Table of Contents

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 


 

FORM 11-K

 

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

(Mark One)

 

x                              ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2017

 

OR

 

o                                 TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from        to

 

Commission File Number

 

A.                                    Full title of the plan and the address of the plan, if different from that of the issuer named below:

 

ABBOTT LABORATORIES STOCK RETIREMENT PROGRAM

 

B.                                    Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

ABBOTT LABORATORIES

100 Abbott Park Road

Abbott Park, Illinois 60064-6049

 

 

 



Table of Contents

 

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ABBOTT LABORATORIES STOCK RETIREMENT PLAN

DECEMBER 31, 2017 AND 2016

 



Table of Contents

 

C O N T E N T S

 

 

 

Page

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

3

 

 

 

FINANCIAL STATEMENTS

 

 

 

 

 

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

5

 

 

 

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

 

6

 

 

 

NOTES TO FINANCIAL STATEMENTS

 

7

 

 

 

SUPPLEMENTAL SCHEDULE

 

 

 

 

 

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

 

17

 



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

Plan Administrator and Plan Participants

Abbott Laboratories Stock Retirement Plan

 

Opinion on the financial statements

 

We have audited the accompanying statements of net assets available for benefits of Abbott Laboratories Stock Retirement Plan (the Plan) as of December 31, 2017 and 2016, the related statement of changes in net assets available for benefits for the year ended December 31, 2017, and the related notes (collectively referred to as the financial statements).  In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for opinion

 

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting.  Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the

 

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amounts and disclosures in the financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.

 

Supplemental information

 

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2017, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements.  The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements but include supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  The supplemental information is the responsibility of the Plan’s management.  Our audit procedures included determining whether the supplemental information reconciles to the basic financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information.  In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  In our opinion, the supplemental information referred to above is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

 

/s/ Grant Thornton LLP

 

We have served as the Plan’s auditor since 2002.

 

Chicago, Illinois

June 22, 2018

 

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Abbott Laboratories Stock Retirement Plan

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2017 and 2016

(Dollars in thousands)

 

 

 

2017

 

2016

 

Assets

 

 

 

 

 

Cash

 

$

7,742

 

$

1,215

 

Investments, at fair value

 

7,895,700

 

6,196,715

 

Notes receivable from participants

 

58,442

 

62,960

 

Accrued interest and dividend income

 

1,598

 

1,709

 

Due from brokers

 

163

 

940

 

 

 

 

 

 

 

Total assets

 

7,963,645

 

6,263,539

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Accrued investment expenses

 

327

 

553

 

Due to brokers

 

4,521

 

2,433

 

 

 

 

 

 

 

Total liabilities

 

4,848

 

2,986

 

 

 

 

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

 

$

7,958,797

 

$

6,260,553

 

 

The accompanying notes are an integral part of these statements.

 

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Abbott Laboratories Stock Retirement Plan

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year ended December 31, 2017

(Dollars in thousands)

 

Additions

 

 

 

Contributions

 

 

 

Employer

 

$

82,390

 

Participant

 

163,371

 

Rollovers

 

61,539

 

 

 

 

 

Total contributions

 

307,300

 

 

 

 

 

Investment income

 

 

 

Net appreciation in fair value of investments

 

1,773,688

 

Interest and dividends

 

178,632

 

 

 

 

 

Net investment income

 

1,952,320

 

 

 

 

 

Interest income on notes receivable from participants

 

2,005

 

 

 

 

 

Total additions

 

2,261,625

 

 

 

 

 

Deductions

 

 

 

Benefits paid to participants

 

563,241

 

Other expenses

 

140

 

 

 

 

 

Total deductions

 

563,381

 

 

 

 

 

NET INCREASE

 

1,698,244

 

 

 

 

 

Net assets available for benefits

 

 

 

Beginning of year

 

6,260,553

 

 

 

 

 

End of year

 

$

7,958,797

 

 

The accompanying notes are an integral part of these statements.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN

 

The following description of the Abbott Laboratories Stock Retirement Plan (the “Plan”) provides only general information.  Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

 

General

 

In general, United States employees of Abbott Laboratories (“Abbott”) and selected participating subsidiaries and affiliates may, after meeting certain employment requirements, voluntarily participate in the Plan.  The Plan is intended to constitute a profit sharing plan under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “IRC”), with a cash or deferred arrangement under IRC Section 401(k), and a portion of the Plan is intended to constitute an employee stock ownership plan that meets the applicable requirements of IRC Sections 409 and 4975(e)(7).  The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

Aon Hewitt served as the Plan’s record keeper until its parent company, Aon plc, completed the sale of its benefits administration business to Blackstone Group LP during 2017.  The business now operates as Alight Solutions and continues to serve as the record keeper of the Plan.  The Northern Trust Company (“Custodian” or “Trustee”) serves as the Plan’s custodian and trustee.

 

In January 2017, Abbott completed the acquisition of St. Jude Medical, Inc., a global medical device manufacturer.  During 2017, employees of St. Jude Medical, LLC (the surviving entity in the acquisition) and its subsidiaries in the United States were eligible to participate in a separate plan, not the Plan.

 

In February 2017, Abbott completed the sale of Abbott Medical Optics (“AMO”), its vision care business.  After the sale, AMO employees in the United States were no longer eligible to make contributions to the Plan and were given the choice to keep their account balance in the Plan, including continuing to repay outstanding loans, roll over their account to a personal rollover account or another qualified plan, or take a distribution subject to any applicable taxes and penalties.

 

In October 2017, Abbott completed the acquisition of Alere Inc. (“Alere”), a global manufacturer of rapid point-of-care diagnostic tests.  Alere employees were permitted to participate in the Plan following the acquisition.  Alere had previously sponsored a separate 401(k) plan, which was terminated prior to the acquisition, and the participants in that plan were permitted to roll over their account balances into the Plan.  If a participant in the Alere plan had an outstanding loan, Abbott offered an opportunity for the outstanding loan balance to be included in the rollover and loan repayment to continue under the Plan.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Contributions and Vesting

 

Contributions to the Plan are paid to the Abbott Laboratories Stock Retirement Trust (“Trust”).  The Trust is administered by the Trustee and an investment committee (the “Committee”).

 

Employees are eligible to commence participation in the Plan on any entry date following their date of hire.  Except for employees described later in the paragraph, eligible employees electing to participate contribute from 2% up to 25% of their eligible earnings, subject to certain limitations.  Participants may choose to make their contributions from pretax earnings, after-tax earnings, or both.  The Plan also permits Roth 401(k) contributions and has a Roth 401(k) conversion feature.  Beginning March 2017, newly hired employees in certain specified Abbott divisions and business units, participate in the Plan under a different structure (“Abbott Green” employees). Alere employees also participate in the Plan under the “Abbott Green” structure.  Under the Abbott Green structure, participants may defer up to 50% of eligible earnings as pre-tax or Roth contributions.

 

Participants who have attained age 50 before the end of the Plan year and who are making the maximum pretax contributions are eligible to make catch-up contributions.  The pretax contributions are a pay conversion feature, which is a salary deferral option under the provisions of Section 401(k) of the IRC.  Participants may elect to invest their contributions in any or all of the investment options available under the Plan, except for investment options closed to new contributions.

 

Employer contributions to the Plan are made each payroll period based on the participating employees’ eligible earnings.  The amount of the employer contribution is determined by the Board of Directors of Abbott.  Excluding the Abbott Green employees, the employer contribution for the year ended December 31, 2017, was 5% of the participant’s eligible earnings if the participant elected to contribute at least 2% of eligible earnings to the Plan.  Effective with the first pay period ending after March 1, 2017, for Abbott Green employees who were employed as of June 30, 2017, employer matching contributions are made at the rate of either (i) 100% of a 1% deferral of eligible earnings or (ii) 5% of eligible earnings for a deferral of 2% or more of eligible earnings.  A true-up employer matching contribution is made for eligible participants as of the end of the year if necessary to reach a full 1% or 5% employer matching contribution, as applicable.  Employer contributions are invested each pay period according to the participant’s investment elections.

 

Cash dividends on Abbott common shares are (1) paid in cash to the participants or beneficiaries, (2) paid to the Plan and distributed in cash to participants or beneficiaries no later than 90 days after the close of the Plan year for which paid or (3) paid to the Plan and credited to the accounts in which shares are held, as elected by each participant or beneficiary in accordance with rules established by the administrator.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Contributions and Vesting - Continued

 

On January 1, 2013, Abbott separated into two publicly traded companies — Abbott and AbbVie Inc. (“AbbVie”).  The separation of Abbott and AbbVie was a tax-free distribution where Abbott shareholders received one share of AbbVie stock for every share of Abbott held as of the close of business on December 12, 2012, the record date for the distribution.  Participants who received AbbVie stock through this distribution may continue to hold the stock in their Plan accounts but may not make new contributions or transfer existing contributions or earnings to purchase AbbVie stock in the Plan; however, participants may elect to reinvest their AbbVie dividends in AbbVie stock. If no election is made, AbbVie dividends are invested in the Plan’s default investment option.

 

Participants may direct the Trustee to sell all or a portion of the Abbott and AbbVie common shares held in their accounts and reinvest the proceeds in any of the other available investment options.

 

Participants are at all times fully vested in their own contributions and earnings thereon.  Vesting in employer contributions and earnings thereon is based on the following vesting schedule for participants excluding Abbott Green participants:

 

 

 

Vesting

 

Service

 

percentage

 

 

 

 

 

Less than two years

 

0

%

Two years or more

 

100

%

 

The Abbott Green matching contributions vest 20% each year, until full vesting at five years (with accelerated vesting if the participant dies, attains age 65, or becomes disabled).

 

Non-vested portions of employer contributions and earnings thereon are forfeited as of an employee’s termination date.  Forfeitures are used to (1) restore any forfeitures of participants who returned to service with Abbott within a given period of time, (2) pay Plan expenses and (3) reduce future employer contributions if terminated participants do not return to service within the given period of time.  In 2017, forfeitures reduced Abbott’s employer contributions by approximately $2.1 million.  Approximately $257,000 and $351,500 in forfeitures were available at the end of 2017 and 2016, respectively.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Distributions and In-Service Withdrawals

 

Following retirement, termination or death (or for some participants from merged-in plans, upon disability), participants or their beneficiaries may elect to receive a distribution in installments, in a single lump sum or in a partial lump sum.  Participants may elect a direct rollover of their accounts.  Also, upon termination, participants may elect to defer distribution to a future date but, after termination of employment, distribution must be made by the 1st of April following the year the participant reaches age 70 ½ or, if earlier, the 31st of December following the year in which the participant dies.  Interest, dividends and other earnings will continue to accrue on such deferred amounts.

 

Prior to termination, participants are permitted to withdraw their after-tax contributions (after-tax contributions made on or after January 8, 2016 may be withdrawn from the Plan only after being held for two or more years) and rollover contributions (including Roth rollover accounts and merged-in plan rollover accounts) and, after age 59 ½, may also withdraw pretax contributions.  Distributions are made in cash or, to the extent contained in the participant’s account, a participant may elect distribution of Abbott and AbbVie common shares, and in each case, subject to certain limitations.

