Baxter International (BAX) 10-Q 5 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	BAX
Entity Registrant Name	BAXTER INTERNATIONAL INC
Entity Central Index Key	10,456
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		532,140,998

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 2,767	$ 2,707	$ 8,286	$ 7,787
Cost of sales	1,531	1,577	4,697	4,481
Gross margin	1,236	1,130	3,589	3,306
Marketing and administrative expenses	685	680	1,988	1,874
Research and development expenses	166	150	480	432
Claris settlement			(80)
Operating income	385	300	1,201	1,000
Net interest expense	11	14	34	41
Other (income) expense, net	(32)	(4)	(81)	35
Income from continuing operations before income taxes	406	290	1,248	924
Income tax (benefit) expense	(138)	42	(28)	139
Income from continuing operations	544	248	1,276	785
Income from discontinued operations, net of tax		3		3
Net income	$ 544	$ 251	$ 1,276	$ 788
Income from continuing operations per common share
Basic	$ 1.02	$ 0.46	$ 2.38	$ 1.45
Diluted	1	0.45	2.33	1.42
Net income per common share
Basic	1.02	0.46	2.38	1.45
Diluted	$ 1	$ 0.45	$ 2.33	$ 1.42
Weighted-average number of common shares outstanding
Basic	534	545	536	543
Diluted	546	557	548	554

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 544	$ 251	$ 1,276	$ 788
Other comprehensive (loss) income, net of tax:
Currency translation adjustments, net of tax (benefit) expense of $5 and $21 for the three months ended September 30, 2018 and 2017, respectively, and ($26) and $69 for the nine months ended September 30, 2018 and 2017, respectively	(50)	181	(332)	530
Pension and other employee benefits, net of tax expense of $9 and $6 for the three months ended September 30, 2018 and 2017, respectively, and $26 and $26 for the nine months ended September 30, 2018 and 2017, respectively	8	6	89	44
Hedging activities, net of tax expense (benefit) of $1 and ($2) for the three months ended September 30, 2018 and 2017, respectively, and $4 and ($7) for the nine months ended September 30, 2018 and 2017, respectively	2	(6)	8	(16)
Available-for-sale securities, net of tax expense of zero for the three months ended September 30, 2018 and 2017, and zero and $1 for the nine months ended September 30, 2018 and 2017, respectively		1		4
Total other comprehensive (loss) income, net of tax	(40)	182	(235)	562
Comprehensive income	$ 504	$ 433	$ 1,041	$ 1,350

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Tax (benefit) expense on currency translation adjustments	$ 5	$ 21	$ (26)	$ 69
Tax expense on pension and other employee benefits	9	6	26	26
Tax expense (benefit) on hedging activities	1	(2)	4	(7)
Tax expense on available-for-sale securities	$ 0	$ 0	$ 0	$ 1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and equivalents	$ 2,860	$ 3,394
Accounts and other current receivables, net	1,826	1,793
Inventories	1,718	1,475
Prepaid expenses and other	624	601
Total current assets	7,028	7,263
Property, plant and equipment, net	4,520	4,588
Other assets
Goodwill	2,980	3,099
Other intangible assets, net	1,402	1,374
Other	917	787
Total other assets	5,299	5,260
Total assets	16,847	17,111
Current liabilities
Current maturities of long-term debt and lease obligations	3	3
Accounts payable and accrued liabilities	2,592	2,733
Current income taxes payable	109	85
Total current liabilities	2,704	2,821
Long-term debt and lease obligations	3,485	3,509
Other long-term liabilities	1,545	1,665
Equity
Common stock, $1 par value, authorized 2,000,000,000 shares, issued 683,494,944 shares in 2018 and 2017	683	683
Common stock in treasury, at cost, 150,213,621 shares in 2018 and 142,017,600 shares in 2017	(8,639)	(7,981)
Additional contributed capital	5,931	5,940
Retained earnings	15,394	14,483
Accumulated other comprehensive (loss) income	(4,239)	(4,001)
Total Baxter shareholders’ equity	9,130	9,124
Noncontrolling interests	(17)	(8)
Total equity	9,113	9,116
Total liabilities and equity	$ 16,847	$ 17,111

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, authorized	2,000,000,000	2,000,000,000
Common stock, issued	683,494,944	683,494,944
Treasury stock, shares	150,213,621	142,017,600

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operations
Net income	$ 1,276	$ 788
Adjustments to reconcile income from continuing operations to net cash from operating activities:
Income from discontinued operations, net of tax		(3)
Depreciation and amortization	594	562
Deferred income taxes	(284)	(30)
Stock compensation	87	77
Net periodic pension benefit and OPEB costs	31	93
Other	108	69
Changes in balance sheet items
Accounts and other current receivables, net	(16)	32
Inventories	(236)
Accounts payable and accrued liabilities	(51)	(36)
Business optimization items	(72)	(114)
Other	(96)	(95)
Cash flows from operations – continuing operations	1,341	1,343
Cash flows from operations – discontinued operations		(20)
Cash flows from operations	1,341	1,323
Cash flows from investing activities
Capital expenditures	(468)	(410)
Acquisitions and investments, net of cash acquired	(255)	(680)
Divestitures and other investing activities, net	8	2
Cash flows from investing activities	(715)	(1,088)
Cash flows from financing activities
Issuance of debt		633
Payments of obligations	(2)
Cash dividends on common stock	(274)	(228)
Proceeds from stock issued under employee benefit plans	232	298
Purchases of treasury stock	(1,028)	(275)
Other	(23)	(37)
Cash flows from financing activities	(1,095)	391
Effect of foreign exchange rate changes on cash and equivalents	(65)	90
(Decrease) increase in cash and equivalents	(534)	716
Cash and equivalents at beginning of period	3,394	2,801
Cash and equivalents at end of period	$ 2,860	$ 3,517

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (the company or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (GAAP) in the United States have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the company’s Current Report on Form 8-K filed with the SEC on August 23, 2018 (2017 Annual Report), which revised and superseded the corresponding sections of the Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair statement of the interim periods. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. Certain reclassifications have been made to conform the prior period condensed consolidated statements to the current period presentation. Accounting for Venezuelan Operations Effective as of the end of the second quarter of 2017, the company no longer met the accounting criteria for control over its business in Venezuela and therefore deconsolidated its Venezuelan operations. Hurricane Maria In September 2017, Hurricane Maria caused damage to certain of the company’s assets in Puerto Rico and disrupted operations. Insurance, less applicable deductibles and subject to any coverage exclusions, covers the repair or replacement of the company’s assets that suffered loss or damage, and also provides coverage for interruption to its business, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. In the third quarter of 2017, the company recorded $21 million of pre-tax charges related to damages caused by the hurricane, including $11 million related to the impairment of damaged inventory and fixed assets as well as $10 million of idle facility and other costs. These amounts were recorded as a component of cost of sales in the condensed consolidated statements of income for the three and nine month periods ended September 30, 2017. In the third quarter of 2018, the company recognized $23 million of insurance recoveries related to the previously mentioned asset impairments and idle facility and other costs suffered as a result of the hurricane. This benefit was recorded as a reduction of cost of sales in the condensed consolidated statements of income for the three and nine month periods ended September 30, 2018. At this time, any additional insurance recoveries are not realizable, and accordingly, no additional amounts have been recorded as of September 30, 2018. New accounting standards Recently adopted accounting pronouncements As of January 1, 2018, the company adopted Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends ASC 715, Compensation – Retirement Benefits, to require employers that present a measure of operating income in their statements of earnings to include only the service cost component of net periodic postretirement benefit cost in operating expenses. The service cost component of net periodic postretirement benefit cost should be presented in the same operating expense line items as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest costs, expected return on assets, amortization of prior service cost/credit and actuarial gains/losses, and settlement and curtailment effects, are to be included separately and outside of any subtotal of operating income. This guidance impacted the presentation of the company’s condensed consolidated statements of income with no significant impact on net income. The company elected to apply the practical expedient which allows it to reclassify amounts disclosed previously in the retirement and other benefits footnote as the basis for applying retrospective presentation for prior comparative periods . Three months ended September 30, 2017 Nine months ended September 30, 2017 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Cost of sales $ 1,579 $ (2 ) $ 1,577 $ 4,487 $ (6 ) $ 4,481 Gross margin 1,128 2 1,130 3,300 6 3,306 Marketing and administrative expenses 685 (5 ) 680 1,890 (16 ) 1,874 Research and development expenses 151 (1 ) 150 435 (3 ) 432 Operating income 292 8 300 975 25 1,000 Other (income) expense, net (12 ) 8 (4 ) 10 25 35 As of January 1, 2018, the company adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory. ASU No. 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. Entities are required to adopt using a modified retrospective approach with a cumulative adjustment to opening retained earnings in the year of adoption for previously unrecognized income tax expense. The company recorded a net negative retained earnings adjustment of approximately $66 million upon adoption of the standard on January 1, 2018 related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. Net income increased $4 million and $11 million, respectively, for the three and nine months ended September 30, 2018 as a result of the adoption of the standard. As of January 1, 2018, the company adopted ASU No. 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in the results of operations. The adoption of this standard did not have a material impact on the company’s condensed consolidated financial statements. As of January 1, 2018, the company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standards for revenue recognition. ASU No. 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The company adopted the standard using the modified retrospective method. The primary impact of the new standard relates to the company’s contract manufacturing operations and software arrangements. Certain contract manufacturing arrangements require revenue recognition over-time in situations in which the company produces products that have no alternative use and the company has an enforceable right to payment for performance completed to date, inclusive of a reasonable profit margin. This results in an acceleration of revenue recognition for certain contractual arrangements as compared to recognition under prior accounting literature. The new guidance also impacts the company’s arrangements subject to previous software revenue recognition guidance, as the company is required to recognize as revenue a significant portion of the contract consideration upon delivery of the software compared to the previous practice of recognizing the contract consideration ratably over time for certain arrangements. The company adopted Topic 606 using the modified retrospective method. The impact to net sales as a result of the adoption was an increase of $4 million and $8 million, respectively, for the three and nine months ended September 30, 2018. The impact to cost of sales was an increase of $1 million and $5 million, respectively, for the three and nine months ended September 30, 2018. Recently issued accounting standards not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases. In July 2018, the FASB issued an update to the leasing guidance to allow an additional transition option which would allow companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, other than those that meet the definition of a short-term lease. This ASU is effective for the company beginning January 1, 2019 and the company expects the adoption to materially increase assets and liabilities on the condensed consolidated balance sheet related to those leases classified as operating and not recognized on the condensed consolidated balance sheets under current GAAP. The company does not anticipate any material change on the condensed consolidated balance sheets related to capital leases under current GAAP or to the condensed consolidated statement of income. Under the new standard, lessor accounting will be largely unchanged from current GAAP, however disclosures will be expanded.

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
REVENUES	2. REVENUES Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; generally this occurs with the transfer of control of the company’s products or services. The company’s global payment terms are typically between 30-90 days. Revenue is measured as the amount of consideration the company expects to receive in exchange for transferring goods or providing services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of the company’s contracts have multiple performance obligations. For contracts with multiple performance obligations, the company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The majority of the company’s performance obligations are satisfied at a point in time. This includes sales of the company’s broad portfolio of essential healthcare products across its geographic segments 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. For a majority of these sales, the company’s performance obligation is satisfied upon delivery to the customer. Shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation. To a lesser extent, in all the company’s segments, the company enters into other types of contracts including contract manufacturing arrangements, equipment leases, and certain subscription software and licensing arrangements. The company recognizes revenue for these arrangements over time or at a point in time depending on its evaluation of when the customer obtains control of the promised goods or service. Revenue is recognized over time when the company is creating or enhancing an asset that the customer controls as the asset is created or enhanced or the company’s performance does not create an asset with an alternative use and the company has an enforceable right to payment for performance completed. On September 30, 2018, the company had $7.9 billion of transaction price allocated to remaining performance obligations related to executed contracts with an original duration of one year or more which are primarily included in the Americas segment. Some contracts in the United States included in this amount may contain index-dependent price increases, which are not known at this time. The company expects to recognize approximately 5% Significant Judgments Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for reserves related to rebates, product returns, sales discounts and wholesaler chargebacks . The company’s contracts with customers sometimes include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the stand-alone selling price for each distinct performance obligation and whether there is a discount to be allocated based on the relative stand-alone selling price of the various products and services. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheet. Net trade accounts receivable at September 30, 2018 and January 1, 2018 were $1.8 billion and $1.7 billion, respectively. Generally, for certain contract manufacturing and software arrangements, revenue recognition occurs prior to billing The company had contract assets of $36 million and $31 million as of September 30, 2018 and January 1, 2018, respectively, related to certain contract manufacturing arrangements for which revenue is recognized throughout the production cycle which typically lasts up to 90 days. The company had contract assets of $45 million and $42 million as of September 30, 2018 and January 1, 2018, respectively, related to certain software arrangements for which revenue is recognized upon delivery to the customer, however the customer is billed over time, generally between one and five years. Practical Expedients The company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include the company’s internal sales force compensation programs as the company has determined annual compensation is commensurate with annual sales activities. The company does not disclose the value of transaction price allocated to unsatisfied performance obligations for contracts with an original expected length of one year or less. The company has elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it is expected, at contract inception, that the period between when the company transfers a promised good or service to a customer, and when the customer pays for that good or service, will be one year or less. Additionally, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer are excluded from revenue.

SEPARATION OF BAXALTA INCORPORA

SEPARATION OF BAXALTA INCORPORATED	9 Months Ended
	Sep. 30, 2018
Discontinued Operations And Disposal Groups [Abstract]
SEPARATION OF BAXALTA INCORPORATED	3. SEPARATION OF BAXALTA INCORPORATED On July 1, 2015, Baxter completed the distribution of approximately 80.5% of the outstanding common stock of Baxalta Incorporated (Baxalta) to Baxter shareholders (the Distribution). Baxter and Baxalta entered into several agreements in connection with the July 1, 2015 separation, including a transition services agreement (TSA), separation and distribution agreement, manufacturing and supply agreements (MSA), tax matters agreement, an employee matters agreement, a long-term services agreement, and a shareholder’s and registration rights agreement. Pursuant to the TSA, Baxter and Baxalta and their respective subsidiaries were providing to each other, on an interim, transitional basis, various services. Services provided by Baxter included, among others, finance, information technology, human resources, quality supply chain and certain other administrative services. The services generally commenced on the Distribution date and terminated as of July 1, 2018. Billings by Baxter under the TSA were recorded as a reduction of the costs to provide the respective service in the applicable expense category, primarily in marketing and administrative expenses, in the condensed consolidated statements of income. In the nine months ended September 30, 2018, the company recognized approximately $9 million as a reduction to marketing and administrative expenses related to the TSA. In the three and nine months ended September 30, 2017, the company recognized approximately $11 million and $47 million, respectively, as a reduction to marketing and administrative expenses related to the TSA. Pursuant to the MSA, Baxalta or Baxter, as the case may be, manufactures, labels, and packages products for the other party. The terms of the agreements range in initial duration from five to 10 years. In the three and nine months ended September 30, 2018, Baxter recognized approximately $8 million and $21 million in sales to Baxalta. In the three and nine months ended September 30, 2017, Baxter recognized approximately $6 million and $18 million, respectively, in sales to Baxalta. In addition, in the three and nine months ended September 30, 2018, Baxter recognized $38 million and $111 million, respectively, in cost of sales related to purchases from Baxalta pursuant to the MSA. In the three and nine months ended September 30, 2017, Baxter recognized $35 million and $133 million, respectively, in cost of sales related to purchases from Baxalta pursuant to the MSA. The cash flows associated with these agreements are included in cash flows from operations — continuing operations. Cash outflows of $20 million were reported in cash flows from operations — discontinued operations for the nine-month period ending September 30, 2017. These related to non-assignable tenders whereby Baxter was the seller of Baxalta products, transactions related to importation services Baxter provides in certain countries, in addition to trade payables settled post local separation on Baxalta’s behalf.

