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v3.23.3

SEGMENT INFORMATION (Tables) | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Summary of Financial Information for Our Segments | The following tables present our U.S. and International disaggregated net sales. Intersegment sales are eliminated in consolidation.
| Three Months Ended September 30,
| 2023 |  | 2022
(in millions) | U.S. | International | Total |  | U.S. | International | Total
Infusion Therapies and Technologies | $ | 570 |  | $ | 433 |  | $ | 1,003 |  |  | $ | 567 |  | $ | 389 |  | $ | 956 |
Advanced Surgery | 139 |  | 116 |  | 255 |  |  | 141 |  | 106 |  | 247 |
Medical Products and Therapies | 709 |  | 549 |  | 1,258 |  |  | 708 |  | 495 |  | 1,203 |
Care and Connectivity Solutions | 317 |  | 126 |  | 443 |  |  | 339 |  | 117 |  | 456 |
Front Line Care | 234 |  | 67 |  | 301 |  |  | 209 |  | 70 |  | 279 |
Healthcare Systems and Technologies | 551 |  | 193 |  | 744 |  |  | 548 |  | 187 |  | 735 |
Injectables and Anesthesia | 195 |  | 156 |  | 351 |  |  | 173 |  | 152 |  | 325 |
Drug Compounding | — |  | 229 |  | 229 |  |  | — |  | 200 |  | 200 |
Pharmaceuticals | 195 |  | 385 |  | 580 |  |  | 173 |  | 352 |  | 525 |
Chronic Therapies 1 | 233 |  | 688 |  | 921 |  |  | 236 |  | 698 |  | 934 |
Acute Therapies 1 | 66 |  | 122 |  | 188 |  |  | 57 |  | 109 |  | 166 |
Kidney Care | 299 |  | 810 |  | 1,109 |  |  | 293 |  | 807 |  | 1,100 |
Other 1 | 12 |  | 5 |  | 17 |  |  | 36 |  | 10 |  | 46 |
Total Baxter | $ | 1,766 |  | $ | 1,942 |  | $ | 3,708 |  |  | $ | 1,758 |  | $ | 1,851 |  | $ | 3,609 |
| Nine Months Ended September 30,
| 2023 |  | 2022
(in millions) | U.S. | International | Total |  | U.S. | International | Total
Infusion Therapies and Technologies | $ | 1,654 |  | $ | 1,264 |  | $ | 2,918 |  |  | $ | 1,672 |  | $ | 1,157 |  | $ | 2,829 |
Advanced Surgery | 433 |  | 340 |  | 773 |  |  | 428 |  | 310 |  | 738 |
Medical Products and Therapies | 2,087 |  | 1,604 |  | 3,691 |  |  | 2,100 |  | 1,467 |  | 3,567 |
Care and Connectivity Solutions | 926 |  | 381 |  | 1,307 |  |  | 991 |  | 359 |  | 1,350 |
Front Line Care | 681 |  | 230 |  | 911 |  |  | 618 |  | 237 |  | 855 |
Healthcare Systems and Technologies | 1,607 |  | 611 |  | 2,218 |  |  | 1,609 |  | 596 |  | 2,205 |
Injectables and Anesthesia | 550 |  | 437 |  | 987 |  |  | 494 |  | 467 |  | 961 |
Drug Compounding | — |  | 665 |  | 665 |  |  | — |  | 613 |  | 613 |
Pharmaceuticals | 550 |  | 1,102 |  | 1,652 |  |  | 494 |  | 1,080 |  | 1,574 |
Chronic Therapies 1 | 689 |  | 2,041 |  | 2,730 |  |  | 675 |  | 2,069 |  | 2,744 |
Acute Therapies 1 | 194 |  | 370 |  | 564 |  |  | 194 |  | 348 |  | 542 |
Kidney Care | 883 |  | 2,411 |  | 3,294 |  |  | 869 |  | 2,417 |  | 3,286 |
Other 1 | 56 |  | 17 |  | 73 |  |  | 98 |  | 31 |  | 129 |
Total Baxter | $ | 5,183 |  | $ | 5,745 |  | $ | 10,928 |  |  | $ | 5,170 |  | $ | 5,591 |  | $ | 10,761 |
1 In connection with our segment change in the third quarter of 2023, we made the following reclassifications of prior period sales amounts to conform to the current period presentation. We reclassified $16 million of sales from the first half of 2023 and $8 million and $23 million for the three and nine months ended September 30, 2022, respectively, from Chronic Therapies to Acute Therapies. Additionally, in connection with the reclassification of our BPS business to discontinued operations during the second quarter of 2023, we reclassified $2 million of contract manufacturing revenues from the first quarter of 2023 and $8 million and $26 million for the three and nine months ended September 30, 2022, respectively, from BPS to Other (within continuing operations), as the related manufacturing facility was not part of that divestiture transaction.