 

Notes Receivable from Participants

 

Participants may convert their vested account balances into one or two loans to themselves.  The borrowing may not exceed the lesser of the current market value of the assets allocated to their vested accounts or 50% of all of their Plan accounts up to $50,000, subject to Internal Revenue Service (“IRS”) limitations and restrictions.  Participants pay interest on such borrowings at the prime rate in effect at the time the participant loan is made.  Loans must be repaid within five years (or by the employee’s anticipated retirement date, if sooner) unless the loan is used for the purchase of the primary residence of the employee, in which case the repayment period can be extended to a period of fifteen years (or until the employee’s anticipated retirement date, if sooner).  Repayment is made through periodic payroll deductions or by sending in payments, but a loan may be repaid in a lump sum at any time.  Post-termination loan repayments are permitted.  For employees whose account is distributed during the repayment period, the balance of the outstanding loan is netted from their Plan distribution.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Accounting

 

The financial statements have been prepared using the accrual basis of accounting.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities.  Actual results may differ from those estimates.

 

Investment Valuation

 

The Plan uses the following methods and significant assumptions to estimate the fair value of investments:

 

Common stock, mutual funds, REITs and futures contracts - Valued at the published market price per share or unit multiplied by the number of respective shares or units held.

 

Collective trust funds and Private 40-Act mutual funds - Valued at the NAV provided by the administrator of the fund.  The NAV is used as a practical expedient to estimate fair value.  The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.  Redemption from the funds is permitted daily.  The Private 40-Act mutual funds agree to redeem shares solely in cash up to the lesser of $250,000 or 1% of the fund’s net assets during any 90-day period for any one shareholder.  In consideration of the best interests of the remaining shareholders, the Private 40-Act mutual funds reserve the right to pay any redemption proceeds exceeding this amount in whole or in part by a distribution in kind of securities held by the funds in lieu of cash. It is highly unlikely that shares would ever be redeemed in kind.

 

Corporate debt and government debt - Valued at the published market price or prices obtained from independent financial services industry-recognized vendors multiplied by the number of respective units held.  Prices obtained from vendors are on the basis of bid or mid evaluations in accordance to a region’s market convention, using factors which include but are not limited to market quotations, yields, maturities, and the bond’s terms and conditions.  Proprietary methods are used to arrive at the evaluated price, which represent the price a dealer would pay for a security.

 

Certificate of deposit - Valued at amortized cost, which approximates fair value given the instruments’ short duration of less than 130 days.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

 

Investment Valuation - Continued

 

The following tables summarize the basis used to measure investments at fair value at December 31, 2017 and 2016 (dollars in thousands):

 

 

 

Basis of Fair Value Measurement

 

 

 

2017

 

Quoted
Prices in
Active
Markets

 

Significant
Other
Observable
Inputs

 

Significant
Unobservable
Inputs

 

Measured at
NAV

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

3,643,267

 

$

 

$

 

$

 

$

3,643,267

 

Mutual funds

 

1,524,835

 

 

 

 

1,524,835

 

REITs

 

26,683

 

 

 

 

26,683

 

Collective trust funds

 

 

 

 

2,155,331

 

2,155,331

 

Corporate debt

 

 

179,984

 

 

 

179,984

 

Government debt

 

 

33,755

 

 

 

33,755

 

Certificate of deposit

 

 

7,301

 

 

 

7,301

 

Private 40-Act mutual funds

 

 

 

 

324,544

 

324,544

 

Total investments at fair value

 

$

5,194,785

 

$

221,040

 

$

 

$

2,479,875

 

$

7,895,700

 

 

 

 

Basis of Fair Value Measurement

 

 

 

2016

 

Quoted
Prices in
Active
Markets

 

Significant
Other
Observable
Inputs

 

Significant Unobservable
Inputs

 

Measured at
NAV

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

2,639,909

 

$

 

$

 

$

 

$

2,639,909

 

Mutual funds

 

1,271,412

 

 

 

 

1,271,412

 

Collective trust funds

 

 

 

 

1,744,321

 

1,744,321

 

Corporate debt

 

 

196,609

 

 

 

196,609

 

Government debt

 

 

18,451

 

 

 

18,451

 

Certificate of deposit

 

 

16,525

 

 

 

16,525

 

Private 40-Act mutual funds

 

 

 

 

309,488

 

309,488

 

Total investments at fair value

 

$

3,911,321

 

$

231,585

 

$

 

$

2,053,809

 

$

6,196,715

 

 

The Private 40-Act mutual funds are not direct filing entities.  These funds invest in fixed income instruments of varying maturities.  The investment objective of one fund is to seek maximum current income and the other is to seek maximum total return, both being consistent with preservation of capital and liquidity.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

 

Notes Receivable from Participants

 

Notes receivable from participants are measured at their unpaid balance plus any accrued but unpaid interest.  Delinquent loans are reclassified as distributions based upon the terms of the Plan.  No allowance for credit losses has been recorded as of December 31, 2017 or 2016.

 

Income Recognition

 

Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on an accrual basis.  Dividends are recorded on the ex-dividend date.  Net realized and unrealized appreciation/depreciation is recorded in the accompanying statement of changes in net assets available for benefits as net appreciation in fair value of investments.

 

Administrative Expenses

 

Participants are charged transaction fees for loan processing and commissions on purchases and sales of Abbott shares and sales of AbbVie stock.  Investment fees for mutual funds, collective trust, managed accounts and money market funds are charged against the net assets of the respective fund.  Abbott pays other record-keeping and administration fees, where applicable.

 

Payment of Benefits

 

Benefits are recorded when paid.

 

NOTE C - INVESTMENTS

 

Distributions of Abbott common shares and conversions of participants’ common share account balances to participant loans or other investment options are recorded at fair market value.

 

A summary of Abbott common share data as of December 31, 2017 and 2016 is presented below:

 

 

 

2017

 

2016

 

Abbott common shares, 29,803,690 and 31,314,205 shares, respectively (dollars in thousands)

 

$

1,700,897

 

$

1,202,779

 

Market value per share

 

$

57.07

 

$

38.41

 

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE C — INVESTMENTS - Continued

 

In general, the investments provided by the Plan are exposed to various risks, such as interest rate, credit and overall market volatility risks.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participant accounts and the amounts reported in the statements of net assets available for benefits.

 

NOTE D - RELATED-PARTY AND PARTY-IN-INTEREST TRANSACTIONS

 

A significant portion of the Plan’s assets is invested in Abbott common shares.

 

Participants pay fees to the recordkeeper for loan transaction processing and for commissions on purchases and sales of Abbott shares and sales of AbbVie stock.  These transactions qualify as permitted party-in-interest transactions.

 

NOTE E - PLAN TERMINATION

 

The Plan may be terminated at any time by Abbott upon written notice to the Trustee and Committee.  All participants’ account balances would become fully vested upon Plan termination.  Upon termination of the Plan, distributions of each participant’s share in the Trust, as determined by the terms of the Plan, would be made to each participant.  At the present time, Abbott has no intention of terminating the Plan.

 

NOTE F - TAX STATUS

 

The IRS has determined and informed Abbott by a letter dated May 19, 2017, that the Plan and related Trust are designed in accordance with applicable sections of the IRC.  The Plan has been amended since the applicable date of the determination letter.  However, the Plan administrator believes that the Plan is designed and is currently being operated, in all material respects, in accordance with the applicable requirements of the IRC.

 

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Abbott Laboratories Stock Retirement Plan

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE F - TAX STATUS - Continued

 

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS or other applicable taxing authorities.  The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2017 and 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements.  The Plan is subject to routine audits by taxing jurisdictions.  There are currently no audits in progress.

 

NOTE G — SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from December 31, 2017 through the date these financial statements were issued.  Other than described below, there were no subsequent events that require recognition or additional disclosure in these financial statements.

 

In January 2018, certain Plan provisions affecting Abbott Green employees changed.  Specifically, effective for the first payroll period ending on or after January 1, 2018, Abbott Green employees may defer up to 25% of eligible earnings as pre-tax contributions, after-tax contributions, or a combination of both, and the year-end true-up matching contribution was eliminated.  On or after January 1, 2018, Abbott Green employees fully vest in employer contributions at two years of service (with accelerated vesting if the participant dies, attains age 65, or becomes disabled).

 

Additionally, St. Jude Medical LLC employees in the United States became eligible to participate in the Plan as Abbott Green employees effective for the first payroll period ending on or after January 1, 2018.

 

On January 19, 2018, the St. Jude Medical, Inc. Retirement Savings Plan merged with and into the Plan.  Assets totaling approximately $1.6 billion transferred into the Plan.

 

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SUPPLEMENTAL SCHEDULE

 



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Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - employer securities

 

 

 

 

 

*ABBOTT LABORATORIES, common shares

 

 

 

$

1,700,897

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

1ST HORIZON NATL CORP

 

 

 

275

 

5TH 3RD BANCORP

 

 

 

1,018

 

ABBVIE INC.

 

 

 

1,778,863

 

ACADIA HEALTHCARE CO INC

 

 

 

123

 

ACUITY BRANDS INC

 

 

 

110

 

ADIENT PLC ADIENT PLC LTD

 

 

 

349

 

ADVANCE AUTO PTS INC

 

 

 

248

 

AECOM

 

 

 

274

 

AES CORP

 

 

 

338

 

AFFILIATED MANAGERS GROUP INC

 

 

 

540

 

AGCO CORP

 

 

 

227

 

AGILENT TECHNOLOGIES INC

 

 

 

778

 

AGIOS PHARMACEUTICALS INC

 

 

 

8

 

AGNC INVT CORP

 

 

 

372

 

AIR LEASE CORP CL A

 

 

 

205

 

AKAMAI TECHNOLOGIES INC

 

 

 

508

 

AKORN INC

 

 

 

7

 

ALASKA AIR GROUP INC

 

 

 

75

 

ALBEMARLE CORP

 

 

 

543

 

ALLEGHANY CORP

 

 

 

418

 

ALLIANT ENERGY CORP

 

 

 

469

 

ALLY FINL INC

 

 

 

613

 

ALNYLAM PHARMACEUTICALS INC

 

 

 

67

 

AMDOCS

 

 

 

446

 

AMER FINL GROUP INC

 

 

 

363

 

AMER NATL INS CO

 

 

 

46

 

AMERCO

 

 

 

91

 

AMEREN CORP

 

 

 

680

 

AMERICAN AIRLINES INC

 

 

 

607

 

AMERICAN WTR WKS CO INC

 

 

 

777

 

AMERIPRISE FINL INC

 

 

 

119

 

AMETEK INC

 

 

 

651

 

ANDEAVOR

 

 

 

846

 

ANTERO RES CORP

 

 

 

107

 

APACHE CORP

 

 

 

724

 

APPLE HOSPITALITY REIT INC

 

 

 

196

 

APTARGROUP INC

 

 

 

192

 

AQUA AMER INC

 

 

 

329

 

ARAMARK

 

 

 

284

 

ARCH CAPITAL GROUP

 

 

 

457

 

ARCONIC INC

 

 

 

551

 

ARDAGH GROUP S A

 

 

 

9

 

ARRIS INTERNATIONAL LTD

 

 

 

215

 

ARROW ELECTR INC

 

 

 

336

 

ASHLAND GLOBAL HLDGS INC

 

 

 

209

 

ASPEN INSURANCE HLDGS

 

 

 

80

 

ASSOCTD BANC-CORP

 

 

 

180

 

ASSURANT INC

 

 

 

204

 

ASSURED GUARANTY LTD

 

 

 

185

 

ATHENE HOLDING LTD

 

 

 

263

 

ATMOS ENERGY CORP

 

 

 

419

 

 