SUPPLEMENTAL FINANCIAL INFORMAT

SUPPLEMENTAL FINANCIAL INFORMATION	9 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
SUPPLEMENTAL FINANCIAL INFORMATION	4. SUPPLEMENTAL FINANCIAL INFORMATION Net interest expense Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Interest expense, net of capitalized interest $ 24 $ 22 $ 70 $ 62 Interest income (13 ) (8 ) (36 ) (21 ) Net interest expense $ 11 $ 14 $ 34 $ 41 Other (income) expense, net Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Foreign exchange $ (20 ) $ (12 ) $ (53 ) $ (27 ) Venezuela deconsolidation - - - 33 Pension and other postemployment benefit plans (13 ) 8 (39 ) 25 All other 1 - 11 4 Other (income) expense, net $ (32 ) $ (4 ) $ (81 ) $ 35 Inventories September 30, December 31, (in millions) 2018 2017 Raw materials $ 373 $ 347 Work in process 224 116 Finished goods 1,121 1,012 Inventories $ 1,718 $ 1,475 Property, plant and equipment, net September 30, December 31, (in millions) 2018 2017 Property, plant and equipment, at cost $ 10,323 $ 10,148 Accumulated depreciation (5,803 ) (5,560 ) Property, plant and equipment, net $ 4,520 $ 4,588 In the first quarter of 2018, the estimated useful life of the company’s enterprise resource planning (ERP) software was extended from 2020 on a prospective basis based on the company’s commitment to upgrade, enhance and support its existing systems through 2028. This change in estimate resulted in a reduction of depreciation expense of $6 million and increase in net income of $5 million, or $0.01 per diluted share, for the three months ended September 30, 2018 and a reduction of depreciation expense of $18 million and increase in net income of $15 million, or $0.03 per diluted share, for the nine months ended September 30, 2018.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	5. EARNINGS PER SHARE The numerator for both basic and diluted earnings per share (EPS) is either net income, income from continuing operations, or income from discontinued operations. The denominator for basic EPS is the weighted-average number of common shares outstanding during the period. The dilutive effect of outstanding stock options, restricted stock units (RSUs) and performance share units (PSUs) is reflected in the denominator for diluted EPS using the treasury stock method. The following table is a reconciliation of basic shares to diluted shares. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Basic shares 534 545 536 543 Effect of dilutive securities 12 12 12 11 Diluted shares 546 557 548 554 The effect of dilutive securities included unexercised stock options, unvested RSUs and contingently issuable shares related to granted PSUs. The computation of diluted EPS excluded 3.3 million and 3.1 million equity awards for the three and nine months ended September 30, 2018, respectively, and 0.1 million and 2.8 million equity awards for the three and nine months ended September 30, 2017, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS. Stock repurchases In July 2012, the Board of Directors authorized the repurchase of up to $2.0 billion of the company’s common stock. The Board of Directors increased this authority by an additional $1.5 billion in each of November 2016 and February 2018. During the first three quarters of 2018, the company repurchased 14.9 million shares pursuant to one or more Rule 10b5-1 plans for $1.0 billion in cash. During the first three quarters of 2017, the company repurchased 4.7 million shares for $275 million in cash. The company had $1.6 billion remaining available under the authorization (as amended and after giving effect to stock repurchases) as of September 30, 2018. Dividends declared Cash dividends declared per common share for the three and nine months ended September 30, 2018 were $0.19 and $0.54, respectively. Cash dividends declared per common share for the three and nine months ended September 30, 2017 were $0.16 and $0.45, respectively.

ACQUISITIONS AND OTHER ARRANGEM

ACQUISITIONS AND OTHER ARRANGEMENTS	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
ACQUISITIONS AND OTHER ARRANGEMENTS	6. ACQUISITIONS AND OTHER ARRANGEMENTS Claris Injectables Limited On July 27, 2017, Baxter acquired 100 percent of Claris Injectables Limited (Claris), a wholly owned subsidiary of Claris Lifesciences Limited, for total cash consideration of approximately $629 million, net of cash acquired. Through the acquisition, Baxter added capabilities in production of essential generic injectable medicines, such as anesthesia and analgesics, renal, anti-infectives and critical care in a variety of presentations including bags, vials and ampoules. In the third quarter of 2018, the company finalized its valuation of the acquisition date assets acquired and liabilities assumed. The measurement period adjustments in 2018 include a $2 million reduction in property, plant and equipment, a $1 million increase in accounts payable and accrued liabilities and a $2 million increase in other long-term liabilities. These adjustments resulted in a corresponding increase to goodwill of $5 million. These adjustments did not have a material impact on the company’s results of operations in 2018. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the acquisition date for the company’s acquisition of Claris: (in millions) Assets acquired and liabilities assumed Cash $ 11 Accounts and other current receivables 16 Inventories 30 Prepaid expenses and other 16 Property, plant and equipment 130 Goodwill 296 Other intangible assets 280 Other 20 Accounts payable and accrued liabilities (23 ) Other long-term liabilities (136 ) Total assets acquired and liabilities assumed $ 640 The results of operations of Claris have been included in the company’s condensed consolidated statement of income since the date the business was acquired. The Claris acquisition contributed $38 million and $107 million, respectively, of net sales for the three and nine months ended September 30, 2018, and $27 million of net sales for the three and nine months ended September 30, 2017. Acquisition and integration costs associated with the Claris acquisition were $5 million and $19 million, respectively, for the three and nine months ended September 30, 2018, and $15 million and $20 million, respectively, for the three and nine months ended September 30, 2017, and were primarily included within marketing and administrative expenses and cost of sales on the condensed consolidated statements of income. Baxter allocated $280 million of the total consideration to acquired intangible assets. The acquired intangible assets include $140 million of developed technology with a weighted-average useful life of eight years and $140 million of in-process research and development (IPR&D) with an indefinite useful life. For the IPR&D, additional R&D will be required to assess technological feasibility. The fair value of intangible assets was determined using the income approach. The income approach is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life, discounted to present value. The discount rates used to measure the developed technology and IPR&D intangible assets were 12% and 13%, respectively. The company considers the fair value of each of the acquired intangible assets to be Level 3 assets due to the significant estimates and assumptions used by management in establishing the estimated fair values. Refer to Note 10 within the 2017 Annual Report for additional information regarding fair value measurements. The goodwill, which is not deductible for tax purposes, includes the value of potential future technologies as well as the overall strategic benefits provided to Baxter in the injectables market, and is included primarily in the Americas segment. In the first quarter of 2018, Baxter and Claris Lifesciences Limited settled certain claims related to the acquired operations and terminated a development agreement with Dorizoe Lifesciences Limited. As a result, Baxter received $73 million in February 2018 and was released from an accrued liability to Claris Lifesciences Limited of $7 million. The total of $80 million is reflected as a benefit in the 2018 condensed consolidated statements of income. RECOTHROM and PREVELEAK On March 16, 2018, Baxter acquired two hemostat and sealant products from Mallinckrodt plc: RECOTHROM Thrombin topical (Recombinant), the first and only stand-alone recombinant thrombin, and PREVELEAK Surgical Sealant, which is used in vascular reconstruction. The company concluded that the acquired assets met the definition of a business and accounted for the transaction as a business combination using the acquisition method of accounting. The purchase price included an upfront payment of approximately $148 million in the first quarter of 2018 and a $15 million post-closing payment in the third quarter of 2018. The company made additional measurement period adjustments, in the third quarter of 2018, which included finalizing the post-closing settlement and adjusting its acquisition-date estimate of the fair value of contingent consideration, acquired inventory and intangible assets. These adjustments resulted in a $10 million increase in the total consideration transferred, a $19 million increase to acquired inventory, a $2 million decrease in other intangible assets and a $7 million decrease in goodwill. The measurement period adjustments did not have a material impact on the company’s results of operations. In addition, the purchase price included new and assumed contingent payments in the future related to inventory and technology transfer milestones and net revenue royalty payments with an estimated fair value of $21 million as of the acquisition date. The maximum aggregate amount payable for the inventory and technology transfer and net revenue royalties was $7 million, $15 million and $143 million, respectively. The fair value of the potential contingent consideration payments was estimated by applying a probability-weighted expected payment model for the inventory and technology transfer payments and a Monte Carlo simulation model for contingent royalty payments, which were then discounted to present value. The fair value measurements were based on Level 3 inputs. Refer to Note 10 within the 2017 annual report for additional information regarding fair value measurements. The following table summarizes total consideration: (in millions) Cash $ 163 Contingent consideration 21 Total consideration $ 184 The following table summarizes the fair value of the assets acquired as of the acquisition date. (in millions) Assets acquired Accounts receivable $ 2 Inventory 80 Goodwill 2 Other intangible assets 100 Total assets acquired $ 184 The valuation of the assets acquired are preliminary and measurement period adjustments may be recorded in the future as the company finalizes its fair value estimates. The results of operations of the acquired business have been included in the company’s condensed consolidated statements of income since the date the business was acquired. The RECOTHROM and PREVELEAK acquisitions contributed $14 million and $31 million, respectively, of net sales for the three and nine months ended September 30, 2018. Baxter allocated $100 million of the total consideration to the RECOTHROM and PREVELEAK developed product rights with a weighted-average useful life of 10 years. The fair value of the intangible assets was determined using the income approach. The discount rates used to measure the RECOTHROM and PREVELEAK intangible assets were 12.5% and 13%, respectively. The company considers the fair value of the intangible assets to be Level 3 assets due to the significant estimates and assumptions used by management in establishing the estimated fair values. Refer to Note 10 within the 2017 annual report for additional information regarding fair value measurements. The goodwill, which is deductible for tax purposes, includes the value of potential future technologies as well as the overall strategic benefits provided to Baxter’s surgical portfolio of hemostats and sealants, and is included in the Americas segment. Other Total consideration transferred for other acquisitions totaled $24 million in 2018 and primarily resulted in the recognition of intangible assets. These acquisitions did not materially affect the company’s results of operations. Celerity Pharmaceuticals, LLC In the first quarter of 2018, Baxter paid approximately $37 million and $35 million, respectively, to acquire the rights to Bivalirudin and Dexmedetomidine from Celerity Pharmaceuticals, LLC (Celerity). The payment for Dexmedetomidine was based on tentative approval from the U.S. Food and Drug Administration (FDA). Full approval from the FDA was received in the third quarter of 2018. Baxter capitalized the purchase price of both products and is amortizing the assets over their estimated economic lives of 12 years. Refer to Note 5 within the 2017 Annual Report for additional information regarding the company’s agreement with Celerity. In the third quarter of 2017, Baxter paid approximately $10 million to acquire the rights to Clindamycin Dextrose from Celerity. In the second quarter of 2017, Baxter paid approximately $10 million to acquire the rights to Clindamycin Saline from Celerity. Baxter capitalized the purchase price of both products as intangible assets and is amortizing them asset over their estimated economic lives of 12 years.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	7. GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following is a reconciliation of goodwill by business segment. (in millions) Americas EMEA APAC Total Balance as of December 31, 2017 $ 2,474 $ 392 $ 233 $ 3,099 Additions 9 — — 9 Currency translation adjustments (102 ) (16 ) (10 ) (128 ) Balance as of September 30, 2018 $ 2,381 $ 376 $ 223 $ 2,980 As of September 30, 2018, there were no accumulated goodwill impairment losses. Other intangible assets, net The following is a summary of the company’s other intangible assets. (in millions) Developed technology, including patents Other amortized intangible assets Indefinite-lived intangible assets Total September 30, 2018 Gross other intangible assets $ 2,123 $ 420 $ 188 $ 2,731 Accumulated amortization (1,084 ) (245 ) (1,329 ) Other intangible assets, net $ 1,039 $ 175 $ 188 $ 1,402 December 31, 2017 Gross other intangible assets $ 2,002 $ 435 $ 172 $ 2,609 Accumulated amortization (1,010 ) (225 ) — (1,235 ) Other intangible assets, net $ 992 $ 210 $ 172 $ 1,374 Intangible asset amortization expense was $42 million and $38 million in the three months ended September 30, 2018 and 2017, respectively, and $127 million and $112 million in the nine months ended September 30, 2018 and 2017, respectively.

INFUSION PUMP CHARGES

INFUSION PUMP CHARGES	9 Months Ended
	Sep. 30, 2018
Restructuring And Related Activities [Abstract]
INFUSION PUMP CHARGES	8. INFUSION PUMP CHARGES In 2017, the company recorded a charge of $22 million related to a second field corrective action with respect to the SIGMA Spectrum Infusion Pump, which is predominantly sold in the United States. Remediation primarily includes inspection and repair charges as well as a temporary replacement pump in a limited number of cases. The charge includes estimated cash costs associated with remediation efforts and the remaining liability was $4 million as of September 30, 2018.