Revenue from External Customers by Geographic Areas | Our net sales are attributed to the following geographic regions based on the location of the customer.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
United States | $ | 1,766 |  |  | $ | 1,758 |  |  | $ | 5,183 |  |  | $ | 5,170 |
Emerging markets 1 | 852 |  |  | 820 |  |  | 2,447 |  |  | 2,355 |
Rest of world 2 | 1,090 |  |  | 1,031 |  |  | 3,298 |  |  | 3,236 |
Total Baxter | $ | 3,708 |  |  | $ | 3,609 |  |  | $ | 10,928 |  |  | $ | 10,761 |
1 Emerging markets include sales from our operations in Eastern Europe, the Middle East, Africa, Latin America and Asia (except for Japan). 2 Rest of world includes sales from our operations in Western Europe, Canada, Japan, Australia and New Zealand.
Operating Income to Income Before Income Taxes Reconciliation | The following table presents our segment operating income and reconciliations of segment operating income to income (loss) from continuing operations before income taxes.
| Three months ended September 30, |  | Nine months ended September 30,
(in millions) | 2023 | 2022 |  | 2023 | 2022
Medical Products and Therapies | $ | 245 |  | $ | 257 |  |  | $ | 706 |  | $ | 703 |
Healthcare Systems and Technologies | 115 |  | 108 |  |  | 327 |  | 367 |
Pharmaceuticals | 108 |  | 82 |  |  | 284 |  | 295 |
Kidney Care | 96 |  | 103 |  |  | 208 |  | 307 |
Other | 6 |  | 17 |  |  | 19 |  | 52 |
Total | 570 |  | 567 |  |  | 1,544 |  | 1,724 |
Unallocated corporate costs | (5) |  | 1 |  |  | (51) |  | (41) |
Intangible asset amortization expense | (162) |  | (168) |  |  | (481) |  | (578) |
Long-lived asset impairments | (267) |  | (332) |  |  | (267) |  | (332) |
Legal matters | (13) |  | — |  |  | (13) |  | — |
Goodwill impairments | — |  | (2,785) |  |  | — |  | (2,785) |
Business optimization items | (81) |  | (73) |  |  | (508) |  | (196) |
Acquisition and integration items | (2) |  | (4) |  |  | (2) |  | (193) |
Loss on product divestiture arrangement | — |  | (54) |  |  | — |  | (54) |
Separation-related costs | (77) |  | — |  |  | (123) |  | — |
European Medical Devices Regulation | (14) |  | (12) |  |  | (38) |  | (35) |
Product-related items | — |  | (20) |  |  | — |  | (43) |
Total operating income (loss) | (51) |  | (2,880) |  |  | 61 |  | (2,533) |
Interest expense, net | 128 |  | 104 |  |  | 369 |  | 278 |
Other (income) expense, net | (7) |  | 61 |  |  | 33 |  | 1 |
Loss from continuing operations before income taxes | $ | (172) |  | $ | (3,045) |  |  | $ | (341) |  | $ | (2,812) |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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