17



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

AUTODESK INC

 

 

 

189

 

AUTONATION INC

 

 

 

140

 

AUTOZONE INC

 

 

 

132

 

AVANGRID INC

 

 

 

134

 

AVERY DENNISON CORP

 

 

 

26

 

AVNET INC

 

 

 

226

 

AXIS CAPITAL HOLDINGS LTD

 

 

 

195

 

BAKER HUGHES A GE CO

 

 

 

637

 

BALL CORP

 

 

 

280

 

BANK OF THE OZARKS

 

 

 

149

 

BANKUNITED INC

 

 

 

202

 

BED BATH & BEYOND INC

 

 

 

142

 

BEMIS CO INC

 

 

 

204

 

BERKLEY W R CORP

 

 

 

325

 

BEST BUY INC

 

 

 

835

 

BGC PARTNERS INC

 

 

 

124

 

BIO RAD LABS INC

 

 

 

237

 

BK HAW CORP

 

 

 

170

 

BLOCK H & R INC

 

 

 

218

 

BOK FINL CORP

 

 

 

110

 

BOOZ ALLEN HAMILTON HLDG CORP

 

 

 

17

 

BORG WARNER INC

 

 

 

462

 

BROOKDALE SR LIVING INC

 

 

 

86

 

BROWN & BROWN INC

 

 

 

287

 

BROWN FORMAN CORP

 

 

 

11

 

BROWN-FORMAN INC CL B NON-VTG

 

 

 

32

 

BRUKER CORP

 

 

 

105

 

BRUNSWICK CORP

 

 

 

43

 

BUNGE LTD

 

 

 

445

 

BURLINGTON STORES INC

 

 

 

169

 

CA INC

 

 

 

496

 

CABOT CORP

 

 

 

176

 

CABOT OIL & GAS CORP

 

 

 

182

 

CALPINE CORP

 

 

 

259

 

CAMPBELL SOUP CO

 

 

 

138

 

CARDINAL HLTH INC

 

 

 

920

 

CARLISLE COMPANIES INC

 

 

 

328

 

CASEYS GEN STORES INC

 

 

 

200

 

CBRE GROUP INC

 

 

 

339

 

CELANESE CORP

 

 

 

277

 

CENTENE CORP

 

 

 

712

 

CENTENNIAL RESOURCE DEVELOPMENT INC

 

 

 

123

 

CENTERPOINT ENERGY INC

 

 

 

579

 

CENTURYLINK INC

 

 

 

762

 

CF INDS HLDGS INC

 

 

 

469

 

CHENIERE ENERGY INC

 

 

 

179

 

CHESAPEAKE ENERGY CORP

 

 

 

156

 

CIMAREX ENERGY CO

 

 

 

37

 

CIN FNCL CORP

 

 

 

545

 

CINEMARK HLDGS INC

 

 

 

176

 

CIT GROUP INC

 

 

 

306

 

CITIZENS FINL GROUP INC

 

 

 

981

 

CLEAN HBRS INC

 

 

 

41

 

CLOROX CO

 

 

 

133

 

 

18



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

CMS ENERGY CORP

 

 

 

629

 

CNA FNCL CORP

 

 

 

68

 

CNX RESOURCES CORPORATION

 

 

 

156

 

COLFAX CORP

 

 

 

164

 

COLONY NORTHSTAR INC

 

 

 

290

 

COLUMBIA PPTY TR INC

 

 

 

130

 

COM ALCOA CORPORATION

 

 

 

471

 

COMERICA INC

 

 

 

714

 

COMM BANCSHARES INC

 

 

 

250

 

COMMSCOPE HLDG CO INC

 

 

 

167

 

CONAGRA BRANDS INC

 

 

 

695

 

CONCHO RES INC

 

 

 

1,050

 

CONDUENT INC

 

 

 

147

 

CONS EDISON INC

 

 

 

1,255

 

CONSOL ENERGY INC

 

 

 

54

 

CONTINENTAL RES INC

 

 

 

124

 

COOPER COS INC

 

 

 

112

 

COPA HOLDINGS SA

 

 

 

184

 

CORELOGIC INC

 

 

 

73

 

COTY INC

 

 

 

441

 

CRANE CO

 

 

 

211

 

CREDIT ACCEP CORP

 

 

 

16

 

CROWN HLDGS INC

 

 

 

104

 

CULLEN / FROST BANKERS INC

 

 

 

251

 

CUMMINS INC

 

 

 

904

 

CYPRESS SEMICONDUCTOR CORP

 

 

 

218

 

D R HORTON INC

 

 

 

374

 

DAVITA INC

 

 

 

526

 

DENTSPLY SIRONA INC

 

 

 

706

 

DEVON ENERGY CORP

 

 

 

958

 

DIAMONDBACK ENERGY INC

 

 

 

452

 

DICKS SPORTING GOODS INC

 

 

 

26

 

DISCOVER FINL SVCS

 

 

 

1,322

 

DISCOVERY INC - A

 

 

 

163

 

DISCOVERY INC - A

 

 

 

205

 

DOLBY LABORATORIES INC CL A

 

 

 

161

 

DOLLAR GEN CORP

 

 

 

753

 

DOLLAR TREE INC

 

 

 

63

 

DOMTAR CORP

 

 

 

148

 

DONALDSON INC

 

 

 

25

 

DOVER CORP

 

 

 

660

 

DST SYS INC

 

 

 

158

 

DTE ENERGY CO

 

 

 

931

 

DUN & BRADSTREET CORP

 

 

 

127

 

E TRADE FINL CORP

 

 

 

635

 

EAST WEST BANCORP INC

 

 

 

388

 

EASTMAN CHEM CO

 

 

 

638

 

ECHOSTAR CORPORATION

 

 

 

135

 

EDGEWELL PERS CARE CO

 

 

 

163

 

EDISON INTL

 

 

 

954

 

ENDO INTL LTD

 

 

 

83

 

ENERGEN CORP

 

 

 

266

 

ENTERGY CORP

 

 

 

695

 

ENVISION HEALTHCARE CORP

 

 

 

196

 

 

19



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

EPR PPTYS

 

 

 

196

 

EQT CORP

 

 

 

548

 

ERIE INDTY CO CL A

 

 

 

39

 

EVEREST RE GROUP

 

 

 

425

 

EVERSOURCE ENERGY

 

 

 

953

 

EXPEDITORS INTL WASH INC

 

 

 

161

 

EXTENDED STAY AMER INC

 

 

 

75

 

EXTRACTION OIL & GAS INC

 

 

 

82

 

F N B CORP PA

 

 

 

211

 

FEDT INVESTORS INC CL B

 

 

 

117

 

FIDELITY NATL FINL INC

 

 

 

486

 

FIDELITY NATL INFORMATION SVCS INC

 

 

 

630

 

FIREEYE INC

 

 

 

123

 

FIRST AMERN FINL CORP

 

 

 

287

 

FIRST HAWAIIAN INC

 

 

 

75

 

FIRST REP BK SAN FRANCISCO CALIF

 

 

 

131

 

FIRST SOLAR INC

 

 

 

260

 

FIRSTENERGY CORP

 

 

 

644

 

FLIR SYS INC

 

 

 

142

 

FLOWERS FOODS INC

 

 

 

160

 

FLOWSERVE CORP

 

 

 

262

 

FLUOR CORP

 

 

 

344

 

FOOT LOCKER INC

 

 

 

255

 

FORTIVE CORP

 

 

 

101

 

FORTUNE BRANDS HOME & SEC INC

 

 

 

34

 

FREEPORT-MCMORAN INC

 

 

 

975

 

GALLAGHER ARTHUR J & CO

 

 

 

168

 

GAMESTOP CORP

 

 

 

86

 

GAP INC

 

 

 

363

 

GARMIN LTD

 

 

 

339

 

GCI LIBERTY

 

 

 

206

 

GENESEE & WYO INC CL A

 

 

 

228

 

GENTEX CORP

 

 

 

100

 

GENUINE PARTS CO

 

 

 

406

 

GOODYEAR TIRE & RUBBER CO

 

 

 

378

 

GRAHAM HLDGS CO

 

 

 

112

 

GRAINGER W W INC

 

 

 

34

 

GRAPHIC PACKAGING HLDG CO

 

 

 

68

 

GREAT PLAINS ENERGY INC

 

 

 

328

 

GUIDEWIRE SOFTWARE INC

 

 

 

160

 

GULFPORT ENERGY CORP

 

 

 

88

 

HAIN CELESTIAL GROUP INC

 

 

 

206

 

HANOVER INS GROUP INC

 

 

 

216

 

HARLEY DAVIDSON

 

 

 

109

 

HARRIS CORP

 

 

 

596

 

HARTFORD FINL SVCS GROUP INC

 

 

 

948

 

HASBRO INC

 

 

 

120

 

HAWAIIAN ELEC INDS INC

 

 

 

184

 

HELMERICH & PAYNE INC

 

 

 

326

 

HERSHEY COMPANY

 

 

 

75

 

HESS CORP

 

 

 

639

 

HEXCEL CORP

 

 

 

86

 

HILL-ROM HLDGS INC

 

 

 

18

 

HILTON WORLDWIDE HLDGS INC

 

 

 

100

 

 

20



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

HOLLYFRONTIER CORP COM

 

 

 

429

 

HOLOGIC INC COM

 

 

 

244

 

HORMEL FOODS CORP COM

 

 

 

467

 

HOWARD HUGHES CORP COM STOCK

 

 

 

212

 

HUBBELL INC COM

 

 

 

127

 

HUNTINGTON BANCSHARES INC COM

 

 

 

747

 

HUNTINGTON INGALLS INDS INC COM

 

 

 

84

 

HUNTSMAN CORP COM STK

 

 

 

165

 

HYATT HOTELS CORP COM CL A COM CL A

 

 

 

161

 

IDEX CORP COM

 

 

 

32

 

IHS MARKIT LTD COM

 

 

 

353

 

INGERSOLL-RAND PLC COM STK

 

 

 

526

 

INGREDION INC COM

 

 

 

472

 

INTERACTIVE BROKERS GROUP INC CL COM

 

 

 

196

 

INTERNATIONAL GAME TECHNOLOGY COMMON STOCK

 

 

 

137

 

INTERPUBLIC GROUP COMPANIES INC COM

 

 

 

59

 

INTL PAPER CO COM

 

 

 

104

 

INTREXON CORP COM

 

 

 

8

 

INVESCO LTD

 

 

 

595

 

IQVIA HLDGS INC

 

 

 

255

 

ITT INC COM

 

 

 

223

 

JABIL INC

 

 

 

214

 

JACOBS ENGR GROUP INC COM

 

 

 

372

 

JETBLUE AWYS CORP COM

 

 

 

340

 

JONES LANG LASALLE INC COM STK

 

 

 

319

 

JUNIPER NETWORKS INC COM

 

 

 

504

 

JUNO THERAPEUTICS INC

 

 

 

148

 

KELLOGG CO

 

 

 

61

 

KEYCORP NEW COM

 

 

 

1,025

 

KEYSIGHT TECHNOLOGIES INC COM

 

 

 

363

 

KIRBY CORP COM

 

 

 

171

 

KOHLS CORP COM

 

 

 

431

 

KOSMOS ENERGY LTD

 

 

 

74

 

KS CY SOUTHN

 

 

 

515

 

L BRANDS INC COM

 

 

 

578

 

L3 TECHNOLOGIES INC COM

 

