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ABBOTT 2013 ANNUAL REPORT
49
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Defined Benefit Plans Medical and Dental Plans
(in millions) 2013 2012 2013 2012
Projected benefit obligations, January 1 $ 11,322 $ 9,212 $1,889 $ 1,657
Service cost — benefits earned during the year 303 389 43 61
Interest cost on projected benefit obligations 276 460 59 81
(Gains) losses, primarily changes in discount rates, plan design changes,
law changes and differences between actual and estimated health care costs (650) 1,461 (156) 148
Benefits paid (185) (308) (60) (63)
Separation of AbbVie Inc. (4,654) — (450) —
Other, including foreign currency translation 20 108 (28) 5
Projected benefit obligations, December 31 $ 6,432 $11,322 $1,297 $ 1,889
Plan assets at fair value, January 1 $ 7,949 $ 6,961 $  417 $  389
Actual return on plans’ assets 727 878 61 48
Company contributions 724 379 40 40
Benefits paid (185) (302) (56) (60)
Separation of AbbVie Inc. (3,107) — — —
Other, primarily foreign currency translation 15 33 — —
Plan assets at fair value, December 31 $ 6,123 $ 7,949 $  462 $  417
Projected benefit obligations greater than plan assets, December 31 $  (309) $(3,373) $ (835) $(1,472)
Long‑term assets $  685 $   69 $   — $    —
Short‑term liabilities (11) (43) — —
Long‑term liabilities (983) (3,399) (835) (1,472)
Net liability $  (309) $(3,373) $ (835) $(1,472)
Amounts Recognized in Accumulated Other Comprehensive Income (loss):
Actuarial losses, net $  1,791 $ 4,923 $  334 $  701
Prior service cost (credits) 20 61 (252) (322)
Total $  1,811 $ 4,984 $   82 $  379
In connection with separation of AbbVie on January 1, 2013,
Abbott transferred to AbbVie Accumulated other comprehensive
losses, net of income taxes, of approximately $1.4 billion. The pro‑
jected benefit obligations for non‑U.S. defined benefit plans was
$2.0 billion and $3.1 billion at December 31, 2013 and 2012, respec‑
tively. The accumulated benefit obligations for all defined benefit
plans were $5.5 billion and $9.6 billion at December 31, 2013 and
2012, respectively.
NOTE 12 — POST-EMPLOYMENT BENEFITS
Retirement plans consist of defined benefit, defined contribution
and medical and dental plans. Information for Abbott’s major
defined benefit plans and post‑employment medical and dental
benefit plans is as follows:
For plans where the accumulated benefit obligations exceeded
plan assets at December 31, 2013 and 2012, the aggregate accumu‑
lated benefit obligations, the projected benefit obligations and the
aggregate plan assets were as follows:
(in millions) 2013 2012
Accumulated benefit obligation $408 $8,100
Projected benefit obligation 505 9,619
Fair value of plan assets — 6,243
In 2011, $776 million of assets and liabilities of a plan sponsored by
Abbott Healthcare BV, a Dutch subsidiary of Abbott Laboratories,
were irrevocably transferred to a Dutch insurance company in full
settlement of that plan. The assets were used to purchase an annu‑
ity contract to fulfill the plan’s obligations.