Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

f73da69d3621f700823b3deb5e648cb5fa23366da437128fefbeb49dae5ce5ec

eabaa29023efaa9de7a75163c309e30adf84a2865fed9209c793907ff7ccae8e

2731f5e3928bb8ec6c5e62fac34775fd4148df9ec2307977d277d7231a20a068

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

4a055eeefc9ed27387587e162569000b91510b62d8004cf570b69fa228bb576c

United States

Emerging Markets

Rest of World

Americas

- Latin America and Canada

EMEA

APAC

Hillrom

- EMEA

- APAC

International

Total Revenue

33186c978910b7c98c2bb2a3dd1c113b214d1ba95160bbb44dc62fa62bf782ab

Percentage change in net sales at constant currency rates for United States (percentage)

Percentage change in net sales at constant currency rates for Emerging Markets (percentage)

Percentage change in net sales at constant currency rates for Rest of World (percentage)

Percentage change in total net sales at constant currency rates (percentage)

Percentage change in net sales at constant currency rates for Infusion Therapies and Technologies (percentage)

Percentage change in net sales at constant currency rates for Advanced Surgery (percentage)

Percentage change in total net sales at constant currency rates for Medical Products and Therapies (percentage)

Percentage change in net sales at constant currency rates for Care and Connectivity Solutions (percentage)

Percentage change in net sales at constant currency rates for Front Line Care (percentage)

Percentage change in total net sales at constant currency rates for Healthcare Systems and Technologies (percentage)

Percentage change in net sales at constant currency rates for Injectables and Anesthesia (percentage)

Percentage change in net sales at constant currency rates for Drug Compounding (percentage)

Percentage change in total net sales at constant currency rates for Pharmaceuticals (percentage)

db7b682b4d1339af3665e7d0c46ab8dbebd7c44c1652d64cd079f7dc787d83a1

Cash flows from operations - continuing operations (USD, millions)

Cash flows from operations - discontinued operations (USD, millions)

Cash flows from operations (USD, millions)

Capital expenditures (USD, millions)

Acquisitions of developed technology and investments (USD, millions)

Proceeds from sale of marketable equity securities (USD, millions)

Other investing activities, net (USD, millions)

Cash flows from investing activities - continuing operations (USD, millions)

Cash flows from investing activities - discontinued operations (USD, millions)

Cash flows from investing activities (USD, millions)

Repayments of debt (USD, millions)

Net increases (decreases) in debt with original maturities of three months or less (USD, millions)

Cash dividends on common stock (USD, millions)

Proceeds from stock issued under employee benefit plans (USD, millions)

Other financing activities, net (USD, millions)

Cash flows from financing activities (USD, millions)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash - continuing operations (USD, millions)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash - discontinued operations (USD, millions)

Increase (decrease) in cash, cash equivalents and restricted cash (USD, millions)

10f3a8399cf9db1f6f3e0e38c33ed6c1f1f85552f951c9a36f6e25c6cb566138

Cash and cash equivalents (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Current assets of discontinued operations (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Other intangible assets, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Other non-current assets (USD, millions)

Non-current assets of discontinued operations (USD, millions)

Total assets (USD, millions)

Short-term debt (USD, millions)

Current maturities of long-term debt and finance lease obligations (USD, millions)

Accounts payable (USD, millions)

Accrued expenses and other current liabilities (USD, millions)

Current liabilities of discontinued operations (USD, millions)

Total current liabilities (USD, millions)

Long-term debt and finance lease obligations, less current portion (USD, millions)

Operating lease liabilities (USD, millions)

Other non-current liabilities (USD, millions)

Non-current liabilities of discontinued operations (USD, millions)

Total liabilities (USD, millions)

Common stock (USD, millions)

Common stock in treasury, at cost (USD, millions)

Additional contributed capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Total Baxter stockholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

7828ddfabacff7babdebfd11504f5e87c74e0e55b995fb1523a201f7765bbde8

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Margin (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Other Operating Income, Net (USD, millions)

