repayment of this debt. Computation of Ratio of Earnings to Fixed Charges, Capitalized interest cost, net of amortization, Earnings from Continuing Operations, as adjusted, Interest on long-term and short-term debt, Rental expense representative of an interest factor, Total adjusted earnings available for payment of fixed charges. For maintenance agreements that provide service beyond Abbotts standard warranty and other service agreements, revenue is recognized ratably over the contract term. Earnings from discontinued operations reflect the recognition of a net tax benefit of $9 million and $33 million in the first quarter of 2018 and 2017, respectively, as a result of the resolution of various tax positions primarily related to AbbVies operations for years prior to the separation. Molecular Diagnostics sales increased 1.4 percent on a reported basis in the fourth quarter, including an unfavorable 2.4 percent effect of foreign exchange, and increased 3.8 percent on an organic basis. The goodwill is identifiable to the Diagnostic Products reportable segment. No use of any Abbott trademark, trade name, or trade dress in this site may be made without the prior written authorization of Abbott, except to identify the product or services of the company. In the first quarter of 2018, Abbott retrospectively adopted Accounting Standards Update (ASU) 2017-07, or Programs, (d) Maximum Abbott reports strong growth for fourth-quarter (Q4) and full-year 2018 financial results. Abbott is currently evaluating the effect that the new guidance will have on its consolidated financial statements. Returns can be reliably estimated because Abbotts historical returns are low, and because sales return terms and other sales terms have remained relatively unchanged for several periods. Research and development expenses increased by $36 million, or 6.4 percent, in the first quarter of 2018 due primarily to the addition of the acquired Alere business as well as higher spending in other areas including Cardiovascular and Neuromodulation. Controls and Procedures. 2017 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $4.047 billion, or $2.30 per share, for the estimated impact of U.S. tax reform, intangible amortization expense and other expenses primarily associated with acquisitions and restructuring actions, partially offset by a gain on the sale of the AMO business. Core Laboratory Diagnostics sales increased 5.0 percent on a reported basis in the fourth quarter, including an unfavorable 4.4 percent effect of foreign exchange, and increased 9.4 percent on an organic basis, reflecting above-market growth in the U.S. and internationally, where Abbott is seeing continued strong adoption of Alinity™, Abbott's family of innovative and highly differentiated diagnostic instruments. Abbott is currently evaluating the impact the new guidance will have on its consolidated financial statements. Established Pharmaceuticals sales decreased 4.8 percent on a reported basis in the fourth quarter, including an unfavorable 8.4 percent effect of foreign exchange, and increased 3.6 percent on an organic basis. Key Emerging Markets for the Established Pharmaceutical Products business include India, Russia, Brazil and China, along with several other markets that represent the most attractive long-term growth opportunities for Abbotts branded generics product portfolio. Divestiture-related expenses include incremental costs to separate the divested businesses as well as bankers' fees and costs for legal, accounting, tax, and other services related to the divestitures. Assets Recognized for Costs to Obtain a Contract with a Customer. 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. Other, net in 2017 includes the gain on the sale of the AMO business, partially offset by inventory step-up amortization, restructuring charges and integration costs associated with the acquisition of St. Jude Medical. Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Worldwide sales were led by growth in infectious disease testing, Abbott's core area of focus in the molecular diagnostics market. The table below provides detail by sales category for the three months ended March 31. The assets presented as held for disposition in the Condensed Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017, primarily relate to the businesses sold to Quidel. The website you have requested also may not be optimized for your specific screen size. Worldwide Nutrition sales decreased 0.4 percent on a reported basis in the fourth quarter. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue. Worldwide sales of cardiac rhythm management, electrophysiology, heart failure, vascular, structural heart and neuromodulation products. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In February 2017, Abbott completed the sale of Abbott Medical Optics (AMO) to Johnson & Johnson and recognized a pre-tax gain of $1.151 billion, which is reported in Other (income) expense, net within the Condensed Consolidated Statement of Earnings in the first quarter of 2017. In 2017 and 2018, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the cardiovascular and neuromodulation segment and Alere into the diagnostics segment, in order to leverage economies of scale and reduce costs. In Electrophysiology, growth was led by strong performance in cardiac mapping and ablation catheters.