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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 through either a sale or spinoff, as discussed in Note 1). 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 operating room integration 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, which are eliminated in consolidation, are not presented in the table below.
Three Months Ended June 30,
20242023
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies and Technologies
$579 $466 $1,045 $570 $434 $1,004 
Advanced Surgery
150 127 277 150 122 272 
Medical Products and Therapies729 593 1,322 720 556 1,276 
Care and Connectivity Solutions
332 120 452 311 125 436 
Front Line Care
218 78 296 227 80 307 
Healthcare Systems and Technologies
550 198 748 538 205 743 
Injectables and Anesthesia
197 144 341 182 150 332 
Drug Compounding— 261 261 — 218 218 
Pharmaceuticals197 405 602 182 368 550 
Chronic Therapies1
228 689 917 230 698 928 
Acute Therapies1
77 124 201 64 124 188 
Kidney Care305 813 1,118 294 822 1,116 
Other1
16 6 22 16 6 22 
Total Baxter$1,797 $2,015 $3,812 $1,750 $1,957 $3,707 
Six Months Ended June 30,
20242023
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies and Technologies
$1,105 $906 $2,011 $1,084 $831 $1,915 
Advanced Surgery
297 243 540 294 224 518 
Medical Products and Therapies1,402 1,149 2,551 1,378 1,055 2,433 
Care and Connectivity Solutions
610 244 854 609 256 865 
Front Line Care
413 148 561 448 161 609 
Healthcare Systems and Technologies
1,023 392 1,415 1,057 417 1,474 
Injectables and Anesthesia
388 281 669 355 282 637 
Drug Compounding— 511 511 — 436 436 
Pharmaceuticals388 792 1,180 355 718 1,073 
Chronic Therapies1
454 1,351 1,805 459 1,353 1,812 
Acute Therapies1
162 253 415 128 248 376 
Kidney Care616 1,604 2,220 587 1,601 2,188 
Other1
27 11 38 40 12 52 
Total Baxter$3,456 $3,948 $7,404 $3,417 $3,803 $7,220 
1     In connection with our segment change in the third quarter of 2023, we reclassified $8 million and $16 million of sales for the three and six months ended June 30, 2023, respectively, from Chronic Therapies to Acute Therapies to conform to the current period presentation.
Geographic Sales Information
Our net sales are attributed to the following geographic regions based on the location of the customer.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
United States$1,797 $1,750 $3,456 $3,417 
Emerging markets1
844 839 1,622 1,596 
Rest of world2
1,171 1,118 2,326 2,207 
Total Baxter$3,812 $3,707 $7,404 $7,220 
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 (loss) from continuing operations before income taxes.
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Medical Products and Therapies$238 $264 $465 $461 
Healthcare Systems and Technologies120 100 187 212 
Pharmaceuticals75 89 153 176 
Kidney Care83 55 242 112 
Other9 6 13 13 
Total525 514 1,060 974 
Unallocated corporate costs(3)(25)(23)(46)
Intangible asset amortization expense(167)(157)(333)(319)
Goodwill impairment(430)— (430)— 
Business optimization items(20)(293)(77)(427)
Acquisition and integration items(6)(7)(11)— 
Separation-related costs(81)(37)(173)(46)
European Medical Devices Regulation(10)(12)(18)(24)
Total operating income (loss)(192)(17)(5)112 
Interest expense, net85 124 163 241 
Other (income) expense, net(20)42 (27)40 
Loss from continuing operations before income taxes$(257)$(183)$(141)$(169)
Our chief operating decision maker does not receive any asset information by reportable segment and, accordingly, we do not report asset information by reportable segment.