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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION
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 services. 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.
for the years ended December 31202420232022
(in millions)U.S.InternationalTotalU.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Technologies
$2,279 $1,824 $4,103 $2,227 $1,733 $3,960 $2,241 $1,576 $3,817 
Advanced Surgery
603 501 1,104 582 469 1,051 574 424 998 
Medical Products & Therapies2,882 2,325 5,207 2,809 2,202 5,011 2,815 2,000 4,815 
Care and Connectivity Solutions
1,311 503 1,814 1,263 537 1,800 1,295 496 1,791 
Front Line Care
843 294 1,137 905 308 1,213 840 308 1,148 
Healthcare Systems & Technologies
2,154 797 2,951 2,168 845 3,013 2,135 804 2,939 
Injectables and Anesthesia
780 593 1,373 759 588 1,347 682 623 1,305 
Drug Compounding— 1,038 1,038 — 902 902 — 821 821 
Pharmaceuticals780 1,631 2,411 759 1,490 2,249 682 1,444 2,126 
Other1
34 33 67 66 21 87 137 40 177 
Total Baxter$5,850 $4,786 $10,636 $5,802 $4,558 $10,360 $5,769 $4,288 $10,057 
1 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 and $37 million of sales for the year ended December 31, 2022 from BPS to Other (within continuing operations), as the related manufacturing facility was not part of that divestiture transaction.
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)202420232022
Net sales:
United States$5,850 $5,802 $5,769 
Emerging markets1
1,350 1,343 1,253 
Rest of world 2
3,436 3,215 3,035 
Total net sales$10,636 $10,360 $10,057 
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)20242023
Property, plant and equipment and operating lease right-of-use assets, net:
United States$1,654 $1,615 
Emerging markets793 829 
Rest of world 729 763 
Total property, plant and equipment and operating lease right-of-use assets, net$3,176 $3,207 
Segment Information
Our chief operating decision maker who has been identified as our Chair, President and Chief Executive Officer, reviews the financial information presented for purposes of evaluating the performance of our segments and to make resource allocation decisions.
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. With the results of our former Kidney Care segment reported in discontinued operations, corporate costs that had previously been allocated to the Kidney Care segment which did not convey with the Kidney Care segment in the completed sale are now presented as unallocated corporate costs.
Segment results include net sales, cost of sales, selling general and administrative expenses, research and development expenses, and other segment items which are directly allocated to each segment. 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, 2024
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$5,207 $2,951 $2,411 
Cost of sales2,867 1,464 1,612 
Selling, general and administrative expenses1,176 836 396 
Research and development expenses216 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 & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$5,011 $3,013 $2,249 
Cost of sales2,720 1,532 1,400 
Selling, general and administrative expenses1,097 822 363 
Research and development expenses222 176 86 
Other segment items— — (1)
Segment operating income$972 $483 $401 
For the year ended December 31, 2022
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$4,815 $2,939 $2,126 
Cost of sales2,584 1,463 1,293 
Selling, general and administrative expenses1,069 827 361 
Research and development expenses202 155 81 
Other segment items(2)— — 
Segment operating income$962 $494 $391 
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)202420232022
Medical Products & Therapies$950 $972 $962 
Healthcare Systems & Technologies468 483 494 
Pharmaceuticals313 401 391 
Total reportable segment operating income1,731 1,856 1,847 
Other18 18 77 
Unallocated corporate costs(275)(355)(367)
Intangible asset amortization expense(625)(590)(679)
Business optimization items(162)(174)(193)
European Medical Devices Regulation(33)(41)(42)
Long-lived asset impairments(50)— (344)
Legal matters(17)(7)— 
Acquisition and integration items(23)— (213)
Product-related items(15)— (44)
Hurricane Helene Costs(110)— — 
Loss on product divestiture arrangement— — (54)
Goodwill impairments(425)— (2,812)
Loss on subsidiary liquidation— — (21)
Total operating income (loss)14 707 (2,845)
Interest expense, net341 439 394 
Other (income) expense, net(38)26 9 
Income (loss) from continuing operations before income taxes$(289)$242 $(3,248)
Additional financial information for our segments is as follows:
for the years ended December 31 (in millions)202420232022
Depreciation Expense1:
Medical Products & Therapies$201 $232 $217 
Healthcare Systems & Technologies109 108 117 
Pharmaceuticals62 54 59 
Total depreciation expense$372 $394 $393 
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 chief operating decision maker does not receive asset or capital expenditure information by segment and, accordingly, we do not report that information for our segments.