| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
| (Registrant’s telephone number, including area code) | |||||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| NYSE Chicago | ||||||||||||||
| x | Accelerated filer | o | ||||||||||||
| Non-accelerated filer | o | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
| Page Number | ||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||
| Item 1A. | ||||||||
| Item 5. | ||||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
Accounts receivable, net of allowances of $ | ||||||||
| Inventories | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Goodwill | ||||||||
| Other intangible assets, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Other non-current assets | ||||||||
| Total assets | $ | $ | ||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt and finance lease obligations | $ | $ | ||||||
| Accounts payable | ||||||||
| Accrued expenses and other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Long-term debt and finance lease obligations, less current portion | ||||||||
| Operating lease liabilities | ||||||||
| Other non-current liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
Common stock, $ | ||||||||
Common stock in treasury, at cost, | ( | ( | ||||||
| Additional contributed capital | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||
| Total Baxter stockholders’ equity | ||||||||
| Noncontrolling interests | ||||||||
| Total equity | ||||||||
| Total liabilities and equity | $ | $ | ||||||
| Three months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net sales | $ | $ | ||||||
| Cost of sales | ||||||||
| Gross margin | ||||||||
| Selling, general and administrative expenses | ||||||||
| Research and development expenses | ||||||||
| Other operating income, net | ( | ( | ||||||
| Operating income | ||||||||
| Interest expense, net | ||||||||
| Other income, net | ( | ( | ||||||
| Income from continuing operations before income taxes | ||||||||
| Income tax expense | ||||||||
| Income from continuing operations | ||||||||
| Income from discontinued operations, net of tax | ||||||||
| Net income | ||||||||
| Net income attributable to noncontrolling interests | ||||||||
| Net income attributable to Baxter stockholders | $ | $ | ||||||
| Income from continuing operations per common share | ||||||||
| Basic | $ | $ | ||||||
| Diluted | $ | $ | ||||||
| Income from discontinued operations per common share | ||||||||
| Basic | $ | $ | ||||||
| Diluted | $ | $ | ||||||
| Net income per common share | ||||||||
| Basic | $ | $ | ||||||
| Diluted | $ | $ | ||||||
| Weighted-average number of shares outstanding | ||||||||
| Basic | ||||||||
| Diluted | ||||||||
| Three months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Income from continuing operations | $ | $ | ||||||
| Other comprehensive income (loss) from continuing operations, net of tax: | ||||||||
Currency translation adjustments, net of tax expense (benefit) of $ | ( | |||||||
Pension and other postretirement benefits, net of tax expense (benefit) of $ | ( | |||||||
Hedging activities, net of tax expense (benefit) of $ | ( | |||||||
| Total other comprehensive income (loss) from continuing operations, net of tax | ( | |||||||
| Comprehensive income (loss) from continuing operations | ( | |||||||
| Income from discontinued operations, net of tax | ||||||||
| Other comprehensive income from discontinued operations, net of tax - currency translation adjustments | ||||||||
| Comprehensive income from discontinued operations | ||||||||
| Comprehensive income (loss) | ( | |||||||
| Less: Comprehensive income attributable to noncontrolling interests | ||||||||
| Less: Other comprehensive income (loss) attributable to noncontrolling interests | ( | |||||||
| Comprehensive income (loss) attributable to Baxter stockholders | $ | ( | $ | |||||
| For the three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
| Baxter International Inc. stockholders' equity | ||||||||||||||||||||||||||||||||
| Common stock shares | Common stock | Common stock shares in treasury | Common stock in treasury | Additional contributed capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Baxter stockholders' equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||
| Balance as of January 1, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||
| Stock issued under employee benefit plans and other | — | — | ( | ( | — | — | — | |||||||||||||||||||||||||
| Dividends declared on common stock | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||
| For the three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
| Baxter International Inc. stockholders' equity | ||||||||||||||||||||||||||||||||
| Common stock shares | Common stock | Common stock shares in treasury | Common stock in treasury | Additional contributed capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Baxter stockholders' equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||
| Balance as of January 1, 2023 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Stock issued under employee benefit plans and other | — | — | ( | ( | — | — | — | |||||||||||||||||||||||||
| Dividends declared on common stock | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||
| Balance as of March 31, 2023 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operations | ||||||||
| Net income | $ | $ | ||||||
| Less: Income from discontinued operations, net of tax | ||||||||
| Income from continuing operations | ||||||||
| Adjustments to reconcile net income to cash flows from operations: | ||||||||
| Depreciation and amortization | ||||||||
| Deferred income taxes | ( | ( | ||||||
| Stock compensation | ||||||||
| Net periodic pension and other postretirement costs | ( | ( | ||||||
| Other | ||||||||
| Changes in balance sheet items: | ||||||||
| Accounts receivable, net | ||||||||
| Inventories | ( | ( | ||||||
| Prepaid expenses and other current assets | ( | ( | ||||||
| Accounts payable | ||||||||
| Accrued expenses and other current liabilities | ( | |||||||
| Other | ( | ( | ||||||
| Cash flows from operations - continuing operations | ||||||||
| Cash flows from operations - discontinued operations | ||||||||
| Cash flows from operations | ||||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | ( | ( | ||||||
| Acquisitions of developed technology and investments | ( | ( | ||||||
| Proceeds from sale of marketable equity securities | ||||||||
| Other investing activities, net | ||||||||
| Cash flows from investing activities - continuing operations | ( | ( | ||||||
| Cash flows from investing activities - discontinued operations | ( | |||||||
| Cash flows from investing activities | ( | ( | ||||||
| Cash flows from financing activities | ||||||||
| Repayments of debt | ( | ( | ||||||
| Net (decreases) increases in debt with original maturities of three months or less | ( | |||||||
| Cash dividends on common stock | ( | ( | ||||||
| Proceeds from stock issued under employee benefit plans | ||||||||
| Other financing activities, net | ( | ( | ||||||
| Cash flows from financing activities | ( | ( | ||||||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | ( | |||||||
| Decrease in cash, cash equivalents and restricted cash | ( | ( | ||||||
Cash, cash equivalents and restricted cash at beginning of period (1) | ||||||||
Cash, cash equivalents and restricted cash at end of period (1) | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Cash and cash equivalents | $ | $ | $ | ||||||||
| Restricted cash included in other non-current assets | |||||||||||
| Cash, cash equivalents and restricted cash | $ | $ | $ | ||||||||
| Three months ended March 31, | |||||
| (in millions) | 2023 | ||||
| Net sales | $ | ||||
| Cost of sales | |||||
| Gross margin | |||||
| Selling, general and administrative expenses | |||||
| Other income, net | |||||
| Income from discontinued operations before income taxes | |||||
| Income tax expense | |||||
| Income from discontinued operations, net of tax | |||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Balance at beginning of period | $ | $ | ||||||
| Charged to costs and expenses | ( | |||||||
| Write-offs | ( | ( | ||||||
| Currency translation adjustments | ( | |||||||
| Balance at end of period | $ | $ | ||||||
| (in millions) | March 31, 2024 | December 31, 2023 | ||||||
| Raw materials | $ | $ | ||||||
| Work in process | ||||||||
| Finished goods | ||||||||
| Inventories | $ | $ | ||||||
| (in millions) | March 31, 2024 | December 31, 2023 | ||||||
| Property, plant and equipment, at cost | $ | $ | ||||||
| Accumulated depreciation | ( | ( | ||||||
| Property, plant and equipment, net | $ | $ | ||||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Interest expense, net of capitalized interest | $ | $ | ||||||
| Interest income | ( | ( | ||||||
| Interest expense, net | $ | $ | ||||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Foreign exchange losses, net | $ | $ | ||||||
| Pension and other postretirement benefit plans | ( | ( | ||||||
| Change in fair value of marketable equity securities | ( | ( | ||||||
| Other, net | ( | ( | ||||||
| Other income, net | $ | ( | $ | ( | ||||
| (in millions) | Medical Products and Therapies | Healthcare Systems and Technologies | Pharmaceuticals | Kidney Care | Total | ||||||||||||
| Balance as of December 31, 2023 | $ | $ | $ | $ | $ | ||||||||||||
| Currency translation | ( | ( | ( | ( | ( | ||||||||||||
| Balance as of March 31, 2024 | $ | $ | $ | $ | $ | ||||||||||||
| Indefinite-lived intangible assets | |||||||||||||||||||||||
| (in millions) | Customer relationships | Developed technology, including patents | Trade names | Other amortized intangible assets | Trade names | In process Research and Development | Total | ||||||||||||||||
| March 31, 2024 | |||||||||||||||||||||||
| Gross other intangible assets | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Accumulated amortization | ( | ( | ( | ( | ( | ||||||||||||||||||
| Other intangible assets, net | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||
| Gross other intangible assets | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Accumulated amortization | ( | ( | ( | ( | ( | ||||||||||||||||||
| Other intangible assets, net | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Gains (losses) | |||||||||||||||||
| (in millions) | CTA | Pension and OPEB plans | Hedging activities | Available-for-sale debt securities | Total | ||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||
| Amounts reclassified from AOCI (a) | ( | ||||||||||||||||
| Net other comprehensive income (loss) | ( | ( | |||||||||||||||
| Balance as of March 31, 2024 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||
| Gains (losses) | |||||||||||||||||
| (in millions) | CTA | Pension and OPEB plans | Hedging activities | Available-for-sale debt securities | Total | ||||||||||||
| Balance as of December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||
| Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||
Amounts reclassified from AOCI (a) | ( | ( | ( | ||||||||||||||
| Net other comprehensive income (loss) | ( | ( | |||||||||||||||
| Balance as of March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||
| Amounts reclassified from AOCI (a) | |||||||||||
| (in millions) | Three months ended March 31, 2024 | Three months ended March 31, 2023 | Location of impact in income statement | ||||||||
| Pension and OPEB items | |||||||||||
| Amortization of net losses and prior service costs or credits | $ | $ | Other income, net | ||||||||
| Less: Tax effect | ( | ( | Income tax expense | ||||||||
| $ | $ | Net of tax | |||||||||
| Gains (losses) on hedging activities | |||||||||||
| Foreign exchange contracts | $ | $ | Cost of sales | ||||||||
| Interest rate contracts | ( | ( | Interest expense, net | ||||||||
| Fair value hedges | ( | Other income, net | |||||||||
| ( | Total before tax | ||||||||||
| Less: Tax effect | ( | Income tax expense | |||||||||
| $ | ( | $ | Net of tax | ||||||||
| Total reclassifications for the period | $ | ( | $ | Total net of tax | |||||||
| (in millions) | March 31, 2024 | December 31, 2023 | ||||||
| Contract manufacturing services | $ | $ | ||||||
| Software sales | ||||||||
| Bundled equipment and consumable medical products contracts | ||||||||
| Contract assets | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Balance at beginning of period | $ | $ | ||||||
| New revenue deferrals | ||||||||
| Revenue recognized upon satisfaction of performance obligations | ( | ( | ||||||
| Currency translation | ||||||||
| Balance at end of period | $ | $ | ||||||
| (in millions) | March 31, 2024 | December 31, 2023 | ||||||
| Prepaid expenses and other current assets | $ | $ | ||||||
| Other non-current assets | ||||||||
| Contract assets | $ | $ | ||||||
| Accrued expenses and other current liabilities | $ | $ | ||||||
| Other non-current liabilities | ||||||||
| Contract liabilities | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Sales-type lease revenue | $ | $ | ||||||
| Operating lease revenue | ||||||||
| Variable lease revenue | ||||||||
| Total lease revenue | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Restructuring charges | $ | $ | ||||||
| Costs to implement business optimization programs | ||||||||
| Total business optimization charges | $ | $ | ||||||
| Three months ended March 31, 2024 | ||||||||||||||
| (in millions) | COGS | SG&A | R&D | Total | ||||||||||
| Employee termination costs | $ | $ | $ | $ | ||||||||||
| Contract termination and other costs | ||||||||||||||
| Asset impairments | ||||||||||||||
| Total restructuring charges | $ | $ | $ | $ | ||||||||||
| Three months ended March 31, 2023 | ||||||||||||||
| (in millions) | COGS | SG&A | R&D | Total | ||||||||||
| Employee termination costs | $ | $ | $ | $ | ||||||||||
| Contract termination and other costs | ||||||||||||||
| Asset impairments | ||||||||||||||
| Total restructuring charges | $ | $ | $ | $ | ||||||||||
| (in millions) | |||||
| Liability balance as of December 31, 2023 | $ | ||||
| Charges | |||||
| Payments | ( | ||||
| Currency translation | |||||
| Liability balance as of March 31, 2024 | $ | ||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Pension benefits | ||||||||
| Service cost | $ | $ | ||||||
| Interest cost | ||||||||
| Expected return on plan assets | ( | ( | ||||||
| Amortization of net losses and prior service costs | ||||||||
| Net periodic pension cost | $ | ( | $ | |||||
| OPEB | ||||||||
| Interest cost | $ | $ | ||||||
| Amortization of net loss and prior service credit | ( | ( | ||||||
| Net periodic OPEB cost (income) | $ | ( | $ | ( | ||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Income from continuing operations | $ | $ | ||||||
| Less: Net income attributable to noncontrolling interests | ||||||||
| Income (loss) from continuing operations attributable to Baxter stockholders | ( | |||||||
| Income from discontinued operations | ||||||||
| Net income attributable to Baxter stockholders | $ | $ | ||||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Basic shares | ||||||||
| Effect of dilutive securities | ||||||||
| Diluted shares | ||||||||
| Gain (loss) recognized in OCI | Location of gain (loss) in income statement | Gain (loss) reclassified from AOCI into income | ||||||||||||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Cash flow hedges | ||||||||||||||||||||||||||
| Interest rate contracts | $ | $ | Interest expense, net | $ | ( | $ | ( | |||||||||||||||||||
| Foreign exchange contracts | Cost of sales | |||||||||||||||||||||||||
| Fair value hedges | ||||||||||||||||||||||||||
| Foreign exchange contracts | ( | Other income, net | ( | |||||||||||||||||||||||
| Net investment hedges | ( | Other income, net | ||||||||||||||||||||||||
| Total | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
| Location of gain (loss) in income statement | Gain (loss) recognized in income | |||||||||||||
| (in millions) | 2024 | 2023 | ||||||||||||
| Fair value hedges | ||||||||||||||
| Foreign exchange contracts | Other income, net | $ | ( | $ | ||||||||||
| Undesignated derivative instruments | ||||||||||||||
| Foreign exchange contracts | Other income, net | ( | ( | |||||||||||
| Total | $ | ( | $ | ( | ||||||||||
| Derivatives in asset positions | Derivatives in liability positions | ||||||||||||||||
| (in millions) | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||
| Undesignated derivative instruments | |||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | $ | Accrued expenses and other current liabilities | $ | |||||||||||||
| Derivative instruments designated as hedges | |||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | Accrued expenses and other current liabilities | |||||||||||||||
| Total derivative instruments | $ | $ | |||||||||||||||
| Derivatives in asset positions | Derivatives in liability positions | ||||||||||||||||
| (in millions) | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||
| Undesignated derivative instruments | |||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | $ | Accrued expenses and other current liabilities | $ | |||||||||||||
| Derivative instruments designated as hedges | |||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | Accrued expenses and other current liabilities | |||||||||||||||
| Total derivative instruments | $ | $ | |||||||||||||||
| March 31, 2024 | December 31, 2023 | ||||||||||||||||
| (in millions) | Asset | Liability | Asset | Liability | |||||||||||||
| Gross amounts recognized in the condensed consolidated balance sheets | $ | $ | $ | $ | |||||||||||||
| Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet | ( | ( | ( | ( | |||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||
| Carrying amount of hedged item | Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged item (a) | ||||||||||||||||
| (in millions) | Balance as of March 31, 2024 | Balance as of December 31, 2023 | Balance as of March 31, 2024 | Balance as of December 31, 2023 | |||||||||||||
| Long-term debt | $ | $ | $ | $ | |||||||||||||
| Basis of fair value measurement | ||||||||||||||
| (in millions) | Balance as of March 31, 2024 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||
| Assets | ||||||||||||||
| Foreign exchange contracts | $ | $ | $ | $ | ||||||||||
| Available-for-sale debt securities | ||||||||||||||
| Marketable equity securities | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Liabilities | ||||||||||||||
| Foreign exchange contracts | $ | $ | $ | $ | ||||||||||
| Contingent payments related to acquisitions | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Basis of fair value measurement | ||||||||||||||
| (in millions) | Balance as of December 31, 2023 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||
| Assets | ||||||||||||||
| Foreign exchange contracts | $ | $ | $ | $ | ||||||||||
| Available-for-sale debt securities | ||||||||||||||
| Marketable equity securities | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Liabilities | ||||||||||||||
| Foreign exchange contracts | $ | $ | $ | $ | ||||||||||
| Contingent payments related to acquisitions | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Three months ended March 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| (in millions) | Contingent payments related to acquisitions | Available-for-sale debt securities | Contingent payments related to acquisitions | Available-for-sale debt securities | |||||||||||||
| Fair value at beginning of period | $ | $ | $ | $ | |||||||||||||
| Change in fair value recognized in earnings | ( | ||||||||||||||||
| Transfers out of Level 3 | ( | ||||||||||||||||
| Payments | ( | ||||||||||||||||
| Fair value at end of period | $ | $ | $ | $ | |||||||||||||
| Book values | Fair values(a) | ||||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Liabilities | |||||||||||||||||
| Current maturities of long-term debt and finance lease obligations | $ | $ | $ | $ | |||||||||||||
| Long-term debt and finance lease obligations | |||||||||||||||||
| Three months ended March 31, | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| (in millions) | U.S. | International | Total | U.S. | International | Total | |||||||||||||||||
Infusion Therapies and Technologies | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Advanced Surgery | |||||||||||||||||||||||
| Medical Products and Therapies | |||||||||||||||||||||||
Care and Connectivity Solutions | |||||||||||||||||||||||
Front Line Care | |||||||||||||||||||||||
Healthcare Systems and Technologies | |||||||||||||||||||||||
Injectables and Anesthesia | |||||||||||||||||||||||
| Drug Compounding | |||||||||||||||||||||||
| Pharmaceuticals | |||||||||||||||||||||||
Chronic Therapies1 | |||||||||||||||||||||||
Acute Therapies1 | |||||||||||||||||||||||
| Kidney Care | |||||||||||||||||||||||
Other1 | |||||||||||||||||||||||
| Total Baxter | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Three months ended March 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| United States | $ | $ | |||||||||
Emerging markets1 | |||||||||||
Rest of world2 | |||||||||||
| Total Baxter | $ | $ | |||||||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Medical Products and Therapies | $ | $ | ||||||
| Healthcare Systems and Technologies | ||||||||
| Pharmaceuticals | ||||||||
| Kidney Care | ||||||||
| Other | ||||||||
| Total | ||||||||
| Unallocated corporate costs | ( | ( | ||||||
| Intangible asset amortization expense | ( | ( | ||||||
| Business optimization items | ( | ( | ||||||
| Acquisition and integration items | ( | |||||||
| Separation-related costs | ( | ( | ||||||
| European Medical Devices Regulation | ( | ( | ||||||
| Total operating income | ||||||||
| Interest expense, net | ||||||||
| Other income, net | ( | ( | ||||||
| Income from continuing operations before income taxes | $ | $ | ||||||
| Three Months Ended March 31, | Percent change | ||||||||||||||||
| (in millions) | 2024 | 2023 | At actual currency rates | At constant currency rates 1 | |||||||||||||
| United States | $ | 1,659 | $ | 1,667 | (0) | % | 0 | % | |||||||||
Emerging markets2 | 778 | 757 | 3 | % | 4 | % | |||||||||||
Rest of world3 | 1,155 | 1,089 | 6 | % | 6 | % | |||||||||||
| Total net sales | $ | 3,592 | $ | 3,513 | 2 | % | 3 | % | |||||||||
| Three Months Ended March 31, | Percent change | ||||||||||||||||
| (in millions) | 2024 | 2023 | At actual currency rates | At constant currency rates 1 | |||||||||||||
Infusion Therapies and Technologies | $ | 966 | $ | 911 | 6 | % | 6 | % | |||||||||
| Advanced Surgery | 263 | 246 | 7 | % | 8 | % | |||||||||||
| Total Medical Product and Therapies net sales | $ | 1,229 | $ | 1,157 | 6 | % | 6 | % | |||||||||
| Three Months Ended March 31, | Percent change | ||||||||||||||||
| (in millions) | 2024 | 2023 | At actual currency rates | At constant currency rates 1 | |||||||||||||
| Care and Connectivity Solutions | $ | 402 | $ | 429 | (6) | % | (7) | % | |||||||||
| Front Line Care | 265 | 302 | (12) | % | (12) | % | |||||||||||
| Total Healthcare Systems and Technologies net sales | $ | 667 | $ | 731 | (9) | % | (9) | % | |||||||||
| Three Months Ended March 31, | Percent change | ||||||||||||||||
| (in millions) | 2024 | 2023 | At actual currency rates | At constant currency rates 1 | |||||||||||||
Injectables and Anesthesia | $ | 328 | $ | 305 | 8 | % | 8 | % | |||||||||
| Drug Compounding | 250 | 218 | 15 | % | 15 | % | |||||||||||
| Total Pharmaceuticals net sales | $ | 578 | $ | 523 | 11 | % | 11 | % | |||||||||
| Three Months Ended March 31, | Percent change | ||||||||||||||||
| (in millions) | 2024 | 2023 | At actual currency rates | At constant currency rates 1 | |||||||||||||
Chronic Therapies | $ | 888 | $ | 884 | 0 | % | 2 | % | |||||||||
| Acute Therapies | 214 | 188 | 14 | % | 15 | % | |||||||||||
| Total Kidney Care net sales | $ | 1,102 | $ | 1,072 | 3 | % | 4 | % | |||||||||
| Three Months Ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Gross Margin | ||||||||
| Intangible asset amortization expense | $ | (114) | $ | (110) | ||||
Business optimization items1 | (14) | (35) | ||||||
Acquisition and integration items2 | (1) | — | ||||||
European medical devices regulation3 | (8) | (12) | ||||||
Separation-related costs4 | (4) | (1) | ||||||
| Total Special Items | $ | (141) | $ | (158) | ||||
| Impact on Gross Margin Ratio | (3.9) pts | (4.5) pts | ||||||
| Selling, General and Administrative (SG&A) Expenses | ||||||||
| Intangible asset amortization expense | $ | 52 | $ | 52 | ||||
Business optimization items1 | 27 | 92 | ||||||
Acquisition and integration items2 | 4 | 6 | ||||||
Separation-related costs4 | 88 | $ | 8 | |||||
| Total Special Items | $ | 171 | $ | 158 | ||||
| Impact on SG&A Ratio | 4.8 pts | 4.5 pts | ||||||
| Research and Development (R&D) Expenses | ||||||||
Business optimization items1 | $ | 16 | $ | 7 | ||||
| Total Special Items | $ | 16 | $ | 7 | ||||
| Impact on R&D Ratio | 0.4 pts | 0.2 pts | ||||||
| Other Operating Income, net | ||||||||
Acquisition and integration items2 | $ | — | $ | (13) | ||||
| Total Special Items | $ | — | $ | (13) | ||||
| Income Tax Expense | ||||||||
Tax matters5 | $ | 37 | $ | 3 | ||||
Tax effects of special items6 | (71) | $ | (64) | |||||
| Total Special Items | $ | (34) | $ | (61) | ||||
| Impact on Effective Tax Rate | 41.4 pts | 76.9 pts | ||||||
| Three months ended March 31, | ||||||||||||||||||||
| 2024 | % of net sales | 2023 | % of net sales | $ change | % change | |||||||||||||||
| Gross margin | $ | 1,387 | 38.6 | % | $ | 1,275 | 36.3 | % | $ | 112 | 8.8 | % | ||||||||
| SG&A | $ | 1,027 | 28.6 | % | $ | 995 | 28.3 | % | $ | 32 | 3.2 | % | ||||||||
| R&D | $ | 176 | 4.9 | % | $ | 164 | 4.7 | % | $ | 12 | 7.3 | % | ||||||||
| Three months ended March 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Medical Products and Therapies | $ | 227 | $ | 197 | ||||
| % of Segment Net Sales | 18.5 | % | 17.0 | % | ||||
| Healthcare Systems and Technologies | 67 | 112 | ||||||
| % of Segment Net Sales | 10.0 | % | 15.3 | % | ||||
| Pharmaceuticals | 78 | 87 | ||||||
| % of Segment Net Sales | 13.5 | % | 16.6 | % | ||||
| Kidney Care | 159 | 57 | ||||||
| % of Segment Net Sales | 14.4 | % | 5.3 | % | ||||
| Other | 4 | 7 | ||||||
| Total | 535 | 460 | ||||||
| Unallocated corporate costs | (20) | (21) | ||||||
| Intangible asset amortization expense | (166) | (162) | ||||||
| Business optimization items | (57) | (134) | ||||||
| Acquisition and integration items | (5) | 7 | ||||||
| Separation-related costs | (92) | (9) | ||||||
| European Medical Devices Regulation | (8) | (12) | ||||||
| Total operating income | 187 | 129 | ||||||
| Interest expense, net | 78 | 117 | ||||||
| Other income, net | (7) | (2) | ||||||
| Income from continuing operations before income taxes | $ | 116 | $ | 14 | ||||
| Three months ended March 31, | |||||||||||
| (in millions) | 2024 | 2023 | |||||||||
| Cash flows from operations - continuing operations | $ | 163 | $ | 469 | |||||||
| Cash flows from investing activities - continuing operations | (166) | $ | (163) | ||||||||
| Cash flows from financing activities | (140) | $ | (372) | ||||||||
• | our ability to execute and complete strategic initiatives, asset dispositions, and other transactions, including the proposed separation of our Kidney Care business, our plans to simplify our manufacturing footprint and the timing for such transactions, the ability to satisfy any applicable conditions, and the expected proceeds, consideration, and benefits; | |||||||
• | failure to accurately forecast or achieve our short-and long-term financial performance and goals (including with respect to our strategic initiatives and other actions) and related impacts on our liquidity; | |||||||
• | our ability to execute on our capital allocation plans, including our debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds, and, if we proceed with the separation of the Kidney Care business in the form of a spinoff, the capital structure of the public company that would be formed (and the resulting capital structure for the remaining company); | |||||||
• | our ability to successfully integrate acquisitions; | |||||||
• | the impact of global economic conditions (including, among other things, inflation levels, interest rates, financial market volatility, banking crises, the potential for a recession, the war in Ukraine, the conflict in the Middle East (including recent attacks on merchant ships in the Red Sea), tensions amongst China, Taiwan, and the U.S. and the potential for escalation of these conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars and global public health crises, pandemics and epidemics, such as the COVID-19 pandemic, or the anticipation of any of the foregoing, on our operations and our employees, customers, suppliers, and foreign governments in countries in which we operate; | |||||||
• | downgrades to our credit ratings or ratings outlooks, and the related impact on our funding costs and liquidity; | |||||||
• | product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale, and the general unpredictability associated with the product development cycle; | |||||||
• | product quality or patient safety issues leading to product recalls, withdrawals, launch delays, warning letters, import bans, sanctions, seizures, litigation, or declining sales, including the focus on evaluating product portfolios for the potential presence or formation of nitrosamines; | |||||||
• | future actions of, or failures to act or delays in acting by FDA, the European Medicines Agency, or any other regulatory body or government authority (including the SEC, DOJ, or the Attorney General of any state) that could delay, limit, or suspend product development, manufacturing, or sale, or result in seizures, recalls, injunctions, monetary sanctions, or criminal or civil liabilities; | |||||||
• | demand and market acceptance risks for, and competitive pressures related to, new and existing products, challenges with accurately predicting changing customer preferences and future expenditures and inventory levels and with being able to monetize new and existing products and services, the impact of those products on quality and patient safety concerns, and the need for ongoing training and support for our products; | |||||||
• | breaches, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in, our information technology systems, or products; | |||||||
• | the continuity, availability, and pricing of acceptable raw materials and component parts, our ability to pass some or all of these costs to our customers through price increases or otherwise, and the related continuity of our manufacturing and distribution and those of our suppliers; | |||||||
• | inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties, including as a result of natural disaster, war, terrorism, global public health crises and epidemics/pandemics, regulatory actions, or otherwise; | |||||||
• | our ability to finance and develop new products or enhancements on commercially acceptable terms or at all; | |||||||
• | loss of key employees, the occurrence of labor disruptions (including as a result of labor disagreements under bargaining agreements or national trade union agreements or disputes with works councils) or the inability to attract, develop, retain, and engage employees; | |||||||
• | failures with respect to our quality, compliance, or ethics programs; | |||||||
• | future actions of third parties, including third-party payors and our customers and distributors (including GPOs and IDNs); | |||||||
• | changes to legislation and regulation and other governmental pressures in the United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, including new or amended laws, rules, and regulations, as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification, and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation, and rebate policies; | |||||||
• | the outcome of pending or future litigation; | |||||||
• | the impact of competitive products and pricing, including generic competition, drug reimportation, and disruptive technologies; | |||||||
• | global regulatory, trade, and tax policies, including with respect to climate change and other sustainability matters; | |||||||
• | the ability to protect or enforce our patents or other proprietary rights (including trademarks, copyrights, trade secrets, and know-how) or where the patents of third parties prevent or restrict our manufacture, sale, or use of affected products or technology; | |||||||
• | the impact of any goodwill, intangible asset, or other long-lived asset impairments on our operating results; | |||||||
• | fluctuations in foreign exchange and interest rates; | |||||||
• | any changes in law concerning the taxation of income (whether with respect to current or future tax reform); | |||||||
• | actions by tax authorities in connection with ongoing tax audits; | |||||||
• | other factors identified elsewhere in this report and other filings with the SEC, including those factors described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, all of which are available on our website. | |||||||
| BAXTER INTERNATIONAL INC. | ||||||||
| (Registrant) | ||||||||
| Date: May 2, 2024 | ||||||||
| By: | /s/ Joel T. Grade | |||||||
| Joel T. Grade Executive Vice President and Chief Financial Officer, (duly authorized officer and principal financial officer) | ||||||||
| /s/ José E. Almeida | |||||
| José E. Almeida | |||||
| Chair, President and | |||||
| Chief Executive Officer | |||||
| /s/ Joel T. Grade | |||||
| Joel T. Grade | |||||
| Executive Vice President and Chief Financial Officer | |||||
| /s/ José E. Almeida | |||||
| José E. Almeida | |||||
| Chair, President and | |||||
| Chief Executive Officer | |||||
| /s/ Joel T. Grade | |||||
| Joel T. Grade | |||||
| Executive Vice President and Chief Financial Officer | |||||
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for accounts receivable, current | $ 121 | $ 129 |
| Common stock, par value (in dollars per share) | $ 1 | $ 1 |
| Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
| Common stock, issued (in shares) | 683,494,944 | 683,494,944 |
| Treasury stock, shares (in shares) | 173,930,493 | 175,861,893 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Statement of Comprehensive Income [Abstract] | ||
| Currency translation adjustments, tax | $ 11 | $ (13) |
| Pension and other postretirement benefits, tax | 3 | (1) |
| Hedging activities, tax | 2 | (1) |
| Less: Comprehensive income attributable to noncontrolling interests | $ 2 | $ 1 |
Condensed Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
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| Statement of Cash Flows [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ 3,026 | $ 3,194 | $ 1,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash included in other non-current assets | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash | [1] | $ 3,030 | $ 3,198 | $ 1,677 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BASIS OF PRESENTATION |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (we, our or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) in the United States have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the current interim period are not necessarily indicative of the results of operations to be expected for the full year. In January 2023, we announced our intention to separate our Kidney Care business into a new, publicly traded company. In March 2024, we announced that we have been in recent discussions with select private equity investors to explore a potential sale of our Kidney Care business in lieu of the proposed spinoff. Regardless of the separation structure ultimately selected, the separation of our Kidney Care business is currently expected to be completed during the second half of 2024, subject to the satisfaction of customary conditions. Risks and Uncertainties Supply Constraints and Global Economic Conditions We have experienced significant challenges to our global supply chain in recent periods, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices), and higher transportation costs, resulting from the pandemic and other exogenous factors including significant weather events, elevated inflation levels, disruptions to certain ports of call and access to shipping lanes around the world, the war in Ukraine, the conflict in the Middle East (including attacks on merchant ships in the Red Sea), tensions amongst China, Taiwan, and the U.S., and other geopolitical events. These challenges, including the unavailability of certain raw materials and component parts, have also had a negative impact on our sales for certain product categories due to our inability to fully satisfy demand. While we have seen meaningful improvements in the availability of certain component parts and improved pricing of certain raw materials and on certain transportation costs, these challenges may have a negative impact on our sales in the future. We expect that the challenges caused by global economic conditions, among other factors, may continue to have an adverse effect on our business.
|
DISCONTINUED OPERATIONS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 29, 2023, we sold our BioPharma Solutions (BPS) business to Advent International and Warburg Pincus (collectively, the "buyers"). The BPS business, which was historically reported within our former Americas segment, provided contract manufacturing and development services, which include sterile fill-finish manufacturing and support services across clinical and commercial applications, primarily serving customers in the pharmaceutical industry. BPS was historically operated through our former, wholly-owned subsidiaries Baxter Pharmaceutical Solutions LLC, a Delaware limited liability company, and Baxter Oncology GmbH, a German limited liability company (collectively, the divested entities). We concluded that our BPS business met the criteria to be classified as held-for-sale in May 2023. A component of an entity is reported in discontinued operations after meeting the criteria for held-for-sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our BPS business, including its significance to our overall net income and earnings per share, and determined that those conditions for discontinued operations presentation had been met. As such, the financial position, results of operations and cash flows of that business are reported as discontinued operations in the accompanying consolidated financial statements. Prior period amounts have been adjusted to reflect discontinued operations presentation. At closing of the transaction, Baxter entered into a Transition Services Agreement (TSA) and a Master Commercial Manufacturing and Supply Agreement (MSA) with the divested entities. Pursuant to the TSA, Baxter and the divested entities will provide to each other, on an interim basis, specific transition services for up to 24 months post-closing to help ensure business continuity and minimize disruptions. Services to be provided under the TSA include finance, information technology, human resources, integrated supply chain, and certain other administrative services. Pursuant to the MSA, the divested entities will provide development, manufacturing, regulatory, and other related services for certain Baxter pharmaceutical products for up to 5 years post-closing (with certain extension rights as provided therein). Results of Discontinued Operations The following table summarizes the major classes of line items included in income from discontinued operations, net of tax, for the three months ended March 31, 2023:
For the three months ended March 31, 2023, selling, general and administrative expenses (SG&A) include $7 million of separation-related costs incurred in connection with the sale of BPS.
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SUPPLEMENTAL FINANCIAL INFORMATION |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Allowance for Doubtful Accounts The following table is a summary of the changes in our allowance for doubtful accounts for the three months ended March 31, 2024 and 2023.
Inventories
Property, Plant and Equipment, Net
Interest Expense, Net
Other Income, Net
Non-Cash Operating and Investing Activities Right-of-use operating lease assets obtained in exchange for lease obligations for the three months ended March 31, 2024 and 2023 were $20 million and $26 million, respectively. Purchases of property, plant and equipment included in accounts payable as of March 31, 2024 and 2023 were $52 million and $70 million, respectively.
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GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following is a reconciliation of goodwill by segment.
For the periods ended March 31, 2024 and 2023, there were no reductions in goodwill relating to impairment losses. Other intangible assets, net The following is a summary of our other intangible assets. Intangible asset amortization expense was $166 million and $162 million for the three months ended March 31, 2024 and 2023, respectively.