BUSINESS OPTIMIZATION CHARGES

BUSINESS OPTIMIZATION CHARGES	9 Months Ended
	Sep. 30, 2018
Restructuring And Related Activities [Abstract]
BUSINESS OPTIMIZATION CHARGES	9. BUSINESS OPTIMIZATION CHARGES Beginning in the second half of 2015, the company initiated actions to transform its cost structure and enhance operational efficiency. These efforts include restructuring the organization, optimizing the manufacturing footprint, R&D operations and supply chain network, employing disciplined cost management, and centralizing and streamlining certain support functions. Through September 30, 2018, the company has incurred cumulative pretax costs of $751 million related to these actions. The costs consisted primarily of employee termination, implementation costs and accelerated depreciation. The company expects to incur additional pretax costs of approximately $130 million and capital expenditures of $50 million through the completion of these initiatives. The costs will primarily include employee termination costs, implementation costs, and accelerated depreciation. During the three and nine months ended September 30, 2018 and 2017, the company recorded the following charges related to business optimization programs. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Restructuring charges, net $ 63 $ 31 $ 96 $ 50 Costs to implement business optimization programs 24 21 74 58 Accelerated depreciation 3 — 5 8 Total business optimization charges $ 90 $ 52 $ 175 $ 116 For segment reporting, business optimization charges are unallocated expenses. During the three and nine months ended September 30, 2018 and 2017, the company recorded the following restructuring charges. Three months ended September 30, 2018 (in millions) COGS SGA R&D Total Employee termination costs $ 16 $ 33 $ 9 $ 58 Contract termination and other costs — 4 — 4 Asset impairments — 1 — 1 Total restructuring charges $ 16 $ 38 $ 9 $ 63 Three months ended September 30, 2017 (in millions) COGS SGA R&D Total Employee termination costs $ 7 $ 24 $ — $ 31 Total restructuring charges $ 7 $ 24 $ — $ 31 Nine months ended September 30, 2018 (in millions) COGS SGA R&D Total Employee termination costs $ 20 $ 47 $ 19 $ 86 Contract termination and other costs — 6 — 6 Asset impairments 1 3 — 4 Total restructuring charges $ 21 $ 56 $ 19 $ 96 Nine months ended September 30, 2017 (in millions) COGS SGA R&D Total Employee termination costs $ 21 $ 33 $ — $ 54 Contract termination costs — 5 — 5 Asset impairments 5 — — 5 Reserve adjustments (7 ) (5 ) (2 ) (14 ) Total restructuring charges $ 19 $ 33 $ (2 ) $ 50 Costs to implement business optimization programs for the three and nine months ended September 30, 2018 were $24 million and $74 million, respectively, and consisted primarily of external consulting and transition costs as well as employee salary and related costs. These costs were included within cost of sales, marketing and administrative expense and R&D expense. Costs to implement business optimization programs for the three and nine months ended September 30, 2017 were $21 million and $58 million, respectively, and consisted primarily of external consulting and transition costs as well as employee salary related costs. These costs were included within cost of sales and marketing and administrative expense. For the three and nine months ended September 30, 2018, the company recognized accelerated depreciation, primarily associated with facilities to be closed, of $3 million and $5 million, respectively. The costs were recorded within cost of sales and marketing and administrative expense. For the nine months ended September 30, 2017, the company recognized accelerated depreciation, primarily associated with facilities to be closed, of $8 million. The costs were recorded within cost of sales, marketing and administrative expense and R&D expense. The following table summarizes activity in the reserves related to the company’s business optimization initiatives. (in millions) Reserves as of December 31, 2017 $ 112 Charges 92 Utilization (72 ) CTA (19 ) Reserves as of September 30, 2018 $ 113 Substantially all of the company’s restructuring reserves as of September 30, 2018 relate to employee termination costs. The reserves are expected to be substantially utilized by the end of 2019.

DEBT, FINANCIAL INSTRUMENTS AND

DEBT, FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2018
Debt Financial Instruments And Fair Value Measurements [Abstract]
DEBT, FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS	10. DEBT, FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Debt Issuance In May 2017, Baxter issued senior notes with a total aggregate principal amount of €600 million at a fixed coupon rate of 1.30% due in May 2025. The company has designated this debt as a non-derivative net investment hedge of its European operations for accounting purposes. Securitization arrangement The following is a summary of the activity relating to the company’s securitization arrangement in Japan. Three months ended September 30, Nine months ended September 30, (in millions) 2018 2017 2018 2017 Sold receivables at beginning of period $ 64 $ 63 $ 71 $ 68 Proceeds from sales of receivables 66 69 195 198 Cash collections (remitted to the owners of the receivables) (67 ) (66 ) (203 ) (203 ) Effect of currency exchange rate changes (1 ) — (1 ) 3 Sold receivables at end of period $ 62 $ 66 $ 62 $ 66 The impacts on the condensed consolidated statements of income relating to the sale of receivables were immaterial for each period. Refer to the 2017 Annual Report for further information regarding the company’s securitization agreements. Concentrations of credit risk The company invests excess cash in certificates of deposit or money market funds and diversifies the concentration of cash among different financial institutions. With respect to financial instruments, where appropriate, the company has diversified its selection of counterparties, and has arranged collateralization and master-netting agreements to minimize the risk of loss. The company continues to do business with foreign governments in certain countries including Greece, Spain, Portugal and Italy that have experienced a deterioration in credit and economic conditions. As of September 30, 2018, the company’s net accounts receivable from the public sector in Greece, Spain, Portugal and Italy totaled $141 million. Global economic conditions and liquidity issues in certain countries have resulted, and may continue to result, in delays in the collection of receivables and credit losses. Governmental actions and customer-specific factors may also require the company to re-evaluate the collectability of its receivables and the company could potentially incur additional credit losses. These conditions may also impact the stability of the Euro. Derivatives and hedging activities The company operates on a global basis and is exposed to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange and interest rates. The company’s hedging policy attempts to manage these risks to an acceptable level based on the company’s judgment of the appropriate trade-off between risk, opportunity and costs. The company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities, forecasted transactions and net assets denominated in the Euro, British Pound, Chinese Yuan, Korean Won, Australian Dollar, Canadian Dollar, Japanese Yen, Colombian Peso, Brazilian Real, Mexican Peso and Swedish Krona. The company manages its foreign currency exposures on a consolidated basis, which allows the company to net exposures and take advantage of any natural offsets. In addition, the company uses derivative and nonderivative instruments to further reduce the net exposure to foreign exchange. Gains and losses on the hedging instruments offset losses and gains on the hedged transactions and reduce the earnings and equity volatility resulting from foreign exchange. Financial market and currency volatility may limit the company’s ability to cost-effectively hedge these exposures. The company is also exposed to the risk that its earnings and cash flows could be adversely impacted by fluctuations in interest rates. The company’s policy is to manage interest costs using a mix of fixed- and floating-rate debt that the company believes is appropriate. To manage this mix in a cost-efficient manner, the company periodically enters into interest rate swaps in which the company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. The company does not hold any instruments for trading purposes and none of the company’s outstanding derivative instruments contain credit-risk-related contingent features. All derivative instruments are recognized as either assets or liabilities at fair value in the condensed consolidated balance sheets and are classified as short-term or long-term based on the scheduled maturity of the instrument. Based upon the exposure being hedged, the company designates its hedging instruments as cash flow, fair value, or net investment hedges. Cash Flow Hedges The company may use options, including collars and purchased options, forwards and cross-currency swaps to hedge the foreign exchange risk to earnings relating to forecasted transactions and recognized assets and liabilities. For each derivative instrument that is designated and effective as a cash flow hedge, the gain or loss on the derivative is accumulated in accumulated other comprehensive income (AOCI) and then recognized in earnings consistent with the underlying hedged item. Option premiums or net premiums paid are initially recorded as assets and reclassified to other comprehensive income (OCI) over the life of the option, and then recognized in earnings consistent with the underlying hedged item. Cash flow hedges are classified in net sales, cost of sales, net interest expense, and other (income) expense, net, and primarily relate to forecasted third-party sales denominated in foreign currencies, forecasted intercompany sales denominated in foreign currencies, and anticipated issuances of debt, respectively. The notional amounts of foreign exchange contracts were $656 million and $660 million as of September 30, 2018 and December 31, 2017, respectively. There were no outstanding interest rate contracts designated as cash flow hedges as of September 30, 2018 and December 31, 2017. The maximum term over which the company has cash flow hedge contracts in place related to forecasted transactions as of September 30, 2018 is 18 months. Fair Value Hedges The company uses interest rate swaps to convert a portion of its fixed-rate debt into variable-rate debt. These instruments hedge the company’s earnings from changes in the fair value of debt due to fluctuations in the designated benchmark interest rate. For each derivative instrument that is designated and effective as a fair value hedge, the gain or loss on the derivative is recognized immediately to earnings, and offsets the loss or gain on the underlying hedged item. Fair value hedges are classified in net interest expense, as they hedge the interest rate risk associated with certain of the company’s fixed-rate debt. There were no outstanding interest rate swap contracts designated as a fair value hedge as of September 30, 2018. The total notional amount of interest rate contracts designated as fair value hedges was $200 million as of December 31, 2017. Net Investment Hedges In May 2017, the company issued €600 million of senior notes due May 2025. The company has designated this debt as a hedge of a portion of its net investment in its European operations and, as a result, mark to spot rate adjustments of the outstanding debt balances have been and will be recorded as a component of AOCI. As of September 30, 2018, the company had an accumulated pre-tax unrealized translation loss in AOCI of $57 million related to the Euro-denominated senior notes. Dedesignations If it is determined that a derivative or nonderivative hedging instrument is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If the company removes the cash flow hedge designation because the hedged forecasted transactions are no longer probable of occurring, any gains or losses are immediately reclassified from AOCI to earnings. Gains or losses relating to terminations of effective cash flow hedges in which the forecasted transactions are still probable of occurring are deferred and recognized consistent with the loss or income recognition of the underlying hedged items. There were no hedge dedesignations in the first nine months of 2018 or 2017 resulting from changes in the company’s assessment of the probability that the hedged forecasted transactions would occur. If the company terminates a fair value hedge, an amount equal to the cumulative fair value adjustment to the hedged items at the date of termination is amortized to earnings over the remaining term of the hedged item. In the first nine months of 2018, the company terminated its interest rate fair value hedges and the cumulative fair value adjustment to the hedged item was insignificant. There were no fair value hedges terminated during the first nine months of 2017. If the company terminates a net investments hedge, any gain or loss recognized in AOCI is not reclassified to earnings until the company sells, liquidates, or deconsolidates the foreign investments that were being hedged. Undesignated Derivative Instruments The company uses forward contracts to hedge earnings from the effects of foreign exchange relating to certain of the company’s intercompany and third-party receivables and payables denominated in a foreign currency. These derivative instruments are generally not formally designated as hedges, and the change in fair value, which substantially offsets the change in book value of the hedged items, is recorded directly to other (income) expense, net. The terms of these instruments generally do not exceed one month. The total notional amount of undesignated derivative instruments was $699 million as of September 30, 2018 and $885 million as of December 31, 2017. Gains and Losses on Hedging Activities The following tables summarize the income statement locations and gains and losses on the company’s derivative instruments for the three months ended September 30, 2018 and 2017. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2018 2017 in income statement 2018 2017 Cash flow hedges Foreign exchange contracts $ 3 $ (11 ) Cost of sales $ (1 ) $ (3 ) Net investment hedge 5 $ (39 ) Other (income) expense, net — — Total $ 8 $ (50 ) $ (1 ) $ (3 ) Gain (loss) recognized in income (in millions) Location of gain (loss) in income statement 2018 2017 Fair value hedges Interest rate contracts Net interest expense $ — $ (1 ) Undesignated derivative instruments Foreign exchange contracts Other (income) expense, net $ 10 $ (3 ) The following tables summarize the income statement locations and gains and losses on the company’s derivative instruments for the nine months ended September 30, 2018 and 2017. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2018 2017 in income statement 2018 2017 Cash flow hedges Foreign exchange contracts $ 1 $ (24 ) Cost of sales $ (11 ) $ (4 ) Interest Rate contracts — (3 ) Net interest expense — — Net investment hedge 22 (70 ) Other (income) expense, net — — Total $ 23 $ (97 ) $ (11 ) $ (4 ) Gain (loss) recognized in income (in millions) Location of gain (loss) in income statement 2018 2017 Fair value hedges Interest rate contracts Net interest expense $ (4 ) $ (1 ) Undesignated derivative instruments Foreign exchange contracts Other (income) expense, net $ (1 ) $ (7 ) For the company’s fair value hedges, equal and offsetting gains of zero and $4 million were recognized in net interest expense in the third quarter and first nine months of 2018, respectively, and an equal and offsetting gain of $1 million was recognized in net interest expense in the third quarter and first nine months of 2017, respectively. Ineffectiveness related to the company’s cash flow and fair value hedges for all periods presented was not material. As of September 30, 2018, deferred, net after-tax gains on derivative instruments included in AOCI expected to be recognized in earnings during the next 12 months, coinciding with when the hedged items are expected to impact earnings, were immaterial. Fair Values of Derivative Instruments The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of September 30, 2018. Derivatives in asset positions Derivatives in liability positions (in millions) Balance sheet location Fair value Balance sheet location Fair value Derivative instruments designated as hedges Foreign exchange contracts Prepaid expenses and other $ 17 Accounts payable and accrued liabilities $ 1 Foreign exchange contracts Other long-term assets $ 1 Other long-term liabilities $ — Total derivative instruments designated as hedges $ 18 $ 1 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other $ — Accounts payable and accrued liabilities $ 1 Total derivative instruments $ 18 $ 2 The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2017. Derivatives in asset positions Derivatives in liability positions (in millions) Balance sheet location Fair value Balance sheet location Fair value Derivative instruments designated as hedges Interest rate contracts Other long-term assets $ 4 Other long- term liabilities $ — Foreign exchange contracts Prepaid expenses and other 14 Accounts payable and accrued liabilities 3 Total derivative instruments designated as hedges $ 18 $ 3 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other $ 1 Accounts payable and accrued liabilities $ 1 Total derivative instruments $ 19 $ 4 While the company’s derivatives are all subject to master netting arrangements, the company presents its assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets. Additionally, the company is not required to post collateral for any of its outstanding derivatives. The following table provides information on the company’s derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty. September 30, 2018 December 31, 2017 (in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 18 $ 2 $ 19 $ 4 Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet (2 ) (2 ) (4 ) (4 ) Total $ 16 $ — $ 15 $ — Fair value measurements The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the condensed consolidated balance sheets. Basis of fair value measurement (in millions) Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Foreign currency hedges $ 18 $ — $ 18 $ — Marketable equity securities 6 6 — — Total assets $ 24 $ 6 $ 18 $ — Liabilities Foreign currency hedges $ 2 $ — $ 2 $ — Contingent payments related to acquisitions 32 — — 32 Total liabilities $ 34 $ — $ 2 $ 32 Basis of fair value measurement (in millions) Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Foreign currency hedges $ 15 $ — $ 15 $ — Interest rate hedges 4 — 4 — Marketable equity securities 8 8 — — Total assets $ 27 $ 8 $ 19 $ — Liabilities Foreign currency hedges $ 4 $ — $ 4 $ — Contingent payments related to acquisitions 9 — — 9 Total liabilities $ 13 $ — $ 4 $ 9 As of September 30, 2018, cash and equivalents of $2.9 billion included money market funds of approximately $1.3 billion, and as of December 31, 2017, cash and equivalents of $3.4 billion included money market funds of approximately $0.7 billion. Money market funds are considered Level 2 in the fair value hierarchy. For assets that are measured using quoted prices in active markets, the fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. The majority of the derivatives entered into by the company are valued using internal valuation techniques as no quoted market prices exist for such instruments. The principal techniques used to value these instruments are discounted cash flow and Black-Scholes models. The key inputs are considered observable and vary depending on the type of derivative, and include contractual terms, interest rate yield curves, foreign exchange rates and volatility. Contingent payments related to acquisitions consist of milestone payments and sales-based payments, and are valued using discounted cash flow techniques. The fair value of milestone payments reflects management’s expectations of probability of payment, and increases as the probability of payment increases or expectation of timing of payments is accelerated. The fair value of sales-based payments is based upon probability-weighted future revenue estimates, and increases as revenue estimates increase, probability weighting of higher revenue scenarios increase or expectation of timing of payment is accelerated. The change in the liability for contingent payments related to Baxter’s acquisitions, which use significant unobservable inputs (Level 3) in the fair value measurement, were primarily driven by new contingent liabilities recognized as a result of the RECOTHROM and PREVELEAK acquisitions of approximately $21 million in the first nine months of 2018. Equity investments not measured at fair value and excluded from the above table are comprised of other equity investments without readily determinable fair values of $39 million at September 30, 2018 and $43 million at December 31, 2017. These amounts are included in Other assets. The following table provides information relating to the company’s investments in marketable equity securities. (in millions) Amortized cost Unrealized gains Unrealized losses Fair value September 30, 2018 $ 8 $ — $ 2 $ 6 December 31, 2017 $ 8 $ — $ — $ 8 In the first quarter of 2017, the company recorded an other-than-temporary impairment charge related to a marketable equity security of $4 million within other (income) expense, net. Book Values and Fair Values of Financial Instruments In addition to the financial instruments that the company is required to recognize at fair value in the condensed consolidated balance sheets, the company has certain financial instruments that are recognized at historical cost or some basis other than fair value. For these financial instruments, the following table provides the values recognized in the condensed consolidated balance sheets and the approximate fair values as of September 30, 2018 and December 31, 2017. Book values Approximate fair values (in millions) 2018 2017 2018 2017 Liabilities Current maturities of long-term debt and lease obligations $ 3 $ 3 $ 3 $ 3 Long-term debt and lease obligations 3,485 3,509 3,467 3,595 The following tables summarize the bases used to measure the approximate fair value of the financial instruments as of September 30, 2018 and December 31, 2017. Basis of fair value measurement (in millions) Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Liabilities Current maturities of long-term debt and lease obligations $ 3 $ — $ 3 $ — Long-term debt and lease obligations 3,467 — 3,467 — Total liabilities $ 3,470 $ — $ 3,470 $ — Basis of fair value measurement (in millions) Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Liabilities Current maturities of long-term debt and lease obligations $ 3 $ — $ 3 $ — Long-term debt and lease obligations 3,595 — 3,595 — Total liabilities $ 3,598 $ — $ 3,598 $ — The estimated fair values of current and long-term debt were computed by multiplying price by the notional amount of the respective debt instrument. Price is calculated using the stated terms of the respective debt instrument and yield curves commensurate with the company’s credit risk. The carrying values of the other financial instruments approximate their fair values due to the short-term maturities of most of these assets and liabilities.

