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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2025
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. 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 31202520242023
(in millions)U.S.InternationalTotalU.S.InternationalTotalU.S.InternationalTotal
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 & Therapies2,884 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 
Pharmaceuticals749 1,744 2,493 780 1,631 2,411 759 1,490 2,249 
Other246 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)202520242023
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)20252024
Property, plant and equipment and operating lease right-of-use assets, net:
United States$1,609 $1,654 
Emerging markets817 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 & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$5,299 $3,071 $2,493 
Cost of sales3,065 1,603 1,777 
Selling, general and administrative expenses1,162 873 429 
Research and development expenses209 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 & 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 

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)202520242023
Medical Products & Therapies$970 $950 $972 
Healthcare Systems & Technologies441 468 483 
Pharmaceuticals222 313 401 
Total reportable segment operating income1,633 1,731 1,856 
Other43 18 18 
Unallocated corporate costs(86)(275)(355)
Intangible asset amortization expense(598)(625)(590)
Business optimization items(178)(162)(174)
European Medical Devices Regulation(21)(33)(41)
Indefinite-lived asset impairments(290)(50)— 
Separation-related costs(58)— — 
Legal matters(11)(17)(7)
Acquisition and integration items(27)(23)— 
Product-related reserves(113)(15)— 
Hurricane Helene Costs(133)(110)— 
Goodwill impairments(485)(425)— 
Gain on sale of long-lived asset16 — — 
Total operating income (loss)(308)14 707 
Interest expense, net238 341 439 
Other (income) expense, net(41)(38)26 
Income (loss) from continuing operations before income taxes$(505)$(289)$242 
Additional financial information for our segments is as follows:
for the years ended December 31 (in millions)202520242023
Depreciation Expense1:
Medical Products & Therapies$206 $201 $232 
Healthcare Systems & Technologies112 109 108 
Pharmaceuticals65 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.