XML 41 R26.htm IDEA: XBRL DOCUMENT v3.22.0.1
SEGMENT INFORMATION
 12 Months Ended
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)202120202019
Net sales:   
Americas$6,666 $6,321 $6,306 
EMEA3,115 2,877 2,756 
APAC2,791 2,475 2,300 
Hillrom212 — — 
Total net sales$12,784 $11,673 $11,362 
Operating income:
Americas$2,612 $2,389 $2,499 
EMEA632 523 527 
APAC623 591 549 
Hillrom(80)— — 
Total segment operating income $3,787 $3,503 $3,575 
Depreciation Expense:
Americas$257 $249 $255 
EMEA147 150 149 
APAC98 94 85 
Hillrom4 — — 
Corporate and other86 108 117 
Total depreciation expense$592 $601 $606 
Capital expenditures:
Americas$394 $380 $325 
EMEA156 157 143 
APAC82 103 98 
Hillrom5 — — 
Corporate and other72 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)202120202019
Total segment operating income$3,787 $3,503 $3,575 
Corporate and other(2,077)(1,887)(1,803)
Total operating income1,710 1,616 1,772 
Net interest expense192 134 71 
Other expense, net41 190 731 
Income before income taxes$1,477 $1,292 $970 
Geographic information
for the years ended December 31 (in millions)202120202019
Net sales:   
United States$5,180 $4,878 $4,826 
Latin America and Canada1,249 1,191 1,268 
EMEA3,552 3,129 2,968 
APAC2,803 2,475 2,300 
Total net sales$12,784 $11,673 $11,362 
as of December 31 (in millions)20212020
Property, plant and equipment and operating lease right-of-use assets, net:  
United States$2,337 $1,888 
EMEA1,576 1,556 
APAC978 1,024 
Latin America and Canada917 857 
Total property, plant and equipment and operating lease right-of-use assets, net$5,808 $5,325