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FINANCING ARRANGEMENTS |
3 Months Ended |
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Mar. 31, 2024 | |
| Debt Disclosure [Abstract] | |
| FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Credit Facilities In the first quarter of 2024, we amended the credit agreements governing our U.S. dollar-denominated term loan credit facility and revolving credit facility and the guaranty agreement with respect to our Euro-denominated revolving credit facility, in each case to amend the net leverage ratio covenant to increase the maximum net leverage ratio for the six fiscal quarters ending June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025. The amendment further provides for the reduction of the capacity under our U.S dollar-denominated revolving credit facility from $2.50 billion to $2.00 billion on the earlier of September 30, 2024 or the date of the sale or spinoff of our Kidney Care business. Costs incurred in connection with the amendment were not material. Our U.S. dollar-denominated revolving credit facility currently has a capacity of $2.50 billion and our Euro-denominated revolving credit facility has a capacity of €200 million. Each of the facilities matures in 2026. There were no borrowings outstanding under these credit facilities as of March 31, 2024 or December 31, 2023. Our commercial paper borrowing arrangements require us to maintain undrawn borrowing capacity under our credit facilities for an amount at least equal to our outstanding commercial paper borrowings. Based on our covenant calculations as of March 31, 2024 we have capacity to draw on the full amounts under our credit facilities. In the first three months of 2024, we repaid $13 million of senior notes at maturity.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are involved in product liability, patent, commercial, and other legal matters that arise in the normal course of our business. We record a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. As of March 31, 2024 and December 31, 2023, our total recorded reserves with respect to legal and environmental matters were $30 million and $31 million, respectively. We have established reserves for certain of the matters discussed below. We are not able to estimate the amount or range of any loss for certain contingencies for which there is no reserve or additional loss for matters already reserved. While our liability in connection with these claims cannot be estimated and the resolution thereof in any reporting period could have a significant impact on our results of operations and cash flows for that period, the outcome of these legal proceedings is not expected to have a material adverse effect on our consolidated financial position. While we believe that we have valid defenses in the matters set forth below, litigation is inherently uncertain, excessive verdicts do occur, and we may incur material judgments or enter into material settlements of claims. In addition to the matters described below, we remain subject to the risk of future administrative and legal actions. With respect to governmental and regulatory matters, these actions may lead to product recalls, injunctions, and other restrictions on our operations (including our ability to launch new products) and monetary sanctions, including significant civil or criminal penalties. With respect to intellectual property, we may be exposed to significant litigation concerning the scope of our and others’ rights. Such litigation could result in a loss of patent protection or the ability to market products, which could lead to a significant loss of sales, or otherwise materially affect future results of operations. Environmental We are involved as a potentially responsible party (PRP) for environmental clean-up costs at six Superfund sites. Under the U.S. Superfund statute and many state laws, generators of hazardous waste sent to a disposal or recycling site are liable for site cleanup if contaminants from that property later leak into the environment. The laws generally provide that a PRP may be held jointly and severally liable for the costs of investigating and remediating the site. Separate from these Superfund cases noted above, we are involved in ongoing environmental remediations associated with historic operations at certain of our facilities. As of March 31, 2024 and December 31, 2023, our environmental reserves, which are measured on an undiscounted basis, were $14 million and $15 million, respectively. After considering these reserves, the outcome of these matters is not expected to have a material adverse effect on our financial position or results of operations. General Litigation In March 2020, two lawsuits were filed against us in the Northern District of Illinois by plaintiffs alleging injuries as a result of exposure to ethylene oxide used in our manufacturing facility in Mountain Home, Arkansas to sterilize certain of our products. The plaintiffs sought damages, including compensatory and punitive damages in an unspecified amount, and unspecified injunctive and declaratory relief. The parties reached an agreement to settle these lawsuits in the third quarter of 2021 for amounts that were not material to our financial results, which were paid in the fourth quarter of 2021. We have since resolved, without litigation, additional claims of injuries from exposure to ethylene oxide at Mountain Home for amounts within accruals previously established as of December 31, 2021. On October 20, 2022, a lawsuit was filed against us in the Western District of Arkansas alleging injury as a result of exposure to ethylene oxide at Mountain Home. On December 16, 2022, we filed a motion to dismiss and for a more definite statement. In response, Plaintiffs filed a First Amended Complaint on January 6, 2023. We answered the First Amended Complaint on January 27, 2023. The parties reached an agreement to settle this lawsuit in the third quarter of 2023 for an amount that was not material to our financial results, which was paid in the fourth quarter of 2023. The case was dismissed on October 17, 2023. Starting in December 2023, a number of lawsuits have been filed against us in the Circuit Court of Cook County, Illinois by plaintiffs alleging injuries as a result of exposure to ethylene oxide used by several companies, including historic use by us for sterilization at our manufacturing facility in Round Lake, Illinois. The plaintiffs seek damages in an unspecified amount. We acquired Hill-Rom Holdings, Inc. (Hillrom) on December 13, 2021. In July 2021, Hill-Rom, Inc., a wholly-owned subsidiary of Hillrom, received a subpoena from the United States Office of Inspector General for the Department of Health and Human Services (the DHHS) requesting documents and information related to compliance with the False Claims Act and the Anti-Kickback Statute. The subpoena was related to a lawsuit brought under the qui tam provisions of False Claims Act. The allegations included in the unsealed complaint relate to conduct prior to our acquisition of Hillrom, and the division involved is no longer operational. Hillrom voluntarily began a related internal review, and Hillrom and Baxter cooperated fully with the DHHS and the Department of Justice (DOJ) with respect to this matter. In January 2024, the parties reached an agreement to settle the allegations. We paid the settlement amounts, which were not material to our financial results, in January 2024 and the matter was dismissed in February 2024. In October 2022, the DOJ issued a separate Civil Investigative Demand (CID) addressed to Hillrom, requesting documents and information related to compliance with the False Claims Act and the Anti-Kickback Statute. Baxter is cooperating fully with the DOJ in responding to the CID. The DHHS and DOJ often issue these types of requests when investigating alleged violations of the False Claims Act. On December 28, 2021, Linet Americas, Inc. (Linet) filed a complaint against Hill-Rom Holdings, Inc., Hill-Rom Company, Inc., and Hill-Rom Services, Inc. in the United States District Court for the Northern District of Illinois, captioned Linet Americas, Inc. v. Hill-Rom Holdings, Inc.; Hill-Rom Company, Inc.; Hill-Rom Services, Inc. Linet alleges that Hillrom violated Sections 1, 2 and 3 of The Sherman Antitrust Act of 1890 and the Illinois Antitrust Act by allegedly engaging in anti-competitive conduct in alleged markets for standard, ICU and birthing beds. Hillrom filed an answer to the complaint on January 28, 2022 and filed a motion challenging certain aspects of plaintiff's case on May 27, 2022, which was denied on January 17, 2024, subject to further discovery.
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STOCKHOLDERS’ EQUITY |
3 Months Ended |
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Mar. 31, 2024 | |
| Share-Based Payment Arrangement [Abstract] | |
| STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Cash Dividends Cash dividends declared per share for the three months ended March 31, 2024 and 2023 were $0.29. Stock Repurchase Programs In July 2012, our Board of Directors authorized a share repurchase program and the related authorization amount was subsequently increased a number of times. During the first three months of 2024 and 2023 we did not repurchase any shares under this authority. We had $1.30 billion remaining available under the authorization as of March 31, 2024.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income includes all changes in stockholders’ equity that do not arise from transactions with stockholders, and consists of net income (loss), cumulative translation adjustments (CTA), certain gains and losses from pension and other postretirement employee benefit (OPEB) plans, gains and losses on cash flow hedges, and unrealized gains and losses on available-for-sale debt securities. The following table is a net-of-tax summary of the changes in accumulated other comprehensive income (loss) (AOCI) by component for the three months ended March 31, 2024 and 2023.
(a) See table below for details about these reclassifications. The following is a summary of the amounts reclassified from AOCI to net income during the three months ended March 31, 2024 and 2023.
(a) Amounts in parentheses indicate reductions to net income Refer to Note 11 for additional information regarding the amortization of pension and OPEB items and Note 14 for additional information regarding hedging activity
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REVENUES |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUES | REVENUES Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in the contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of our contracts have multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our global payment terms are typically between 30-90 days. Our primary customers are hospitals, healthcare distribution companies, dialysis providers, and government agencies that purchase healthcare products on behalf of providers. Most of our performance obligations are satisfied at a point in time. This includes sales of our broad portfolio of essential healthcare products across our business segments. We earn revenues from acute and chronic dialysis therapies; sterile IV solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products; smart bed systems; patient monitoring and diagnostic technologies; respiratory health devices; and advanced equipment for the surgical space. For most of those offerings, our performance obligation is satisfied upon delivery to the customer. Shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation. To a lesser extent, we enter into arrangements for which revenue may be recognized over time. For example, we lease medical equipment to customers under operating lease arrangements and recognize the related revenues on a monthly basis over the lease term. Our Healthcare Systems and Technologies segment includes connected care solutions and collaboration tools that are implemented over time. We recognize revenue for these arrangements over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services. We also earn revenue from contract manufacturing activities, which is recognized over time as the services are performed. Revenue is recognized over time when we are creating or enhancing an asset that the customer controls as the asset is created or enhanced or our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed. As of March 31, 2024, we had $5.78 billion of transaction price allocated to remaining performance obligations related to executed contracts with an original duration of more than one year, which are primarily included in the Medical Product and Therapies and Kidney Care segments. Some contracts in the United States included in this amount contain index-dependent price increases, which are not known at this time. We expect to recognize approximately 45% of this amount as revenue over the remainder of 2024, 30% in 2025, 15% in 2026, and 10% in 2027. Significant Judgments Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration primarily related to rebates and wholesaler chargebacks. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are included in accrued expenses and other current liabilities and as reductions of accounts receivable, net on the condensed consolidated balance sheets. Management's estimates take into consideration historical experience, current contractual, and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the contract using the expected value method. The amount of variable consideration included in the net sales price is limited to the amount for which it is probable that a significant reversal in revenue will not occur when the related uncertainty is resolved. Revenue recognized during the three months ended March 31, 2024 and 2023 related to performance obligations satisfied in prior periods was not material. Additionally, our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately and determining the allocation of the transaction price may require significant judgement. 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 condensed consolidated balance sheets. Net trade accounts receivable was $2.26 billion and $2.43 billion as of March 31, 2024 and December 31, 2023, 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 certain 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 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 delivered and billed, generally over to seven years. The following table summarizes our contract assets:
Contract liabilities represent deferred revenues that arise as a result of cash received from customers or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within the next 12 months with most of the non-current performance obligations satisfied within 24 months. The following table summarizes contract liability activity for the three months ended March 31, 2024 and 2023. The contract liability balance represents the transaction price allocated to the remaining performance obligations.
For the three months ended March 31, 2024 and 2023, $48 million and $65 million of revenue was recognized that was included in contract liabilities as of December 31, 2023 and 2022, respectively. The following table summarizes the classification of contract assets and contract liabilities as reported in the condensed consolidated balance sheets:
Disaggregation of Net Sales Refer to Note 16 for additional information on our net sales including the disaggregation of net sales within each of our segments and net sales by geographic location. Lease Revenue We lease medical equipment, such as smart beds, renal dialysis equipment and infusion pumps, to customers, often in conjunction with arrangements to provide consumable medical products such as dialysis therapies, IV fluids and inhaled anesthetics. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options to shorten or extend the lease term, vary by customer. We allocate revenue between equipment leases and medical products based on their standalone selling prices. The components of lease revenue for the three months ended March 31, 2024 and 2023 were:
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BUSINESS OPTIMIZATION CHARGES |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS OPTIMIZATION CHARGES | BUSINESS OPTIMIZATION CHARGES In recent years, we have undertaken actions to transform our cost structure and enhance operational efficiency. These efforts include restructuring the organization, optimizing the manufacturing footprint, R&D operations and supply chain network, employing disciplined cost management, and centralizing and streamlining certain support functions. The related costs of those actions consisted primarily of employee termination costs, implementation costs, contract termination costs, and asset impairments. We currently expect to incur additional pre-tax costs, primarily related to implementation of business optimization programs, of approximately $15 million through the completion of initiatives that are currently underway. We continue to pursue cost savings initiatives, including those related to our newly implemented operating model, intended to simplify and streamline our operations, and to the extent further cost savings opportunities are identified, we would incur additional restructuring charges and costs to implement business optimization programs in future periods. During the three months ended March 31, 2024 and 2023, we recorded the following charges related to business optimization programs.
