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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2022
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 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. 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 $127 million related to 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 of 2022, we updated the measure of profitability for our Hillrom segment by excluding such unallocated costs, consistent with our legacy Baxter segments. 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) | 2022 | 2021 | 2020
Net sales: |  |  |
Americas | $ | 6,710 |  | $ | 6,666 |  | $ | 6,321 |
EMEA | 2,879 |  | 3,115 |  | 2,877 |
APAC | 2,585 |  | 2,791 |  | 2,475 |
Hillrom | 2,939 |  | 212 |  | — |
Total net sales | $ | 15,113 |  | $ | 12,784 |  | $ | 11,673 |
Operating income (loss): |  |  |
Americas | $ | 2,384 |  | $ | 2,612 |  | $ | 2,389 |
EMEA | 607 |  | 632 |  | 523 |
APAC | 623 |  | 623 |  | 591 |
Hillrom | 730 |  | (80) |  | — |
Total segment operating income | $ | 4,344 |  | $ | 3,787 |  | $ | 3,503 |
Depreciation Expense: |  |  |
Americas | $ | 236 |  | $ | 257 |  | $ | 249 |
EMEA | 134 |  | 147 |  | 150 |
APAC | 103 |  | 98 |  | 94 |
Hillrom | 95 |  | 4 |  | — |
Corporate and other | 82 |  | 86 |  | 108 |
Total depreciation expense | $ | 650 |  | $ | 592 |  | $ | 601 |
Capital expenditures: |  |  |
Americas | $ | 339 |  | $ | 394 |  | $ | 380 |
EMEA | 125 |  | 156 |  | 157 |
APAC | 81 |  | 82 |  | 103 |
Hillrom | 65 |  | 5 |  | — |
Corporate and other | 78 |  | 72 |  | 84 |
Total capital expenditures | $ | 688 |  | $ | 709 |  | $ | 724 |
The following table is a reconciliation of segment operating income to income (loss) before income taxes per the consolidated statements of income (loss).
for the years ended December 31 (in millions) | 2022 | 2021 | 2020
Total segment operating income | $ | 4,344 |  | $ | 3,787 |  | $ | 3,503 |
Corporate and other | (6,287) |  | (2,077) |  | (1,887) |
Total operating income (loss) | (1,943) |  | 1,710 |  | 1,616 |
Net interest expense | 395 |  | 192 |  | 134 |
Other (income) expense, net | 15 |  | 41 |  | 190 |
Income (loss) before income taxes | $ | (2,353) |  | $ | 1,477 |  | $ | 1,292 |
We are designing a new operating model intended to simplify and streamline our operations and we expect that our reportable segments will be changed to align with that new operating model when it is fully implemented. Geographic information
for the years ended December 31 (in millions) | 2022 | 2021 | 2020
Net sales: |  |  |
United States | $ | 7,223 |  | $ | 5,180 |  | $ | 4,878 |
Latin America and Canada | 1,429 |  | 1,249 |  | 1,191 |
EMEA | 3,709 |  | 3,552 |  | 3,129 |
APAC | 2,752 |  | 2,803 |  | 2,475 |
Total net sales | $ | 15,113 |  | $ | 12,784 |  | $ | 11,673 |
as of December 31 (in millions) | 2022 | 2021
Property, plant and equipment and operating lease right-of-use assets, net: |  |
United States | $ | 2,254 |  | $ | 2,337 |
EMEA | 1,452 |  | 1,576 |
APAC | 894 |  | 978 |
Latin America and Canada | 929 |  | 917 |
Total property, plant and equipment and operating lease right-of-use assets, net | $ | 5,529 |  | $ | 5,808 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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