RETIREMENT AND OTHER BENEFIT PR

RETIREMENT AND OTHER BENEFIT PROGRAMS	9 Months Ended
	Sep. 30, 2018
Compensation And Retirement Disclosure [Abstract]
RETIREMENT AND OTHER BENEFIT PROGRAMS	11. RETIREMENT AND OTHER BENEFIT PROGRAMS The following is a summary of net periodic benefit cost relating to the company’s pension and other postemployment benefit (OPEB) plans. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Pension benefits Service cost $ 23 $ 23 $ 70 $ 68 Interest cost 45 46 136 136 Expected return on plan assets (78 ) (75 ) (235 ) (220 ) Amortization of net losses and other deferred amounts 24 42 72 123 Net periodic pension benefit cost $ 14 $ 36 $ 43 $ 107 OPEB Service cost $ — $ — $ — $ — Interest cost 2 2 6 6 Amortization of net loss and prior service credit (6 ) (7 ) (18 ) (20 ) Net periodic OPEB cost $ (4 ) $ (5 ) $ (12 ) $ (14 ) U.S Pension Plan Amendments In January 2018, the company announced changes to its U.S. pension plans. The company spun off the assets and liabilities of the qualified plan attributable to current employees into a new plan and will freeze the pay and service amounts used to calculate pension benefits for active participants in the U.S. pension plans as of December 31, 2022. The assets and liabilities attributable to retired and former company employees remained with the original qualified plan. Years of additional service earned and eligible compensation received after December 31, 2022 will not be included in the determination of the benefits payable to participants. These changes resulted in a $57 million decline in the projected benefit obligation (PBO) with an offsetting adjustment against AOCI upon the effective date of the changes.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	12. ACCUMULATED OTHER COMPREHENSIVE INCOME Comprehensive income includes all changes in shareholders’ equity that do not arise from transactions with shareholders, and consists of net income, CTA, pension and other employee benefits, unrealized gains and losses on cash flow hedges and unrealized gains and losses on available-for-sale equity securities. As a result of recent changes in accounting guidance related to available-for-sale equity securities, the unrealized gains and losses associated with these assets are no longer recognized in AOCI beginning January 1, 2018. The following table is a net-of-tax summary of the changes in AOCI by component for the nine months ended September 30, 2018 and 2017. (in millions) CTA Pension and other employee benefits Hedging activities Available- for-sale securities Total Gains (losses) Balance as of December 31, 2017 $ (3,013 ) $ (981 ) $ (10 ) $ 3 $ (4,001 ) Adoption of new accounting standard — — — (3 ) (3 ) Other comprehensive income before reclassifications (332 ) 45 1 — (286 ) Amounts reclassified from AOCI (a) — 44 7 — 51 Net other comprehensive income (loss) (332 ) 89 8 — (235 ) Balance as of September 30, 2018 $ (3,345 ) $ (892 ) $ (2 ) $ — $ (4,239 ) (in millions) CTA Pension and other employee benefits Hedging activities Available- for-sale- securities Total Gains (losses) Balance as of December 31, 2016 $ (3,438 ) $ (1,122 ) $ 3 $ 1 $ (4,556 ) Other comprehensive income before reclassifications 501 (25 ) (19 ) 1 458 Amounts reclassified from AOCI (a) 29 69 3 3 104 Net other comprehensive income (loss) 530 44 (16 ) 4 562 Balance as of September 30, 2017 $ (2,908 ) $ (1,078 ) $ (13 ) $ 5 $ (3,994 ) (a) See table below for details about these reclassifications. The following is a summary of the amounts reclassified from AOCI to net income during the three and nine months ended September 30, 2018 and 2017. Amounts reclassified from AOCI (a) (in millions) Three months ended September 30, 2018 Nine months ended September 30, 2018 Location of impact in income statement Amortization of pension and other employee benefits items Actuarial losses and other (b) $ (18 ) $ (54 ) Other (income) expense, net (18 ) (54 ) Total before tax 4 10 Income tax (benefit) expense $ (14 ) $ (44 ) Net of tax Losses on hedging activities Foreign exchange contracts $ (1 ) $ (11 ) Cost of sales (1 ) (11 ) Total before tax 1 4 Income tax (benefit) expense $ — $ (7 ) Net of tax Total reclassification for the period $ (14 ) $ (51 ) Total net of tax Amounts reclassified from AOCI (a) (in millions) Three months ended September 30, 2017 Nine months ended September 30, 2017 Location of impact in income statement Translation adjustments Loss on Venezuela deconsolidation $ — $ (29 ) Other (income) expense, net — (29 ) Total before tax — — Income tax (benefit) expense $ — $ (29 ) Net of tax Amortization of pension and other employee benefits items Actuarial losses and other (b) $ (35 ) $ (103 ) Other (income) expense, net (35 ) (103 ) Total before tax 12 34 Income tax (benefit) expense $ (23 ) $ (69 ) Net of tax Losses on hedging activities Foreign exchange contracts $ (3 ) $ (4 ) Cost of sales (3 ) (4 ) Total before tax 1 1 Income tax (benefit) expense $ (2 ) $ (3 ) Net of tax Available-for-sale-securities Other-than-temporary impairment of equity securities $ — $ (4 ) Other (income) expense, net — (4 ) Total before tax — 1 Income tax (benefit) expense $ — $ (3 ) Net of tax Total reclassification for the period $ (25 ) $ (104 ) Total net of tax (a) Amounts in parentheses indicate reductions to net income. (b) These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 11. Refer to Note 10 for additional information regarding hedging activity and Note 11 for additional information regarding the amortization of pension and other employee benefits items.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	13. INCOME TAXES Effective tax rate The company’s effective income tax rate for continuing operations was (34.0)% and 14.5% in the third quarters of 2018 and 2017, respectively, and (2.2)% and 15.0% in the nine months ended September 30, 2018 and 2017, respectively. The company’s effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. In addition, the effective tax rate can be impacted each period by discrete factors and events. The effective income tax rate for continuing operations during the three months ended September 30, 2018 was benefitted from an adjustment to the Tax Cuts and Job Act of 2017 (the 2017 Tax Act) provisional amounts as permitted by Staff Accounting Bulletin 118. Specifically, the company released a $200 million valuation allowance related to the company’s U.S. foreign tax credit deferred tax assets. The company continues to evaluate the 2017 Tax Act along with regulations and guidance issued by the Internal Revenue Service and will complete the accounting for the initial impact of the 2017 Tax Act by the end of 2018. The effective income tax rate for continuing operations during the nine months ended September 30, 2018 was further benefitted from a settlement of a 2008 through 2010 transfer pricing Competent Authority proceeding between the U.S. and Germany, the reversal of a foreign valuation allowance as a result of continued profit improvements, receipt of tax free income from the settlement of Claris contingent matters (as described in Note 6), and adjustments of state income tax provisional amounts related to the 2017 Tax Act toll charge. In addition, windfall benefits realized from stock option exercises and vesting of RSUs associated with the company’s stock compensation programs favorably impacted the effective tax rate by approximately 3.0 percentage points. Partially offsetting the foregoing benefits was interest on the reserve for uncertain tax benefits (UTPs), the revaluation of Swedish net deferred tax assets, and some miscellaneous transfer pricing UTP accruals. The company, while not expecting to be subject to a tax charge under the 2017 Tax Act Global Intangible Low Tax Income (GILTI) provisions, elects to recognize this tax as a period cost.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	9 Months Ended
	Sep. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	14. LEGAL PROCEEDINGS Baxter is involved in product liability, patent, commercial, and other legal matters that arise in the normal course of the company’s business. The company records a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate, the minimum amount in the range is recorded. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. As of September 30, 2018 and December 31, 2017, the company’s total recorded reserves with respect to legal matters were $30 million and $41 million, respectively, and there were no related receivables. Baxter has established reserves for certain of the matters discussed below. The company is not able to estimate the amount or range of any loss for certain contingencies for which there is no reserve or additional loss for matters already reserved. While the liability of the company in connection with these claims cannot be estimated and the resolution thereof in any reporting period could have a significant impact on the company’s results of operations and cash flows for that period, the outcome of these legal proceedings is not expected to have a material adverse effect on the company’s consolidated financial position. While the company believes that it has valid defenses in the matters set forth below, litigation is inherently uncertain, excessive verdicts do occur, and the company may incur material judgments or enter into material settlements of claims. In addition to the matters described below, the company remains subject to the risk of future administrative and legal actions. With respect to governmental and regulatory matters, these actions may lead to product recalls, injunctions, and other restrictions on the company’s operations and monetary sanctions, including significant civil or criminal penalties. With respect to intellectual property, the company may be exposed to significant litigation concerning the scope of the company’s and others’ rights. Such litigation could result in a loss of patent protection or the ability to market products, which could lead to a significant loss of sales, or otherwise materially affect future results of operations. Environmental Baxter is involved as a potentially responsible party (PRP) for environmental clean-up costs at seven Superfund sites. Under the U.S. Superfund statute and many state laws, generators of hazardous waste sent to a disposal or recycling site are liable for site cleanup if contaminants from that property later leak into the environment. The laws generally provide that a PRP may be held jointly and severally liable for the costs of investigating and remediating the site. Separate from the Superfund cases noted above, Baxter is involved in an ongoing voluntary environmental remediation associated with historic operations at the company’s Irvine, California, United States, facility. As of September 30, 2018 and December 31, 2017, environmental reserves of approximately $19 million and $21 million, respectively, were established to address these specific estimated potential liabilities. Such reserves are undiscounted and do not include anticipated recoveries, if any, from insurance companies. After considering these reserves, management is of the opinion that the outcome of these matters will not have a material adverse effect on the company’s financial position or results of operations. General litigation On July 31, 2015, Davita Healthcare Partners, Inc. filed suit against Baxter Healthcare Corporation in the District Court of the State of Colorado regarding an ongoing commercial dispute relating to the provision of peritoneal dialysis products. A bench trial concluded in third quarter 2016. On February 16, 2018, the parties entered into a settlement agreement providing for a full and final release of all claims and damages that were or could have been asserted in the commercial dispute in connection with their entry into a new peritoneal dialysis products supply agreement. The court granted an order to dismiss the litigation on February 21, 2018. In November 2016, a purported antitrust class action complaint seeking monetary and injunctive relief was filed in the United States District Court for the Northern District of Illinois. The complaint alleges a conspiracy among manufacturers of IV solutions to restrict output and affect pricing in connection with a shortage of such solutions. Similar parallel actions subsequently were filed. In January 2017, a single consolidated complaint covering these matters was filed in the Northern District of Illinois. On July 5, 2018, the court granted the company’s motion to dismiss the consolidated complaint (which had been previously filed in February 2017) without prejudice. The plaintiffs filed an amended complaint on September 6, 2018. In April 2017, the company became aware of a criminal investigation by the U.S. Department of Justice, Antitrust Division and a federal grand jury in the United States District Court for the Eastern District of Pennsylvania. The company and an employee received subpoenas seeking production of documents and testimony regarding the manufacturing, selling, pricing and shortages of IV solutions and containers (including saline solutions and certain other injectable medicines sold by the company) and communications with competitors regarding the same. The company is cooperating with the investigation. The New York Attorney General has also requested that Baxter provide information regarding business practices in the IV saline industry. The company is cooperating with the New York Attorney General. Other In December 2016, the company received a civil investigative demand from the Commercial Litigation Branch of the United States Department of Justice (DOJ) primarily relating to contingent discount arrangements for, and other promotion of, the company’s TISSEEL and ARTISS products. In April 2018, the DOJ filed a notice of its decision not to intervene and an underlying qui tam complaint ( U.S. ex rel. Andrew Capp v. Baxter

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	15. SEGMENT INFORMATION In 2017, Baxter announced a change in its commercial structure to improve performance, optimize costs, increase speed in the decision-making process and drive improved accountability across the company. As a result, the company now reports its financial performance based on its new segments: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). Segment results for the three and nine months ended September 30, 2017 have been recast to conform to the current year presentation. The company’s segments provide a broad portfolio of essential healthcare products across its portfolio, 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 company uses operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of the company’s business segments. Intersegment sales are eliminated in consolidation. Certain items are maintained at Corporate and are not allocated to a segment. They primarily include most of the company’s debt and cash and equivalents and related net interest expense, foreign exchange rate fluctuations (principally relating to intercompany receivables, payables and loans denominated in a foreign currency) and the majority of the foreign currency hedging activities, corporate headquarters costs, certain research and development costs, certain Global Business Unit (GBU) support costs, stock compensation expense, nonstrategic investments and related income and expense, certain employee benefit plan costs as well as certain gains, losses, and other charges (such as business optimization, integration and separation-related costs, and asset impairments). The company’s chief operating decision maker does not receive any asset information by operating segment and, accordingly, the company does not report asset information by operating segment.Financial information for the company’s segments is as follows. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Net sales Americas $ 1,497 $ 1,458 $ 4,464 $ 4,264 EMEA 707 682 2,189 1,979 APAC 563 567 1,633 1,544 Total net sales $ 2,767 $ 2,707 $ 8,286 $ 7,787 Operating Income Americas $ 624 $ 583 $ 1,809 $ 1,671 EMEA 166 146 479 414 APAC 139 134 387 371 Total segment operating income $ 929 $ 863 $ 2,675 $ 2,456 The following is a reconciliation of segment operating income to income from continuing operations before income taxes per the condensed consolidated statements of income. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Total segment operating income $ 929 $ 863 $ 2,675 $ 2,456 Corporate and other (544 ) (563 ) (1,474 ) (1,456 ) Total operating income 385 300 1,201 1,000 Net interest expense 11 14 34 41 Other (income) expense, net (32 ) (4 ) (81 ) 35 Income from continuing operations before income taxes $ 406 $ 290 $ 1,248 $ 924 Net Sales by GBU The following table represents net sales by GBU. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Renal Care 1 $ 910 $ 896 $ 2,709 $ 2,539 Medication Delivery 2 652 679 2,009 2,026 Pharmaceuticals 3 519 498 1,552 1,375 Clinical Nutrition 4 218 223 662 651 Advanced Surgery 5 200 175 586 521 Acute Therapies 6 122 112 380 330 Other 7 146 124 388 345 Total Baxter $ 2,767 $ 2,707 $ 8,286 $ 7,787 1 Renal Care includes sales of the company’s peritoneal dialysis (PD) and hemodialysis (HD) and additional dialysis therapies and services. 2 Medication Delivery includes sales of the company’s IV therapies, infusion pumps, administration sets and drug reconstitution devices. 3 Pharmaceuticals includes sales of the company’s premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services. 4 Clinical Nutrition includes sales of the company’s parenteral nutrition (PN) therapies. 5 Advanced Surgery includes sales of the company’s biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention. 6 Acute Therapies includes sales of the company’s continuous renal replacement therapies (CRRT) and other organ support therapies focused in the ICU. 7 Other includes sales primarily from the company’s pharmaceutical partnering business.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (the company or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (GAAP) in the United States have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the company’s Current Report on Form 8-K filed with the SEC on August 23, 2018 (2017 Annual Report), which revised and superseded the corresponding sections of the Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair statement of the interim periods. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. Certain reclassifications have been made to conform the prior period condensed consolidated statements to the current period presentation. Accounting for Venezuelan Operations Effective as of the end of the second quarter of 2017, the company no longer met the accounting criteria for control over its business in Venezuela and therefore deconsolidated its Venezuelan operations. Hurricane Maria In September 2017, Hurricane Maria caused damage to certain of the company’s assets in Puerto Rico and disrupted operations. Insurance, less applicable deductibles and subject to any coverage exclusions, covers the repair or replacement of the company’s assets that suffered loss or damage, and also provides coverage for interruption to its business, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. In the third quarter of 2017, the company recorded $21 million of pre-tax charges related to damages caused by the hurricane, including $11 million related to the impairment of damaged inventory and fixed assets as well as $10 million of idle facility and other costs. These amounts were recorded as a component of cost of sales in the condensed consolidated statements of income for the three and nine month periods ended September 30, 2017. In the third quarter of 2018, the company recognized $23 million of insurance recoveries related to the previously mentioned asset impairments and idle facility and other costs suffered as a result of the hurricane. This benefit was recorded as a reduction of cost of sales in the condensed consolidated statements of income for the three and nine month periods ended September 30, 2018. At this time, any additional insurance recoveries are not realizable, and accordingly, no additional amounts have been recorded as of September 30, 2018.
New Accounting Standards	New accounting standards Recently adopted accounting pronouncements As of January 1, 2018, the company adopted Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends ASC 715, Compensation – Retirement Benefits, to require employers that present a measure of operating income in their statements of earnings to include only the service cost component of net periodic postretirement benefit cost in operating expenses. The service cost component of net periodic postretirement benefit cost should be presented in the same operating expense line items as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest costs, expected return on assets, amortization of prior service cost/credit and actuarial gains/losses, and settlement and curtailment effects, are to be included separately and outside of any subtotal of operating income. This guidance impacted the presentation of the company’s condensed consolidated statements of income with no significant impact on net income. The company elected to apply the practical expedient which allows it to reclassify amounts disclosed previously in the retirement and other benefits footnote as the basis for applying retrospective presentation for prior comparative periods . Three months ended September 30, 2017 Nine months ended September 30, 2017 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Cost of sales $ 1,579 $ (2 ) $ 1,577 $ 4,487 $ (6 ) $ 4,481 Gross margin 1,128 2 1,130 3,300 6 3,306 Marketing and administrative expenses 685 (5 ) 680 1,890 (16 ) 1,874 Research and development expenses 151 (1 ) 150 435 (3 ) 432 Operating income 292 8 300 975 25 1,000 Other (income) expense, net (12 ) 8 (4 ) 10 25 35 As of January 1, 2018, the company adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory. ASU No. 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. Entities are required to adopt using a modified retrospective approach with a cumulative adjustment to opening retained earnings in the year of adoption for previously unrecognized income tax expense. The company recorded a net negative retained earnings adjustment of approximately $66 million upon adoption of the standard on January 1, 2018 related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. Net income increased $4 million and $11 million, respectively, for the three and nine months ended September 30, 2018 as a result of the adoption of the standard. As of January 1, 2018, the company adopted ASU No. 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in the results of operations. The adoption of this standard did not have a material impact on the company’s condensed consolidated financial statements. As of January 1, 2018, the company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standards for revenue recognition. ASU No. 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The company adopted the standard using the modified retrospective method. The primary impact of the new standard relates to the company’s contract manufacturing operations and software arrangements. Certain contract manufacturing arrangements require revenue recognition over-time in situations in which the company produces products that have no alternative use and the company has an enforceable right to payment for performance completed to date, inclusive of a reasonable profit margin. This results in an acceleration of revenue recognition for certain contractual arrangements as compared to recognition under prior accounting literature. The new guidance also impacts the company’s arrangements subject to previous software revenue recognition guidance, as the company is required to recognize as revenue a significant portion of the contract consideration upon delivery of the software compared to the previous practice of recognizing the contract consideration ratably over time for certain arrangements. The company adopted Topic 606 using the modified retrospective method. The impact to net sales as a result of the adoption was an increase of $4 million and $8 million, respectively, for the three and nine months ended September 30, 2018. The impact to cost of sales was an increase of $1 million and $5 million, respectively, for the three and nine months ended September 30, 2018. Recently issued accounting standards not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases. In July 2018, the FASB issued an update to the leasing guidance to allow an additional transition option which would allow companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, other than those that meet the definition of a short-term lease. This ASU is effective for the company beginning January 1, 2019 and the company expects the adoption to materially increase assets and liabilities on the condensed consolidated balance sheet related to those leases classified as operating and not recognized on the condensed consolidated balance sheets under current GAAP. The company does not anticipate any material change on the condensed consolidated balance sheets related to capital leases under current GAAP or to the condensed consolidated statement of income. Under the new standard, lessor accounting will be largely unchanged from current GAAP, however disclosures will be expanded.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Retrospective Impact of Adoption of New Accounting Standards	The retrospective impact of adoption for the three and nine months ended September 30, 2017 is shown in the following table. Three months ended September 30, 2017 Nine months ended September 30, 2017 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Cost of sales $ 1,579 $ (2 ) $ 1,577 $ 4,487 $ (6 ) $ 4,481 Gross margin 1,128 2 1,130 3,300 6 3,306 Marketing and administrative expenses 685 (5 ) 680 1,890 (16 ) 1,874 Research and development expenses 151 (1 ) 150 435 (3 ) 432 Operating income 292 8 300 975 25 1,000 Other (income) expense, net (12 ) 8 (4 ) 10 25 35

SUPPLEMENTAL FINANCIAL INFORM_2

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Net Interest Expense	Net interest expense Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Interest expense, net of capitalized interest $ 24 $ 22 $ 70 $ 62 Interest income (13 ) (8 ) (36 ) (21 ) Net interest expense $ 11 $ 14 $ 34 $ 41
Other (Income) Expense, Net	Other (income) expense, net Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Foreign exchange $ (20 ) $ (12 ) $ (53 ) $ (27 ) Venezuela deconsolidation - - - 33 Pension and other postemployment benefit plans (13 ) 8 (39 ) 25 All other 1 - 11 4 Other (income) expense, net $ (32 ) $ (4 ) $ (81 ) $ 35
Inventories	Inventories September 30, December 31, (in millions) 2018 2017 Raw materials $ 373 $ 347 Work in process 224 116 Finished goods 1,121 1,012 Inventories $ 1,718 $ 1,475
Property, Plant and Equipment, Net	Property, plant and equipment, net September 30, December 31, (in millions) 2018 2017 Property, plant and equipment, at cost $ 10,323 $ 10,148 Accumulated depreciation (5,803 ) (5,560 ) Property, plant and equipment, net $ 4,520 $ 4,588

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Reconciliation of Basic Shares to Diluted Shares	The following table is a reconciliation of basic shares to diluted shares. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Basic shares 534 545 536 543 Effect of dilutive securities 12 12 12 11 Diluted shares 546 557 548 554

ACQUISITIONS AND OTHER ARRANG_2

ACQUISITIONS AND OTHER ARRANGEMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Summary of Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the fair value of the assets acquired and liabilities assumed as of the acquisition date for the company’s acquisition of Claris: (in millions) Assets acquired and liabilities assumed Cash $ 11 Accounts and other current receivables 16 Inventories 30 Prepaid expenses and other 16 Property, plant and equipment 130 Goodwill 296 Other intangible assets 280 Other 20 Accounts payable and accrued liabilities (23 ) Other long-term liabilities (136 ) Total assets acquired and liabilities assumed $ 640
Schedule of Total Consideration	The following table summarizes total consideration: (in millions) Cash $ 163 Contingent consideration 21 Total consideration $ 184
Summary of Fair Value of Assets Acquired	The following table summarizes the fair value of the assets acquired as of the acquisition date. (in millions) Assets acquired Accounts receivable $ 2 Inventory 80 Goodwill 2 Other intangible assets 100 Total assets acquired $ 184

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	The following is a reconciliation of goodwill by business segment. (in millions) Americas EMEA APAC Total Balance as of December 31, 2017 $ 2,474 $ 392 $ 233 $ 3,099 Additions 9 — — 9 Currency translation adjustments (102 ) (16 ) (10 ) (128 ) Balance as of September 30, 2018 $ 2,381 $ 376 $ 223 $ 2,980
Other Intangible Assets, Net	The following is a summary of the company’s other intangible assets. (in millions) Developed technology, including patents Other amortized intangible assets Indefinite-lived intangible assets Total September 30, 2018 Gross other intangible assets $ 2,123 $ 420 $ 188 $ 2,731 Accumulated amortization (1,084 ) (245 ) (1,329 ) Other intangible assets, net $ 1,039 $ 175 $ 188 $ 1,402 December 31, 2017 Gross other intangible assets $ 2,002 $ 435 $ 172 $ 2,609 Accumulated amortization (1,010 ) (225 ) — (1,235 ) Other intangible assets, net $ 992 $ 210 $ 172 $ 1,374

BUSINESS OPTIMIZATION CHARGES (

BUSINESS OPTIMIZATION CHARGES (Tables)	9 Months Ended
	Sep. 30, 2018
Restructuring And Related Activities [Abstract]
Business Optimization Charges	During the three and nine months ended September 30, 2018 and 2017, the company recorded the following charges related to business optimization programs. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Restructuring charges, net $ 63 $ 31 $ 96 $ 50 Costs to implement business optimization programs 24 21 74 58 Accelerated depreciation 3 — 5 8 Total business optimization charges $ 90 $ 52 $ 175 $ 116
Components of Restructuring Charges	During the three and nine months ended September 30, 2018 and 2017, the company recorded the following restructuring charges. Three months ended September 30, 2018 (in millions) COGS SGA R&D Total Employee termination costs $ 16 $ 33 $ 9 $ 58 Contract termination and other costs — 4 — 4 Asset impairments — 1 — 1 Total restructuring charges $ 16 $ 38 $ 9 $ 63 Three months ended September 30, 2017 (in millions) COGS SGA R&D Total Employee termination costs $ 7 $ 24 $ — $ 31 Total restructuring charges $ 7 $ 24 $ — $ 31 Nine months ended September 30, 2018 (in millions) COGS SGA R&D Total Employee termination costs $ 20 $ 47 $ 19 $ 86 Contract termination and other costs — 6 — 6 Asset impairments 1 3 — 4 Total restructuring charges $ 21 $ 56 $ 19 $ 96 Nine months ended September 30, 2017 (in millions) COGS SGA R&D Total Employee termination costs $ 21 $ 33 $ — $ 54 Contract termination costs — 5 — 5 Asset impairments 5 — — 5 Reserve adjustments (7 ) (5 ) (2 ) (14 ) Total restructuring charges $ 19 $ 33 $ (2 ) $ 50
Summary of Activity in Reserves related to Business Optimization Initiatives	The following table summarizes activity in the reserves related to the company’s business optimization initiatives. (in millions) Reserves as of December 31, 2017 $ 112 Charges 92 Utilization (72 ) CTA (19 ) Reserves as of September 30, 2018 $ 113

