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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
SEGMENT INFORMATION |
SEGMENT INFORMATION
We manage our global operations based on four segments, consisting of the following geographic segments related to our legacy Baxter business: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia-Pacific), and a new global segment for our recently acquired Hillrom business. The Americas, EMEA and APAC segments provide a broad portfolio of essential healthcare products, 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 Hillrom segment provides digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space. In the first quarter of 2021, the information provided to our Chief Executive Officer for purposes of allocating resources and assessing performance was updated to reallocate contracted services activities performed at a German manufacturing facility from our EMEA segment to our Americas segment. The contracted services performed at that facility are part of our BioPharma Solutions business, which is managed as part of the Americas segment. Accordingly, the reported financial results of the Americas segment now include the contracted services activities performed at that facility. Segment results for 2020 and 2019 have been recast to conform to this presentation. We use operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of our business segments. Intersegment sales are eliminated in consolidation. Certain items are maintained at Corporate and are not allocated to a segment. They primarily include corporate headquarters costs, certain R&D costs, certain product category support costs, stock compensation expense, certain employee benefit plan costs, certain foreign currency hedging activities, and certain gains, losses, and other charges (such as business optimization, acquisition and integration costs, intangible asset amortization and asset impairments). Our chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Financial information for our segments is as follows:
for the years ended December 31 (in millions) | 2021 | 2020 | 2019
Net sales: |  |  |
Americas | $ | 6,666 |  | $ | 6,321 |  | $ | 6,306 |
EMEA | 3,115 |  | 2,877 |  | 2,756 |
APAC | 2,791 |  | 2,475 |  | 2,300 |
Hillrom | 212 |  | — |  | — |
Total net sales | $ | 12,784 |  | $ | 11,673 |  | $ | 11,362 |
Operating income: |  |  |
Americas | $ | 2,612 |  | $ | 2,389 |  | $ | 2,499 |
EMEA | 632 |  | 523 |  | 527 |
APAC | 623 |  | 591 |  | 549 |
Hillrom | (80) |  | — |  | — |
Total segment operating income | $ | 3,787 |  | $ | 3,503 |  | $ | 3,575 |
Depreciation Expense: |  |  |
Americas | $ | 257 |  | $ | 249 |  | $ | 255 |
EMEA | 147 |  | 150 |  | 149 |
APAC | 98 |  | 94 |  | 85 |
Hillrom | 4 |  | — |  | — |
Corporate and other | 86 |  | 108 |  | 117 |
Total depreciation expense | $ | 592 |  | $ | 601 |  | $ | 606 |
Capital expenditures: |  |  |
Americas | $ | 394 |  | $ | 380 |  | $ | 325 |
EMEA | 156 |  | 157 |  | 143 |
APAC | 82 |  | 103 |  | 98 |
Hillrom | 5 |  | — |  | — |
Corporate and other | 72 |  | 84 |  | 120 |
Total capital expenditures | $ | 709 |  | $ | 724 |  | $ | 686 |
The following table is a reconciliation of segment operating income to income before income taxes per the consolidated statements of income.
for the years ended December 31 (in millions) | 2021 | 2020 | 2019
Total segment operating income | $ | 3,787 |  | $ | 3,503 |  | $ | 3,575 |
Corporate and other | (2,077) |  | (1,887) |  | (1,803) |
Total operating income | 1,710 |  | 1,616 |  | 1,772 |
Net interest expense | 192 |  | 134 |  | 71 |
Other expense, net | 41 |  | 190 |  | 731 |
Income before income taxes | $ | 1,477 |  | $ | 1,292 |  | $ | 970 |
Geographic information
for the years ended December 31 (in millions) | 2021 | 2020 | 2019
Net sales: |  |  |
United States | $ | 5,180 |  | $ | 4,878 |  | $ | 4,826 |
Latin America and Canada | 1,249 |  | 1,191 |  | 1,268 |
EMEA | 3,552 |  | 3,129 |  | 2,968 |
APAC | 2,803 |  | 2,475 |  | 2,300 |
Total net sales | $ | 12,784 |  | $ | 11,673 |  | $ | 11,362 |
as of December 31 (in millions) | 2021 | 2020
Property, plant and equipment and operating lease right-of-use assets, net: |  |
United States | $ | 2,337 |  | $ | 1,888 |
EMEA | 1,576 |  | 1,556 |
APAC | 978 |  | 1,024 |
Latin America and Canada | 917 |  | 857 |
Total property, plant and equipment and operating lease right-of-use assets, net | $ | 5,808 |  | $ | 5,325 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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