Baxter International (BAX) 10-Q 27 Apr 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 20, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-4448
Entity Registrant Name	BAXTER INTERNATIONAL INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-0781620
Entity Address, Address Line One	One Baxter Parkway,
Entity Address, City or Town	Deerfield,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	224.
Local Phone Number	948.2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		505,850,082
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000010456
Current Fiscal Year End Date	--12-31
Common Stock, $1.00 par value | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	BAX (NYSE)
Security Exchange Name	NYSE
Common Stock, $1.00 par value | Chicago Stock Exchange
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	BAX (NYSE)
Security Exchange Name	CHX
0.4% Global Notes due 2024 | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) Security	0.4% Global Notes due 2024
Trading Symbol	BAX 24
Security Exchange Name	NYSE
1.3% Global Notes due 2025 | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) Security	1.3% Global Notes due 2025
Trading Symbol	BAX 25
Security Exchange Name	NYSE
1.3% Global Notes due 2029 | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) Security	1.3% Global Notes due 2029
Trading Symbol	BAX 29
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,673	$ 1,718
Accounts receivable, net of allowances of $122 in 2023 and $114 in 2022	2,547	2,659
Inventories	2,922	2,718
Prepaid expenses and other current assets	957	916
Total current assets	8,099	8,011
Property, plant and equipment, net	5,000	4,979
Goodwill	6,868	6,843
Other intangible assets, net	6,640	6,793
Operating lease right-of-use assets	554	550
Other non-current assets	1,130	1,111
Total assets	28,291	28,287
Current liabilities:
Short-term debt	50	299
Current maturities of long-term debt and finance lease obligations	1,103	1,105
Accounts payable	1,290	1,139
Accrued expenses and other current liabilities	2,317	2,202
Total current liabilities	4,760	4,745
Long-term debt and finance lease obligations, less current portion	15,278	15,232
Operating lease liabilities	458	456
Other non-current liabilities	1,854	1,959
Total liabilities	22,350	22,392
Commitments and contingencies
Equity:
Common stock, $1 par value, authorized 2,000,000,000 shares, issued 683,494,944 shares in 2023 and 2022	683	683
Common stock in treasury, at cost,177,658,649 shares in 2023 and 179,062,594 shares in 2022	(11,324)	(11,389)
Additional contributed capital	6,312	6,322
Retained earnings	13,947	14,050
Accumulated other comprehensive income (loss)	(3,739)	(3,833)
Total Baxter stockholders’ equity	5,879	5,833
Noncontrolling interests	62	62
Total equity	5,941	5,895
Total liabilities and equity	$ 28,291	$ 28,287

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for accounts receivable, current	$ 122	$ 114
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, issued (in shares)	683,494,944	683,494,944
Treasury stock, shares (in shares)	177,658,649	179,062,594

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 3,649	$ 3,707
Cost of sales	2,302	2,359
Gross margin	1,347	1,348
Selling, general and administrative expenses	1,010	1,052
Research and development expenses	164	150
Other operating income, net	(13)	(17)
Operating income	186	163
Interest expense, net	117	85
Other income, net	(1)	(16)
Income before income taxes	70	94
Income tax expense	25	21
Net income	45	73
Net income attributable to noncontrolling interests	1	2
Net income attributable to Baxter stockholders	$ 44	$ 71
Earnings per share
Basic (in dollars per share)	$ 0.09	$ 0.14
Diluted (in dollars per share)	$ 0.09	$ 0.14
Weighted-average number of shares outstanding
Basic (in shares)	505	503
Diluted (in shares)	507	509

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 45	$ 73
Other comprehensive income (loss), net of tax:
Currency translation adjustments, net of tax expense (benefit) of ($13) and $(11) for the three months ended March 31, 2023 and 2022, respectively.	102	(15)
Pension and other postretirement benefits, net of tax expense (benefit) of ($1) and $3 for the three months ended March 31, 2023 and 2022, respectively.	(6)	9
Hedging activities, net of tax expense (benefit) of ($1) for the three months ended March 31, 2023 and 2022.	(2)	(2)
Available-for-sale debt securities, net of tax expense of zero and $1 for the three months ended March 31, 2023 and 2022, respectively.	0	1
Total other comprehensive income (loss), net of tax	94	(7)
Comprehensive income	139	66
Less: Comprehensive income attributable to noncontrolling interests	1	2
Comprehensive income attributable to Baxter stockholders	$ 138	$ 64

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Currency translation adjustments, tax	$ (13)	$ (11)
Pension and other postretirement benefits, tax	(1)	3
Hedging activities, tax	(1)	(1)
Debt securities, tax	$ 0	$ 1

