XML 46 R27.htm IDEA: XBRL DOCUMENT
v3.24.0.1

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION |
SEGMENT INFORMATION
Our reportable segments were previously comprised of the following geographic segments related to our legacy Baxter business: Americas, EMEA and APAC, and a global segment for our Hillrom business. In the third quarter of 2023, we completed the implementation of a new operating model intended to simplify and streamline our operations and better align our manufacturing and supply chain to our commercial activities. Under this new operating model, our business is comprised of four segments: Medical Products and Therapies, Healthcare Systems and Technologies (formerly referred to as our Hillrom segment), Pharmaceuticals and Kidney Care. Our segments were changed during the third quarter of 2023 to align with our new operating model and prior period segment disclosures have been revised to reflect the new segment presentation. The Medical Products and Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems and Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including surgical video technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. The Kidney Care segment includes sales of chronic and acute dialysis therapies and services, including PD, HD, CRRT and other organ support therapies. Other sales not allocated to a segment primarily include sales of products and services provided directly through certain of our manufacturing facilities and royalty income under a business development arrangement that ended in early 2023 when we acquired the related product rights. Disaggregation of Net Sales The following tables present our U.S. and International disaggregated net sales. Intersegment sales are eliminated in consolidation.
for the years ended December 31 | 2023 |  | 2022 |  | 2021
(in millions) | U.S. | International | Total |  | U.S. | International | Total |  | U.S. | International | Total
Infusion Therapies and Technologies | $ | 2,227 |  | $ | 1,733 |  | $ | 3,960 |  |  | $ | 2,241 |  | $ | 1,576 |  | $ | 3,817 |  |  | $ | 2,202 |  | $ | 1,642 |  | $ | 3,844 |
Advanced Surgery | 582 |  | 469 |  | 1,051 |  |  | 574 |  | 424 |  | 998 |  |  | 545 |  | 432 |  | 977 |
Medical Products and Therapies | 2,809 |  | 2,202 |  | 5,011 |  |  | 2,815 |  | 2,000 |  | 4,815 |  |  | 2,747 |  | 2,074 |  | 4,821 |
Care and Connectivity Solutions | 1,263 |  | 537 |  | 1,800 |  |  | 1,295 |  | 496 |  | 1,791 |  |  | 98 |  | 44 |  | 142 |
Front Line Care | 905 |  | 308 |  | 1,213 |  |  | 840 |  | 308 |  | 1,148 |  |  | 51 |  | 19 |  | 70 |
Healthcare Systems and Technologies | 2,168 |  | 845 |  | 3,013 |  |  | 2,135 |  | 804 |  | 2,939 |  |  | 149 |  | 63 |  | 212 |
Injectables and Anesthesia | 759 |  | 588 |  | 1,347 |  |  | 682 |  | 623 |  | 1,305 |  |  | 753 |  | 637 |  | 1,390 |
Drug Compounding | — |  | 902 |  | 902 |  |  | — |  | 821 |  | 821 |  |  | — |  | 901 |  | 901 |
Pharmaceuticals | 759 |  | 1,490 |  | 2,249 |  |  | 682 |  | 1,444 |  | 2,126 |  |  | 753 |  | 1,538 |  | 2,291 |
Chronic Therapies 1 | 927 |  | 2,756 |  | 3,683 |  |  | 923 |  | 2,791 |  | 3,714 |  |  | 869 |  | 2,993 |  | 3,862 |
Acute Therapies 1 | 271 |  | 499 |  | 770 |  |  | 263 |  | 472 |  | 735 |  |  | 308 |  | 512 |  | 820 |
Kidney Care | 1,198 |  | 3,255 |  | 4,453 |  |  | 1,186 |  | 3,263 |  | 4,449 |  |  | 1,177 |  | 3,505 |  | 4,682 |
Other 1 | 66 |  | 21 |  | 87 |  |  | 137 |  | 40 |  | 177 |  |  | 112 |  | 28 |  | 140 |
Total Baxter | $ | 7,000 |  | $ | 7,813 |  | $ | 14,813 |  |  | $ | 6,955 |  | $ | 7,551 |  | $ | 14,506 |  |  | $ | 4,938 |  | $ | 7,208 |  | $ | 12,146 |
1 In connection with our segment change in the third quarter of 2023, we reclassified $16 million of sales from the first half of 2023, $34 million of sales for the year ended December 31, 2022 and $38 million of sales for the year ended December 31, 2021 from Chronic Therapies to Acute Therapies to conform to the current period presentation. 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, $37 million of sales for the year ended December 31, 2022 and $31 million of sales for the year ended December 31, 2021 from BPS to Other (within continuing operations), as the related manufacturing facility was not part of that divestiture transaction. Geographic Information Our net sales are attributed to the following geographic regions based on the location of the customer.