DEBT, FINANCIAL INSTRUMENTS A_2

DEBT, FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Financial Instruments And Fair Value Measurements [Abstract]
Summary of Activity Relating to Securitization Arrangement	The following is a summary of the activity relating to the company’s securitization arrangement in Japan. Three months ended September 30, Nine months ended September 30, (in millions) 2018 2017 2018 2017 Sold receivables at beginning of period $ 64 $ 63 $ 71 $ 68 Proceeds from sales of receivables 66 69 195 198 Cash collections (remitted to the owners of the receivables) (67 ) (66 ) (203 ) (203 ) Effect of currency exchange rate changes (1 ) — (1 ) 3 Sold receivables at end of period $ 62 $ 66 $ 62 $ 66
Summary of Gains and Losses on Derivative Instruments	The following tables summarize the income statement locations and gains and losses on the company’s derivative instruments for the three months ended September 30, 2018 and 2017. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2018 2017 in income statement 2018 2017 Cash flow hedges Foreign exchange contracts $ 3 $ (11 ) Cost of sales $ (1 ) $ (3 ) Net investment hedge 5 $ (39 ) Other (income) expense, net — — Total $ 8 $ (50 ) $ (1 ) $ (3 ) Gain (loss) recognized in income (in millions) Location of gain (loss) in income statement 2018 2017 Fair value hedges Interest rate contracts Net interest expense $ — $ (1 ) Undesignated derivative instruments Foreign exchange contracts Other (income) expense, net $ 10 $ (3 ) The following tables summarize the income statement locations and gains and losses on the company’s derivative instruments for the nine months ended September 30, 2018 and 2017. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2018 2017 in income statement 2018 2017 Cash flow hedges Foreign exchange contracts $ 1 $ (24 ) Cost of sales $ (11 ) $ (4 ) Interest Rate contracts — (3 ) Net interest expense — — Net investment hedge 22 (70 ) Other (income) expense, net — — Total $ 23 $ (97 ) $ (11 ) $ (4 ) Gain (loss) recognized in income (in millions) Location of gain (loss) in income statement 2018 2017 Fair value hedges Interest rate contracts Net interest expense $ (4 ) $ (1 ) Undesignated derivative instruments Foreign exchange contracts Other (income) expense, net $ (1 ) $ (7 )
Classification and Fair Value Amounts of Derivative Instruments	The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of September 30, 2018. Derivatives in asset positions Derivatives in liability positions (in millions) Balance sheet location Fair value Balance sheet location Fair value Derivative instruments designated as hedges Foreign exchange contracts Prepaid expenses and other $ 17 Accounts payable and accrued liabilities $ 1 Foreign exchange contracts Other long-term assets $ 1 Other long-term liabilities $ — Total derivative instruments designated as hedges $ 18 $ 1 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other $ — Accounts payable and accrued liabilities $ 1 Total derivative instruments $ 18 $ 2 The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2017. Derivatives in asset positions Derivatives in liability positions (in millions) Balance sheet location Fair value Balance sheet location Fair value Derivative instruments designated as hedges Interest rate contracts Other long-term assets $ 4 Other long- term liabilities $ — Foreign exchange contracts Prepaid expenses and other 14 Accounts payable and accrued liabilities 3 Total derivative instruments designated as hedges $ 18 $ 3 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other $ 1 Accounts payable and accrued liabilities $ 1 Total derivative instruments $ 19 $ 4
Derivative Positions Presented on Net Basis	The following table provides information on the company’s derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty. September 30, 2018 December 31, 2017 (in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 18 $ 2 $ 19 $ 4 Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet (2 ) (2 ) (4 ) (4 ) Total $ 16 $ — $ 15 $ —
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the condensed consolidated balance sheets. Basis of fair value measurement (in millions) Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Foreign currency hedges $ 18 $ — $ 18 $ — Marketable equity securities 6 6 — — Total assets $ 24 $ 6 $ 18 $ — Liabilities Foreign currency hedges $ 2 $ — $ 2 $ — Contingent payments related to acquisitions 32 — — 32 Total liabilities $ 34 $ — $ 2 $ 32 Basis of fair value measurement (in millions) Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Foreign currency hedges $ 15 $ — $ 15 $ — Interest rate hedges 4 — 4 — Marketable equity securities 8 8 — — Total assets $ 27 $ 8 $ 19 $ — Liabilities Foreign currency hedges $ 4 $ — $ 4 $ — Contingent payments related to acquisitions 9 — — 9 Total liabilities $ 13 $ — $ 4 $ 9
Investments in Marketable Equity Securities	The following table provides information relating to the company’s investments in marketable equity securities. (in millions) Amortized cost Unrealized gains Unrealized losses Fair value September 30, 2018 $ 8 $ — $ 2 $ 6 December 31, 2017 $ 8 $ — $ — $ 8
Book Values and Fair Values of Financial Instruments	the following table provides the values recognized in the condensed consolidated balance sheets and the approximate fair values as of September 30, 2018 and December 31, 2017. Book values Approximate fair values (in millions) 2018 2017 2018 2017 Liabilities Current maturities of long-term debt and lease obligations $ 3 $ 3 $ 3 $ 3 Long-term debt and lease obligations 3,485 3,509 3,467 3,595
Summarization of Bases Used to Measure Fair Value of Financial Instruments	The following tables summarize the bases used to measure the approximate fair value of the financial instruments as of September 30, 2018 and December 31, 2017. Basis of fair value measurement (in millions) Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Liabilities Current maturities of long-term debt and lease obligations $ 3 $ — $ 3 $ — Long-term debt and lease obligations 3,467 — 3,467 — Total liabilities $ 3,470 $ — $ 3,470 $ — Basis of fair value measurement (in millions) Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Liabilities Current maturities of long-term debt and lease obligations $ 3 $ — $ 3 $ — Long-term debt and lease obligations 3,595 — 3,595 — Total liabilities $ 3,598 $ — $ 3,598 $ —

RETIREMENT AND OTHER BENEFIT _2

RETIREMENT AND OTHER BENEFIT PROGRAMS (Tables)	9 Months Ended
	Sep. 30, 2018
Compensation And Retirement Disclosure [Abstract]
Net Periodic Benefit Cost Relating to Pension and Other Postemployment Benefit Plans	The following is a summary of net periodic benefit cost relating to the company’s pension and other postemployment benefit (OPEB) plans. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Pension benefits Service cost $ 23 $ 23 $ 70 $ 68 Interest cost 45 46 136 136 Expected return on plan assets (78 ) (75 ) (235 ) (220 ) Amortization of net losses and other deferred amounts 24 42 72 123 Net periodic pension benefit cost $ 14 $ 36 $ 43 $ 107 OPEB Service cost $ — $ — $ — $ — Interest cost 2 2 6 6 Amortization of net loss and prior service credit (6 ) (7 ) (18 ) (20 ) Net periodic OPEB cost $ (4 ) $ (5 ) $ (12 ) $ (14 )

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Summary of Changes in AOCI by Component	The following table is a net-of-tax summary of the changes in AOCI by component for the nine months ended September 30, 2018 and 2017. (in millions) CTA Pension and other employee benefits Hedging activities Available- for-sale securities Total Gains (losses) Balance as of December 31, 2017 $ (3,013 ) $ (981 ) $ (10 ) $ 3 $ (4,001 ) Adoption of new accounting standard — — — (3 ) (3 ) Other comprehensive income before reclassifications (332 ) 45 1 — (286 ) Amounts reclassified from AOCI (a) — 44 7 — 51 Net other comprehensive income (loss) (332 ) 89 8 — (235 ) Balance as of September 30, 2018 $ (3,345 ) $ (892 ) $ (2 ) $ — $ (4,239 ) (in millions) CTA Pension and other employee benefits Hedging activities Available- for-sale- securities Total Gains (losses) Balance as of December 31, 2016 $ (3,438 ) $ (1,122 ) $ 3 $ 1 $ (4,556 ) Other comprehensive income before reclassifications 501 (25 ) (19 ) 1 458 Amounts reclassified from AOCI (a) 29 69 3 3 104 Net other comprehensive income (loss) 530 44 (16 ) 4 562 Balance as of September 30, 2017 $ (2,908 ) $ (1,078 ) $ (13 ) $ 5 $ (3,994 ) (a) See table below for details about these reclassifications.
Summary of Reclassification from AOCI to Net Income	The following is a summary of the amounts reclassified from AOCI to net income during the three and nine months ended September 30, 2018 and 2017. Amounts reclassified from AOCI (a) (in millions) Three months ended September 30, 2018 Nine months ended September 30, 2018 Location of impact in income statement Amortization of pension and other employee benefits items Actuarial losses and other (b) $ (18 ) $ (54 ) Other (income) expense, net (18 ) (54 ) Total before tax 4 10 Income tax (benefit) expense $ (14 ) $ (44 ) Net of tax Losses on hedging activities Foreign exchange contracts $ (1 ) $ (11 ) Cost of sales (1 ) (11 ) Total before tax 1 4 Income tax (benefit) expense $ — $ (7 ) Net of tax Total reclassification for the period $ (14 ) $ (51 ) Total net of tax Amounts reclassified from AOCI (a) (in millions) Three months ended September 30, 2017 Nine months ended September 30, 2017 Location of impact in income statement Translation adjustments Loss on Venezuela deconsolidation $ — $ (29 ) Other (income) expense, net — (29 ) Total before tax — — Income tax (benefit) expense $ — $ (29 ) Net of tax Amortization of pension and other employee benefits items Actuarial losses and other (b) $ (35 ) $ (103 ) Other (income) expense, net (35 ) (103 ) Total before tax 12 34 Income tax (benefit) expense $ (23 ) $ (69 ) Net of tax Losses on hedging activities Foreign exchange contracts $ (3 ) $ (4 ) Cost of sales (3 ) (4 ) Total before tax 1 1 Income tax (benefit) expense $ (2 ) $ (3 ) Net of tax Available-for-sale-securities Other-than-temporary impairment of equity securities $ — $ (4 ) Other (income) expense, net — (4 ) Total before tax — 1 Income tax (benefit) expense $ — $ (3 ) Net of tax Total reclassification for the period $ (25 ) $ (104 ) Total net of tax (a) Amounts in parentheses indicate reductions to net income. (b) These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 11.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	Financial information for the company’s segments is as follows. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Net sales Americas $ 1,497 $ 1,458 $ 4,464 $ 4,264 EMEA 707 682 2,189 1,979 APAC 563 567 1,633 1,544 Total net sales $ 2,767 $ 2,707 $ 8,286 $ 7,787 Operating Income Americas $ 624 $ 583 $ 1,809 $ 1,671 EMEA 166 146 479 414 APAC 139 134 387 371 Total segment operating income $ 929 $ 863 $ 2,675 $ 2,456
Operating Income to Income from Continuing Operations Reconciliation	The following is a reconciliation of segment operating income to income from continuing operations before income taxes per the condensed consolidated statements of income. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Total segment operating income $ 929 $ 863 $ 2,675 $ 2,456 Corporate and other (544 ) (563 ) (1,474 ) (1,456 ) Total operating income 385 300 1,201 1,000 Net interest expense 11 14 34 41 Other (income) expense, net (32 ) (4 ) (81 ) 35 Income from continuing operations before income taxes $ 406 $ 290 $ 1,248 $ 924
Net Sales by GBU	The following table represents net sales by GBU. Three months ended Nine months ended September 30, September 30, (in millions) 2018 2017 2018 2017 Renal Care 1 $ 910 $ 896 $ 2,709 $ 2,539 Medication Delivery 2 652 679 2,009 2,026 Pharmaceuticals 3 519 498 1,552 1,375 Clinical Nutrition 4 218 223 662 651 Advanced Surgery 5 200 175 586 521 Acute Therapies 6 122 112 380 330 Other 7 146 124 388 345 Total Baxter $ 2,767 $ 2,707 $ 8,286 $ 7,787 1 Renal Care includes sales of the company’s peritoneal dialysis (PD) and hemodialysis (HD) and additional dialysis therapies and services. 2 Medication Delivery includes sales of the company’s IV therapies, infusion pumps, administration sets and drug reconstitution devices. 3 Pharmaceuticals includes sales of the company’s premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services. 4 Clinical Nutrition includes sales of the company’s parenteral nutrition (PN) therapies. 5 Advanced Surgery includes sales of the company’s biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention. 6 Acute Therapies includes sales of the company’s continuous renal replacement therapies (CRRT) and other organ support therapies focused in the ICU. 7 Other includes sales primarily from the company’s pharmaceutical partnering business.

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Basis Of Presentation [Line Items]
Pre-tax charge recorded due to deconsolidation					$ (33,000,000)
Retained earnings, adjustment	$ 15,394,000,000			$ 15,394,000,000			$ 14,483,000,000
Net sales	2,767,000,000	$ 2,707,000,000		8,286,000,000	7,787,000,000
Cost of sales	1,531,000,000	1,577,000,000		4,697,000,000	$ 4,481,000,000
ASU 2016-16, Income Taxes
Basis Of Presentation [Line Items]
Retained earnings, adjustment						$ (66,000,000)
Increase in net income	4,000,000			11,000,000
ASU No. 2014-09, Revenue from Contracts with Customers
Basis Of Presentation [Line Items]
Retained earnings, adjustment						$ 48,000,000
Net sales	4,000,000			8,000,000
Cost of sales	1,000,000			5,000,000
Hurricane Maria
Basis Of Presentation [Line Items]
Pre-tax charges related to damages caused by hurricane		21,000,000
Insurance recoveries				$ 0
Impairment of Damaged Inventory and Fixed Assets | Hurricane Maria
Basis Of Presentation [Line Items]
Pre-tax charges related to damages caused by hurricane		11,000,000
Idle Facility and Other Costs | Hurricane Maria
Basis Of Presentation [Line Items]
Pre-tax charges related to damages caused by hurricane		$ 10,000,000
Asset Impairments and Idle Facility and Other Costs | Hurricane Maria
Basis Of Presentation [Line Items]
Insurance recoveries	$ 23,000,000
Devaluation of Venezuelan Bolivar
Basis Of Presentation [Line Items]
Description of control and deconsolidation				Effective as of the end of the second quarter of 2017, the company no longer met the accounting criteria for control over its business in Venezuela and therefore deconsolidated its Venezuelan operations.
Devaluation of Venezuelan Bolivar | Other (Income) Expense
Basis Of Presentation [Line Items]
Pre-tax charge recorded due to deconsolidation			$ 33,000,000