 

 

730

 

LAB CORP AMER HLDGS COM NEW

 

 

 

774

 

LAMAR ADVERTISING CO

 

 

 

31

 

LAMB WESTON HLDGS INC

 

 

 

302

 

LEAR CORP COM NEW COM NEW

 

 

 

96

 

LEGG MASON INC COM

 

 

 

125

 

LEGGETT & PLATT INC COM

 

 

 

59

 

LEIDOS HLDGS INC COM

 

 

 

434

 

LENNAR CORP

 

 

 

215

 

LENNAR CORP CL A

 

 

 

596

 

LENNAR CORP CL B

 

 

 

34

 

LENNOX INTL INC COM

 

 

 

28

 

LEUCADIA NATL CORP COM

 

 

 

311

 

LIBERTY BROADBAND CORP COM SER A

 

 

 

104

 

LIBERTY BROADBAND CORP COM SER C

 

 

 

419

 

LIBERTY EXPEDIA HLDGS INC SER A COM

 

 

 

94

 

LIBERTY MEDIA CORP SER A

 

 

 

168

 

LIBERTY MEDIA CORP DEL COM SER A FORMULA

 

 

 

39

 

LIBERTY MEDIA CORP DEL COM SER C

 

 

 

335

 

 

21



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

LIBERTY MEDIA CORPORATION SER C FORMULA

 

 

 

302

 

LIFEPOINT HEALTH INC

 

 

 

70

 

LINCOLN NATL CORP COM

 

 

 

798

 

LIONS GATE ENTMT CORP CL B NON VTG

 

 

 

54

 

LIONS GATE ENTMT CORP VOTING SHARES CL A

 

 

 

29

 

LKQ CORP COM LKQ CORP

 

 

 

506

 

LOEWS CORP COM

 

 

 

659

 

LOGMEIN INC COM

 

 

 

106

 

M & T BK CORP COM

 

 

 

1,149

 

MACQUARIE INFRASTRUCTURE CORP

 

 

 

243

 

MACYS INC COM STK

 

 

 

363

 

MADISON SQUARE GARDEN CO NEW CL A CL A

 

 

 

170

 

MALLINCKRODT PLC COMMON STOCK

 

 

 

101

 

MANPOWERGROUP INC

 

 

 

399

 

MARATHON OIL CORP COM

 

 

 

684

 

MARATHON PETE CORP COM

 

 

 

1,518

 

MARKEL CORP HOLDING CO COM

 

 

 

738

 

MARTIN MARIETTA MATLS INC COM

 

 

 

63

 

MARVELL TECH GROUP

 

 

 

405

 

MASCO CORP COM

 

 

 

230

 

MATTEL INC COM

 

 

 

204

 

MDU RES GROUP INC COM

 

 

 

249

 

MEDNAX INC COM

 

 

 

230

 

MERCURY GEN CORP NEW COM

 

 

 

69

 

MGM RESORTS INTERNATIONAL COM

 

 

 

733

 

MICHAEL KORS HOLDINGS LTD COM NPV

 

 

 

399

 

MICHAELS COS INC COM

 

 

 

28

 

MICROSEMI CORP COM

 

 

 

54

 

MLP LAZARD LTD CL A

 

 

 

28

 

MOHAWK INDS INC COM

 

 

 

761

 

MOLSON COORS BREWING COM CL B

 

 

 

674

 

MORNINGSTAR INC COM STK

 

 

 

6

 

MOSAIC CO/THE

 

 

 

426

 

MOTOROLA SOLUTIONS INC

 

 

 

633

 

MSC INDL DIRECT INC CL A COM

 

 

 

116

 

MURPHY OIL CORP COM

 

 

 

240

 

MURPHY USA INC COM

 

 

 

123

 

MYLAN NV

 

 

 

1,071

 

NABORS INDUSTRIES

 

 

 

91

 

NASDAQ INC

 

 

 

415

 

NATIONAL INSTRS CORP COM

 

 

 

46

 

NATIONAL OILWELL VARCO COM STK

 

 

 

648

 

NATL FUEL GAS CO COM

 

 

 

208

 

NAVIENT CORP COM

 

 

 

164

 

NETAPP INC COM STK

 

 

 

104

 

NEW YORK CMNTY BANCORP INC COM

 

 

 

295

 

NEWELL BRANDS INC COM

 

 

 

714

 

NEWMARKET CORP COM

 

 

 

10

 

NEWMONT MINING CORP NEW COM

 

 

 

953

 

NEWS CORP COM CL A

 

 

 

294

 

NEWS CORP COM CL B

 

 

 

96

 

NIELSEN HOLDINGS PLC COMSTK

 

 

 

619

 

NISOURCE INC COM

 

 

 

410

 

NOBLE ENERGY INC COM

 

 

 

667

 

 

22



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

*NORTHERN TRUST CORP COM

 

 

 

988

 

NORWEGIAN CRUISE LINE HLDGS LTD

 

 

 

467

 

NRG ENERGY INC COM NEW

 

 

 

326

 

NU SKIN ENTERPRISES INC CL A CL A

 

 

 

123

 

NUANCE COMMUNICATIONS INC COM

 

 

 

223

 

NUCOR CORP COM

 

 

 

962

 

OCEANEERING INTL INC COM

 

 

 

100

 

OGE ENERGY CORP COM

 

 

 

310

 

OLD DOMINION FGHT LINE INC COM

 

 

 

145

 

OLD REP INTL CORP COM

 

 

 

248

 

OLIN CORP COM

 

 

 

279

 

ON SEMICONDUCTOR CORP COM

 

 

 

23

 

ONEMAIN HLDGS INC COM

 

 

 

78

 

OPKO HEALTH INC COM STK

 

 

 

69

 

ORBITAL ATK INC COM

 

 

 

359

 

OSHKOSH CORPORATION

 

 

 

322

 

OWENS CORNING NEW COM STK

 

 

 

482

 

OWENS ILL INC COM NEW

 

 

 

37

 

PACCAR INC COM

 

 

 

1,157

 

PACWEST BANCORP DEL COM

 

 

 

303

 

PARKER-HANNIFIN CORP COM

 

 

 

170

 

PARSLEY ENERGY INC CL A CL A

 

 

 

111

 

PATTERSON COS INC COM

 

 

 

125

 

PATTERSON-UTI ENERGY INC COM

 

 

 

227

 

PBF ENERGY INC CL A CL A

 

 

 

182

 

PENSKE AUTOMOTIVE GROUP INC COM STK

 

 

 

81

 

PENTAIR PLC COM STK

 

 

 

553

 

PEOPLES UTD FINL INC COM

 

 

 

305

 

PERKINELMER INC COM

 

 

 

309

 

PERRIGO COMPANY LIMITED

 

 

 

544

 

PILGRIMS PRIDE CORP

 

 

 

9

 

PINNACLE FINL PARTNERS INC COM

 

 

 

153

 

PINNACLE FOODS INC DEL COM

 

 

 

332

 

PINNACLE W. CAP CORP COM

 

 

 

450

 

PITNEY BOWES INC COM

 

 

 

100

 

PLATFORM SPECIALTY PRODS CORP

 

 

 

57

 

POPULAR INC COM

 

 

 

168

 

POST HLDGS INC COM STK

 

 

 

246

 

PPL CORP COM

 

 

 

1,007

 

PREMIER INC CL A CL A

 

 

 

55

 

PRINCIPAL FINL GROUP INC COM STK

 

 

 

894

 

PROASSURANCE CORP COM

 

 

 

140

 

PROSPERITY BANCSHARES INC COM

 

 

 

220

 

PUB SERVICE ENTERPRISE GROUP INC COM

 

 

 

1,236

 

PULTE GROUP INC

 

 

 

309

 

PVH CORP

 

 

 

507

 

QEP RES INC COM STK

 

 

 

110

 

QIAGEN NV

 

 

 

222

 

QORVO INC COM

 

 

 

192

 

QUANTA SVCS INC COM

 

 

 

205

 

QUEST DIAGNOSTICS INC COM

 

 

 

640

 

QURATE

 

 

 

198

 

RALPH LAUREN CORP CL A CL A

 

 

 

271

 

RANGE RES CORP COM

 

 

 

186

 

 

23



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

RAYMOND JAMES FNCL INC COM STK

 

 

 

404

 

REALOGY HLDGS CORP COM

 

 

 

168

 

REGAL BELOIT CORP COM

 

 

 

160

 

REGAL ENTMT GROUP

 

 

 

92

 

REGIONS FINL CORP NEW COM

 

 

 

952

 

REINSURANCE GROUP AMER INC COM NEW STK

 

 

 

473

 

RELIANCE STL & ALUM CO COM

 

 

 

289

 

RENAISSANCE RE HLDGS LTD COM

 

 

 

223

 

REPUBLIC SVCS INC COM

 

 

 

739

 

RITE AID CORP COM

 

 

 

53

 

ROPER TECHNOLOGIES, INC

 

 

 

67

 

ROYAL CARIBBEAN CRUISES COM STK

 

 

 

973

 

ROYAL GOLD INC

 

 

 

160

 

RPC INC COM

 

 

 

6

 

RPM INTL INC

 

 

 

27

 

RSP PERMIAN INC COM

 

 

 

127

 

RYDER SYS INC COM

 

 

 

209

 

SABRE CORP COM

 

 

 

45

 

SALLY BEAUTY HLDGS INC COM STK

 

 

 

76

 

SANTANDER CONSUMER USA HLDGS INC COM

 

 

 

132

 

SCANA CORP NEW COM

 

 

 

247

 

SCOTTS MIRACLE-GRO CLASS’A’COM NPV

 

 

 

15

 

SCRIPPS NETWORKS

 

 

 

154

 

SEABOARD CORP DEL COM

 

 

 

53

 

SEALED AIR CORP NEW COM STK

 

 

 

204

 

SEMPRA ENERGY INC COM STK

 

 

 

1,275

 

SENSATA TECHNOLOGIES

 

 

 

202

 

SIGNATURE BK NY N Y COM

 

 

 

146

 

SIGNET JEWELERS LTD

 

 

 

162

 

SIRIUS XM HLDGS INC COM

 

 

 

19

 

SKECHERS U S A INC CL A

 

 

 

135

 

SLM CORP COM

 

 

 

231

 

SM ENERGY CO COM

 

 

 

117

 

SMUCKER J M CO COM NEW

 

 

 

649

 

SNAP-ON INC COM

 

 

 

406

 

SONOCO PROD CO COM

 

 

 

248

 

SOUTHN COPPER CORP DEL COM

 

 

 

20

 

SOUTHWESTERN ENERGY CO COM

 

 

 

135

 

SPIRIT AEROSYSTEMS HLDGS INC CL A

 

 

 

479

 

SPIRIT AIRLS INC COM

 

 

 

146

 

SS&C TECHNOLOGIES HLDGS INC COM

 

 

 

28

 

STANLEY BLACK & DECKER INC COM

 

 

 

1,107

 

STEEL DYNAMICS INC COM

 

 

 

406

 

STERICYCLE INC COM

 

 

 

265

 

STERIS PLC NEW STERIS LTD COMSTK

 

 

 

345

 

SUN TR BANKS INC COM

 

 

 

1,461

 

SVB FINANCIAL GROUP COMMON STOCK

 

 

 

152

 

SWITCH INC CL A CL A

 

 

 

8

 

SYNCHRONY FINL COM

 

 

 

1,437

 