for the years ended December 31 (in millions) | 2023 | 2022 | 2021
Net sales: |  |  |
United States | $ | 7,000 |  | $ | 6,955 |  | $ | 4,938 |
Emerging markets 1 | 3,319 |  | 3,222 |  | 3,012 |
Rest of world 2 | 4,494 |  | 4,329 |  | 4,196 |
Total net sales | $ | 14,813 |  | $ | 14,506 |  | $ | 12,146 |
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. Our property, plant and equipment and operating lease right-of-use assets, net are attributed to the following geographic regions.
as of December 31 (in millions) | 2023 | 2022
Property, plant and equipment and operating lease right-of-use assets, net: |  |
United States | $ | 1,995 |  | $ | 2,011 |
Emerging markets | 1,485 |  | 1,492 |
Rest of world | 1,477 |  | 1,733 |
Total property, plant and equipment and operating lease right-of-use assets, net | $ | 4,957 |  | $ | 5,236 |
Segment Operating Income We use segment operating income to evaluate the performance of our segments and to make resource allocation decisions. Segment operating income represents income before income taxes, interest and other non-operating income or expense, unallocated corporate costs, intangible asset amortization and other special items. Special items, which are presented below in our reconciliations of segment operating income to income (loss) from continuing operations before income taxes, are excluded from segment operating income because they are highly variable, difficult to predict and of a size that may substantially impact our reported results of operations for the period. Under our new operating model, most global functional support costs, overhead costs and other shared costs that benefit our segments are allocated to those segments. Corporate costs that are not allocated to our segments, as well as any differences between actual corporate costs and the amounts allocated to our segments, are presented as unallocated corporate costs. The following table presents our segment operating income and reconciliations of segment operating income to income (loss) from continuing operations before income taxes.
for the years ended December 31 (in millions) | 2023 | 2022 | 2021
Medical Products and Therapies | $ | 972 |  | $ | 962 |  | $ | 955 |
Healthcare Systems and Technologies | 483 |  | 494 |  | 60 |
Pharmaceuticals | 401 |  | 391 |  | 523 |
Kidney Care | 300 |  | 408 |  | 488 |
Other | 18 |  | 77 |  | 59 |
Total | 2,174 |  | 2,332 |  | 2,085 |
Unallocated corporate costs | (51) |  | (54) |  | (49) |
Intangible asset amortization expense | (652) |  | (753) |  | (298) |
Business optimization items | (534) |  | (225) |  | (114) |
European Medical Devices Regulation | (48) |  | (48) |  | (42) |
Long-lived asset impairments | (267) |  | (344) |  | — |
Separation-related costs | (225) |  | (7) |  | — |
Legal matters | (7) |  | — |  | (13) |
Acquisition and integration items | — |  | (213) |  | (188) |
Product-related items | — |  | (44) |  | — |
Loss on product divestiture arrangement | — |  | (54) |  | — |
Goodwill impairments | — |  | (2,812) |  | — |
Loss on subsidiary liquidation | — |  | (21) |  | — |
Investigation and related costs | — |  | — |  | (31) |
Total operating income (loss) | 390 |  | (2,243) |  | 1,350 |
Interest expense, net | 442 |  | 395 |  | 193 |
Other (income) expense, net | 51 |  | 12 |  | 41 |
Loss from continuing operations before income taxes | $ | (103) |  | $ | (2,650) |  | $ | 1,116 |
Additional financial information for our segments is as follows:
for the years ended December 31 (in millions) | 2023 | 2022 | 2021 |
Depreciation Expense 1: |  |  |  |
Medical Products and Therapies | $ | 202 |  | $ | 204 |  | $ | 213 |  |
Healthcare Systems and Technologies | 91 |  | 95 |  | 3 |  |
Pharmaceuticals | 41 |  | 57 |  | 71 |  |
Kidney Care | 277 |  | 271 |  | 282 |  |
Total depreciation expense | $ | 611 |  | $ | 627 |  | $ | 569 |  |
1 Depreciation expense related to Corporate property, plant and equipment has been fully allocated to our segments and those allocations are reflected in the depreciation amounts presented herein. Our chief operating decision maker does not receive asset or capital expenditure information by segment and, accordingly, we do not report that information for our segments.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration