BAXTER INTERNATIONAL INCBAX
BAXTER INTERNATIONAL INC Segments Disclosure
| SEGMENT AND GEOGRAPHIC INFORMATION | ||
Our business is comprised of three reportable segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems & Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices, and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthetics and drug compounding. Other sales not allocated to a segment primarily include sales to Vantive, pursuant to the Kidney Care MSA, and sales of products and services provided directly through certain of our manufacturing facilities.
Disaggregation of Net Sales
The following tables present our U.S. and International disaggregated net sales.
| for the years ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| (in millions) | U.S. | International | Total | U.S. | International | Total | U.S. | International | Total | ||||||||||||||||||||||||||
Infusion Therapies & Technologies | $ | 2,236 | $ | 1,865 | $ | 4,101 | $ | 2,279 | $ | 1,824 | $ | 4,103 | $ | 2,227 | $ | 1,733 | $ | 3,960 | |||||||||||||||||
Advanced Surgery | 648 | 550 | 1,198 | 603 | 501 | 1,104 | 582 | 469 | 1,051 | ||||||||||||||||||||||||||
| Medical Products & Therapies | 2,884 | 2,415 | 5,299 | 2,882 | 2,325 | 5,207 | 2,809 | 2,202 | 5,011 | ||||||||||||||||||||||||||
Care & Connectivity Solutions | 1,372 | 539 | 1,911 | 1,311 | 503 | 1,814 | 1,263 | 537 | 1,800 | ||||||||||||||||||||||||||
Front Line Care | 871 | 289 | 1,160 | 843 | 294 | 1,137 | 905 | 308 | 1,213 | ||||||||||||||||||||||||||
Healthcare Systems & Technologies | 2,243 | 828 | 3,071 | 2,154 | 797 | 2,951 | 2,168 | 845 | 3,013 | ||||||||||||||||||||||||||
Injectables & Anesthesia | 749 | 603 | 1,352 | 780 | 593 | 1,373 | 759 | 588 | 1,347 | ||||||||||||||||||||||||||
| Drug Compounding | — | 1,141 | 1,141 | — | 1,038 | 1,038 | — | 902 | 902 | ||||||||||||||||||||||||||
| Pharmaceuticals | 749 | 1,744 | 2,493 | 780 | 1,631 | 2,411 | 759 | 1,490 | 2,249 | ||||||||||||||||||||||||||
| Other | 246 | 135 | 381 | 34 | 33 | 67 | 66 | 21 | 87 | ||||||||||||||||||||||||||
| Total Baxter | $ | 6,122 | $ | 5,122 | $ | 11,244 | $ | 5,850 | $ | 4,786 | $ | 10,636 | $ | 5,802 | $ | 4,558 | $ | 10,360 | |||||||||||||||||
Geographic Information
Our net sales are attributed to the following geographic regions based on the location of the customer.
| for the years ended December 31 (in millions) | 2025 | 2024 | 2023 | ||||||||
| Net sales: | |||||||||||
| United States | $ | 6,122 | $ | 5,850 | $ | 5,802 | |||||
Emerging markets1 | 1,394 | 1,350 | 1,343 | ||||||||
Rest of world 2 | 3,728 | 3,436 | 3,215 | ||||||||
| Total net sales | $ | 11,244 | $ | 10,636 | $ | 10,360 | |||||
1 Emerging markets include sales from our operations in Eastern Europe, the Middle East, Africa, Latin America and Asia (except for Japan).
2 Rest of world includes sales from our operations in Western Europe, Canada, Japan, Australia and New Zealand.
Our property, plant and equipment and operating lease right-of-use assets, net are attributed to the following geographic regions.
| as of December 31 (in millions) | 2025 | 2024 | ||||||
| Property, plant and equipment and operating lease right-of-use assets, net: | ||||||||
| United States | $ | 1,609 | $ | 1,654 | ||||
| Emerging markets | 817 | 793 | ||||||
| Rest of world | 760 | 729 | ||||||
| Total property, plant and equipment and operating lease right-of-use assets, net | $ | 3,186 | $ | 3,176 | ||||
Segment Information
In the first quarter of 2025, in conjunction with the change in our Chief Executive Officer, we determined that our chief operating decision maker (CODM) was comprised of our Chair and Interim Chief Executive Officer, and our former Executive Vice President, Chief Operating Officer and Interim Group President, Medial Products & Therapies. In the third quarter of 2025, in conjunction with the appointment of Andrew Hider as our President and Chief Executive Officer, we determined that our President and Chief Executive Officer is now the CODM, who reviews the financial information presented for purposes of evaluating the performance of our segments and to make resource allocation decisions. The change in CODM during both the first and third quarter of 2025 did not result in a change in our segments.
Segment operating income is the measure of segment profitability and represents income before income taxes, interest and other non-operating income or expense, unallocated corporate costs, intangible asset amortization and other special items. Special items, which are presented below in our reconciliations of segment operating income to income (loss) from continuing operations before income taxes, are excluded from segment operating income because they are highly variable, difficult to predict and of a size that may substantially impact our reported results of operations for the period.
Corporate costs, inclusive of global functional support costs, overhead costs and other shared costs that benefit our segments are allocated to those segments. Corporate costs that are not allocated to our segments, as well as any differences between actual corporate costs and the amounts allocated to our segments, are presented as unallocated corporate costs.
Segment results include net sales, cost of sales, SG&A, R&D expenses, corporate costs that had previously been allocated to our former Kidney Care segment which did not convey in the related sale, and other segment items which are directly allocated to each segment. Billings by us under the Kidney Care TSA are included in other segment items as further described in Note 2. Beginning in 2024 annual reporting, we adopted ASU 2023-07 retrospectively. The following tables present our segment information of net sales, significant expenses and operating income during the periods presented.
| For the year ended December 31, 2025 | |||||||||||
| (in millions) | Medical Products & Therapies | Healthcare Systems & Technologies | Pharmaceuticals | ||||||||
| Net sales | $ | 5,299 | $ | 3,071 | $ | 2,493 | |||||
| Cost of sales | 3,065 | 1,603 | 1,777 | ||||||||
| Selling, general and administrative expenses | 1,162 | 873 | 429 | ||||||||
| Research and development expenses | 209 | 190 | 101 | ||||||||
| Other segment items | (107) | (36) | (36) | ||||||||
| Segment operating income | $ | 970 | $ | 441 | $ | 222 | |||||
| For the year ended December 31, 2024 | |||||||||||
| (in millions) | Medical Products & Therapies | Healthcare Systems & Technologies | Pharmaceuticals | ||||||||
| Net sales | $ | 5,207 | $ | 2,951 | $ | 2,411 | |||||
| Cost of sales | 2,867 | 1,464 | 1,612 | ||||||||
| Selling, general and administrative expenses | 1,176 | 836 | 396 | ||||||||
| Research and development expenses | 216 | 184 | 91 | ||||||||
| Other segment items | (2) | (1) | (1) | ||||||||
| Segment operating income | $ | 950 | $ | 468 | $ | 313 | |||||
| For the year ended December 31, 2023 | |||||||||||
| (in millions) | Medical Products & Therapies | Healthcare Systems & Technologies | Pharmaceuticals | ||||||||
| Net sales | $ | 5,011 | $ | 3,013 | $ | 2,249 | |||||
| Cost of sales | 2,720 | 1,532 | 1,400 | ||||||||
| Selling, general and administrative expenses | 1,097 | 822 | 363 | ||||||||
| Research and development expenses | 222 | 176 | 86 | ||||||||
| Other segment items | — | — | (1) | ||||||||
| Segment operating income | $ | 972 | $ | 483 | $ | 401 | |||||
The following table presents our reportable segment operating income and reconciliations of reportable segment operating income to income (loss) from continuing operations before income taxes.
| for the years ended December 31 (in millions) | 2025 | 2024 | 2023 | ||||||||
| Medical Products & Therapies | $ | 970 | $ | 950 | $ | 972 | |||||
| Healthcare Systems & Technologies | 441 | 468 | 483 | ||||||||
| Pharmaceuticals | 222 | 313 | 401 | ||||||||
| Total reportable segment operating income | 1,633 | 1,731 | 1,856 | ||||||||
| Other | 43 | 18 | 18 | ||||||||
| Unallocated corporate costs | (86) | (275) | (355) | ||||||||
| Intangible asset amortization expense | (598) | (625) | (590) | ||||||||
| Business optimization items | (178) | (162) | (174) | ||||||||
| European Medical Devices Regulation | (21) | (33) | (41) | ||||||||
| Indefinite-lived asset impairments | (290) | (50) | — | ||||||||
| (58) | — | — | |||||||||
| Legal matters | (11) | (17) | (7) | ||||||||
| Acquisition and integration items | (27) | (23) | — | ||||||||
| Product-related reserves | (113) | (15) | — | ||||||||
| Hurricane Helene Costs | (133) | (110) | — | ||||||||
| Goodwill impairments | (485) | (425) | — | ||||||||
| Gain on sale of long-lived asset | 16 | — | — | ||||||||
| Total operating income (loss) | (308) | 14 | 707 | ||||||||
| Interest expense, net | 238 | 341 | 439 | ||||||||
| Other (income) expense, net | (41) | (38) | 26 | ||||||||
| Income (loss) from continuing operations before income taxes | $ | (505) | $ | (289) | $ | 242 | |||||
Additional financial information for our segments is as follows:
| for the years ended December 31 (in millions) | 2025 | 2024 | 2023 | ||||||||
Depreciation Expense1: | |||||||||||
| Medical Products & Therapies | $ | 206 | $ | 201 | $ | 232 | |||||
| Healthcare Systems & Technologies | 112 | 109 | 108 | ||||||||
| Pharmaceuticals | 65 | 62 | 54 | ||||||||
| Total depreciation expense | $ | 383 | $ | 372 | $ | 394 | |||||
1 Depreciation expense related to Corporate property, plant and equipment has been fully allocated to our segments and those allocations are reflected in the depreciation amounts presented herein.
Our CODM does not receive asset or capital expenditure information by segment and, accordingly, we do not report that information for our reportable segments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Mar 17, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.