XML 36 R25.htm IDEA: XBRL DOCUMENT v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
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 table presents our U.S. and international disaggregated net sales.
Three Months Ended March 31,
20262025
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Technologies
$526 $455 $981 $584 $410 $994 
Advanced Surgery
165 139 304 145 123 268 
Medical Products & Therapies691 594 1,285 729 533 1,262 
Care & Connectivity Solutions
315 120 435 316 111 427 
Front Line Care
198 72 270 202 75 277 
Healthcare Systems & Technologies
513 192 705 518 186 704 
Injectables & Anesthesia
180 121 301 195 140 335 
Drug Compounding— 320 320 — 246 246 
Pharmaceuticals180 441 621 195 386 581 
Other51 39 90 48 30 78 
Total Baxter$1,435 $1,266 $2,701 $1,490 $1,135 $2,625 
Segment Operating Income
Our chief operating decision maker who has been identified as our 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 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, 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. The following table presents our segment information of net sales, significant expenses and operating income during the periods presented.
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticalsMedical Products & TherapiesHealthcare Systems & TechnologiesPharmaceuticals
Net sales$1,285 $705 $621 $1,262 $704 $581 
Cost of sales781 390 458 694 356 396 
Selling, general and administrative expenses290 209 102 286 217 103 
Research and development expenses54 49 22 59 45 26 
Other segment items(26)(9)(7)(21)(7)(7)
Segment operating income$186 $66 $46 $244 $93 $63 
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 March 31,
(in millions)20262025
Medical Products & Therapies$186 $244 
Healthcare Systems & Technologies66 93 
Pharmaceuticals46 63 
Total reportable segment operating income298 400 
Other11 9 
Unallocated corporate costs(12)(17)
Intangible asset amortization expense(146)(155)
Legal matters— (11)
Business optimization items(68)(45)
Acquisition and integration items— (1)
Separation-related costs(11)(13)
European Medical Devices Regulation(4)(5)
Business transformation(11)— 
Hurricane Helene costs(3)(98)
Product-related items12 (6)
Total operating income 66 58 
Interest expense, net66 64 
Other (income) expense, net6 (3)
Income (loss) from continuing operations before income taxes$(6)$(3)
Additional financial information for our segments is as follows:
Three Months Ended March 31,
(in millions)20262025
Depreciation Expense1
Medical Products & Therapies$51 $49 
Healthcare Systems & Technologies24 27 
Pharmaceuticals16 16 
Total depreciation expense$91 $92 
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 information by reportable segment and, accordingly, we do not report that information for our segments.