Operating Income (USD, millions)

Interest Expense, Net (USD, millions)

Other (Income) Expense, Net (USD, millions)

Income from Continuing Operations Before Income Taxes (USD, millions)

Income Tax Expense (USD, millions)

Income from Continuing Operations (USD, millions)

Income from Discontinued Operations, Net of Tax (USD, millions)

Net Income (Loss) (USD, millions)

9d025fa54c575860e0aad5c7b45c8a3a67099770863c5029545e4a4bfe25acd7

The sharp drop was driven by several factors including **higher annual payouts under employee incentive compensation plans** based on the 2023 performance, **payments related to the separation of the Kidney Care business**, **a larger increase in inventory**, and **higher restructuring cost payments**.  **[0001628280-24-019786_bax-20240331.htm:42]** 

What drove the sharp drop in operating cash flow from continuing operations in Q1 2024?

The drastic decline in overall operating cash flow in Q1 2024 was driven by a combination of factors. These included **higher annual payouts for employee incentive compensation** based on 2023 performance, **separation costs for the Kidney Care business**, a **larger increase in inventory**, and **higher restructuring costs**.  **[0001628280-24-019786_bax-20240331.htm:42]** 

Why did overall operating cash flow fall so drastically in Q1 2024?

Based on the available documents, **the data does not provide specific reasons** for the sharp decline in capital expenditures in Q3 2024. The documents state that the capital expenditures for Baxter International Inc. were **$314 million** for the nine months ended September 30, 2024, compared to **$340 million** for the same period in 2023, but they do not detail any factors contributing to this change.  **[0001628280-24-047221_bax-20240930.htm:57]** 

What factors contributed to the sharp decline in capital expenditures in Q3 2024?

b604d9531173f7ee36f087d5829860985b830d8eda508370490b04680fd1133f

The significant spike in Q3 2023 was primarily driven by the divestiture of Baxter’s BioPharma Solutions (BPS) business, which generated **net after-tax cash proceeds of approximately $3.7 billion**. This substantial inflow was complemented by strong cash flows from ongoing operations of **$1,097 million** and significant cash inflows from investing activities of **$3,932 million** resulting from the divestiture, all of which collectively boosted the company’s cash and cash equivalents.  **[BAX_3363604_3]** **[0001628280-23-036195_bax-20230930.htm:7]** 

What drove the significant spike in cash and cash equivalents in Q3 2023?

The notable rise in total assets in Q3 2023 was primarily driven by a **significant increase in cash and cash equivalents**—rising from **$1,718 million** at the end of 2022 to **$5,788 million** by the end of Q3 2023. In addition, there was a **moderate increase in inventories** (from **$2,679 million** to **$2,873 million**) and a slight uptick in **prepaid expenses and other current assets** (from **$857 million** to **$861 million**). These changes outweighed the decreases seen in property, plant, and equipment, as well as in goodwill and other intangible assets, making the cash increase the primary contributor to the overall rise in total assets.  **[0001628280-23-036195_bax-20230930.htm:2]** 

What factors contributed to the notable rise in Total assets in Q3 2023?

The dramatic drop in **short-term debt** in Q1 2023 was primarily driven by a **net decrease in commercial paper borrowings of $249 million**, which reduced the short-term debt from **$299 million in Q4 2022** to **$50 million in Q1 2023**.  **[0001628280-23-013357_bax-20230331.htm:2]** **[0001628280-23-013357_bax-20230331.htm:37]** 

Why did Short-term debt drop so dramatically in Q1 2023?