For segment reporting purposes, business optimization charges are unallocated expenses. Costs to implement business optimization programs for the three months ended March 31, 2024 and 2023, respectively, consisted primarily of external consulting and transition costs, including employee compensation and related costs. These costs were primarily included within cost of sales and SG&A expense. During the three months ended March 31, 2024 and 2023, we recorded the following restructuring charges.
For the three months ended March 31, 2023, our most significant restructuring action, reflecting $78 million of the restructuring charges in the table above, was related to the implementation of our new operating model. The following table summarizes activity in the liability related to our restructuring initiatives.
Substantially all of our restructuring liabilities as of March 31, 2024 relate to employee termination costs, with the remaining liabilities attributable to contract termination costs. Substantially all of the cash payments for those liabilities are expected to be disbursed by the end of 2024.
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PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS |
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| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS | PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS The following is a summary of net periodic benefit cost relating to our pension and OPEB plans.
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INCOME TAXES |
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Mar. 31, 2024 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Our effective income tax rate was 66.4% and 100.0% for the three months ended March 31, 2024 and 2023, respectively. Our effective income tax rate can differ from the 21% U.S. federal statutory rate due to a number of factors, including foreign rate differences, tax incentives, non-deductible expenses, non-taxable income, increases or decreases in valuation allowances, increases or decreases in liabilities for uncertain tax positions, and excess tax benefits or shortfalls on stock compensation awards. For the three months ended March 31, 2024, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily driven by $37 million of income tax expense resulting from internal reorganization transactions related to the proposed separation of our Kidney Care segment, an increase in a valuation allowance in a foreign jurisdiction resulting from changes in future projected income, and an increase in our liabilities for various uncertain tax positions. For the three months ended March 31, 2023, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to tax shortfalls on stock compensation awards and an increase in our liabilities for uncertain tax positions.
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EARNINGS PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS PER SHARE | EARNINGS PER SHARE The numerator for both basic and diluted earnings per share (EPS) is net income attributable to Baxter stockholders. The denominator for basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, RSUs and PSUs is reflected in the denominator for diluted EPS using the treasury stock method. The following table is a reconciliation of income from continuing operations to net income attributable to Baxter stockholders.
The following table is a reconciliation of basic shares and diluted shares.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We operate on a global basis and are exposed to the risk that our earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange and interest rates. Our hedging policy attempts to manage these risks to an acceptable level based on our judgment of the appropriate trade-off between risk, opportunity and costs. We are primarily exposed to foreign exchange risk with respect to recognized assets and liabilities, forecasted transactions and net assets denominated in the Euro, British Pound, Chinese Renminbi, Japanese Yen, Swedish Krona, Polish Zloty, Mexican Peso, Australian Dollar, Canadian Dollar, Korean Won, Colombian Peso, Brazilian Real, Turkish Lira, and Indian Rupee. We manage our foreign currency exposures on a consolidated basis, which allows us to net exposures and take advantage of any natural offsets. In addition, we use derivative and nonderivative instruments to further reduce the net exposure to foreign exchange risk. Gains and losses on the hedging instruments offset losses and gains on the hedged transactions and reduce the earnings and equity volatility resulting from changes in foreign exchange rates. Financial market and currency volatility may limit our ability to cost-effectively hedge these exposures. We are also exposed to the risk that our earnings and cash flows could be adversely impacted by fluctuations in interest rates. Our policy is to manage interest costs using the mix of fixed- and floating-rate debt that we believe is appropriate at that time. To manage this mix in a cost-efficient manner, we periodically enter into interest rate swaps in which we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. We do not hold any instruments for trading purposes and none of our outstanding derivative instruments contain credit-risk-related contingent features. Derivative instruments are recognized as either assets or liabilities at fair value in the condensed consolidated balance sheets and are classified as short-term or long-term based on the scheduled maturity of the instrument. We designate certain of our derivatives and foreign-currency denominated debt as hedging instruments in cash flow, fair value or net investment hedges. Cash Flow Hedges We may use options, including collars and purchased options, forwards and cross-currency swaps to hedge the foreign exchange risk to earnings relating to forecasted transactions and recognized assets and liabilities. We periodically use treasury rate locks to hedge the risk to earnings associated with movements in interest rates relating to anticipated issuances of debt. For each derivative instrument that is designated and effective as a cash flow hedge, the gain or loss on the derivative is recorded in AOCI and then recognized in earnings consistent with the underlying hedged item. Option premiums or net premiums paid are initially recorded as assets and reclassified to other comprehensive income (OCI) over the life of the option, and then recognized in earnings consistent with the underlying hedged item. Cash flow hedges are classified in cost of sales and interest expense, net, and are primarily related to forecasted intra-company sales denominated in foreign currencies and forecasted interest payments on anticipated issuances of debt, respectively. The notional amounts of foreign exchange contracts designated as cash flow hedges were $261 million and $340 million as of March 31, 2024 and December 31, 2023, respectively. The maximum term over which we have cash flow hedge contracts in place related to forecasted transactions at March 31, 2024 is 12 months for foreign exchange contracts. There were no outstanding interest rate contracts designated as cash flow hedges as of March 31, 2024 and December 31, 2023. Fair Value Hedges We periodically use interest rate swaps to convert a portion of our fixed-rate debt into variable-rate debt. These instruments hedge our earnings from changes in the fair value of debt due to fluctuations in the designated benchmark interest rate. For each derivative instrument that is designated and effective as a fair value hedge, the gain or loss on the derivative is recognized immediately to earnings, and offsets changes in fair value attributable to a particular risk, such as changes in interest rates, of the hedged item, which are also recognized in earnings. Changes in the fair value of hedge instruments designated as fair value hedges are classified in interest expense, net, as they hedge the interest rate risk associated with certain of our fixed-rate debt. There were no outstanding interest rate contracts designated as fair value hedges as of March 31, 2024 and December 31, 2023. In October 2023, we entered into a foreign currency forward contract with a notional amount of $798 million maturing in May 2024 and designated that derivative as a fair value hedge of our €750 million of 0.40% senior notes due May 2024. Net Investment Hedges In May 2017, we issued €600 million of 1.3% senior notes due May 2025. In May 2019, we issued €750 million of 1.3% senior notes due May 2029. We have designated these debt obligations as hedges of our net investment in our European operations and, as a result, mark to spot rate adjustments on the outstanding debt balances are recorded as a component of AOCI. In May 2019, we issued €750 million of 0.40% senior notes due May 2024. We had designated these debt obligations as hedges of our investment in our European operations and, as a result, mark to spot rate adjustments of the outstanding debt balances were previously recorded as a component of AOCI. In October 2023, we dedesignated this previously designated net investment hedge and concurrently entered into a fair value hedging relationship as discussed in the "Fair Value Hedges" section above. As of March 31, 2024, we had an accumulated pre-tax unrealized translation gain in AOCI of $75 million related to the Euro-denominated senior notes. Dedesignations If it is determined that a derivative or nonderivative hedging instrument is no longer highly effective as a hedge, we discontinue hedge accounting prospectively. Gains or losses relating to terminations of effective cash flow hedges generally continue to be deferred and are recognized consistent with the loss or income recognition of the underlying hedged items. However, if it is probable that the hedged forecasted transactions will not occur, any gains or losses would be immediately reclassified from AOCI to earnings. There were no cash flow hedge dedesignations in the first three months of 2024 or 2023 resulting from changes in our assessment of the probability that the hedged forecasted transactions would occur. The losses relating to these terminations continue to be deferred and are being recognized consistent with the underlying hedged item, interest expense on the issuance of debt. If we terminate a fair value hedge, an amount equal to the cumulative fair value adjustment to the hedged item at the date of termination is amortized to earnings over the remaining term of the hedged item. There were no fair value hedges terminated during the first three months of 2024 or 2023. If we remove a net investment hedge designation, any gain or loss recognized in AOCI is not reclassified to earnings until we sell, liquidate, or deconsolidate the foreign investments that were being hedged. There were no net investment hedges terminated during the first three months of 2024 or 2023. Undesignated Derivative Instruments We use forward contracts to hedge earnings from the effects of foreign exchange relating to certain of our intra-company and third-party receivables and payables denominated in a foreign currency. These derivative instruments are generally not formally designated as hedges and the terms of these instruments generally do not exceed one month. The total notional amount of undesignated derivative instruments was $707 million as of March 31, 2024 and $709 million as of December 31, 2023. Gains and Losses on Hedging Instruments and Undesignated Derivative Instruments The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023.
As of March 31, 2024, less than $1 million of deferred, net after-tax gains on derivative instruments included in AOCI are expected to be recognized in earnings during the next 12 months, coinciding with when the hedged items are expected to impact earnings. Derivative Assets and Liabilities The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of March 31, 2024.
The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2023.
While some of our derivatives are subject to master netting arrangements, we present our assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets. Additionally, we are not required to post collateral for any of our outstanding derivatives. The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges:
(a) These fair value hedges were terminated in 2018 and earlier periods.
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FAIR VALUE MEASUREMENTS |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis.
As of March 31, 2024 and December 31, 2023, cash and cash equivalents of $3.03 billion and $3.19 billion, respectively, included money market funds of approximately $1.47 billion and $1.63 billion, respectively, which are considered Level 2 in the fair value hierarchy. For assets that are measured using quoted prices in active markets, the fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. A majority of the derivatives entered into by us are valued using internal valuation techniques as no quoted market prices exist for such instruments. The principal techniques used to value these instruments are discounted cash flow and Black-Scholes models. The key inputs, which are considered observable and vary depending on the type of derivative, include contractual terms, interest rate yield curves, foreign exchange rates and volatility. Available-for-sale debt securities, which consist of convertible debt and convertible redeemable preferred shares issued by nonpublic entities, are measured using discounted cash flow and option pricing models. Those available-for-sale debt securities are classified as Level 3 fair value measurements when there are no observable transactions near the balance sheet date due to the lack of observable data over certain fair value inputs such as equity volatility. The fair values of available-for-sale debt securities increase when interest rates decrease, equity volatility increases, or the fair values of the equity shares underlying the conversion options increase. Contingent payments related to acquisitions, which consist of milestone payments and sales-based payments, are valued using discounted cash flow techniques incorporating management's expectations of future outcomes. The fair value of milestone payments increases as the estimated probability of payment increases or the expected timing of payments is accelerated. The fair value of sales-based payments is based upon probability-weighted future revenue estimates, and increases as revenue estimates increase, probability weighting of higher revenue scenarios increases or the expected timing of payment is accelerated. The following table is a reconciliation of recurring fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and available-for-sale debt securities.
During the three months ended March 31, 2023, available-for-sale debt securities were reclassified from Level 3, upon conversion to marketable equity securities, which are classified as Level 1 in the fair value hierarchy, upon initial public offerings of the investees. Financial Instruments Not Measured at Fair Value In addition to the financial instruments that we are required to recognize at fair value in the condensed consolidated balance sheets, we have certain financial instruments that are recognized at amortized cost or some basis other than fair value. For these financial instruments, the following table provides the values recognized in the condensed consolidated balance sheets and the estimated fair values as of March 31, 2024 and December 31, 2023.
(a) These fair value amounts are classified as Level 2 within the fair value hierarchy as they are estimated based on observable inputs. The estimated fair values of current and long-term debt were computed by multiplying price by the notional amount of the respective debt instruments. Price is calculated using the stated terms of the respective debt instrument and yield curves commensurate with our credit risk. The carrying values of other financial instruments not presented in the above table, such as accounts receivable, and accounts payable, approximate their fair values due to the short-term maturities of most of those assets and liabilities. Investments Without Readily Determinable Fair Values The carrying values of equity investments without readily determinable fair values that we measure at cost, less impairment were $67 million as of March 31, 2024 and $66 million as of December 31, 2023. When applicable, we also adjust the measurement of such equity investments for observable prices in orderly transactions for an identical or similar investment of the same issuer. Those investments are included in Other non-current assets on our condensed consolidated balance sheets.
