XML 41 R27.htm IDEA: XBRL DOCUMENT
v3.4.0.3

DEBT, FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2016
Summary of Activity Relating to Securitization Arrangement | The following is a summary of the activity relating to the company’s securitization arrangement in Japan.
|  | Three months ended March 31, |
(in millions) |  | 2016 |  |  | 2015 |
Sold receivables at beginning of period |  |  | $ 81 |  |  |  | $ 104 |
Proceeds from sales of receivables |  |  | 104 |  |  |  | 113 |
Cash collections (remitted to the owners of the receivables) |  |  | (107 | ) |  |  | (120 | )
Effect of currency exchange rate changes |  |  | 7 |  |  |  | (1 | )
Sold receivables at end of period |  |  | $ 85 |  |  |  | $ 96 |
Summary of Gains and Losses on Derivative Instruments | The following tables summarize the income statement locations and gains and losses on the company’s derivative instruments for the three months ended March 31, 2016 and 2015.
|  | Gain (loss) recognized in OCI |  |  | Location of gain (loss) in income statement |  |  | Gain (loss) reclassified from AOCI into income |
(in millions) |  | 2016 |  |  | 2015 |  |  |  | 2016 |  |  | 2015 |
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  | $— |  |  |  | $— |  |  |  | Other income, net |  |  |  | $ 4 |  |  |  | $— |
Foreign exchange contracts |  |  | — |  |  |  | (1 | ) |  |  | Net sales |  |  |  | — |  |  |  | — |
Foreign exchange contracts |  |  | (4 | ) |  |  | 64 |  |  |  | Cost of sales |  |  |  | 1 |  |  |  | 25 |
Total |  |  | $(4 | ) |  |  | $63 |  |  |  |  |  |  |  | $ 5 |  |  |  | $25 |
|  |  |  |  | Gain (loss) recognized in income |
(in millions) |  | Location of gain (loss) in income statement |  |  | 2016 |  |  | 2015 |
Fair value hedges |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  | Net interest expense |  |  |  | $22 |  |  |  | $ 47 |
Undesignated derivative instruments |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | Other income, net |  |  |  | $ 6 |  |  |  | $ (8 | )
Classification and Fair Value Amounts of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of March 31, 2016.
|  | Derivatives in asset positions |  |  | Derivatives in liability positions |
(in millions) |  | Balance sheet location |  |  | Fair value |  |  | Balance sheet location |  |  | Fair value |
Derivative instruments designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  | Other long-term assets |  |  |  | $ 33 |  |  |  | Other long-term liabilities |  |  |  | $— |
Foreign exchange contracts |  |  | Prepaid expenses and other |  |  |  | 9 |  |  |  | Accounts payable and accrued liabilities |  |  |  | 1 |
Foreign exchange contracts |  |  | Other long-term assets |  |  |  | — |  |  |  | Other long-term liabilities |  |  |  | — |
Total derivative instruments designated as hedges |  |  |  |  |  |  | $ 42 |  |  |  |  |  |  |  | $ 1 |
Undesignated derivative instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | Prepaid expenses and other |  |  |  | $ — |  |  |  | Accounts payable and accrued liabilities |  |  |  | $ 2 |
Total derivative instruments |  |  |  |  |  |  | $ 42 |  |  |  |  |  |  |  | $ 3 |
The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2015.
|  | Derivatives in asset positions |  |  | Derivatives in liability positions |
(in millions) |  | Balance sheet location |  |  | Fair value |  |  | Balance sheet location |  |  | Fair value |
Derivative instruments designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  | Prepaid expenses and other |  |  |  | $ — |  |  |  | Accounts payable and accrued liabilities |  |  |  | $ — |
Interest rate contracts |  |  | Other long-term assets |  |  |  | 46 |  |  |  | Other long-term liabilities |  |  |  | — |
Foreign exchange contracts |  |  | Prepaid expenses and other |  |  |  | 9 |  |  |  | Accounts payable and accrued liabilities |  |  |  | 1 |
Total derivative instruments designated as hedges |  |  |  |  |  |  | $ 55 |  |  |  |  |  |  |  | $ 1 |
Undesignated derivative instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | Prepaid expenses and other |  |  |  | $ 1 |  |  |  | Accounts payable and accrued liabilities |  |  |  | $ 1 |
Total derivative instruments |  |  |  |  |  |  | $ 56 |  |  |  |  |  |  |  | $ 2 |
Derivative Positions Presented on Net Basis | The following table provides information on the company’s derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
|  | March 31, 2016 |  |  | December 31, 2015 |
(in millions) |  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
Gross amounts recognized in the consolidated balance sheet |  |  | $42 |  |  |  | $ 3 |  |  |  | $56 |  |  |  | $ 2 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet |  |  | (3 | ) |  |  | (3 | ) |  |  | (2 | ) |  |  | (2 | )
Total |  |  | $39 |  |  |  | $— |  |  |  | $54 |  |  |  | $— |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the condensed consolidated balance sheets.
