v3.22.4
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
We manage our global operations based on four segments, consisting of the following geographic segments related to our legacy Baxter business: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia-Pacific), and a global segment for our recently acquired Hillrom business. The Americas, EMEA and
APAC segments provide a broad portfolio of essential healthcare products, including acute and chronic dialysis therapies; sterile IV solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; and surgical hemostat and sealant products. The Hillrom segment provides digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space.
We use operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of our business segments. Intersegment sales are eliminated in consolidation.
Certain items are maintained at Corporate and are not allocated to a segment. They primarily include corporate headquarters costs, certain R&D costs, manufacturing variances and centrally managed supply chain costs, product category support costs, stock compensation expense, certain employee benefit plan costs and certain gains, losses, and other charges (such as business optimization, acquisition and integration costs, intangible asset amortization and asset impairments).  For the period from our acquisition of Hillrom on December 13, 2021 through December 31, 2021, we previously included all costs incurred by the Hillrom business within that segment, including $127 million related to the types of costs described in the preceding sentence that are maintained at Corporate for our legacy Baxter segments. In connection with our ongoing integration activities, beginning in the first quarter of 2022, we updated the measure of profitability for our Hillrom segment by excluding such unallocated costs, consistent with our legacy Baxter segments.
Our chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment.
Financial information for our segments is as follows:
for the years ended December 31 (in millions)202220212020
Net sales:   
Americas$6,710 $6,666 $6,321 
EMEA2,879 3,115 2,877 
APAC2,585 2,791 2,475 
Hillrom2,939 212 — 
Total net sales$15,113 $12,784 $11,673 
Operating income (loss):
Americas$2,384 $2,612 $2,389 
EMEA607 632 523 
APAC623 623 591 
Hillrom730 (80)— 
Total segment operating income $4,344 $3,787 $3,503 
Depreciation Expense:
Americas$236 $257 $249 
EMEA134 147 150 
APAC103 98 94 
Hillrom95 4 — 
Corporate and other82 86 108 
Total depreciation expense$650 $592 $601 
Capital expenditures:
Americas$339 $394 $380 
EMEA125 156 157 
APAC81 82 103 
Hillrom65 5 — 
Corporate and other78 72 84 
Total capital expenditures$688 $709 $724 
The following table is a reconciliation of segment operating income to income (loss) before income taxes per the consolidated statements of income (loss).
for the years ended December 31 (in millions)202220212020
Total segment operating income$4,344 $3,787 $3,503 
Corporate and other(6,287)(2,077)(1,887)
Total operating income (loss)(1,943)1,710 1,616 
Net interest expense395 192 134 
Other (income) expense, net15 41 190 
Income (loss) before income taxes$(2,353)$1,477 $1,292 
We are designing a new operating model intended to simplify and streamline our operations and we expect that our reportable segments will be changed to align with that new operating model when it is fully implemented.
Geographic information
for the years ended December 31 (in millions)202220212020
Net sales:   
United States$7,223 $5,180 $4,878 
Latin America and Canada1,429 1,249 1,191 
EMEA3,709 3,552 3,129 
APAC2,752 2,803 2,475 
Total net sales$15,113 $12,784 $11,673 
as of December 31 (in millions)20222021
Property, plant and equipment and operating lease right-of-use assets, net:  
United States$2,254 $2,337 
EMEA1,452 1,576 
APAC894 978 
Latin America and Canada929 917 
Total property, plant and equipment and operating lease right-of-use assets, net$5,529 $5,808