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Millions	Total	Total Baxter stockholders' equity	Common stock	Common stock in treasury	Additional contributed capital	Retained earnings	Accumulated other comprehensive income (loss)	Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock, shares (in shares)				182,000,000
Balance, beginning of period (in shares) at Dec. 31, 2021			683,000,000
Balance, beginning of period (in usd) at Dec. 31, 2021	$ 9,121	$ 9,077	$ 683	$ (11,488)	$ 6,197	$ 17,065	$ (3,380)	$ 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73	71				71		2
Other comprehensive income	(7)	(7)					(7)
Stock issued under employee benefit plans and other (in shares)				(2,000,000)
Stock issued under employee benefit plans and other	76	76		$ 66	10
Dividends declared on common stock	(142)	(142)				(142)
Change in noncontrolling interests	(2)							(2)
Balance, end of period (in shares) at Mar. 31, 2022			683,000,000
Balance, end of period (in usd) at Mar. 31, 2022	$ 9,119	9,075	$ 683	$ (11,422)	6,207	16,994	(3,387)	44
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock, shares (in shares)				180,000,000
Treasury stock, shares (in shares)	179,062,594			179,000,000
Balance, beginning of period (in shares) at Dec. 31, 2022			683,000,000
Balance, beginning of period (in usd) at Dec. 31, 2022	$ 5,895	5,833	$ 683	$ (11,389)	6,322	14,050	(3,833)	62
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	45	44				44		1
Other comprehensive income	94	94					94
Stock issued under employee benefit plans and other (in shares)				(1,000,000)
Stock issued under employee benefit plans and other	55	55		$ 65	(10)
Dividends declared on common stock	(147)	(147)				(147)
Change in noncontrolling interests	(1)							(1)
Balance, end of period (in shares) at Mar. 31, 2023			683,000,000
Balance, end of period (in usd) at Mar. 31, 2023	$ 5,941	$ 5,879	$ 683	$ (11,324)	$ 6,312	$ 13,947	$ (3,739)	$ 62
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock, shares (in shares)	177,658,649			178,000,000

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Cash flows from operations
Net income		$ 45	$ 73
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization		319	380
Deferred income taxes		(50)	(55)
Stock compensation		25	32
Net periodic pension and other postretirement costs		(4)	14
Other		14	(12)
Changes in balance sheet items:
Accounts receivable, net		136	153
Inventories		(181)	(105)
Prepaid expenses and other current assets		(39)	(13)
Accounts payable		157	5
Accrued expenses and other current liabilities		93	(221)
Other		(36)	(43)
Cash flows from operations		479	208
Cash flows from investing activities
Capital expenditures		(172)	(140)
Acquisitions, net of cash acquired, and investments		(3)	(174)
Other investing activities, net		5	10
Cash flows from investing activities		(170)	(304)
Cash flows from financing activities
Repayments of debt		(3)	(404)
Net decreases in debt with original maturities of three months or less		(249)	(45)
Cash dividends on common stock		(146)	(140)
Proceeds from stock issued under employee benefit plans		36	66
Other financing activities, net		(10)	(25)
Cash flows from financing activities		(372)	(548)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		18	(13)
Decrease in cash, cash equivalents and restricted cash		(45)	(657)
Cash, cash equivalents and restricted cash at beginning of period	[1]	1,722	2,956
Cash, cash equivalents and restricted cash at end of period	[1]	$ 1,677	$ 2,299
[1]The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to the amounts reported within the condensed consolidated balance sheet as of March 31, 2023, December 31, 2022, and March 31, 2022 (in millions): March 31, 2023 December 31, 2022 March 31, 2022 Cash and cash equivalents $ 1,673 $ 1,718 $ 2,294 Restricted cash included in prepaid expenses and other current assets 4 4 5 Cash, cash equivalents and restricted cash $ 1,677 $ 1,722 $ 2,299

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Cash and cash equivalents		$ 1,673	$ 1,718	$ 2,294
Restricted cash included in prepaid expenses and other current assets		4	4	5
Cash, cash equivalents and restricted cash	[1]	$ 1,677	$ 1,722	$ 2,299
[1]The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to the amounts reported within the condensed consolidated balance sheet as of March 31, 2023, December 31, 2022, and March 31, 2022 (in millions): March 31, 2023 December 31, 2022 March 31, 2022 Cash and cash equivalents $ 1,673 $ 1,718 $ 2,294 Restricted cash included in prepaid expenses and other current assets 4 4 5 Cash, cash equivalents and restricted cash $ 1,677 $ 1,722 $ 2,299

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (we, our or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. 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 our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the current interim period are not necessarily indicative of the results of operations to be expected for the full year. In January 2023, we announced our intention to separate our Renal Care and Acute Therapies product categories into a new, publicly traded company. While the completion of the proposed spinoff is subject to satisfaction of customary conditions, we are targeting completion of the planned separation by July 2024 or earlier. Additionally, we announced that we are pursuing strategic alternatives (including a potential sale) for our BioPharma Solutions product category. Risks and Uncertainties Supply Constraints and Global Economic Conditions We have experienced significant challenges to our global supply chain in recent periods, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices) and higher transportation costs, resulting from the pandemic and other exogenous factors including significant weather events, elevated inflation levels, disruptions to certain ports of call around the world, the war in Ukraine and other geopolitical events. We expect to experience some of these and other challenges related to our supply chain in future periods. These challenges, including the unavailability of certain raw materials and component parts, have also had a negative impact on our sales for certain product categories due to our inability to fully satisfy demand and may continue to have a negative impact on our sales in the future. We expect that the challenges caused by global economic conditions, among other factors, may continue to have an adverse effect on our business.

