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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our business is comprised of three 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 anesthesia, and drug compounding. Other sales not allocated to a segment
primarily includes 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.
Three Months Ended September 30,
20252024
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Technologies
$555 $468 $1,023 $613 $457 $1,070 
Advanced Surgery
168 138 306 149 123 272 
Medical Products & Therapies723 606 1,329 762 580 1,342 
Care & Connectivity Solutions
348 125 473 335 121 456 
Front Line Care
229 71 300 222 74 296 
Healthcare Systems & Technologies
577 196 773 557 195 752 
Injectables & Anesthesia
177 156 333 178 143 321 
Drug Compounding— 299 299 — 267 267 
Pharmaceuticals177 455 632 178 410 588 
Other67 34 101 3 14 17 
Total Baxter$1,544 $1,291 $2,835 $1,500 $1,199 $2,699 
Nine Months Ended September 30,
20252024
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Technologies
$1,693 $1,348 $3,041 $1,718 $1,363 $3,081 
Advanced Surgery
471 399 870 446 366 812 
Medical Products & Therapies2,164 1,747 3,911 2,164 1,729 3,893 
Care & Connectivity Solutions
1,005 369 1,374 945 365 1,310 
Front Line Care
652 218 870 635 222 857 
Healthcare Systems & Technologies
1,657 587 2,244 1,580 587 2,167 
Injectables & Anesthesia
559 441 1,000 566 424 990 
Drug Compounding— 825 825 — 778 778 
Pharmaceuticals559 1,266 1,825 566 1,202 1,768 
Other190 100 290 30 25 55 
Total Baxter$4,570 $3,700 $8,270 $4,340 $3,543 $7,883 
Geographic Sales Information
Our net sales are attributed to the following geographic regions based on the location of the customer.
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
United States$1,544 $1,500 $4,570 $4,340 
Emerging markets1
355 347 996 1,001 
Rest of world2
936 852 2,704 2,542 
Total Baxter$2,835 $2,699 $8,270 $7,883 
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
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 the Executive Vice President, Chief Operating Officer and Interim Group President, Medical Products & Therapies. In the third quarter of 2025, in conjunction with the appointment of Andrew Hider as our 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 quarter 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 reportable 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, selling, general and administrative expenses, research and development 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 Accounting Standards Update (ASU) 2023-07 retrospectively. The following table
presents our segment information of net sales, significant expense and operating income during the periods presented.
Three Months Ended September 30, 2025Three Months Ended September 30, 2024
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticalsMedical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$1,329 $773 $632 $1,342 $752 $588 
Cost of sales752 410 450 734 368 408 
Selling, general and administrative expenses286 219 107 291 203 95 
Research and development expenses41 48 26 53 45 23 
Other segment items(23)(8)(7)(4)— 4 
Segment operating income$273 $104 $56 $268 $136 $58 
Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticalsMedical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$3,911 $2,244 $1,825 $3,893 $2,167 $1,768 
Cost of sales2,201 1,154 1,274 2,136 1,094 1,197 
Selling, general and administrative expenses867 658 316 868 612 289 
Research and development expenses163 142 77 160 138 67 
Other segment items(76)(25)(25)(4)— 4 
Segment operating income$756 $315 $183 $733 $323 $211 
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.
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Medical Products & Therapies$273 $268 $756 $733 
Healthcare Systems & Technologies104 136 315 323 
Pharmaceuticals56 58 183 211 
Total reportable segment operating income433 462 1,254 1,267 
Other5 2 20 15 
Unallocated corporate costs(15)(73)(36)(227)
Intangible asset amortization expense(147)(159)(453)(471)
Legal matters— (17)(11)(17)
Business optimization items(38)(18)(100)(49)
Acquisition and integration items(8)(5)(14)(16)
Separation-related costs(13)— (40)— 
European Medical Devices Regulation(5)(9)(15)(25)
Hurricane Helene costs(8)(25)(123)(25)
Product-related items(32)(3)(61)(3)
Total operating income 172 155 421 449 
Interest expense, net58 87 180 251 
Other (income) expense, net(7)(1)(10)(34)
Income from continuing operations before income taxes$121 $69 $251 $232 
Additional financial information for our segments is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Depreciation Expense1
Medical Products & Therapies$50 $50 $157 $152 
Healthcare Systems & Technologies26 29 83 83 
Pharmaceuticals14 16 48 46 
Total depreciation expense$90 $95 $288 $281 
1Depreciation expense related to Corporate property, plant and equipment has been fully allocated to our segments and those segment allocations are reflected in the depreciation amounts presented herein.
Our CODM does not receive asset or capital expenditure information by reportable segment and, accordingly, we do not report that information for our segments.