SYNOPSYS INC COM

 

 

 

557

 

SYNOVUS FINL CORP COM NEW COM NEW

 

 

 

268

 

T ROWE PRICE GROUP INC

 

 

 

992

 

TAHOE RES INC COM

 

 

 

71

 

TAPESTRY INC

 

 

 

496

 

 

24



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

TARGA RES CORP COM

 

 

 

485

 

TCF FNCL CORP COM

 

 

 

152

 

TD AMERITRADE HLDG CORP COM STK

 

 

 

69

 

TEGNA INC COM

 

 

 

145

 

TELEDYNE TECHNOLOGIES INC COM

 

 

 

300

 

TELEFLEX INC COM

 

 

 

444

 

TELEPHONE & DATA SYS INC COM STK

 

 

 

129

 

TEMPUR SEALY INTL INC

 

 

 

86

 

TERADATA CORP DEL COM STK

 

 

 

220

 

TERADYNE INC COM

 

 

 

27

 

TEREX CORP NEW COM

 

 

 

177

 

TEXTRON INC COM

 

 

 

713

 

TFS FINL CORP COM STK

 

 

 

38

 

TIFFANY & CO COM

 

 

 

534

 

TIMKEN CO COM

 

 

 

163

 

TOLL BROS INC COM

 

 

 

179

 

TORCHMARK CORP COM

 

 

 

500

 

TRANSOCEAN LTD

 

 

 

199

 

TREEHOUSE FOODS INC COM

 

 

 

92

 

TRIBUNE MEDIA COMPANY CLASS A COMMON STOCK

 

 

 

160

 

TRIMBLE INC COM TRIMBLE INC

 

 

 

102

 

TRINITY IND INC COM

 

 

 

267

 

TRIPADVISOR INC

 

 

 

93

 

TWITTER INC COM

 

 

 

712

 

TYSON FOODS INC CL A COM (DELAWARE)

 

 

 

1,072

 

U.S. CELLULAR CORP COM

 

 

 

26

 

UGI CORP NEW COM

 

 

 

384

 

UNDER ARMOR INC CL A

 

 

 

34

 

UNDER ARMOUR INC CL C COM

 

 

 

32

 

UNITED CONTL HLDGS INC COM STK

 

 

 

861

 

UNITED STS STL CORP NEW COM

 

 

 

291

 

UNITED THERAPEUTICS CORP DEL COM STK

 

 

 

300

 

UNUM GROUP

 

 

 

587

 

UNVL HEALTH SERVICES INC CL B COM

 

 

 

461

 

URBAN OUTFITTERS INC COM

 

 

 

135

 

US FOODS HLDG CORP COM

 

 

 

308

 

USG CORP COM NEW

 

 

 

155

 

V F CORP COM

 

 

 

294

 

VALIDUS HOLDING LTD

 

 

 

170

 

VALMONT INDS INC COM

 

 

 

172

 

VALVOLINE INC COM

 

 

 

244

 

VECTREN CORP COM

 

 

 

255

 

VERSUM MATLS LLC COM

 

 

 

178

 

VIACOM INC NEW CL A

 

 

 

17

 

VIACOM INC NEW CL B

 

 

 

512

 

VISTRA ENERGY CORP COM

 

 

 

211

 

VOYA FINL INC COM

 

 

 

396

 

VULCAN MATERIALS CO COM

 

 

 

55

 

WABTEC CORP COM

 

 

 

225

 

WEATHERFORD INTERNATIONAL LTD

 

 

 

176

 

WEBSTER FNCL CORP WATERBURY CONN COM

 

 

 

244

 

WEC ENERGY GROUP INC COM

 

 

 

997

 

WELLCARE HLTH PLANS INC COM

 

 

 

32

 

WESCO INTL INC COM

 

 

 

151

 

 

25



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - continued

 

 

 

 

 

WESTAR ENERGY INC COM

 

 

 

354

 

WESTERN ALLIANCE BANCORPORATION COM

 

 

 

114

 

WESTLAKE CHEM CORP COM STK

 

 

 

90

 

WESTN DIGITAL CORP COM

 

 

 

958

 

WESTROCK CO COM

 

 

 

753

 

WEX INC COM

 

 

 

53

 

WHIRLPOOL CORP COM

 

 

 

517

 

WHITE MOUNTAINS INSURANCE GROUP

 

 

 

144

 

WHITING PETE CORP

 

 

 

114

 

WILEY JOHN & SONS INC CL A

 

 

 

140

 

WILLIAMS CO INC COM

 

 

 

1,023

 

WILLIAMS SONOMA INC COM

 

 

 

167

 

WILLIS TOWERS WATSON PLC

 

 

 

906

 

WORLD FUEL SERVICE

 

 

 

88

 

WPX ENERGY INC COM SHS

 

 

 

264

 

XCEL ENERGY INC COM

 

 

 

1,162

 

XEROX CORP COM NEW COM NEW

 

 

 

316

 

XILINX INC COM

 

 

 

43

 

XL GROUP LTD XL GROUP LTD COM NPV

 

 

 

285

 

XPO LOGISTICS INC COM

 

 

 

136

 

XYLEM INC COM

 

 

 

279

 

YUM CHINA HLDGS INC COM

 

 

 

96

 

ZILLOW GROUP INC

 

 

 

33

 

ZILLOW GROUP INC CLASS C

 

 

 

66

 

ZIMMER BIOMET HLDGS INC COM

 

 

 

1,157

 

ZIONS BANCORP COM

 

 

 

477

 

ZYNGA INC

 

 

 

146

 

Total Common stock

 

 

 

3,643,267

 

 

 

 

 

 

 

Mutual funds

 

 

 

 

 

AMERICAN FUNDS EUROPACIFIC GROWTH FUND

 

 

 

331,708

 

AMERICAN FUNDS GROWTH FUND OF AMERICA

 

 

 

630,087

 

AMERICAN FUNDS INVESTMENT COMPANY OF AMERICA

 

 

 

282,309

 

AMERICAN FUNDS WASHINGTON MUTUAL INVESTORS FUND

 

 

 

187,592

 

PIMCO ALL ASSET FUND

 

 

 

93,139

 

Total Mutual funds

 

 

 

1,524,835

 

 

 

 

 

 

 

REITs

 

 

 

 

 

ALEXANDRIA REAL ESTATE EQUITIES INC COM

 

 

 

586

 

AMERICAN CAMPUS CMNTYS INC COM

 

 

 

264

 

AMERICAN HOMES 4 RENT COMMON STOCK

 

 

 

248

 

ANNALY CAP MGMT INC COM

 

 

 

643

 

APARTMENT INVT & MGMT CO CL A

 

 

 

322

 

AVALONBAY CMNTYS REIT

 

 

 

1,167

 

BRANDYWINE RLTY TR SH BEN INT NEW REIT

 

 

 

149

 

BRIXMOR PPTY GROUP INC COM

 

 

 

268

 

BSTN PPTYS INC

 

 

 

810

 

CAMDEN PPTY TR SH BEN INT

 

 

 

396

 

CHIMERA INVT CORP COM NEW COM NEW

 

 

 

166

 

CORECIVIC INC COM

 

 

 

127

 

CORP OFFICE PPTYS TR COM

 

 

 

138

 

CUBESMART

 

 

 

81

 

CYRUSONE INC COM

 

 

 

32

 

DCT INDL TR INC

 

 

 

260

 

 

26



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

REITs - continued

 

 

 

 

 

DDR CORP COM

 

 

 

133

 

DIGITAL RLTY TR INC COM

 

 

 

261

 

DOUGLAS EMMETT INC COM REIT

 

 

 

59

 

DUKE RLTY CORP COM NEW REIT

 

 

 

458

 

EMPIRE ST RLTY TR INC CL A CL A

 

 

 

126

 

EQUITY COMMONWEALTH

 

 

 

176

 

ESSEX PPTY TR REIT

 

 

 

750

 

EXTRA SPACE STORAGE INC COM

 

 

 

78

 

FEDERAL RLTY INVT TR SH BEN INT NEW SH BEN INT NEW

 

 

 

279

 

FOREST CITY RLTY TR INC COM CL A COM CL A

 

 

 

287

 

GAMING & LEISURE PPTYS INC COM

 

 

 

237

 

GGP INC COGGP INC

 

 

 

685

 

HCP INC COM REIT

 

 

 

579

 

HEALTHCARE TR AMER INC CL A NEW CL A NEW

 

 

 

288

 

HIGHWOODS PPTYS INC COM

 

 

 

246

 

HOSPITALITY PPTYS TR

 

 

 

230

 

HOST HOTELS & RESORTS INC REIT

 

 

 

689

 

HUDSON PACIFIC PROPERTIES INC COM

 

 

 

228

 

INVITATION HOMES INC COM

 

 

 

327

 

IRON MTN INC NEW COM

 

 

 

63

 

JBG SMITH PROPERTIES

 

 

 

143

 

KILROY RLTY CORP COM

 

 

 

340

 

KIMCO RLTY CORP COM

 

 

 

354

 

LIBERTY PPTY TR SH BEN INT

 

 

 

298

 

LIFE STORAGE INC COM

 

 

 

192

 

MACERICH CO REIT

 

 

 

425

 

MEDICAL PPTYS TR INC COM REIT

 

 

 

237

 

MFA FINL INC

 

 

 

150

 

MID-AMER APT CMNTYS INC COM

 

 

 

539

 

NATIONAL RETAIL PPTYS INC COM STK

 

 

 

309

 

NEW RESIDENTIAL INVT CORP COM NEW COM NEW

 

 

 

261

 

OMEGA HEALTHCARE INVS INC REIT

 

 

 

253

 

OUTFRONT MEDIA INC COM

 

 

 

132

 

PARAMOUNT GROUP INC COM

 

 

 

153

 

PARK HOTELS & RESORTS INC COM

 

 

 

196

 

PIEDMONT OFFICE REALTY TRU-A

 

 

 

133

 

PROLOGIS INC COM

 

 

 

1,615

 

RAYONIER INC REIT

 

 

 

194

 

REALTY INCOME CORP COM

 

 

 

761

 

REGENCY CTRS CORP COM

 

 

 

488

 

RETAIL PPTYS AMER INC CL A

 

 

 

146

 

SENIOR HSG PPTYS TR SH BEN INT SH BEN INT

 

 

 

215

 

SL GREEN RLTY CORP COM STK

 

 

 

461

 

SPIRIT RLTY CAP INC NEW COM

 

 

 

184

 

STARWOOD PROPERTY TRUST INC COM REIT

 

 

 

260

 

STORE CAPITAL CORPORATION

 

 

 

211

 

SUN COMMUNITIES INC COM

 

 

 

337

 

TANGER FACTORY OUTLET CTRS INC COM

 

 

 

109

 

TAUBMAN CTRS INC COM

 

 

 

93

 

TWO HARBORS INVESMENT CORP

 

 

 

135

 

UDR INC COM STK

 

 

 

484

 

UNITI GROUP INC COM

 

 

 

141

 

VENTAS INC REIT

 

 

 

1,011

 

VEREIT INC

 

 

 

360

 

 

27



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

REITs - continued

 

 

 

 

 

VORNADO RLTY TR COM

 

 

 

636

 

W P CAREY INC COM

 

 

 

343

 

WEINGARTEN RLTY INVS COM

 

 

 

188

 

WELLTOWER INC COM REIT

 

 

 

1,110

 

WEYERHAEUSER CO COM

 