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SEGMENT INFORMATION |
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| Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENT INFORMATION | SEGMENT INFORMATION 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, Pharmaceuticals, and Kidney Care (which we are planning to divest during the second half of 2024 through either a sale or spinoff, as discussed above). 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 peritoneal dialysis, hemodialysis, continuous renal replacement therapies, 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.
1 In connection with our segment change in the third quarter of 2023, we reclassified $8 million of sales from the first quarter of 2023 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 from BPS to Other (within continuing operations), as the related manufacturing facility was not part of that divestiture transaction. Geographic Sales Information Our net sales are attributed to the following geographic regions based on the location of the customer.
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 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 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. 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 from continuing operations before income taxes.
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.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
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| Pay vs Performance Disclosure | ||
| Net income attributable to Baxter stockholders | $ 37 | $ 44 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
| Jeanne Mason [Member] | |
| Trading Arrangements, by Individual | |
| Arrangement Duration | 544 days |
BASIS OF PRESENTATION (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (we, our or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) in the United States have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the current interim period are not necessarily indicative of the results of operations to be expected for the full year.
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| Risks and Uncertainties | Risks and Uncertainties Supply Constraints and Global Economic Conditions We have experienced significant challenges to our global supply chain in recent periods, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices), and higher transportation costs, resulting from the pandemic and other exogenous factors including significant weather events, elevated inflation levels, disruptions to certain ports of call and access to shipping lanes around the world, the war in Ukraine, the conflict in the Middle East (including attacks on merchant ships in the Red Sea), tensions amongst China, Taiwan, and the U.S., and other geopolitical events. These challenges, including the unavailability of certain raw materials and component parts, have also had a negative impact on our sales for certain product categories due to our inability to fully satisfy demand. While we have seen meaningful improvements in the availability of certain component parts and improved pricing of certain raw materials and on certain transportation costs, these challenges may have a negative impact on our sales in the future. We expect that the challenges caused by global economic conditions, among other factors, may continue to have an adverse effect on our business.
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DISCONTINUED OPERATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Results of Discontinued Operations and Assets and Liabilities of Discontinued Operations | The following table summarizes the major classes of line items included in income from discontinued operations, net of tax, for the three months ended March 31, 2023:
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SUPPLEMENTAL FINANCIAL INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The following table is a summary of the changes in our allowance for doubtful accounts for the three months ended March 31, 2024 and 2023.
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| Inventories | Inventories
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| Property, Plant and Equipment, Net | Property, Plant and Equipment, Net
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| Interest Expense, Net | Interest Expense, Net
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| Other Income, Net | Other Income, Net
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GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | The following is a reconciliation of goodwill by segment.
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| Other Intangible Assets, Net | The following is a summary of our other intangible assets.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Changes in AOCI by Component | The following table is a net-of-tax summary of the changes in accumulated other comprehensive income (loss) (AOCI) by component for the three months ended March 31, 2024 and 2023.
(a) See table below for details about these reclassifications.
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| Summary of Reclassification from AOCI to Net Income | The following is a summary of the amounts reclassified from AOCI to net income during the three months ended March 31, 2024 and 2023.
(a) Amounts in parentheses indicate reductions to net income
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REVENUES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract with Customer, Contract Asset | The following table summarizes our contract assets:
The following table summarizes contract liability activity for the three months ended March 31, 2024 and 2023. The contract liability balance represents the transaction price allocated to the remaining performance obligations.
For the three months ended March 31, 2024 and 2023, $48 million and $65 million of revenue was recognized that was included in contract liabilities as of December 31, 2023 and 2022, respectively. The following table summarizes the classification of contract assets and contract liabilities as reported in the condensed consolidated balance sheets:
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| Sales-type Lease, Lease Income | The components of lease revenue for the three months ended March 31, 2024 and 2023 were:
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| Operating Lease, Lease Income | The components of lease revenue for the three months ended March 31, 2024 and 2023 were:
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BUSINESS OPTIMIZATION CHARGES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Business Optimization Charges | During the three months ended March 31, 2024 and 2023, we recorded the following charges related to business optimization programs.
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| Components of Restructuring Charges | During the three months ended March 31, 2024 and 2023, we recorded the following restructuring charges.
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| Summary of Activity in Reserves Related to Restructuring Initiatives | The following table summarizes activity in the liability related to our restructuring initiatives.
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PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Periodic Benefit Cost Relating to Pension and Other Postemployment Employee Benefit Plans | The following is a summary of net periodic benefit cost relating to our pension and OPEB plans.
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EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Income (Loss) attributable to Stockholder | The following table is a reconciliation of income from continuing operations to net income attributable to Baxter stockholders.
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| Reconciliation of Basic Shares to Diluted Shares | The following table is a reconciliation of basic shares and diluted shares.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Gains and Losses on Derivative Instruments | The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023.
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| Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of March 31, 2024.
The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2023.
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| Derivative Positions Presented On Net Basis | The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
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| Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges | The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges:
(a) These fair value hedges were terminated in 2018 and earlier periods.
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis.
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| Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs | The following table is a reconciliation of recurring fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and available-for-sale debt securities.
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| Book Values and Fair Values of Financial Instruments | For these financial instruments, the following table provides the values recognized in the condensed consolidated balance sheets and the estimated fair values as of March 31, 2024 and December 31, 2023.
(a) These fair value amounts are classified as Level 2 within the fair value hierarchy as they are estimated based on observable inputs.
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SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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.
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| Revenue from External Customers by Geographic Areas | Our net sales are attributed to the following geographic regions based on the location of the customer.
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.
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| Operating Income to Income Before Income Taxes Reconciliation | The following table presents our segment operating income and reconciliations of segment operating income to income from continuing operations before income taxes.
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DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Sep. 29, 2023 |
Mar. 31, 2023 |
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Transaction service agreement, period | 24 months | |
| Manufacturing and supply agreement, period | 5 years | |
| Discontinued Operations, Disposed of by Sale | BioPharma Solutions | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Separation costs | $ 7 |
DISCONTINUED OPERATIONS - Major Classes of Line Items in Income From Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Other income, net | $ (7) | $ (2) |
| Income from discontinued operations, net of tax | $ 0 | 45 |
| Discontinued Operations | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Net sales | 136 | |
| Cost of sales | 64 | |
| Gross margin | 72 | |
| Selling, general and administrative expenses | 15 | |
| Other income, net | (1) | |
| Income from discontinued operations before income taxes | 56 | |
| Income from discontinued operations, net of tax | $ 11 | |
SUPPLEMENTAL FINANCIAL INFORMATION - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
| Balance at beginning of period | $ 129 | $ 114 |
| Charged to costs and expenses | (1) | 7 |
| Write-offs | (6) | (1) |
| Currency translation adjustments | (1) | 2 |
| Balance at end of period | $ 121 | $ 122 |
SUPPLEMENTAL FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Raw materials | $ 750 | $ 731 |
| Work in process | 316 | 285 |
| Finished goods | 1,922 | 1,808 |
| Inventories | $ 2,988 | $ 2,824 |
SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Property, plant and equipment, at cost | $ 11,197 | $ 11,223 |
| Accumulated depreciation | (6,827) | (6,790) |
| Property, plant and equipment, net | $ 4,370 | $ 4,433 |
SUPPLEMENTAL FINANCIAL INFORMATION - Interest Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Interest Income Expense Net | ||
| Interest expense, net of capitalized interest | $ 103 | $ 127 |
| Interest income | (25) | (10) |
| Interest expense, net | $ 78 | $ 117 |
SUPPLEMENTAL FINANCIAL INFORMATION - Other (Income) Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Other Income, net | ||
| Foreign exchange losses, net | $ 14 | $ 14 |
| Pension and other postretirement benefit plans | (12) | (10) |
| Change in fair value of marketable equity securities | (4) | (5) |
| Other, net | (5) | (1) |
| Other income, net | $ (7) | $ (2) |
SUPPLEMENTAL FINANCIAL INFORMATION - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Property, Plant and Equipment [Line Items] | ||
| Right-of-use asset obtained in exchange for operating lease liability | $ 20 | $ 26 |
| Property, Plant and Equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Capital expenditures incurred but not yet paid | $ 52 | $ 70 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Goodwill (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 31, 2024
USD ($)
| |
| Goodwill [Roll Forward] | |
| Goodwill, beginning balance | $ 6,514 |
| Currency translation | (84) |
| Goodwill, ending balance | 6,430 |
| Medical Products and Therapies | |
| Goodwill [Roll Forward] | |
| Goodwill, beginning balance | 1,241 |
| Currency translation | (38) |
| Goodwill, ending balance | 1,203 |
| Healthcare Systems and Technologies | |
| Goodwill [Roll Forward] | |
| Goodwill, beginning balance | 3,989 |
| Currency translation | (7) |
| Goodwill, ending balance | 3,982 |
| Pharmaceuticals | |
| Goodwill [Roll Forward] | |
| Goodwill, beginning balance | 563 |
| Currency translation | (17) |
| Goodwill, ending balance | 546 |
| Kidney Care | |
| Goodwill [Roll Forward] | |
| Goodwill, beginning balance | 721 |
| Currency translation | (22) |
| Goodwill, ending balance | $ 699 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets, Net (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Gross other intangible assets | $ 9,303 | $ 9,332 |
| Accumulated amortization | (3,398) | (3,253) |
| Other intangible assets, net | 5,905 | 6,079 |
| Trade names | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Indefinite-lived intangible assets | 680 | 680 |
| Accumulated amortization | 0 | 0 |
| In process Research and Development | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Indefinite-lived intangible assets | 157 | 157 |
| Accumulated amortization | 0 | 0 |
| Customer relationships | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Gross other intangible assets, finite-lived | 3,444 | 3,446 |
| Accumulated amortization | (745) | (689) |
| Other intangible assets, net, finite-lived | 2,699 | 2,757 |
| Developed technology, including patents | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Gross other intangible assets, finite-lived | 3,807 | 3,823 |
| Accumulated amortization | (2,366) | (2,285) |
| Other intangible assets, net, finite-lived | 1,441 | 1,538 |
| Trade names | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Gross other intangible assets, finite-lived | 1,097 | 1,106 |
| Accumulated amortization | (188) | (180) |
| Other intangible assets, net, finite-lived | 909 | 926 |
| Other amortized intangible assets | ||
| Intangible Asset Excluding Goodwill [Line Items] | ||
| Gross other intangible assets, finite-lived | 118 | 120 |
| Accumulated amortization | (99) | (99) |
| Other intangible assets, net, finite-lived | $ 19 | $ 21 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||
| Intangible asset amortization expense | $ 166 | $ 162 |
FINANCING ARRANGEMENTS (Details) € in Millions |
3 Months Ended | ||||
|---|---|---|---|---|---|
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2024
USD ($)
|
Mar. 31, 2024
EUR (€)
|
Dec. 31, 2023
USD ($)
|
|
| Debt Instrument [Line Items] | |||||
| Repayments of debt | $ 15,000,000 | $ 3,000,000 | |||
| Senior Notes | |||||
| Debt Instrument [Line Items] | |||||
| Repayments of debt | 13,000,000 | ||||
| Revolving Credit Facility | |||||
| Debt Instrument [Line Items] | |||||
| Line of credit, current borrowing capacity | 2,500,000,000 | € 200 | |||
| Borrowings outstanding | $ 0 | $ 0 | |||
| Revolving Credit Facility | Forecast | |||||
| Debt Instrument [Line Items] | |||||
| Line of credit, current borrowing capacity | $ 2,000,000,000 | ||||
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
|
Mar. 31, 2024
USD ($)
site
|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2020
lawsuit
|
|
| Loss Contingencies [Line Items] | |||
| Litigation reserve | $ 30 | $ 31 | |
| Number of lawsuits | lawsuit | 2 | ||
| Superfund Sites | Environmental Clean-up | |||
| Loss Contingencies [Line Items] | |||
| Number of sites | site | 6 | ||
| Environmental reserves | $ 14 | $ 15 |
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Share-Based Payment Arrangement [Abstract] | ||
| Cash dividends declared per common share (in dollars per share) | $ 0.29 | $ 0.29 |
| Purchases of treasury stock (in shares) | 0 | 0 |
| Remaining value available under stock repurchase programs | $ 1,300 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Changes in AOCI by Component (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | $ 8,468 | $ 5,895 |
| Other comprehensive income (loss) before reclassifications | (169) | 99 |
| Amounts reclassified from AOCI | 1 | (5) |
| Net other comprehensive income (loss) | (168) | 94 |
| Balance, end of period (in usd) | 8,235 | 5,941 |
| CTA | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | (2,985) | (3,386) |
| Other comprehensive income (loss) before reclassifications | (180) | 102 |
| Amounts reclassified from AOCI | 0 | 0 |
| Net other comprehensive income (loss) | (180) | 102 |
| Balance, end of period (in usd) | (3,165) | (3,284) |
| Pension and OPEB plans | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | (452) | (331) |
| Other comprehensive income (loss) before reclassifications | 5 | (3) |
| Amounts reclassified from AOCI | (1) | (3) |
| Net other comprehensive income (loss) | 4 | (6) |
| Balance, end of period (in usd) | (448) | (337) |
| Hedging activities | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | (120) | (119) |
| Other comprehensive income (loss) before reclassifications | 6 | 0 |
| Amounts reclassified from AOCI | 2 | (2) |
| Net other comprehensive income (loss) | 8 | (2) |
| Balance, end of period (in usd) | (112) | (121) |
| Available-for-sale debt securities | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | 3 | 3 |
| Other comprehensive income (loss) before reclassifications | 0 | 0 |
| Amounts reclassified from AOCI | 0 | 0 |
| Net other comprehensive income (loss) | 0 | 0 |
| Balance, end of period (in usd) | 3 | 3 |
| Total | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Balance, beginning of period (in usd) | (3,554) | (3,833) |
| Balance, end of period (in usd) | $ (3,722) | $ (3,739) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Amounts Reclassification from AOCI to Net Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Other income, net | $ 7 | $ 2 |
| Income tax expense | (77) | (14) |
| Cost of sales | (2,205) | (2,238) |
| Income from continuing operations before income taxes | 116 | 14 |
| Net income attributable to Baxter stockholders | 37 | 44 |
| Amounts reclassified from AOCI | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Net income attributable to Baxter stockholders | (1) | 5 |
| Amounts reclassified from AOCI | Pension and OPEB items | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Other income, net | 2 | 5 |
| Income tax expense | (1) | (2) |
| Net income attributable to Baxter stockholders | 1 | 3 |
| Amounts reclassified from AOCI | Gains (losses) on hedging activities | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Income tax expense | 0 | (1) |
| Income from continuing operations before income taxes | (2) | 3 |
| Net income attributable to Baxter stockholders | (2) | 2 |
| Amounts reclassified from AOCI | Gains (losses) on hedging activities | Foreign exchange contracts | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Cost of sales | 2 | 4 |
| Amounts reclassified from AOCI | Gains (losses) on hedging activities | Interest rate contracts | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Interest expense, net | (1) | (1) |
| Amounts reclassified from AOCI | Gains (losses) on hedging activities | Fair value hedges | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Other income, net | $ (3) | $ 0 |
REVENUES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Revenue From Contract With Customer [Line Items] | |||
| Transaction price allocated to remaining performance obligations | $ 5,780 | ||
| Net trade accounts receivable | 2,260 | $ 2,430 | |
| Revenue recognized upon satisfaction of performance obligations | 48 | $ 65 | |
| Sales-type lease, net of investment in lease | 69 | ||
| 2020 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Sales-type leases, receivables | 29 | ||
| 2021 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Sales-type leases, receivables | 16 | ||
| 2022 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Sales-type leases, receivables | 12 | ||
| 2023 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Sales-type leases, receivables | 10 | ||
| 2024 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Sales-type leases, receivables | $ 2 | ||
| Minimum | |||
| Revenue From Contract With Customer [Line Items] | |||
| Global payment terms | 30 days | ||
| Minimum | Software sales | |||
| Revenue From Contract With Customer [Line Items] | |||
| Revenue recognized contract period | 1 year | ||
| Minimum | Consumable Medical Products | |||
| Revenue From Contract With Customer [Line Items] | |||
| Revenue recognized contract period | 1 year | ||
| Maximum | |||
| Revenue From Contract With Customer [Line Items] | |||
| Global payment terms | 90 days | ||
| Maximum | Contract manufacturing services | |||
| Revenue From Contract With Customer [Line Items] | |||
| Revenue recognized contract period | 90 days | ||
| Maximum | Software sales | |||
| Revenue From Contract With Customer [Line Items] | |||
| Revenue recognized contract period | 5 years | ||
| Maximum | Consumable Medical Products | |||
| Revenue From Contract With Customer [Line Items] | |||
| Revenue recognized contract period | 7 years | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Remaining revenue performance obligation, percentage of revenue expected to be recognized | 45.00% | ||
| Remaining performance obligations period | 9 months | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Remaining revenue performance obligation, percentage of revenue expected to be recognized | 30.00% | ||
| Remaining performance obligations period | 1 year | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Remaining revenue performance obligation, percentage of revenue expected to be recognized | 15.00% | ||
| Remaining performance obligations period | 1 year | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |||
| Revenue From Contract With Customer [Line Items] | |||
| Remaining revenue performance obligation, percentage of revenue expected to be recognized | 10.00% | ||
| Remaining performance obligations period | 1 year | ||
REVENUES - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | $ 156 | $ 166 | |
| Contract liabilities | 197 | $ 190 | 194 |
| Revenue From Contract With Customer [Roll Forward] | |||
| Balance at beginning of period | 194 | 194 | |
| New revenue deferrals | 116 | 115 | |
| Revenue recognized upon satisfaction of performance obligations | (114) | (120) | |
| Currency translation | 1 | 1 | |
| Balance at end of period | 197 | $ 190 | |
| Prepaid expenses and other current assets | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | 53 | 53 | |
| Other non-current assets | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | 103 | 113 | |
| Accrued expenses and other current liabilities | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract liabilities | 155 | 148 | |
| Revenue From Contract With Customer [Roll Forward] | |||
| Balance at beginning of period | 148 | ||
| Balance at end of period | 155 | ||
| Other non-current liabilities | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract liabilities | 42 | 46 | |
| Revenue From Contract With Customer [Roll Forward] | |||
| Balance at beginning of period | 46 | ||
| Balance at end of period | 42 | ||
| Contract manufacturing services | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | 7 | 5 | |
| Software sales | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | 41 | 44 | |
| Bundled equipment and consumable medical products contracts | |||
| Revenue From Contract With Customer [Line Items] | |||
| Contract assets | $ 108 | $ 117 | |
REVENUES - Lease Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Sales-type lease revenue | $ 3 | $ 4 |
| Operating lease revenue | 144 | 124 |
| Variable lease revenue | 16 | 15 |
| Total lease revenue | $ 163 | $ 143 |
BUSINESS OPTIMIZATION CHARGES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Restructuring Cost and Reserve [Line Items] | ||
| Expected additional pre-tax costs | $ 15 | |
| Charges | 47 | $ 110 |
| Employee termination costs | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Charges | 36 | 87 |
| Employee termination costs | New Operating Model | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Charges | 24 | 78 |
| Contract termination and other costs | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Charges | 6 | 3 |
| Asset impairments | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Charges | $ 5 | $ 20 |
BUSINESS OPTIMIZATION CHARGES - Summary of Business Optimization Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | $ 47 | $ 110 |
| Business Optimization Programs | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 47 | 110 |
| Costs to implement business optimization programs | 10 | 24 |
| Total business optimization charges | $ 57 | $ 134 |
BUSINESS OPTIMIZATION CHARGES - Components of Restructuring Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | $ 47 | $ 110 |
| COGS | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 11 | 32 |
| SG&A | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 20 | 71 |
| R&D | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 16 | 7 |
| Employee termination costs | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 36 | 87 |
| Employee termination costs | COGS | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 5 | 17 |
| Employee termination costs | SG&A | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 15 | 63 |
| Employee termination costs | R&D | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 16 | 7 |
| Contract termination and other costs | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 6 | 3 |
| Contract termination and other costs | COGS | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 1 | 3 |
| Contract termination and other costs | SG&A | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 5 | 0 |
| Contract termination and other costs | R&D | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 0 | 0 |
| Asset impairments | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 5 | 20 |
| Asset impairments | COGS | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 5 | 12 |
| Asset impairments | SG&A | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | 0 | 8 |
| Asset impairments | R&D | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring charges | $ 0 | $ 0 |
BUSINESS OPTIMIZATION CHARGES - Summary of Activity in Reserves Related to Restructuring Initiatives (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Restructuring Reserve [Roll Forward] | ||
| Charges | $ 47 | $ 110 |
| Severance and Other Employee Related Costs | ||
| Restructuring Reserve [Roll Forward] | ||
| Reserve, beginning balance | 128 | |
| Charges | 42 | |
| Payments | (35) | |
| Currency translation | 1 | |
| Reserve, ending balance | $ 136 | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS - Net Periodic Benefit Cost Relating to Pension and Other Postemployment Employee Benefit Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Pension benefits | ||
| Net periodic benefit cost | ||
| Service cost | $ 7 | $ 6 |
| Interest cost | 38 | 37 |
| Expected return on plan assets | (50) | (44) |
| Amortization of net losses and prior service costs | 3 | 1 |
| Net periodic pension cost (income) | (2) | 0 |
| OPEB | ||
| Net periodic benefit cost | ||
| Interest cost | 2 | 2 |
| Amortization of net losses and prior service costs | (5) | (6) |
| Net periodic pension cost (income) | $ (3) | $ (4) |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Income Tax Disclosure [Abstract] | ||
| Effective income tax rate | 66.40% | 100.00% |
| U.S. Federal statutory rate | 21.00% | |
| Income tax expense from internal reorganization | $ 37 | |
EARNINGS PER SHARE - Schedule of Net Income (Loss) Attributable to Stockholder (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Earnings Per Share [Abstract] | ||
| Income from continuing operations | $ 39 | $ 0 |
| Less: Comprehensive income attributable to noncontrolling interests | 2 | 1 |
| Income (loss) from continuing operations attributable to Baxter stockholders | 37 | (1) |
| Income from discontinued operations, net of tax | 0 | 45 |
| Net income attributable to Baxter stockholders | $ 37 | $ 44 |
EARNINGS PER SHARE - Reconciliation of Basic Shares to Diluted Shares (Details) - shares shares in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Reconciliation of Basic Shares to Diluted Shares | ||
| Basic (in shares) | 508 | 505 |
| Effect of dilutive securities (in shares) | 2 | 0 |
| Diluted (in shares) | 510 | 505 |
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Earnings Per Share [Abstract] | ||
| Anti-dilutive securities excluded from computation of EPS (in shares) | 16 | 24 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) € in Millions |
3 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
Oct. 31, 2023
USD ($)
|
Oct. 31, 2023
EUR (€)
|
May 31, 2019
EUR (€)
|
May 31, 2017
EUR (€)
|
|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, fair value, terminated | $ 0 | $ 0 | |||||
| Derivative, net investment terminated | 0 | 0 | |||||
| Deferred, net after-tax gains on derivative instruments | 1,000,000 | ||||||
| Undesignated derivative instruments | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, notional amount | 707,000,000 | $ 709,000,000 | |||||
| Derivative instruments designated as hedges | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, notional amount | 0 | $ 0 | |||||
| Net investment hedge | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Accumulated pre-tax unrealized translation gain in AOCI | 75,000,000 | ||||||
| 1.30% Senior Notes Due May 2025 | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Senior notes | € | € 600 | ||||||
| Senior notes, interest rate | 1.30% | ||||||
| 0.4% Senior Notes Due May 2024 | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Senior notes | € | € 750 | € 750 | |||||
| Senior notes, interest rate | 0.40% | 0.40% | 0.40% | ||||
| 1.3% Senior Notes Due May 2029 | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Senior notes | € | € 750 | ||||||
| Senior notes, interest rate | 1.30% | ||||||
| Interest rate contracts | Cash Flow Hedging | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, fair value, net | 0 | 0 | |||||
| Foreign exchange contracts | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, notional amount | $ 261,000,000 | 340,000,000 | |||||
| Maximum length of time hedge in cash flow hedge | 12 months | ||||||
| Fair value hedges | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, notional amount | $ 798,000,000 | ||||||
| Interest rate swap | Fair value hedges | |||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
| Derivative, fair value, net | $ 0 | $ 0 | |||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Gains and Losses on Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), cash flow hedge and net investment hedge, gain (loss), before reclassification, tax | $ 46 | $ (48) |
| Other comprehensive income (loss), reclassification adjustment from AOCI, cash flow hedges and net investment hedges, net of tax | (2) | 3 |
| Total | (40) | (3) |
| Fair value hedges | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Foreign exchange contracts | (2) | 0 |
| Fair value hedges | Other income, net | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), derivative, excluded component, increase (decrease), adjustments, before tax | (3) | 0 |
| Earnings, fair value hedge, gain (loss), reclassification, before tax | (23) | 0 |
| Net Investment Hedging | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), net investment hedge, gain (loss), before reclassification and tax | 38 | (48) |
| Net Investment Hedging | Other income, net | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Net investment hedges | 0 | 0 |
| Interest rate contracts | Cash Flow Hedging | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | 0 | 0 |
| Interest rate contracts | Cash Flow Hedging | Interest expense, net | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax | (1) | (1) |
| Foreign exchange contracts | Other income, net | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gain (loss) recognized in income, undesignated derivative instruments | (17) | (3) |
| Foreign exchange contracts | Cash Flow Hedging | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | 10 | 0 |
| Foreign exchange contracts | Cash Flow Hedging | Cost of sales | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax | $ 2 | $ 4 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Classification and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Derivative asset, fair value | $ 19 | $ 51 |
| Derivative liability, fair value | 8 | 5 |
| Derivative instruments designated as hedges | Foreign exchange contracts | Prepaid expenses and other current assets | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative asset, fair value | 6 | 4 |
| Derivative instruments designated as hedges | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative liability, fair value | 1 | 5 |
| Undesignated derivative instruments | Foreign exchange contracts | Prepaid expenses and other current assets | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative asset, fair value | 13 | 47 |
| Undesignated derivative instruments | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative liability, fair value | $ 7 | $ 0 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Positions Presented On Net Basis (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Asset | ||
| Gross amounts recognized in the condensed consolidated balance sheets | $ 19 | $ 51 |
| Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet | (2) | (5) |
| Derivative asset, fair value, total | 17 | 46 |
| Liability | ||
| Gross amounts recognized in the condensed consolidated balance sheets | 8 | 5 |
| Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet | (2) | (5) |
| Derivative liability, fair value, total | $ 6 | $ 0 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges (Details) - Long-term debt - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Carrying amount of hedged item | $ 100 | $ 100 |
| Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged item | $ 3 | $ 3 |
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Assets | ||
| Foreign exchange contracts | $ 19 | $ 51 |
| Available-for-sale debt securities | 22 | 22 |
| Marketable equity securities | 31 | 44 |
| Total assets | 72 | 117 |
| Liabilities | ||
| Foreign exchange contracts | 8 | 5 |
| Contingent payments related to acquisitions | 14 | 14 |
| Total liabilities | 22 | 19 |
| Quoted prices in active markets for identical assets (Level 1) | ||
| Assets | ||
| Foreign exchange contracts | 0 | 0 |
| Available-for-sale debt securities | 0 | 0 |
| Marketable equity securities | 31 | 44 |
| Total assets | 31 | 44 |
| Liabilities | ||
| Foreign exchange contracts | 0 | 0 |
| Contingent payments related to acquisitions | 0 | 0 |
| Total liabilities | 0 | 0 |
| Significant other observable inputs (Level 2) | ||
| Assets | ||
| Foreign exchange contracts | 19 | 51 |
| Available-for-sale debt securities | 0 | 0 |
| Marketable equity securities | 0 | 0 |
| Total assets | 19 | 51 |
| Liabilities | ||
| Foreign exchange contracts | 8 | 5 |
| Contingent payments related to acquisitions | 0 | 0 |
| Total liabilities | 8 | 5 |
| Significant unobservable inputs (Level 3) | ||
| Assets | ||
| Foreign exchange contracts | 0 | 0 |
| Available-for-sale debt securities | 22 | 22 |
| Marketable equity securities | 0 | 0 |
| Total assets | 22 | 22 |
| Liabilities | ||
| Foreign exchange contracts | 0 | 0 |
| Contingent payments related to acquisitions | 14 | 14 |
| Total liabilities | $ 14 | $ 14 |
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Fair Value Disclosures [Line Items] | |||
| Cash and cash equivalents | $ 3,026 | $ 1,673 | $ 3,194 |
| Available-for-sale debt securities | |||
| Fair Value Disclosures [Line Items] | |||
| Impairment of convertible debt investment | 0 | $ 0 | |
| Other Assets | |||
| Fair Value Disclosures [Line Items] | |||
| Other equity investments without readily determinable fair values | 67 | 66 | |
| Significant other observable inputs (Level 2) | |||
| Fair Value Disclosures [Line Items] | |||
| Money market funds, at carrying value | $ 1,470 | $ 1,630 | |
FAIR VALUE MEASUREMENTS - Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Details) - USD ($) $ in Millions |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Contingent payments related to acquisitions | ||||
| Contingent payments related to acquisitions | ||||
| Fair value at beginning of period | $ 14 | $ 70 | $ 14 | $ 84 |
| Change in fair value recognized in earnings | 0 | (13) | ||
| Transfers out of Level 3 | 0 | 0 | ||
| Payments | 0 | (1) | ||
| Fair value at end of period | 14 | 70 | ||
| Available-for-sale debt securities | ||||
| Available-for-sale debt securities | ||||
| Fair value at beginning of period | 22 | 47 | ||
| Change in fair value recognized in earnings | 0 | 0 | ||
| Transfers out of Level 3 | 0 | (5) | ||
| Payments | 0 | 0 | ||
| Fair value at end of period | $ 22 | $ 42 | ||
FAIR VALUE MEASUREMENTS - Book Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Book values | ||
| Fair Value And Carrying Value By Balance Sheet Grouping [Line Items] | ||
| Current maturities of long-term debt and finance lease obligations | $ 2,634 | $ 2,668 |
| Long-term debt and finance lease obligations | 11,092 | 11,130 |
| Fair values | ||
| Fair Value And Carrying Value By Balance Sheet Grouping [Line Items] | ||
| Current maturities of long-term debt and finance lease obligations | 2,606 | 2,621 |
| Long-term debt and finance lease obligations | $ 9,872 | $ 10,067 |
SEGMENT INFORMATION - Narrative (Details) |
3 Months Ended |
|---|---|
|
Mar. 31, 2024
segment
| |
| Segment Reporting [Abstract] | |
| Number of operating segments | 4 |
SEGMENT INFORMATION - Summary of Financial Information for Our Segments (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Segment Reporting Information [Line Items] | ||
| Net sales | $ 3,592 | $ 3,513 |
| United States | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 1,659 | 1,667 |
| International | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 1,933 | 1,846 |
| BPS | Revision of Prior Period, Adjustment | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | (2) | |
| Other | Revision of Prior Period, Adjustment | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 2 | |
| Operating Segments | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 1,229 | 1,157 |
| Operating Segments | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 667 | 731 |
| Operating Segments | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 578 | 523 |
| Operating Segments | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 1,102 | 1,072 |
| Operating Segments | United States | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 673 | 658 |
| Operating Segments | United States | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 473 | 519 |
| Operating Segments | United States | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 191 | 173 |
| Operating Segments | United States | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 311 | 293 |
| Operating Segments | International | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 556 | 499 |
| Operating Segments | International | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 194 | 212 |
| Operating Segments | International | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 387 | 350 |
| Operating Segments | International | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 791 | 779 |
| Operating Segments | Infusion Therapies and Technologies | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 966 | 911 |
| Operating Segments | Infusion Therapies and Technologies | United States | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 526 | 514 |
| Operating Segments | Infusion Therapies and Technologies | International | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 440 | 397 |
| Operating Segments | Advanced Surgery | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 263 | 246 |
| Operating Segments | Advanced Surgery | United States | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 147 | 144 |
| Operating Segments | Advanced Surgery | International | Medical Products and Therapies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 116 | 102 |
| Operating Segments | Care and Connectivity Solutions | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 402 | 429 |
| Operating Segments | Care and Connectivity Solutions | United States | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 278 | 298 |
| Operating Segments | Care and Connectivity Solutions | International | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 124 | 131 |
| Operating Segments | Front Line Care | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 265 | 302 |
| Operating Segments | Front Line Care | United States | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 195 | 221 |
| Operating Segments | Front Line Care | International | Healthcare Systems and Technologies | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 70 | 81 |
| Operating Segments | Injectables and Anesthesia | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 328 | 305 |
| Operating Segments | Injectables and Anesthesia | United States | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 191 | 173 |
| Operating Segments | Injectables and Anesthesia | International | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 137 | 132 |
| Operating Segments | Drug Compounding | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 250 | 218 |
| Operating Segments | Drug Compounding | United States | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 0 | 0 |
| Operating Segments | Drug Compounding | International | Pharmaceuticals | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 250 | 218 |
| Operating Segments | Chronic Renal | Revision of Prior Period, Reclassification, Adjustment | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | (8) | |
| Operating Segments | Chronic Renal | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 888 | 884 |
| Operating Segments | Chronic Renal | United States | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 226 | 229 |
| Operating Segments | Chronic Renal | International | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 662 | 655 |
| Operating Segments | Acute Therapies | Revision of Prior Period, Reclassification, Adjustment | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 8 | |
| Operating Segments | Acute Therapies | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 214 | 188 |
| Operating Segments | Acute Therapies | United States | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 85 | 64 |
| Operating Segments | Acute Therapies | International | Kidney Care | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 129 | 124 |
| Other | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 16 | 30 |
| Other | United States | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 11 | 24 |
| Other | International | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | $ 5 | $ 6 |
SEGMENT INFORMATION - Revenue rom External Customers by Geographic Areas (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Net sales | $ 3,592 | $ 3,513 |
| United States | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Net sales | 1,659 | 1,667 |
| Emerging Markets | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Net sales | 778 | 757 |
| Rest of world | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Net sales | $ 1,155 | $ 1,089 |
SEGMENT INFORMATION - Operating Income to Income Before Income Taxes Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | $ 187 | $ 129 |
| Intangible asset amortization expense | 166 | 162 |
| Operating income | 187 | 129 |
| Interest expense, net | 78 | 117 |
| Other income, net | (7) | (2) |
| Income from continuing operations before income taxes | 116 | 14 |
| Operating Segments | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 535 | 460 |
| Operating income | 535 | 460 |
| Operating Segments | Medical Products and Therapies | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 227 | 197 |
| Operating income | 227 | 197 |
| Operating Segments | Healthcare Systems and Technologies | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 67 | 112 |
| Operating income | 67 | 112 |
| Operating Segments | Pharmaceuticals | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 78 | 87 |
| Operating income | 78 | 87 |
| Operating Segments | Kidney Care | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 159 | 57 |
| Operating income | 159 | 57 |
| Operating Segments | Other | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Total | 4 | 7 |
| Operating income | 4 | 7 |
| Segment Reconciling Items | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Unallocated corporate costs | (20) | (21) |
| Intangible asset amortization expense | (166) | (162) |
| Business optimization items | (57) | (134) |
| Acquisition and integration items | (5) | 7 |
| Separation-related costs | (92) | (9) |
| European Medical Devices Regulation | $ (8) | $ (12) |