Schedule of Retrospective Impac

Schedule of Retrospective Impact of Adoption of New Accounting Standards (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
New Accounting Pronouncement Early Adoption [Line Items]
Cost of sales	$ 1,531	$ 1,577	$ 4,697	$ 4,481
Gross margin	1,236	1,130	3,589	3,306
Marketing and administrative expenses	685	680	1,988	1,874
Research and development expenses	166	150	480	432
Operating income	385	300	1,201	1,000
Other (income) expense, net	$ (32)	(4)	$ (81)	35
As Previously Reported
New Accounting Pronouncement Early Adoption [Line Items]
Cost of sales		1,579		4,487
Gross margin		1,128		3,300
Marketing and administrative expenses		685		1,890
Research and development expenses		151		435
Operating income		292		975
Other (income) expense, net		(12)		10
Reclassification
New Accounting Pronouncement Early Adoption [Line Items]
Cost of sales		(2)		(6)
Gross margin		2		6
Marketing and administrative expenses		(5)		(16)
Research and development expenses		(1)		(3)
Operating income		8		25
Other (income) expense, net		$ 8		$ 25

Revenues - Additional Informati

Revenues - Additional Information (Detail) - USD ($)	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Line Items]
Transaction price allocated to remaining performance obligations	$ 7,900,000,000	$ 7,900,000,000
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2018	5.00%
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2019	20.00%
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2020	20.00%
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2021	20.00%
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2022	20.00%
Net trade accounts receivable	$ 1,800,000,000	1,800,000,000	$ 1,700,000,000
Contract assets	81,000,000	81,000,000	73,000,000
Contract liabilities	0	0	0
Manufacturing Arrangements
Revenue From Contract With Customer [Line Items]
Contract assets	36,000,000	36,000,000	31,000,000
Software Arrangements
Revenue From Contract With Customer [Line Items]
Contract assets	45,000,000	45,000,000	$ 42,000,000
Accounts and Other Current Receivables, Net
Revenue From Contract With Customer [Line Items]
Contract assets	54,000,000	54,000,000
Other
Revenue From Contract With Customer [Line Items]
Contract assets	$ 27,000,000	$ 27,000,000
Minimum
Revenue From Contract With Customer [Line Items]
Remaining performance obligations period	1 year	1 year
Minimum | Software Arrangements
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period		1 year
Maximum
Revenue From Contract With Customer [Line Items]
Remaining performance obligations period	1 year	1 year
Amortization period for cost incurred to obtain contract		1 year
Contract with customer period for goods or service transfers and customer pays for goods or service		1 year
Maximum | Manufacturing Arrangements
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period		90 days
Maximum | Software Arrangements
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period		5 years

Separation of Baxalta Incorpo_2

Separation of Baxalta Incorporated - Additional Information (Detail) - USD ($) $ in Millions	Jul. 01, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash flows from operations – discontinued operations					$ (20)
Baxalta Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash flows from operations – discontinued operations					(20)
Transition Services Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reduction in marketing and administrative expense			$ 11	$ 9	47
Distribution date				2018-07
Transition Services Agreement | Minimum | Manufacturing and supply agreement (MSA)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
The termination of service period				5 years
Transition Services Agreement | Maximum | Manufacturing and supply agreement (MSA)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
The termination of service period				10 years
Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of outstanding common stock distributed	80.50%
Spinoff | Transition Services Agreement | Manufacturing and supply agreement (MSA)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales		$ 8	6	$ 21	18
Cost of sales		$ 38	$ 35	$ 111	$ 133

Net Interest Expense (Detail)

Net Interest Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Income Expense Net
Interest expense, net of capitalized interest	$ 24	$ 22	$ 70	$ 62
Interest income	(13)	(8)	(36)	(21)
Net interest expense	$ 11	$ 14	$ 34	$ 41

Other (Income) Expense, Net (De

Other (Income) Expense, Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other (Income) Expense, net
Foreign exchange	$ (20)	$ (12)	$ (53)	$ (27)
Venezuela deconsolidation				33
Pension and other postemployment benefit plans	(13)	8	(39)	25
All other	1		11	4
Other (income) expense, net	$ (32)	$ (4)	$ (81)	$ 35

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 373	$ 347
Work in process	224	116
Finished goods	1,121	1,012
Inventories	$ 1,718	$ 1,475

Property, Plant and Equipment,

Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment, Net
Property, plant and equipment, at cost	$ 10,323	$ 10,148
Accumulated depreciation	(5,803)	(5,560)
Property, plant and equipment, net	$ 4,520	$ 4,588

Supplemental Financial Inform_3

Supplemental Financial Information - Additional Information (Detail) - ERP Software - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018
Property Plant And Equipment [Line Items]
Estimated useful life		2,020
Reduction of depreciation expense	$ 6		$ 18
Increase in net income	$ 5		$ 15
Incraese in diluted share	$ 0.01		$ 0.03
Maximum
Property Plant And Equipment [Line Items]
Estimated useful life		2,028

Reconciliation of Basic Shares

Reconciliation of Basic Shares to Diluted Shares (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of Basic Shares to Diluted Shares
Basic shares	534	545	536	543
Effect of dilutive securities	12	12	12	11
Diluted shares	546	557	548	554

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Feb. 28, 2018	Nov. 30, 2016	Jul. 31, 2012
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of EPS	3.3	0.1	3.1	2.8
Stock repurchase program, authorized amount							$ 2,000,000,000
Stock repurchase program, additional authorized amount					$ 1,500,000,000	$ 1,500,000,000
Share repurchases			14.9	4.7
Value of share repurchases			$ 1,000,000,000	$ 275,000,000
Remaining value available under stock repurchase programs	$ 1,600,000,000		$ 1,600,000,000
Cash dividends declared per common share	$ 0.19	$ 0.16	$ 0.54	$ 0.45

Acquisitions and Other Arrang_3

Acquisitions and Other Arrangements - Additional Information (Detail)	Mar. 16, 2018USD ($)Product	Jul. 27, 2017USD ($)	Feb. 22, 2018USD ($)	Sep. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2018USD ($)
Acquisitions And Collaborations [Line Items]
Total cash consideration, net of cash acquired								$ 255,000,000	$ 680,000,000
Net sales				$ 2,767,000,000		$ 2,707,000,000		8,286,000,000	7,787,000,000
Claris Injectables Limited
Acquisitions And Collaborations [Line Items]
Percentage of ownership acquired		100.00%
Total cash consideration, net of cash acquired		$ 629,000,000
Measurement period adjustments, increase in accounts payable and accrued liabilities				2,000,000
Measurement period adjustments, reduction in property, plant and equipment				1,000,000
Measurement period adjustments, increase in other long-term liabilities				2,000,000
Measurement period adjustments, increase (decreae) in goodwill				5,000,000
Net sales				38,000,000		27,000,000		107,000,000	27,000,000
Amount allocated from total consideration to acquire intangible assets		280,000,000
Business acquisition settlement claims received			$ 73,000,000
Accrued liabilities released			$ 7,000,000
Claris Injectables Limited | Scenario Forecast
Acquisitions And Collaborations [Line Items]
Business acquisition benefit of settlement claims and accrued liabilities released										$ (80,000,000)
Claris Injectables Limited | IPR&D
Acquisitions And Collaborations [Line Items]
Amount allocated from total consideration to acquire in-process research and development with indefinite useful life		140,000,000
Claris Injectables Limited | Developed Technology
Acquisitions And Collaborations [Line Items]
Amount allocated from total consideration to acquire intangible assets		$ 140,000,000
Acquired intangible assets, weighted-average useful life		8 years
Claris Injectables Limited | Measurement Input Discount Rate | IPR&D
Acquisitions And Collaborations [Line Items]
Discount rate used to measure intangible assets		13
Claris Injectables Limited | Measurement Input Discount Rate | Developed Technology
Acquisitions And Collaborations [Line Items]
Discount rate used to measure intangible assets		12
Claris Injectables Limited | Marketing and Administrative Expenses
Acquisitions And Collaborations [Line Items]
Acquisition costs				5,000,000		15,000,000		19,000,000	20,000,000
Integration costs				5,000,000		15,000,000		19,000,000	$ 20,000,000
Mallinckrodt plc | RECOTHROM and PREVELEAK
Acquisitions And Collaborations [Line Items]
Measurement period adjustments, increase (decreae) in goodwill	$ (7,000,000)
Net sales				14,000,000				31,000,000
Acquisition costs				6,000,000				11,000,000
Integration costs				6,000,000				11,000,000
Amount allocated from total consideration to acquire intangible assets	$ 100,000,000
Acquired intangible assets, weighted-average useful life	10 years
Number of products acquired | Product	2
Purchase price, upfront payment					$ 148,000,000
Post-closing payment				$ 15,000,000
Maximum potential future payments	$ 21,000,000
Maximum aggregate amount payable for the inventory	7,000,000
Maximum aggregate amount payable for technology transfer	15,000,000
Maximum aggregate amount payable for royalties revenue net	143,000,000
Measurement period adjustments, increase to acquired inventory	19,000,000
Measurement period adjustments, decrease in other intangible assets	2,000,000
Measurement period adjustments, increase in total consideration transferred	10,000,000
Total consideration transferred	$ 184,000,000
Mallinckrodt plc | Measurement Input Discount Rate | RECOTHROM and PREVELEAK | Minimum
Acquisitions And Collaborations [Line Items]
Discount rate used to measure intangible assets	12.5
Mallinckrodt plc | Measurement Input Discount Rate | RECOTHROM and PREVELEAK | Maximum
Acquisitions And Collaborations [Line Items]
Discount rate used to measure intangible assets	13
Other Acquisitions
Acquisitions And Collaborations [Line Items]
Total consideration transferred								$ 24,000,000
Celerity Pharmaceutical LLC | Bivalirudin
Acquisitions And Collaborations [Line Items]
Payment to acquire the rights					$ 37,000,000
Estimated economic lives					12 years
Celerity Pharmaceutical LLC | Dexmedetomidine
Acquisitions And Collaborations [Line Items]
Payment to acquire the rights					$ 35,000,000
Estimated economic lives					12 years
Celerity Pharmaceutical LLC | Clindamycin Saline
Acquisitions And Collaborations [Line Items]
Payment to acquire the rights							$ 10,000,000
Estimated economic lives							12 years
Celerity Pharmaceutical LLC | Clindamycin Dextrose
Acquisitions And Collaborations [Line Items]
Payment to acquire the rights						$ 10,000,000
Estimated economic lives						12 years

Acquisitions and Other Arrang_4

Acquisitions and Other Arrangements - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Jul. 27, 2017
Assets acquired and liabilities assumed
Goodwill	$ 2,980	$ 3,099
Claris Injectables Limited
Assets acquired and liabilities assumed
Cash			$ 11
Accounts and other current receivables			16
Inventories			30
Prepaid expenses and other			16
Property, plant and equipment			130
Goodwill			296
Other intangible assets			280
Other			20
Accounts payable and accrued liabilities			(23)
Other long-term liabilities			(136)
Total assets acquired and liabilities assumed			$ 640

Acquisitions and Other Arrang_5

Acquisitions and Other Arrangements - Schedule of Total Consideration (Detail) - Mallinckrodt plc - RECOTHROM and PREVELEAK $ in Millions	Mar. 16, 2018USD ($)
Business Acquisition [Line Items]
Cash	$ 163
Contingent consideration	21
Total consideration	$ 184

Acquisitions and Other Arrang_6

Acquisitions and Other Arrangements - Summary of Fair Value of Assets Acquired (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Mar. 16, 2018	Dec. 31, 2017
Assets acquired
Goodwill	$ 2,980		$ 3,099
Mallinckrodt plc | RECOTHROM and PREVELEAK
Assets acquired
Accounts receivable		$ 2
Inventories		80
Goodwill		2
Other intangible assets		100
Total assets acquired		$ 184

Goodwill (Detail)

Goodwill (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Line Items]
Goodwill, beginning balance	$ 3,099
Additions	9
Currency translation adjustments	(128)
Goodwill, ending balance	2,980
Americas
Goodwill [Line Items]
Goodwill, beginning balance	2,474
Additions	9
Currency translation adjustments	(102)
Goodwill, ending balance	2,381
EMEA
Goodwill [Line Items]
Goodwill, beginning balance	392
Currency translation adjustments	(16)
Goodwill, ending balance	376
APAC
Goodwill [Line Items]
Goodwill, beginning balance	233
Currency translation adjustments	(10)
Goodwill, ending balance	$ 223

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Accumulated goodwill impairment losses	$ 0		$ 0
Intangible asset amortization expense	$ 42,000,000	$ 38,000,000	$ 127,000,000	$ 112,000,000

Other Intangible Assets, Net (D

Other Intangible Assets, Net (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets	$ 2,731	$ 2,609
Accumulated amortization	(1,329)	(1,235)
Other intangible assets, net	1,402	1,374
Developed technology, including patents
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets	2,123	2,002
Accumulated amortization	(1,084)	(1,010)
Other intangible assets, net	1,039	992
Other amortized intangible assets
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets	420	435
Accumulated amortization	(245)	(225)
Other intangible assets, net	175	210
Indefinite-lived intangible assets
Intangible Asset Excluding Goodwill [Line Items]
Other intangible assets	$ 188	$ 172

Infusion Pump Charges - Additio

Infusion Pump Charges - Additional Information (Detail) - SIGMA Spectrum Infusion Pump $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Infusion Pump Charges [Line Items]
Infusion pump and other product-related charges	$ 22
Infusion pump reserve remaining liability	$ 4

Business Optimization charges -

Business Optimization charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Cumulative pretax costs incurred					$ 751
Expected additional pretax costs					130
Expected capital expenditures					$ 50
Costs to implement business optimization programs	$ 24	$ 21	$ 74	$ 58
Accelerated depreciation	$ 3		$ 5	$ 8

Business Optimization Charges_2

Business Optimization Charges (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring And Related Activities [Abstract]
Restructuring charges, net	$ 63	$ 31	$ 96	$ 50
Costs to implement business optimization programs	24	21	74	58
Accelerated depreciation	3		5	8
Total business optimization charges	$ 90	$ 52	$ 175	$ 116

Components of Restructuring Cha

Components of Restructuring Charges (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 63	$ 31	$ 96	$ 50
Reserve adjustments				(14)
Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	58	31	86	54
Contract Termination and Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4		6
Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring charges				5
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1		4	5
Cost of Goods Sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	16	7	21	19
Reserve adjustments				(7)
Cost of Goods Sold | Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	16	7	20	21
Cost of Goods Sold | Asset Impairments
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1	5
Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	38	24	56	33
Reserve adjustments				(5)
Selling, General and Administrative Expenses | Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	33	$ 24	47	33
Selling, General and Administrative Expenses | Contract Termination and Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4		6
Selling, General and Administrative Expenses | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring charges				5
Selling, General and Administrative Expenses | Asset Impairments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1		3
Research and Development Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9		19	(2)
Reserve adjustments				$ (2)
Research and Development Expenses | Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 9		$ 19

