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REVENUES
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
REVENUES
REVENUES
Contract Balances
The timing of revenue recognition, billings and cash collections results in the recognition of trade accounts receivable, unbilled receivables, contract assets, and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Net trade accounts receivable was $2.4 billion and $1.7 billion as of December 31, 2021 and 2020, respectively.
For contract manufacturing arrangements, revenue is primarily recognized throughout the production cycle, which typically lasts up to 90 days, resulting in the recognition of contract assets until the related services are completed and the customers are billed. Additionally, for arrangements containing a performance obligation to deliver software that can be used with medical devices, we recognize revenue upon delivery of the software, which results in the recognition of contract assets when customers are billed over time, generally over one to five years. For bundled contracts involving equipment delivered up-front and consumable medical products to be delivered over time, total contract revenue is allocated between the equipment and consumable medical products. In certain of those arrangements, a contract asset is created for the difference between the amount of equipment revenue recognized upon delivery and the amount of consideration initially receivable from the customer. In those arrangements, the contract asset becomes a trade account receivable as consumable medical products are provided and billed, generally over one to seven years.
The following table summarizes our contract assets:
as of December 31 (in millions)20212020
Contract manufacturing services$50 $47 
Software sales45 40 
Bundled equipment and consumable medical products contracts100 47 
Contract assets$195 $134 
The following table summarizes the classification of contract assets and contract liabilities as reported in the consolidated balance sheet:
as of December 31 (in millions)20212020
Prepaid expenses and other current assets$84 $70 
Other non-current assets111 64 
Contract assets$195 $134 
Accrued expenses and other current liabilities$162 $32 
Other non-current liabilities84 34 
Contract liabilities$246 $66 
In 2021, $20 million of revenue was recognized that was included in contract liabilities as of December 31, 2020. In 2020 and 2019, the amount of revenue recognized that was included in contract liabilities as of December 31, 2019 and 2018 was not significant.
Disaggregation of Net Sales
Beginning in the first quarter of 2021, our product category net sales disclosures (previously referred to as global business units (GBUs)) separately present net sales from our BioPharma Solutions business, which was previously included within Other. Concurrent with that disaggregation of net sales from our BioPharma Solutions business, we have also allocated certain previously unallocated sales deductions from Other to various categories, primarily based on their respective net sales. Net sales for 2020 and 2019 have been recast to conform to this presentation.
Additionally, with the acquisition of Hillrom in December 2021, we have added three new product categories: Patient Support Systems, Front Line Care and Surgical Solutions.
The following tables disaggregate our net sales from contracts with customers by product category between the U.S. and international:
202120202019
years ended December 31 (in millions)U.S.InternationalTotalU.S.InternationalTotalU.S.InternationalTotal
Renal Care1
$890 $3,010 $3,900 $848 $2,909 $3,757 $791 $2,848 $3,639 
Medication Delivery2
1,859 1,021 2,880 1,738 953 2,691 1,762 977 2,739 
Pharmaceuticals3
753 1,538 2,291 849 1,249 2,098 904 1,215 2,119 
Clinical Nutrition4
343 621 964 330 580 910 308 552 860 
Advanced Surgery5
545 432 977 516 370 886 533 342 875 
Acute Therapies6
287 495 782 286 454 740 184 351 535 
BioPharma Solutions7
273 396 669 234 252 486 257 212 469 
Patient Support Systems8
86 29 115 — — — — — — 
Front Line Care9
51 19 70 — — — — — — 
Surgical Solutions10
12 15 27 — — — — — — 
Other11
81 28 109 77 28 105 87 39 126 
Total Baxter$5,180 $7,604 $12,784 $4,878 $6,795 $11,673 $4,826 $6,536 $11,362 
1    Renal Care includes sales of our peritoneal dialysis (PD), hemodialysis (HD) and additional dialysis therapies and services.
2    Medication Delivery includes sales of our IV therapies, infusion pumps, administration sets and drug reconstitution devices.
3    Pharmaceuticals includes sales of our premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services.
4    Clinical Nutrition includes sales of our parenteral nutrition (PN) therapies and related products.
5    Advanced Surgery includes sales of our biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention.
6    Acute Therapies includes sales of our continuous renal replacement therapies (CRRT) and other organ support therapies focused in the intensive care unit (ICU).
7    BioPharma Solutions includes sales of contracted services we provide to various pharmaceutical and biopharmaceutical companies.
8    Patient Support Systems includes sales of our connected care solutions: devices, software, communications and integration technologies.
9    Front Line Care includes sales of our integrated patient monitoring and diagnostic technologies to help diagnose, treat and manage a wide variety of illness and diseases, including respiratory therapy, cardiology, vision screening and physical assessment.
10    Surgical Solutions includes sales of our surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories.
11    Other includes sales of miscellaneous product and service offerings.