|  |  |  |  | Basis of fair value measurement |
(in millions) |  | Balance as of March 31, 2016 |  |  | Quoted prices in active markets for identical assets (Level 1) |  |  | Significant other observable inputs (Level 2) |  |  | Significant unobservable inputs (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency hedges |  |  | $ 9 |  |  |  | $— |  |  |  | $ 9 |  |  |  | $— |
Interest rate hedges |  |  | 33 |  |  |  | — |  |  |  | 33 |  |  |  | — |
Available-for-sale securities |  |  | 1,242 |  |  |  | 10 |  |  |  | 1,232 |  |  |  | — |
Total assets |  |  | $1,284 |  |  |  | $10 |  |  |  | $1,274 |  |  |  | $— |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency hedges |  |  | $ 3 |  |  |  | $— |  |  |  | $ 3 |  |  |  | $— |
Contingent payments related to acquisitions |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | 20 |
Total liabilities |  |  | $ 23 |  |  |  | $— |  |  |  | $ 3 |  |  |  | $20 |
|  |  |  |  | Basis of fair value measurement |
(in millions) |  | Balance as of December 31, 2015 |  |  | Quoted prices in active markets for identical assets (Level 1) |  |  | Significant other observable inputs (Level 2) |  |  | Significant unobservable inputs (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency hedges |  |  | $ 10 |  |  |  | $— |  |  |  | $ 10 |  |  |  | $— |
Interest rate hedges |  |  | 46 |  |  |  | — |  |  |  | 46 |  |  |  | — |
Available-for-sale securities |  |  | 5,162 |  |  |  | 14 |  |  |  | 5,148 |  |  |  | — |
Total assets |  |  | $5,218 |  |  |  | $14 |  |  |  | $5,204 |  |  |  | $— |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency hedges |  |  | $ 2 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $— |
Contingent payments related to acquisitions |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | 20 |
Total liabilities |  |  | $ 22 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $20 |
Investments in Available-For-Sale Equity Securities | The following table provides information relating to the company’s investments in available-for-sale equity securities.
(in millions) |  | Amortized cost |  |  | Unrealized gains |  |  | Unrealized losses |  |  | Fair value |
March 31, 2016 |  |  | $179 |  |  |  | $1,065 |  |  |  | $ 2 |  |  |  | $1,242 |
December 31, 2015 |  |  | $732 |  |  |  | $4,430 |  |  |  | $— |  |  |  | $5,162 |
Book Values and Fair Values of Financial Instruments | The following table provides the values recognized in the condensed consolidated balance sheets and the approximate fair values as of March 31, 2016 and December 31, 2015.
|  | Book values |  |  | Approximate fair values |
(in millions) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Assets |  |  |  |  |  |  |  |
Investments |  |  | $ 22 |  |  |  | $ 21 |  |  |  | $ 22 |  |  |  | $ 21 |
Liabilities |  |  |  |  |  |  |  |
Short-term debt |  |  | $ 817 |  |  |  | $1,775 |  |  |  | $ 817 |  |  |  | $1,775 |
Current maturities of long-term debt and lease obligations |  |  | 472 |  |  |  | 810 |  |  |  | 475 |  |  |  | 818 |
Long-term debt and lease obligations |  |  | 2,068 |  |  |  | 3,922 |  |  |  | 2,232 |  |  |  | 4,077 |
Summarization of Bases Used to Measure Fair Value of Financial Instruments | The following tables summarize the bases used to measure the approximate fair value of the financial instruments as of March 31, 2016 and December 31, 2015.
|  |  |  |  | Basis of fair value measurement |
(in millions) |  | Balance as of March 31, 2016 |  |  | Quoted prices in active markets for identical assets (Level 1) |  |  | Significant other observable inputs (Level 2) |  |  | Significant unobservable inputs (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | $ 22 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $20 |
Total assets |  |  | $ 22 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $20 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt |  |  | $ 817 |  |  |  | $— |  |  |  | $ 817 |  |  |  | $— |
Current maturities of long-term debt and lease obligations |  |  | 475 |  |  |  | — |  |  |  | 475 |  |  |  | — |
Long-term debt and lease obligations |  |  | 2,232 |  |  |  | — |  |  |  | 2,232 |  |  |  | — |
Total liabilities |  |  | $3,524 |  |  |  | $— |  |  |  | $3,524 |  |  |  | $— |
|  |  |  |  | Basis of fair value measurement |
(in millions) |  | Balance as of December 31, 2015 |  |  | Quoted prices in active markets for identical assets (Level 1) |  |  | Significant other observable inputs (Level 2) |  |  | Significant unobservable inputs (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | $ 21 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $19 |
Total assets |  |  | $ 21 |  |  |  | $— |  |  |  | $ 2 |  |  |  | $19 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt |  |  | $1,775 |  |  |  | $— |  |  |  | $1,775 |  |  |  | $— |
Current maturities of long-term debt and lease obligations |  |  | 818 |  |  |  | — |  |  |  | 818 |  |  |  | — |
Long-term debt and lease obligations |  |  | 4,077 |  |  |  | — |  |  |  | 4,077 |  |  |  | — |
Total liabilities |  |  | $6,670 |  |  |  | $— |  |  |  | $6,670 |  |  |  | $— |

X
- Definition Summary Of Securitization Arrangements Activity. + References No definition available. + Details
Name: | bax_SummaryOfSecuritizationArrangementsActivityTableTextBlock
Namespace Prefix: | bax_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19296-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative assets at fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDerivativeAssetsAtFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration