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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
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.
Three months ended March 31,
20242023
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies and Technologies
$526 $440 $966 $514 $397 $911 
Advanced Surgery
147 116 263 144 102 246 
Medical Products and Therapies673 556 1,229 658 499 1,157 
Care and Connectivity Solutions
278 124 402 298 131 429 
Front Line Care
195 70 265 221 81 302 
Healthcare Systems and Technologies
473 194 667 519 212 731 
Injectables and Anesthesia
191 137 328 173 132 305 
Drug Compounding— 250 250 — 218 218 
Pharmaceuticals191 387 578 173 350 523 
Chronic Therapies1
226 662 888 229 655 884 
Acute Therapies1
85 129 214 64 124 188 
Kidney Care311 791 1,102 293 779 1,072 
Other1
11 5 16 24 6 30 
Total Baxter$1,659 $1,933 $3,592 $1,667 $1,846 $3,513 
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.
Three months ended March 31,
20242023
United States$1,659 $1,667 
Emerging markets1
778 757 
Rest of world2
1,155 1,089 
Total Baxter$3,592 $3,513 
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.
Three months ended March 31,
(in millions)20242023
Medical Products and Therapies$227 $197 
Healthcare Systems and Technologies67 112 
Pharmaceuticals78 87 
Kidney Care159 57 
Other4 7 
Total535 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, net78 117 
Other income, net(7)(2)
Income from continuing operations before income taxes$116 $14 
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.