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35
Abbott 2012 Annual Report
Notes to Consolidated Financial Statements
The following table summarizes the bases used to measure
certain assets and liabilities at fair value on a recurring basis
in the balance sheet:
(dollars in millions) Basis of Fair Value Measurement
Outstanding Quoted Prices in Significant Other Significant
December 31, 2012: Balances Active Markets Observable Inputs Unobservable Inputs
Equity securities $ 76 $76 $ — $ —
Interest rate swap financial instruments 185 — 185 —
Foreign currency forward exchange contracts 120 — 120 —
Total Assets $ 381 $76 $ 305 $ —
Fair value of hedged long-term debt $ 9,632 $— $9,632 $ —
Interest rate swap financial instruments 80 — 80 —
Foreign currency forward exchange contracts 146 — 146 —
Contingent consideration related to business combinations 323 — — 323
Total Liabilities $10,181 $— $9,858 $323
December 31, 2011:
Equity securities $ 93 $93 $ — $ —
Interest rate swap financial instruments 598 — 598 —
Foreign currency forward exchange contracts 280 — 280 —
Total Assets $ 971 $93 $ 878 $ —
Fair value of hedged long-term debt $ 7,427 $— $7,427 $ —
Foreign currency forward exchange contracts 181 — 181 —
Contingent consideration related to business combinations 423 — — 423
Total Liabilities $ 8,031 $— $7,608 $423
December 31, 2010:
Equity securities $ 75 $75 $ — $ —
Interest rate swap financial instruments 146 — 146 —
Foreign currency forward exchange contracts 125 — 125 —
Total Assets $ 346 $75 $ 271 $ —
Fair value of hedged long-term debt $ 7,444 $— $7,444 $ —
Interest rate swap financial instruments 36 — 36 —
Foreign currency forward exchange contracts 130 — 130 —
Contingent consideration related to business combinations 365 — — 365
Total Liabilities $ 7,975 $— $7,610 $365
The fair value of the debt was determined based on the face value
of the debt adjusted for the fair value of the interest rate swaps, which
is based on a discounted cash flow analysis. The fair value of the
contingent consideration was determined based on an independent
appraisal adjusted for the time value of money, exchange and other
changes in fair value.