The significant increase in **Retained Earnings** in **Q3 2023** is mainly driven by the company's **net income** of **$2,508 million**, which substantially boosted earnings during the quarter. This gain was partially offset by the declaration of **dividends totaling $148 million** on common stock, yet the overall effect was a notable rise in the retained earnings balance from **$13,655 million at the start of Q3 2023** to **$16,015 million at the end of the quarter**.  **[0001628280-23-036195_bax-20230930.htm:5]** 

What explains the significant increase in Retained earnings in Q3 2023?

b6240ca05d154a524f3967504ece98b9d91e61043a930b5d9de27f932cfd451f

Based on the provided documents, there appears to be some conflicting information. One document reports Q3 2024 net sales of **479.00 million USD**  **[0001628280-24-047221_bax-20240930.htm:3]** , while another narrative for continuing operations states that net sales increased **4%** to **2,699 million USD** in Q3 2024.  **[0001628280-24-046501_bax-20240930xex991.htm:1]**  The detailed discussion in the narrative  **[0001628280-24-046501_bax-20240930xex991.htm:1]**  explains that the growth in continuing operations was driven by **segment growth in Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals** as well as favorable performance across geographical regions, but it does not address why a separate figure might be low. Without additional context or reconciliation between these numbers, we cannot definitively determine the reason behind the low net sales figure reported as **479.00 million USD**.

Why were Net Sales so low in Q3 2024?

The drastic drop in Q3 2024 was primarily driven by **special items**—including **intangible asset amortization expense**, **business optimization costs**, and **Hurricane Helene-related costs**—which had an unfavorable impact of **5.4 percentage points** on the gross margin ratio, compared to a **4.2 percentage point impact** in Q3 2023.  **[0001628280-24-047221_bax-20240930.htm:48]**  Additionally, an **unfavorable product mix** further pressured margins, and extra costs from **Hurricane Helene-induced operational disruptions**, along with **supply constraints** affecting segments such as Global Surgical Solutions and Injectables & Anesthesia, compounded the decline.  **[0001628280-24-047221_bax-20240930.htm:50]** **[0001628280-24-046501_bax-20240930xex991.htm:0]** **[BAX_3407220_5]**  Although pricing and efficiency initiatives were implemented, they were insufficient to offset these negative factors.  **[BAX_3407220_6]** **[0001628280-24-047221_bax-20240930.htm:48]** 

What contributed to the drastic drop in Gross Margin in Q3 2024?

The documents indicate that **R&D expenses in Q3 2024 decreased by 3% from Q3 2023** (from **$133 million to $129 million**) and the **R&D expense ratio declined from 5.1% to 4.8%**. However, they **do not provide specific reasons** for this significant change in the dollar amount, aside from noting that there were no special items impacting the R&D ratio in Q3 2024, unlike a slight unfavorable impact in Q3 2023.  **[0001628280-24-046501_bax-20240930xex991.htm:11]** **[0001628280-24-047221_bax-20240930.htm:51]** 

What led to the significant decrease in R&D Expenses in Q3 2024?

The lower net income in Q1 2024 was primarily driven by significant special items that reduced net income by **$294 million**, along with a notably high effective income tax rate of **66.4%** due to internal reorganization transactions and adjustments related to the proposed separation of its Kidney Care segment. Additionally, the absence of net gains from discontinued operations—which were present in the prior period—further contributed to the low overall net income in Q1 2024.  **[0001628280-24-019786_bax-20240331.htm:32]** **[0001628280-24-019786_bax-20240331.htm:39]** 

Why was Net Income so low in Q1 2024?

The dramatic turnaround in **Net Income** for FY 2023 was primarily driven by a **$2.88 billion pre-tax gain from the sale of the BioPharma Solutions (BPS) business**, which resulted in a **$2.59 billion net gain**.  **[0001628280-24-003932_bax-20231231.htm:86]**  Additionally, the absence of the **$2.81 billion goodwill impairments** that negatively impacted FY 2022, a significant improvement in **operating income** (which turned positive from a loss), and considerably higher **income from discontinued operations** further contributed to the improvement.  **[0001628280-24-003932_bax-20231231.htm:111]** **[0001628280-24-003932_bax-20231231.htm:86]** 

What drove the dramatic turnaround in Net Income in FY 2023?

fc28387137e66e0dd7a81264b4e059af9765c986c42b0f67b3f2856120cfbf25

Baxter International Inc (BAX)

Financials