Summary of Activity in Reserves

Summary of Activity in Reserves related to Business Optimization Initiatives (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Charges	$ 63	$ 31	$ 96	$ 50
Severance and Other Employee Related Costs
Restructuring Cost and Reserve [Line Items]
Reserve, beginning balance			112
Charges			92
Utilization			(72)
CTA			(19)
Reserve, ending balance	$ 113		$ 113

Debt, Financial Instruments a_3

Debt, Financial Instruments and Fair Value Measurements - Additional Information (Detail) € in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	May 31, 2017EUR (€)	Dec. 31, 2016USD ($)
Debt and Financial Instruments [Line Items]
Senior notes | €							€ 600
Maximum length of time hedge in cash flow hedge				18 months
Terminated fair value hedges					$ 0
Gain (loss) recognized in income, fair value hedges	$ 0	$ 1,000,000		$ 4,000,000	1,000,000
Cash and equivalents	2,860,000,000	3,517,000,000		2,860,000,000	3,517,000,000	$ 3,394,000,000		$ 2,801,000,000
Other-than-temporary impairment charge related to marketable equity security			$ 4,000,000
Other Assets
Debt and Financial Instruments [Line Items]
Other equity investments without readily determinable fair values	39,000,000			39,000,000		43,000,000
Fair Value, Inputs, Level 2
Debt and Financial Instruments [Line Items]
Money market funds, at carrying value	1,300,000,000			1,300,000,000		700,000,000
Significant Unobservable Inputs (Level 3) | RECOTHROM and PREVELEAK
Debt and Financial Instruments [Line Items]
Change in fair value of contingent payment related to achievement of certain sales-based milestones				21,000,000
Designated as Hedging Instrument
Debt and Financial Instruments [Line Items]
Derivative notional amount	0	$ 0		0	$ 0
Not Designated as Hedging Instrument
Debt and Financial Instruments [Line Items]
Derivative notional amount	699,000,000			699,000,000		885,000,000
Net investment hedge
Debt and Financial Instruments [Line Items]
Accumulated pre-tax unrealized translation losses in AOCI related to euro-denominated senior notes	57,000,000			57,000,000
Foreign exchange contract
Debt and Financial Instruments [Line Items]
Derivative notional amount	656,000,000			656,000,000		660,000,000
Interest rate contract
Debt and Financial Instruments [Line Items]
Derivative notional amount	0			0		0
Interest rate contract | Fair value hedges
Debt and Financial Instruments [Line Items]
Derivative notional amount	0			0		$ 200,000,000
Greece, Spain, Portugal and Italy
Debt and Financial Instruments [Line Items]
Total accounts receivable from certain countries with liquidity issues	$ 141,000,000			$ 141,000,000
1.30% Senior Notes due May 2025
Debt and Financial Instruments [Line Items]
Senior notes | €							€ 600
Senior notes, coupon rates							1.30%
Higher rate of debt maturity periods				May 2,025

Summary of Activity Relating to

Summary of Activity Relating to Securitization Arrangement (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Sold receivables at beginning of period	$ 64	$ 63	$ 71	$ 68
Proceeds from sales of receivables	66	69	195	198
Cash collections (remitted to the owners of the receivables)	(67)	(66)	(203)	(203)
Effect of currency exchange rate changes	(1)		(1)	3
Sold receivables at end of period	$ 62	$ 66	$ 62	$ 66

Summary of Gains and Losses on

Summary of Gains and Losses on Derivative Instruments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	$ 8	$ (50)	$ 23	$ (97)
Gains (losses) on hedging activities reclassified from AOCI to net income, before tax	(1)	(3)	(11)	(4)
Gain (loss) recognized in income, fair value hedges	0	1	4	1
Other (income) expense, net | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income, undesignated derivative instruments	10	(3)	(1)	(7)
Cash Flow Hedging | Foreign exchange contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	3	(11)	1	(24)
Cash Flow Hedging | Foreign exchange contract | Cost of Goods Sold
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on hedging activities reclassified from AOCI to net income, before tax	(1)	(3)	(11)	(4)
Cash Flow Hedging | Interest rate contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI				(3)
Net investment hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	$ 5	(39)	22	(70)
Fair value hedges | Net Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income, fair value hedges		$ (1)	$ (4)	$ (1)

Classification and Fair Value A

Classification and Fair Value Amounts of Derivative Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 18	$ 19
Derivative liability, fair value	2	4
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	18	18
Derivative liability, fair value	1	3
Designated as Hedging Instrument | Foreign exchange contract | Other Long-Term Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	1
Designated as Hedging Instrument | Foreign exchange contract | Prepaid expenses and other
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	17	14
Designated as Hedging Instrument | Foreign exchange contract | Accounts Payable And Accrued Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	1	3
Designated as Hedging Instrument | Interest rate contract | Other Long-Term Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value		4
Not Designated as Hedging Instrument | Foreign exchange contract | Prepaid expenses and other
Derivatives, Fair Value [Line Items]
Derivative asset, fair value		1
Not Designated as Hedging Instrument | Foreign exchange contract | Accounts Payable And Accrued Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 1	$ 1

Derivative Positions Presented

Derivative Positions Presented On Net Basis (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Gross amounts recognized in the consolidated balance sheet, Asset	$ 18	$ 19
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, Asset	(2)	(4)
Total, Asset	16	15
Gross amounts recognized in the consolidated balance sheet, Liability	2	4
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, Liability	$ (2)	$ (4)

Summary of Financial Assets and

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	$ 6	$ 8
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency hedges, assets at fair value	18	15
Interest rate hedges, assets at fair value		4
Marketable equity securities	6	8
Total assets	24	27
Foreign currency hedges, liabilities at fair value	2	4
Contingent payments related to acquisitions	32	9
Total liabilities	34	13
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	6	8
Total assets	6	8
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency hedges, assets at fair value	18	15
Interest rate hedges, assets at fair value		4
Total assets	18	19
Foreign currency hedges, liabilities at fair value	2	4
Total liabilities	2	4
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent payments related to acquisitions	32	9
Total liabilities	$ 32	$ 9

Marketable Equity Securities (D

Marketable Equity Securities (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Amortized cost	$ 8	$ 8
Unrealized losses	2
Marketable equity securities	$ 6	$ 8

Book Values and Fair Values of

Book Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Book Values
Fair Value And Carrying Value By Balance Sheet Grouping [Line Items]
Current maturities of long-term debt and lease obligations	$ 3	$ 3
Long-term debt and lease obligations	3,485	3,509
Approximate fair values
Fair Value And Carrying Value By Balance Sheet Grouping [Line Items]
Current maturities of long-term debt and lease obligations	3	3
Long-term debt and lease obligations	$ 3,467	$ 3,595

Summarization of Bases Used to

Summarization of Bases Used to Measure Fair Value of Financial Instruments (Detail) - Approximate fair values - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current maturities of long-term debt and lease obligations	$ 3	$ 3
Long-term debt and lease obligations	3,467	3,595
Total liabilities	3,470	3,598
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current maturities of long-term debt and lease obligations	3	3
Long-term debt and lease obligations	3,467	3,595
Total liabilities	$ 3,470	$ 3,598

Net Periodic Benefit Cost Relat

Net Periodic Benefit Cost Relating to Pension and Other Postemployment Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Pension benefits
Net periodic benefit cost
Service cost	$ 23	$ 23	$ 70	$ 68
Interest cost	45	46	136	136
Expected return on plan assets	(78)	(75)	(235)	(220)
Amortization of net losses and other deferred amounts	24	42	72	123
Net periodic benefit cost	14	36	43	107
OPEB
Net periodic benefit cost
Interest cost	2	2	6	6
Amortization of net loss and prior service credit	(6)	(7)	(18)	(20)
Net periodic benefit cost	$ (4)	$ (5)	$ (12)	$ (14)

Retirement and Other Benefit _3

Retirement and Other Benefit Programs - Additional Information (Detail) $ in Millions	1 Months Ended
	Jan. 31, 2018USD ($)
Compensation And Retirement Disclosure [Abstract]
Defined benefit plan, decline in projected benefit obligation	$ (57)

Summary of Changes in AOCI by C

Summary of Changes in AOCI by Component (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				$ 9,116
Other comprehensive income before reclassifications				(286)	$ 458
Amounts reclassified from AOCI	[1]			51	104
Total other comprehensive (loss) income, net of tax		$ (40)	$ 182	(235)	562
Ending Balance		9,113		9,113
ASU 2016-01
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting standard				(3)
CTA
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				(3,013)	(3,438)
Other comprehensive income before reclassifications				(332)	501
Amounts reclassified from AOCI	[1]				29
Total other comprehensive (loss) income, net of tax				(332)	530
Ending Balance		(3,345)	(2,908)	(3,345)	(2,908)
Pension and other employee benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				(981)	(1,122)
Other comprehensive income before reclassifications				45	(25)
Amounts reclassified from AOCI	[1]			44	69
Total other comprehensive (loss) income, net of tax				89	44
Ending Balance		(892)	(1,078)	(892)	(1,078)
Hedging activities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				(10)	3
Other comprehensive income before reclassifications				1	(19)
Amounts reclassified from AOCI	[1]			7	3
Total other comprehensive (loss) income, net of tax				8	(16)
Ending Balance		(2)	(13)	(2)	(13)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				3	1
Other comprehensive income before reclassifications					1
Amounts reclassified from AOCI	[1]				3
Total other comprehensive (loss) income, net of tax					4
Ending Balance			5		5
Available-for-sale securities | ASU 2016-01
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting standard				(3)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance				(4,001)	(4,556)
Ending Balance		$ (4,239)	$ (3,994)	$ (4,239)	$ (3,994)
[1]	See table below for details about these reclassifications.

Summary of Amounts Reclassifica

Summary of Amounts Reclassification from AOCI to Net Income (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		$ 32	$ 4	$ 81	$ (35)
Cost of sales		1,531	1,577	4,697	4,481
Reclassifications, Total before tax		406	290	1,248	924
Reclassifications, Income tax (benefit) expense		138	(42)	28	(139)
Net income		544	251	1,276	788
Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	[1]	(14)	(25)	(51)	(104)
Amortization of pension and other employee benefits items | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial losses and other	[1],[2]	(18)	(35)	(54)	(103)
Reclassifications, Total before tax	[1]	(18)	(35)	(54)	(103)
Reclassifications, Income tax (benefit) expense	[1]	4	12	10	34
Net income	[1]	(14)	(23)	(44)	(69)
Losses on hedging activities | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, Total before tax	[1]	(1)	(3)	(11)	(4)
Reclassifications, Income tax (benefit) expense	[1]	1	1	4	1
Net income	[1]		(2)	(7)	(3)
Losses on hedging activities | Foreign exchange contract | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	[1]	$ (1)	$ (3)	$ (11)	(4)
Translation adjustments | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, Total before tax	[1]				(29)
Net income	[1]				(29)
Translation adjustments | Amounts reclassified from AOCI | Loss on Venezuela deconsolidation
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net	[1]				(29)
Other-than-temporary impairment of equity securities | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net	[1]				(4)
Available-for-sale-securities | Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, Total before tax	[1]				(4)
Reclassifications, Income tax (benefit) expense	[1]				1
Net income	[1]				$ (3)
[1]	Amounts in parentheses indicate reductions to net income.
[2]	These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 11.

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate	(34.00%)	14.50%	(2.20%)	15.00%
Valuation allowance	$ 200		$ 200
Effective tax rate stock compensation programs with tax windfall benefits percentage points			3.00%

Legal Proceedings - Additional

Legal Proceedings - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018USD ($)Site	Dec. 31, 2017USD ($)
Loss Contingencies [Line Items]
Litigation reserve	$ 30,000,000	$ 41,000,000
Litigation related receivables	$ 0	0
Superfund Sites | Environmental Clean-up
Loss Contingencies [Line Items]
Number of sites | Site	7
Name of site	Superfund
Environmental reserves	$ 19,000,000	$ 21,000,000

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 2,767	$ 2,707	$ 8,286	$ 7,787
Total segment operating income	385	300	1,201	1,000
Americas
Segment Reporting Information [Line Items]
Net sales	1,497	1,458	4,464	4,264
EMEA
Segment Reporting Information [Line Items]
Net sales	707	682	2,189	1,979
APAC
Segment Reporting Information [Line Items]
Net sales	563	567	1,633	1,544
Operating Segments
Segment Reporting Information [Line Items]
Total segment operating income	929	863	2,675	2,456
Operating Segments | Americas
Segment Reporting Information [Line Items]
Total segment operating income	624	583	1,809	1,671
Operating Segments | EMEA
Segment Reporting Information [Line Items]
Total segment operating income	166	146	479	414
Operating Segments | APAC
Segment Reporting Information [Line Items]
Total segment operating income	$ 139	$ 134	$ 387	$ 371

Operating Income to Income from

Operating Income to Income from Continuing Operations Reconciliation (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total operating income	$ 385	$ 300	$ 1,201	$ 1,000
Net interest expense	11	14	34	41
Other (income) expense, net	(32)	(4)	(81)	35
Income from continuing operations before income taxes	406	290	1,248	924
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total operating income	929	863	2,675	2,456
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total operating income	$ (544)	$ (563)	$ (1,474)	$ (1,456)

Net Sales by GBU (Detail)

Net Sales by GBU (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue from External Customer [Line Items]
Net sales		$ 2,767	$ 2,707	$ 8,286	$ 7,787
Renal
Revenue from External Customer [Line Items]
Net sales	[1]	910	896	2,709	2,539
Medication Delivery
Revenue from External Customer [Line Items]
Net sales	[2]	652	679	2,009	2,026
Pharmaceuticals
Revenue from External Customer [Line Items]
Net sales	[3]	519	498	1,552	1,375
Clinical Nutrition
Revenue from External Customer [Line Items]
Net sales	[4]	218	223	662	651
Advanced Surgery
Revenue from External Customer [Line Items]
Net sales	[5]	200	175	586	521
Acute Therapies
Revenue from External Customer [Line Items]
Net sales	[6]	122	112	380	330
Other
Revenue from External Customer [Line Items]
Net sales	[7]	$ 146	$ 124	$ 388	$ 345
[1]	Renal Care includes sales of the company’s peritoneal dialysis (PD) and hemodialysis (HD) and additional dialysis therapies and services.
[2]	Medication Delivery includes sales of the company’s IV therapies, infusion pumps, administration sets and drug reconstitution devices.
[3]	Pharmaceuticals includes sales of the company’s premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services.
[4]	Clinical Nutrition includes sales of the company’s parenteral nutrition (PN) therapies.
[5]	Advanced Surgery includes sales of the company’s biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention.
[6]	Acute Therapies includes sales of the company’s continuous renal replacement therapies (CRRT) and other organ support therapies focused in the ICU.
[7]	Other includes sales primarily from the company’s pharmaceutical partnering business.