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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our business is comprised of three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. The Medical Products & 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 & 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 operating room integration technologies, precision positioning devices, and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia, and drug compounding. Other sales not allocated to a segment
primarily includes sales to Vantive, pursuant to the Kidney Care MSA, and sales of products and services provided directly through certain of our manufacturing facilities.
Disaggregation of Net Sales
The following tables present our U.S. and International disaggregated net sales.
Three Months Ended March 31,
20252024
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies and Technologies
$584 $410 $994 $526 $440 $966 
Advanced Surgery
145 123 268 147 116 263 
Medical Products & Therapies729 533 1,262 673 556 1,229 
Care and Connectivity Solutions
316 111 427 278 124 402 
Front Line Care
202 75 277 195 70 265 
Healthcare Systems & Technologies
518 186 704 473 194 667 
Injectables and Anesthesia
195 140 335 191 137 328 
Drug Compounding— 246 246 — 250 250 
Pharmaceuticals195 386 581 191 387 578 
Other48 30 78 11 5 16 
Total Baxter$1,490 $1,135 $2,625 $1,348 $1,142 $2,490 
Geographic Sales Information
Our net sales are attributed to the following geographic regions based on the location of the customer.
Three Months Ended March 31,
(in millions)20252024
United States$1,490 $1,348 
Emerging markets1
297 307 
Rest of world2
838 835 
Total Baxter$2,625 $2,490 
1 Emerging markets includes 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.
Segment Operating Income
In the first quarter of 2025, in conjunction with the change in our Chief Executive Officer, we determined that our chief operating decision maker (CODM) comprises of our Chair and Interim Chief Executive Officer, and the Executive Vice President, Chief Operating Officer and Interim Group President, Medical Products & Therapies, who review the financial information presented for purposes of evaluating the performance of our segments and to make resource allocation decisions. The change in CODM during the first quarter of 2025 did not result in a change in our segments.
Segment operating income is the measure of segment profitability and 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 reportable 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.
Corporate costs, inclusive of 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.
Segment results include net sales, cost of sales, selling, general and administrative expenses, research and development expenses, corporate costs that had previously been allocated to our former Kidney Care segment which did not convey in the related sale, and other segment items which are directly allocated to each segment. Beginning in 2024 annual reporting, we adopted ASU 2023-07 retrospectively. The following table presents our segment information of net sales, significant expense and operating income during the periods presented.
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticalsMedical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$1,262 $704 $581 $1,229 $667 $578 
Cost of sales694 356 396 668 346 382 
Selling, general and administrative expenses286 217 103 284 207 96 
Research and development expenses59 45 26 52 47 22 
Other segment items(21)(7)(7)(2)— — 
Segment operating income$244 $93 $63 $227 $67 $78 
The following table presents our reportable segment operating income and reconciliations of reportable segment operating income to income (loss) from continuing operations before income taxes.
Three Months Ended March 31,
(in millions)20252024
Medical Products & Therapies$244 $227 
Healthcare Systems & Technologies93 67 
Pharmaceuticals63 78 
Total reportable segment operating income400 372 
Other9 4 
Unallocated corporate costs(17)(69)
Intangible asset amortization expense(155)(158)
Legal matters(11)— 
Business optimization items(45)(22)
Acquisition and integration items(1)(5)
Separation-related costs(13)— 
European Medical Devices Regulation(5)(7)
Hurricane Helene costs(98)— 
Product-related items(6)— 
Total operating income 58 115 
Interest expense, net64 78 
Other (income) expense, net(3)(9)
Income from continuing operations before income taxes$(3)$46 
Additional financial information for our segments is as follows:
Three Months Ended March 31,
(in millions)20252024
Depreciation Expense1
Medical Products & Therapies$49 $58 
Healthcare Systems & Technologies27 30 
Pharmaceuticals16 25 
Total depreciation expense$92 $113 
1Depreciation expense related to Corporate property, plant and equipment has been fully allocated to our segments and those segment allocations are reflected in the depreciation amounts presented herein.
Our CODM does not receive asset or capital expenditure information by reportable segment and, accordingly, we do not report that information for our segments.