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SEGMENT INFORMATION
9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We manage our business 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 the 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.
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, manufacturing variances and centrally managed supply chain costs, product category support costs, stock compensation expense, certain employee benefit plan costs, and certain gains, losses, and other charges (such as business optimization, acquisition and integration costs, intangible asset amortization and asset impairments). For the period from our acquisition of Hillrom on December 13, 2021 through December 31, 2021, we previously included all costs incurred by the Hillrom business within that segment, including the types of costs described in the preceding sentence that are maintained at Corporate for our legacy Baxter segments. In connection with our ongoing integration activities, beginning in the first quarter 2022, we have updated the measure of profitability for our Hillrom segment by excluding such unallocated costs, consistent with our legacy Baxter segments. Those unallocated costs related to Hillrom, which totaled $3.0 billion and $3.3 billion for the three and nine months ended September 30, 2022, respectively, and primarily related to goodwill and intangible asset impairments are now presented within Corporate as well.

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.
Three months ended
September 30,
Nine months ended
September 30,
(in millions)2022202120222021
Net sales:
Americas$1,703 $1,727 $4,975 $4,911 
EMEA692 779 2,129 2,300 
APAC643 720 1,917 2,059 
Hillrom735 — 2,205 — 
Total net sales$3,773 $3,226 $11,226 $9,270 
Operating income:
Americas$588 $676 $1,765 $1,907 
EMEA145 167 433 461 
APAC152 166 459 456 
Hillrom215 — 564 — 
Total segment operating income$1,100 $1,009 $3,221 $2,824 
The following is a reconciliation of segment operating income to income before income taxes per the condensed consolidated statements of income.
Three months ended
September 30,
Nine months ended
September 30,
(in millions)2022202120222021
Total segment operating income$1,100 $1,009 $3,221 $2,824 
Corporate and other(3,899)(496)(5,517)(1,497)
Total operating income (loss)(2,799)513 (2,296)1,327 
Interest expense, net104 50 278 118 
Other (income) expense, net63 12 15 
Income (loss) before income taxes$(2,966)$451 $(2,577)$1,194 
Refer to Note 9 for additional information on Net Sales by product category.