 

 

1,250

 

Total REITs

 

 

 

26,683

 

 

 

 

 

 

 

Collective trust funds

 

 

 

 

 

BLACKROCK INTERNATIONAL MULTI CAP EQUITY FUND

 

 

 

85,242

 

GW&K SMALL-MID CAP CORE EQUITY FUND

 

 

 

91,371

 

*NORTHERN TRUST COLLECTIVE WORLD ex-U.S. INDEX FUND

 

 

 

92,851

 

*NORTHERN TRUST COLLECTIVE ACWI ex-U.S. INDEX FUND

 

 

 

7,381

 

PIMCO TOTAL RETURN COLLECTIVE TRUST FUND

 

 

 

170,287

 

SSGA RUSSELL SMALL/MID CAP INDEX FUND CLASS K

 

 

 

338,666

 

SSGA S&P 500 INDEX FUND CLASS K

 

 

 

528,807

 

SSGA U.S. BOND INDEX FUND CLASS K

 

 

 

27,772

 

SSGA TARGET RETIREMENT 2015

 

 

 

41,482

 

SSGA TARGET RETIREMENT 2020

 

 

 

159,187

 

SSGA TARGET RETIREMENT 2025

 

 

 

165,521

 

SSGA TARGET RETIREMENT 2030

 

 

 

143,397

 

SSGA TARGET RETIREMENT 2035

 

 

 

106,451

 

SSGA TARGET RETIREMENT 2040

 

 

 

71,417

 

SSGA TARGET RETIREMENT 2045

 

 

 

49,723

 

SSGA TARGET RETIREMENT 2050

 

 

 

22,321

 

SSGA TARGET RETIREMENT 2055

 

 

 

7,798

 

SSGA TARGET RETIREMENT 2060

 

 

 

2,276

 

SSGA TARGET RETIREMENT INCOME

 

 

 

34,313

 

*NORTHERN TRUST COLLECTIVE SHORT TERM INVESTMENT FUND

 

 

 

9,068

 

Total Collective trust funds

 

 

 

2,155,331

 

 

 

 

 

 

 

Futures contracts

 

 

 

 

 

EQUITY FUTURES OFFSET - LONG

 

 

 

(3,600

)

FUT MAR 18 EMINI S&P 500

 

 

 

937

 

FUT MAR 18 IMM EMINI MDCP

 

 

 

2,663

 

Total Futures contracts

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

 

 

 

 

ACTAVIS FDG SCS FLTG RT 2.62878% DUE 03-12-2018

 

 

 

2,804

 

ACTAVIS FDG SCS GTD NT FLTG RATE DUE 03-12-2020

 

 

 

1,420

 

AERCAP IRELAND CAP 4.625% DUE 10-30-2020

 

 

 

1,153

 

AT&T INC FLTG RATE 02-14-2023

 

 

 

1,209

 

AT&T INC FLTG RT 2.67152% DUE 07-15-2021

 

 

 

2,737

 

ATHENE GLOBAL FUNDING 144A FRN 07-01-2022

 

 

 

5,481

 

BAT CAPITAL CORP 144A FRN 08-15-2022

 

 

 

4,048

 

CALIFORNIA ST FLTG RT 04-01-2047 BEO TAXABLE

 

 

 

2,624

 

CITIGROUP INC FLTG RT 3.06246% DUE 10-26-2020

 

 

 

4,185

 

CNOOC FIN 2013 LTD 1.75% DUE 05-09-2018

 

 

 

1,297

 

CNPC GENERAL CAPITAL REGS CORP BD 2.75 DUE 05-14-2019

 

 

 

401

 

DAIMLER FIN NORTH AMER LLC NT FLTG 144A DUE 10-30-2019 BEO

 

 

 

5,024

 

DBS GROUP HLDGS 2.246% DUE 07-16-2019

 

 

 

996

 

DBS GROUP HLDGS FLTG RT .7336% DUE 07-16-2019

 

 

 

901

 

ENBRIDGE ENERGY PARTNERS L P DISC COML PAPER 4/2 YRS 3&4 01-19-2018

 

 

 

200

 

EXPORT-IMP BK INDI 3.875% SNR MTN 02/10/19 USD

 

 

 

1,021

 

EXPORT-IMP BK INDI FRN SNR MTN 08/22

 

 

 

1,508

 

 

28



Table of Contents

 

Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Corporate debt - continued

 

 

 

 

 

FORD MTR CR CO DISC COML PAPER 4/2 YRS 3&4 10-04-2018

 

 

 

2,459

 

GENERAL MOTORS FINL CO 2.4% DUE 04-10-2018 BEO

 

 

 

501

 

GENERAL MOTORS FINL CO FRN 04-10-2018

 

 

 

3,006

 

GENERAL MTRS FINL CO INC SR NT FLTG RATEDUE 01-15-2020 REG

 

 

 

2,347

 

GOLDMAN SACHS FLTG RT 3.00875% DUE 11-15-2021

 

 

 

2,029

 

HSBC HLDGS PLC FLTG RT 3.60363% DUE 05-25-2021

 

 

 

2,491

 

HSBC USA INC NEW FLTG RT 2.43% DUE 11-13-2019

 

 

 

1,207

 

ICICI BK HONG KONG 5.75% 16/11/2020 USD REGS

 

 

 

2,149

 

INTL LEASE FIN 3.875% DUE 04-15-2018

 

 

 

1,909

 

JAPAN BK INTL COOPERATION GTD BD FLTG ADJ RT 11-13-2018 REG

 

 

 

1,703

 

JAPAN BK INTL COOPERATION GTD FLTG 02-24-2020

 

 

 

1,409

 

JAPAN BK INTL COOPERATION JAPAN BANK COOP ADJ RT 07-21-2020 REG

 

 

 

1,706

 

JAPAN FIN ORG MU 2.5% SNR MTN 12/09/2018USD

 

 

 

3,004

 

JAPAN FIN ORG MUN 2.125% DUE 06/03/2019

 

 

 

1,999

 

KOREA DEV BK NT 1.5% DUE 01-22-2018 REG

 

 

 

3,498

 

KRAFT HEINZ FOODS CO GTD SR NT FLTG DUE 08-10-2022 REG

 

 

 

1,715

 

MITSUBISHI UFJ FINL GROUP INC SR NT FLTGRATE DUE 07-25-2022 REG

 

 

 

1,004

 

MIZUHO FINL GROUP FLTG RT 3.81903% DUE 04-12-2021

 

 

 

2,255

 

MIZUHO FINL GROUP INC SR NT FLTG RATE DUE 09-11-2022 REG

 

 

 

2,517

 

MORGAN STANLEY FLTG 07-22-2022

 

 

 

907

 

PETROLEOS FLTG RT 3.75408% DUE 07-18-2018

 

 

 

1,006

 

PIONEER NAT RES CO 6.875% DUE 05-01-2018

 

 

 

518

 

PUBLIC FIN AUTH WIS HEALTHCARE FACS REV 2.625% 11-01-2019 BEO TAXABLE

 

 

 

1,978

 

PVTPL APIDOS CLO XVI/APIDOS CLO XVI LLC SER 13-16A CL A1R FRN 01-19-2025

 

 

 

3,005

 

PVTPL BLACK DIAMOND CLO 2013-1 LTD/BLACK DIA VAR 144A 02-06-2026 BEO

 

 

 

4,007

 

PVTPL BLUEMOUNTAIN CLO II LTD SER 13-3A CLS AR FLTG RT 10-29-2025 BEO

 

 

 

2,000

 

PVTPL BX TR SER 2017-APPL CL A FLTG 07-15-2034

 

 

 

4,005

 

PVTPL CENT CLO 19 LTD / CENT CLO 19 CORPSR SECD NT CL A-1A 144A 10-29-2025

 

 

 

2,003

 

PVTPL CMO MOTEL 6 TR 2017-MTL6 COML MTG PASSTHRU CTF CL A FLTG RT 08-15-2034

 

 

 

3,979

 

PVTPL CMO WELLS FARGO COML MTG TR SER 2017-HSDB CL A VAR RT 12-13-2023

 

 

 

1,503

 

PVTPL IMPERIAL TOB FIN PLC 2.05 DUE 02-11-2018

 

 

 

2,000

 

PVTPL IMPERIAL TOB FIN PLC 2.95% DUE 07-21-2020 BEO

 

 

 

1,514

 

PVTPL JACKSON NATL LIFE GLOBAL TRANCHE # SR 00407 FLTG DUE 12-27-2018

 

 

 

10,400

 

PVTPL JAMESTOWN CLO LTD SER 14-4A CL A1BR VAR 07-15-2026

 

 

 

2,501

 

PVTPL KOREA EXCHANGE BK NT 144A 2.5% DUE06-12-2019 BEO

 

 

 

996

 

PVTPL LEASEPLAN CORP N V 2.5 DUE 05-16-2018 REG

 

 

 

500

 

PVTPL LEASEPLAN CORP N V 2.875% 01-22-2019 REG

 

 

 

4,803

 

PVTPL MACQUARIE BK LTD FLTG DUE 07-29-2020

 

 

 

5,901

 

PVTPL MP CLO VII LTD SER 15-1A CL A-1-R FLTG RT DUE 04-18-2027

 

 

 

2,500

 

PVTPL NAVIENT PRIVATE ED LN TR 2015-C NTCL A FLTG 144A VAR RT DUE 01-16-2035 BEO

 

 

 

1,290

 

PVTPL NAVIENT STUDENT LN TR 2016-5 NT CLA FLTG 144A VAR RT DUE 06-25-2065 BEO

 

 

 

1,197

 

PVTPL OCTAGON INVT PARTNERS XVII LTD/OCTAGON SR SECD NT CL A-1-R FLTG

 

 

 

1,502

 

PVTPL SOCIAL PROFESSIONAL LOAN PROGRAM LL VAR RT DUE 10-25-2036 BEO

 

 

 

1,542

 

PVTPL Z CAP CR PARTNERS CLO SER 15-1A CL A1R FLTGT RT 07-16-2027

 

 

 

4,000

 

PVTPLTRALEE CLO III LTD SER 2014-3A CL A-R FLTG 10-20-2027

 

 

 

2,001

 

QNB FINANCE LTD 2.125% GTD SNR 14/02/18 USD

 

 

 

1,699

 

ROYAL BK SCOTLAND FLTG RT 3.30875% DUE 05-15-2023

 

 

 

2,730

 

SANTANDER UK PLC 2% DUE 08-24-2018

 

 

 

970

 

SANTANDER UK PLC 3.05% DUE 08-23-2018

 

 

 

1,510

 

SEMPRA ENERGY NT FLTG RATE DUE 03-15-2021 REG

 

 

 

2,003

 

SOUTHERN PWR CO DUE 12-20-2020/12-20-2019 BEO

 

 

 

601

 

STATE BANK INDIA 3.25 DUEE 04-18-2018

 

 

 

802

 

SUMITOMO MITSUI FINL GRP FLTG RT DUE 07-12-2022 BEO

 

 

 

5,416

 

SUMITOMO MITSUI FINL GRP FLTG RT DUE 10-18-2022 BEO

 

 

 

4,402

 

 

29



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Abbott Laboratories Stock Retirement Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - Continued

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

Description of asset/ Rate/ Maturity

 

Cost (a)

 

value

 

 

 

 

 

 

 

Corporate debt - continued

 

 

 

 

 

