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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 17 SEGMENT INFORMATION In 2017, Baxter announced a change in its commercial structure to improve performance, optimize costs, increase speed in the decision-making process and drive improved accountability across the company. As a result, the company now reports its financial performance based on its new segments: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia-Pacific). The company’s segments provide a broad portfolio of essential healthcare products across its portfolio, including acute and chronic dialysis therapies; sterile IV solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; and surgical hemostat and sealant products. The company uses operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of the company’s business segments. Intersegment sales are eliminated in consolidation. Certain items are maintained at Corporate and are not allocated to a segment. They primarily include most of the company’s debt and cash and equivalents and related net interest expense, foreign exchange rate fluctuations (principally relating to intercompany receivables, payables and loans denominated in a foreign currency) and the majority of the foreign currency hedging activities, corporate headquarters costs, certain research and development costs, certain Global Business Unit (GBU) support costs, stock compensation expense, nonstrategic investments and related income and expense, certain employee benefit plan costs as well as certain gains, losses, and other charges (such as business optimization, integration and separation-related costs, and asset impairments). The company’s chief operating decision maker does not receive any asset information by operating segment and, accordingly, the company does not report asset information by operating segment. Financial information for the company’s segments is as follows:
for the years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 5,720 |  |  | $ | 5,437 |  |  | $ | 5,222 |
EMEA |  |  | 2,731 |  |  |  | 2,697 |  |  |  | 2,774 |
APAC |  |  | 2,110 |  |  |  | 2,029 |  |  |  | 1,972 |
Total net sales |  | $ | 10,561 |  |  | $ | 10,163 |  |  | $ | 9,968 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 2,227 |  |  | $ | 2,070 |  |  | $ | 1,816 |
EMEA |  |  | 564 |  |  |  | 476 |  |  |  | 342 |
APAC |  |  | 512 |  |  |  | 464 |  |  |  | 405 |
Total segment operating income |  | $ | 3,303 |  |  | $ | 3,010 |  |  | $ | 2,563 |
Depreciation Expense |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 224 |  |  | $ | 217 |  |  | $ | 210 |
EMEA |  |  | 166 |  |  |  | 178 |  |  |  | 179 |
APAC |  |  | 85 |  |  |  | 86 |  |  |  | 78 |
Corporate and other |  |  | 132 |  |  |  | 151 |  |  |  | 130 |
Total depreciation expense |  | $ | 607 |  |  | $ | 632 |  |  | $ | 597 |
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 267 |  |  | $ | 332 |  |  | $ | 408 |
EMEA |  |  | 161 |  |  |  | 140 |  |  |  | 212 |
APAC |  |  | 96 |  |  |  | 103 |  |  |  | 149 |
Corporate and other |  |  | 101 |  |  |  | 116 |  |  |  | 137 |
Total capital expenditures |  | $ | 625 |  |  | $ | 691 |  |  | $ | 906 |
The following table is a reconciliation of segment operating income to income from continuing operations before income taxes per the consolidated statements of income.
for the years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Total segment operating income |  | $ | 3,303 |  |  | $ | 3,010 |  |  | $ | 2,563 |
Corporate and other |  |  | (2,045 | ) |  |  | (2,286 | ) |  |  | (2,114 | )
Total operating income |  |  | 1,258 |  |  |  | 724 |  |  |  | 449 |
Net interest expense |  |  | 55 |  |  |  | 66 |  |  |  | 126 |
Other income, net |  |  | (14 | ) |  |  | (4,296 | ) |  |  | (105 | )
Income from continuing operations before income taxes |  | $ | 1,217 |  |  | $ | 4,954 |  |  | $ | 428 |
Net Sales by GBU The following table represents net sales by GBU.
years ended December 31 |  | 2017 |  |  | 2016 |  |  | 2015 |
Renal Care1 |  |  | 3,480 |  |  |  | 3,421 |  |  |  | 3,401 |
Acute Therapies2 |  |  | 456 |  |  |  | 429 |  |  |  | 385 |
Medication Delivery3 |  |  | 2,698 |  |  |  | 2,596 |  |  |  | 2,375 |
Pharmaceuticals⁴ |  |  | 1,883 |  |  |  | 1,722 |  |  |  | 1,801 |
Nutrition⁵ |  |  | 882 |  |  |  | 858 |  |  |  | 857 |
Advanced Surgery⁶ |  |  | 707 |  |  |  | 690 |  |  |  | 693 |
Other⁷ |  |  | 455 |  |  |  | 447 |  |  |  | 456 |
Total Baxter |  | $ | 10,561 |  |  | $ | 10,163 |  |  | $ | 9,968 |
1 | Renal Care includes sales of the company’s peritoneal dialysis (PD) and hemodialysis (HD) and additional dialysis therapies and services.
2 | Acute Therapies includes sales of the company’s continuous renal replacement therapies (CRRT) and other organ support therapies focused in the ICU.
3 | Medication Delivery includes sales of the company’s IV therapies, infusion pumps, administration sets and drug reconstitution devices.
4 | Pharmaceuticals includes sales of the company’s premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services.
5 | Nutrition includes sales of the company’s parenteral nutrition (PN) therapies.
⁶ | Advanced Surgery includes sales of the company’s biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention.
⁷ | Other includes sales primarily from the company’s pharmaceutical partnering business.
Geographic information
for the years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 4,510 |  |  | $ | 4,259 |  |  | $ | 4,001 |
Latin America and Canada |  |  | 1,210 |  |  |  | 1,178 |  |  |  | 1,221 |
Total Americas |  | $ | 5,720 |  |  | $ | 5,437 |  |  | $ | 5,222 |
Europe |  |  | 2,731 |  |  |  | 2,697 |  |  |  | 2,774 |
Asia-Pacific |  |  | 2,110 |  |  |  | 2,029 |  |  |  | 1,972 |
Total net sales |  | $ | 10,561 |  |  | $ | 10,163 |  |  | $ | 9,968 |
as of December 31 (in millions) |  | 2017 |  |  | 2016 |
PP&E, net |  |  |  |  |  |  |  |
United States |  | $ | 1,772 |  |  | $ | 1,751 |
Europe |  |  | 1,268 |  |  |  | 1,166 |
Asia-Pacific |  |  | 903 |  |  |  | 752 |
Latin America and Canada |  |  | 645 |  |  |  | 620 |
Consolidated PP&E, net |  | $ | 4,588 |  |  | $ | 4,289 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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