TELECOM ITALIA CAP 6.999% DUE 06-04-2018

 

 

 

407

 

TIME WARNER CABLE 6.75% DUE 07-01-2018

 

 

 

3,578

 

UBS AG 4.75% 22/05/2023

 

 

 

807

 

UBS GROUP FDG SWITZ AG NT FLTG 144A DUE 08-15-2023/08-15-2022 BEO

 

 

 

5,021

 

WELLS FARGO & CO FLTG RT 2.7405% DUE 02-11-2022

 

 

 

5,062

 

ZIMMER BIOMET 2% DUE 04-01-2018

 

 

 

1,501

 

Total Corporate debt

 

 

 

179,984

 

 

 

 

 

 

 

Government debt

 

 

 

 

 

GNMA 2016-H17 MTG PASS THRU CTF CL MX FC08-20-2066

 

 

 

965

 

GNMA 2016-H20 REMIC PASSTHRU CTF CL MX-PT 09-20-2066

 

 

 

2,121

 

TSY INFL IX N/B US GVT NATIONAL 0.125%04-15-2022

 

 

 

7,352

 

UNITED STATES OF AMER TREAS NOTES 0.125% 04-15-2021

 

 

 

13,266

 

UNITED STATES OF AMER TREAS NOTES 0.125% INFL IDX 04-15-2020

 

 

 

9,776

 

UNITED STATES TREASURY BILLS 0% T-BILL 02-01-2018

 

 

 

275

 

Total Government debt

 

 

 

33,755

 

 

 

 

 

 

 

Certificate of deposit

 

 

 

 

 

BARCLAYS BK PLC NEW YORK BRH INSTL CTF DEP 00027 DTD 08-28-2017 1.94% 09-04-2018

 

 

 

3,000

 

BARCLAYS BK PLC NEW YORK BRH INSTL CTF DEP 06-16-2017 FLTG 03-16-2018

 

 

 

3,003

 

CORPBANCA N Y BRH INSTL DTD 12-11-2017 2.57% 01-11-2019

 

 

 

1,298

 

Total Certificate of deposit

 

 

 

7,301

 

 

 

 

 

 

 

Private 40-Act mutual funds

 

 

 

 

 

PIMCO Short-Term Floating NAV Portfolio II

 

 

 

277,181

 

PIMCO Short-Term Portfolio

 

 

 

47,363

 

Total Private 40-Act mutual funds

 

 

 

324,544

 

 

 

 

 

 

 

*Loans to participants, 3.00% to 9.25%

 

 

 

58,442

 

 

 

 

 

 

 

 

 

 

 

$

7,954,142

 

 


*Represents a party-in-interest transaction.

 

(a) Cost information omitted as all investments are fully participant directed.

 

30



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FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ABBOTT LABORATORIES STOCK RETIREMENT PLAN (PUERTO RICO)

DECEMBER 31, 2017 and 2016

 



Table of Contents

 

C O N T E N T S

 

 

 

Page

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

3

 

 

 

FINANCIAL STATEMENTS

 

 

 

 

 

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

5

 

 

 

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

 

6

 

 

 

NOTES TO FINANCIAL STATEMENTS

 

7

 

 

 

SUPPLEMENTAL SCHEDULE

 

 

 

 

 

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

 

16

 



Table of Contents

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

Plan Administrator and Plan Participants

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

 

Opinion on the financial statements

 

We have audited the accompanying statements of net assets available for benefits of Abbott Laboratories Stock Retirement Plan (Puerto Rico) (the Plan) as of December 31, 2017 and 2016, the related statement of changes in net assets available for benefits for the year ended December 31, 2017, and the related notes (collectively referred to as the financial statements).  In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for opinion

 

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting.  Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the

 

3



Table of Contents

 

amounts and disclosures in the financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.

 

Supplemental information

 

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2017, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements.  The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements but include supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  The supplemental information is the responsibility of the Plan’s management.  Our audit procedures included determining whether the supplemental information reconciles to the basic financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  In our opinion, the supplemental information referred to above is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

 

/s/ Grant Thornton LLP

 

We have served as the Plan’s auditor since 2014.

 

Chicago, Illinois

June 22, 2018

 

4



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2017 and 2016

(Dollars in thousands)

 

 

 

2017

 

2016

 

Assets

 

 

 

 

 

Cash

 

$

123

 

$

30

 

Investments, at fair value

 

131,225

 

117,058

 

Notes receivable from participants

 

2,384

 

6,246

 

Due from brokers

 

 

14

 

Accrued interest income

 

10

 

16

 

 

 

 

 

 

 

Total assets

 

133,742

 

123,364

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Cash overdraft

 

 

226

 

Accrued investment expenses

 

2

 

2

 

Due to brokers

 

 

97

 

 

 

 

 

 

 

Total liabilities

 

2

 

325

 

 

 

 

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

 

$

133,740

 

$

123,039

 

 

The accompanying notes are an integral part of these statements.

 

5



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year ended December 31, 2017

(Dollars in thousands)

 

Additions

 

 

 

Contributions

 

 

 

Employer

 

$

1,388

 

Participant

 

2,549

 

 

 

 

 

Total contributions

 

3,937

 

 

 

 

 

Investment income

 

 

 

Net appreciation in fair value of investments

 

32,501

 

Interest and dividends

 

3,114

 

 

 

 

 

Net investment income

 

35,615

 

 

 

 

 

Interest income on notes receivable from participants

 

118

 

 

 

 

 

Total additions

 

39,670

 

 

 

 

 

Deductions

 

 

 

Benefits paid to participants

 

28,954

 

Other expenses

 

15

 

 

 

 

 

Total deductions

 

28,969

 

 

 

 

 

NET INCREASE

 

10,701

 

 

 

 

 

Net assets available for benefits

 

 

 

Beginning of year

 

123,039

 

 

 

 

 

End of year

 

$

133,740

 

 

The accompanying notes are an integral part of these statements.

 

6



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN

 

The following description of the Abbott Laboratories Stock Retirement Plan (Puerto Rico) (the “Plan”) provides only general information.  Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

 

General

 

The Plan was established January 1, 2013 in conjunction with Abbott Laboratories (“Abbott”) separating into two publicly traded companies — Abbott and AbbVie Inc. (“AbbVie”).  The Plan covers employees of Abbott’s selected subsidiaries and affiliates in Puerto Rico (the “Company”).  The employees of the Company had previously participated in the former Abbott Laboratories Stock Retirement Plan (Puerto Rico), which, effective January 1, 2013 was renamed AbbVie Puerto Rico Savings Plan (the “Former Plan”) and sponsorship was assumed by an affiliate of AbbVie.

 

The Plan is a profit sharing plan containing a cash or deferred arrangement intended to qualify for favorable tax treatment under sections 1081.01 (a) and (d) of the Puerto Rico Internal Revenue Code of 2011, as amended.  In addition, the Plan provides an arrangement by which employees may invest in Abbott shares.  Employees of the Company may, after meeting certain employment requirements, voluntarily participate in the Plan.

 

The Plan’s sponsor is Abbott Healthcare (Puerto Rico) Ltd.  Aon Hewitt served as the Plan’s record keeper until its parent company, Aon plc, completed the sale of its benefits administration business to Blackstone Group LP during 2017.  The business now operates as Alight Solutions and continues to serve as the record keeper of the Plan.  The Northern Trust Company (“Custodian”) and Banco Popular de Puerto Rico (“Trustee”) serve as the Plan’s custodian and trustee, respectively.  The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

In January 2017, Abbott completed the acquisition of St. Jude Medical, Inc., a global medical device manufacturer.  During 2017, employees of St. Jude Medical, LLC (the surviving entity in the acquisition) and its subsidiaries in Puerto Rico were eligible to participate in a separate plan, not the Plan.

 

In February 2017, Abbott completed the sale of Abbott Medical Optics (“AMO”), its vision care business.  After the sale, AMO employees in Puerto Rico were no longer eligible to make contributions to the Plan and were given the choice to keep their account balance in the Plan, including continuing to repay outstanding loans, roll over their account to a personal rollover account or another qualified plan, or take a distribution subject to any applicable taxes and penalties.

 

7



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Contributions and Vesting

 

Contributions to the Plan are paid to a trust. The trust is administered by the Trustee.  An investment committee (the “Committee”) may direct the Trustee to establish investment options of the Committee’s choosing.

 

Employees are eligible to commence participation in the Plan on any entry date following their date of hire.  Except for employees described later in the paragraph, eligible employees electing to participate may contribute from 2% to 25% of their eligible earnings, subject to certain limitations. Participants may choose to make their contributions from either pretax earnings or after-tax earnings, or both.  Beginning March 2017, newly hired employees in certain specified Abbott divisions and business units participate in the Plan under a different structure (“Abbott Green” employees).  Under the Abbott Green structure, participants may defer up to 50% of eligible earnings as pre-tax contributions.

 

Participants who have attained age 50 before the end of the Plan year and who are making the maximum pretax contribution are eligible to make catch-up contributions.  Participants’ pretax contributions are a pay conversion feature, which is a salary deferral option under the provisions of Section 1081.01(d) of the Puerto Rico Internal Revenue Code of 2011, as amended.  Participants may elect to invest their contributions in any or all of the investment options, except for investment options closed to new contributions.

 

Employer contributions to the Plan are made each payroll period based on the participating employees’ eligible earnings.  The amount of the employer contribution is determined by the Board of Directors of Abbott.  Excluding the Abbott Green employees, the employer contribution for the year ended December 31, 2017, was 5% of the participant’s eligible earnings if the participant elected to contribute at least 2% of eligible earnings to the Plan.  Effective with the first pay period ending after March 1, 2017, for Abbott Green employees who complete at least six months of eligibility service, employer matching contributions are made at the rate of 100% up to a 3% deferral of eligible earnings.  A true-up employer matching contribution is made for eligible participants as of the end of the year if necessary to reach a full 1-3% employer matching contribution, as applicable.  Employer contributions are invested each pay period according to the participant’s investment elections.

 

8



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Contributions and Vesting - Continued

 

In connection with the January 1, 2013 separation of Abbott into two publicly traded companies, Abbott shareholders received as a tax-free distribution of one share of AbbVie stock for every share of Abbott held as of the close of business on December 12, 2012, the record date for the distribution. Plan participants may continue to hold the AbbVie stock they received from the distribution that transferred from the Former Plan into their Plan accounts; however, they may not make new contributions or transfer existing contributions or earnings to purchase AbbVie stock in the Plan.  AbbVie dividends are invested in the Plan’s default investment option.

 

Participants may direct the Trustee to sell all or a portion of the Abbott and AbbVie common shares held in their accounts and reinvest the proceeds in any of the other investment options available to the participants.

 

Participants are at all times fully vested in their own contributions and earnings thereon.  Vesting in employer contributions and earnings thereon is based on the following vesting schedule for participants excluding Abbott Green participants:

 

 

 

Vesting

 

Service

 

percentage

 

 

 

 

 

Less than two years

 

0

%

Two years or more

 

100

%

 

The Abbott Green matching contributions vest 20% each year, until full vesting at five years (with accelerated vesting if the participant dies, attains age 65, or becomes disabled).

 

Non-vested portions of employer contributions and earnings thereon are forfeited as of an employee’s termination date.  Forfeitures are used to (1) restore any forfeitures of participants who returned to service with the Company within a given period of time, (2) pay Plan expenses and (3) reduce future employer contributions if terminated participants do not return to service within the given period of time.  In 2017, no forfeitures were used to reduce employer contributions.  Forfeitures totaling approximately $103,000 and $36,000 were available at the end of 2017 and 2016, respectively.

 

Distributions and In-Service Withdrawals

 

Following retirement, termination or death, participants or their beneficiaries may elect to receive a distribution in installments, a single lump sum or a partial lump sum.  Participants may elect a direct rollover of their accounts.  Distribution must be made by the 1st of April following the year the participant reaches age 70 ½ or, if earlier, the 31st of December following the year in which the participant dies.  Interest, dividends and other earnings will continue to accrue on such deferred amounts.

 

9



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE A - DESCRIPTION OF THE PLAN - Continued

 

Distributions and In-Service Withdrawals - Continued

 

Prior to termination, participants are permitted to withdraw their after-tax contributions (after-tax contributions made on or after January 8, 2016 may be withdrawn from the Plan only after being held for two or more years) and rollover contributions (including merged-in plan rollover accounts) and, after age 59 ½, may also withdraw pretax contributions.  Distributions are made in cash or, to the extent contained in the participant’s account, a participant may elect distribution of Abbott and AbbVie common shares, and in each case, are subject to certain limitations.

 

Notes Receivable from Participants

 

Participants may convert their vested account balances to one or two loans to themselves.  The borrowing may not exceed the lesser of the current market value of the assets allocated to their vested accounts or 50% of all of their Plan accounts up to $50,000, subject to Puerto Rico Internal Revenue Code limitations and restrictions.  Participants pay interest on such borrowings at the prime rate in effect at the time the participant loan is made.  Loans must be repaid within five years (or by the employee’s anticipated retirement date, if sooner) unless the loan is used for the purchase of the primary residence of the employee, in which case the repayment period can be extended to a period of fifteen years (or until the employee’s anticipated retirement date, if sooner).  Repayment is generally made through periodic payroll deductions or by sending in a payment, but a loan may be repaid in a lump sum at any time.  Post-termination loan repayments are permitted.  For employees whose account is distributed during the repayment period, the balance of the outstanding loan is netted from their Plan distribution.

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Accounting

 

The financial statements have been prepared using the accrual basis of accounting.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities.  Actual results may differ from those estimates.

 

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Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

 

Investment Valuation

 

Plan management uses the following methods and significant assumptions to estimate the fair value of investments:

 

Common stock and mutual funds - Valued at the published market price per share or unit multiplied by the number of shares or units held.

 

Collective trust funds - Valued at the NAV provided by the administrator of the fund.  The NAV is used as a practical expedient to estimate fair value.  The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.  Redemption is permitted daily.

 

The following tables summarize the basis used to measure investments at fair value at December 31, 2017 and 2016 (dollars in thousands):

 

 

 

Basis of Fair Value Measurement

 

 

 

2017

 

Quoted
Prices in
Active
Markets

 

Significant
Other
Observable
Inputs

 

Significant
Unobservable
Inputs

 

Measured at
NAV

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

66,811

 

$

 

$

 

$

 

$

66,811

 

Mutual funds

 

32,288

 

 

 

 

32,288

 

Collective trust funds

 

 

 

 

32,126

 

32,126

 

Total investments at fair value

 

$

99,099

 

$

 

$

 

$

32,126

 

$

131,225

 

 

 

 

Basis of Fair Value Measurement

 

 

 

2016

 

Quoted
Prices in
Active
Markets

 

Significant Other Observable Inputs

 

Significant Unobservable Inputs

 

Measured at NAV

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

56,787

 

$

 

$

 

$

 

$

56,787

 

Mutual funds

 

32,724

 

 

 

 

32,724

 

Collective trust funds

 

 

 

 

27,547

 

27,547

 

Total investments at fair value

 

$

89,511

 

$

 

$

 

$

27,547

 

$

117,058

 

 

Notes Receivable from Participants

 

Notes receivable from participants are measured at their unpaid balance plus any accrued but unpaid interest.  Delinquent loans are reclassified as distributions based upon the terms of the Plan. No allowance for credit losses has been recorded as of December 31, 2017 or 2016.

 

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Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

 

Income Recognition

 

Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  Net realized and unrealized appreciation/depreciation is recorded in the accompanying statement of changes in net assets available for benefits as net appreciation in fair value of investments.

 

Administrative Expenses

 

Participants are charged transaction fees for loan processing and commissions on purchases and sales of Abbott shares and sales of AbbVie shares.  Investment fees for mutual funds, collective trusts, and money market funds are charged against the net assets of the respective fund.  The Company pays other record-keeping and administration fees, where applicable.

 

Payment of Benefits

 

Benefits are recorded when paid.

 

NOTE C - INVESTMENTS

 

Distributions of Abbott common shares and conversions of participants’ common share account balances to participant loans or other investment options are recorded at fair market value.

 

A summary of Abbott common share data as of December 31, 2017 and 2016 is presented below:

 

 

 

2017

 

2016

 

 

 

 

 

 

 

Abbott common shares, 661,662 and 863,060 shares, respectively (dollars in thousands)

 

$

37,761

 

$

33,150

 

Market value per share

 

$

57.07

 

$

38.41

 

 

In general, the investments provided by the Plan are exposed to various risks, such as interest rate, credit and overall market volatility risks.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participant accounts and the amounts reported in the statements of net assets available for benefits.

 

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Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE D - RELATED-PARTY AND PARTY-IN-INTEREST TRANSACTIONS

 

A significant portion of the Plan’s assets is invested in Abbott common shares.

 

Participants pay fees to the recordkeeper for loan transaction processing and for commissions on purchases and sales of Abbott shares and sales of AbbVie stock.  These transactions qualify as permitted party-in-interest transactions.

 

NOTE E - PLAN TERMINATION

 

The Plan may be terminated at any time by Abbott upon written notice to the Trustee and Committee.  All participants’ account balances would become fully vested upon Plan termination.  Upon termination of the Plan, distributions of each participant’s share in the trust, as determined by the terms of the Plan, would be made to each participant.  At the present time, Abbott has no intention of terminating the Plan.

 

NOTE F - TAX STATUS

 

The Plan received a letter dated April 19, 2016 from the Department of the Treasury of the Commonwealth of Puerto Rico that the Plan, as written, qualifies under Section 1081.01(a) of the Puerto Rico Internal Revenue Code of 2011, as amended and, consequently, its enabling trust is exempt from local income tax.  The Plan has been amended since receiving the letter.  The Plan administrator believes that the Plan is designed and is currently being operated, in all material respects, in accordance with the applicable Puerto Rico Internal Revenue Code.

 

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the applicable taxing authorities.  The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2017 and 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress.

 

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Abbott Laboratories Stock Retirement Plan (Puerto Rico)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2017 and 2016

 

NOTE G — SUBSQUENT EVENTS

 

The Company has evaluated subsequent events from December 31, 2017 through the date these financial statements were issued.  Other than described below, there were no subsequent events that require recognition or additional disclosure in these financial statements.

 

In January 2018, certain Plan provisions affecting Abbott Green employees changed.  Specifically, effective for the first payroll period ending on or after January 1, 2018, Abbott Green employees may defer up to 25% of eligible earnings as pre-tax contributions, after-tax contributions, or a combination of both, and both the six-month eligibility requirement for matching contributions, and the year-end true-up matching contribution were eliminated.  On or after January 1, 2018, Abbott Green employees fully vest in employer contributions at two years of service (with accelerated vesting if the participant dies, attains age 65, or becomes disabled).

 

Additionally, St. Jude Medical LLC employees in Puerto Rico became eligible to participate in the Plan as Abbott Green employees effective for the first payroll period ending on or after January 1, 2018.

 

Effective upon the close of business on February 22, 2018, the St. Jude Medical Puerto Rico LLC Retirement Plan merged with and into the Plan.  Assets totaling approximately $15.4 million transferred into the Plan.

 

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SUPPLEMENTAL SCHEDULE

 



Table of Contents

 

Abbott Laboratories Stock Retirement Plan (Puerto Rico)

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2017

(Dollars in thousands)

 

Identity of party involved/

 

 

 

Current

 

description of asset

 

Cost (a)

 

value

 

 

 

 

 

 

 

Common stock - employer securities

 

 

 

 

 

*Abbott Laboratories

 

 

 

$

37,761

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

AbbVie Inc., common stock

 

 

 

29,050

 

Total Common stock

 

 

 

66,811

 

 

 

 

 

 

 

Mutual funds

 

 

 

 

 

American Funds EuroPacific Growth Fund

 

 

 

4,673

 

American Funds The Growth Fund of America

 

 

 

8,710

 

American Funds The Investment Company of America Fund

 

 

 

5,502

 

American Funds Washington Mutual Investors Fund

 

 

 

2,010

 

PIMCO All Asset Fund

 

 

 

1,995

 

PIMCO Short Asset Investment Fund

 

 

 

6,598

 

Vanguard Mid-Cap Value Index Fund Admiral

 

 

 

2,800

 

Total Mutual funds

 

 

 

32,288

 

 

 

 

 

 

 

Collective trust funds

 

 

 

 

 

Blackrock International Opportunities Fund

 

 

 

1,460

 

GW&K Small-Mid Cap Core Equity Fund

 

 

 

1,881

 

*Northern Trust Collective World ex-U.S. Index Fund

 

 

 

613

 

*Northern Trust Collective ACWI ex-U.S. Index Fund

 

 

 

61

 

PIMCO Total Return Collective Trust Fund

 

 

 

1,903

 

SSGA Russell Small/Mid Cap Index Fund

 

 

 

2,671

 

SSGA S&P 500 Index Fund

 

 

 

5,693

 

SSGA U.S. Bond Index Fund

 

 

 

349

 

SSGA Target Retirement 2015

 

 

 

2,792

 

SSGA Target Retirement 2020

 

 

 

5,412

 

SSGA Target Retirement 2025

 

 

 

4,021

 

SSGA Target Retirement 2030

 

 

 

2,083

 

SSGA Target Retirement 2035

 

 

 

1,079

 

SSGA Target Retirement 2040

 

 

 

824

 

SSGA Target Retirement 2045

 

 

 

460

 

SSGA Target Retirement 2050

 

 

 

172

 

SSGA Target Retirement 2055

 

 

 

37

 

SSGA Target Retirement 2060

 

 

 

23

 

SSGA Target Retirement Income

 

 

 

486

 

*Northern Trust Collective Short Term Investment Fund

 

 

 

106

 

Total Collective trust funds

 

 

 

32,126

 

 

 

 

 

 

 

*Loans to participants, 3.25% to 8.75%

 

 

 

2,384

 

 

 

 

 

 

 

 

 

 

 

$

133,609

 

 


*Represents a party-in-interest transaction.

 

(a) Cost information omitted as all investments are fully participant directed.

 

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EXHIBIT INDEX

 

Exhibit No.

 

Exhibit

 

 

 

 

 

23.1

 

Consent of Independent Registered Public Accounting Firm — Abbott Laboratories Stock Retirement Plan.

 

 

 

 

 

23.2

 

Consent of Independent Registered Public Accounting Firm — Abbott Laboratories Stock Retirement Plan (Puerto Rico).

 

 

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SIGNATURE

 

The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ABBOTT LABORATORIES STOCK RETIREMENT PROGRAM

 

Date: June 22, 2018

By:

/s/ Mary K. Moreland

 

 

Mary K. Moreland

 

 

Plan Administrator

 

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