SUPPLEMENTAL FINANCIAL INFORMAT

SUPPLEMENTAL FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTAL FINANCIAL INFORMATION	SUPPLEMENTAL FINANCIAL INFORMATION Allowance for Doubtful Accounts The following table is a summary of the changes in our allowance for doubtful accounts for the three months ended March 31, 2023 and 2022. Three months ended (in millions) 2023 2022 Balance at beginning of period $ 114 $ 122 Charged to costs and expenses 7 6 Write-offs (1) (1) Currency translation adjustments 2 2 Balance at end of period $ 122 $ 129 Inventories (in millions) March 31, December 31, Raw materials $ 812 $ 738 Work in process 316 293 Finished goods 1,794 1,687 Inventories $ 2,922 $ 2,718 Property, Plant and Equipment, Net (in millions) March 31, December 31, Property, plant and equipment, at cost $ 11,622 $ 11,421 Accumulated depreciation (6,622) (6,442) Property, plant and equipment, net $ 5,000 $ 4,979 Interest Expense, Net Three months ended (in millions) 2023 2022 Interest expense, net of capitalized interest $ 127 $ 88 Interest income (10) (3) Interest expense, net $ 117 $ 85 Other Income, Net Three months ended (in millions) 2023 2022 Foreign exchange (gains) losses, net $ 14 $ (11) Pension and other postretirement benefit plans (10) (5) Change in fair value of marketable equity securities (5) 1 Other, net — (1) Other income, net $ (1) $ (16) Non-Cash Operating and Investing Activities Right-of-use operating lease assets obtained in exchange for lease obligations for the three months ended March 31, 2023 and 2022 were $26 million and $14 million, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following is a reconciliation of goodwill by business segment. (in millions) Americas EMEA APAC Hillrom Total Balance as of December 31, 2022 $ 2,356 $ 289 $ 210 $ 3,988 $ 6,843 Currency translation 18 2 2 3 25 Balance as of March 31, 2023 $ 2,374 $ 291 $ 212 $ 3,991 $ 6,868 For the periods ended March 31, 2023 and 2022, there were no reductions in goodwill relating to impairment losses. Other intangible assets, net The following is a summary of our other intangible assets. Indefinite-lived intangible assets (in millions) Customer relationships Developed technology, including patents Other amortized intangible assets Trade names In process Research and Development Total March 31, 2023 Gross other intangible assets $ 3,454 $ 3,862 $ 326 $ 1,571 $ 202 $ 9,415 Accumulated amortization (529) (2,000) (246) — — (2,775) Other intangible assets, net $ 2,925 $ 1,862 $ 80 $ 1,571 $ 202 $ 6,640 December 31, 2022 Gross other intangible assets $ 3,452 $ 3,836 $ 325 $ 1,571 $ 202 $ 9,386 Accumulated amortization (470) (1,888) (235) — — (2,593) Other intangible assets, net $ 2,982 $ 1,948 $ 90 $ 1,571 $ 202 $ 6,793 Intangible asset amortization expense was $162 million and $217 million for the three months ended March 31, 2023 and 2022, respectively.

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTS Credit Facilities In the first quarter of 2023, we amended the credit agreements governing our U.S. dollar-denominated term loan credit facility and revolving credit facility and the guaranty agreement with respect to our Euro-denominated revolving credit facility, in each case to amend the net leverage ratio covenant to increase the maximum net leverage ratio for the four fiscal quarters ending March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023. Our U.S. dollar-denominated revolving credit facility has a capacity of $2.5 billion and our Euro-denominated revolving credit facility has a capacity of €200 million. Each of the facilities matures in 2026. There were no borrowings outstanding under these credit facilities as of March 31, 2023 or December 31, 2022. Our commercial paper borrowing arrangements require us to maintain undrawn borrowing capacity under our credit facilities for an amount at least equal to our outstanding commercial paper borrowings. Based on our covenant calculations as of March 31, 2023 we have capacity to draw approximately $2.2 billion under our credit facilities, less commercial paper borrowings which were $50 million as of March 31, 2023. Commercial Paper As of March 31, 2023, we had $50 million of commercial paper outstanding with a weighted-average interest rate of 5.42% and an original weighted-average term of 28 days. As of December 31, 2022, we had $299 million of commercial paper outstanding with a weighted-average interest rate of 4.75% and an original weighted-average term of 32 days.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES We are involved in product liability, patent, commercial, and other legal matters that arise in the normal course of our business. We record 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 accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. As of March 31, 2023 and December 31, 2022, our total recorded reserves with respect to legal and environmental matters were $29 million and $28 million, respectively. We have established reserves for certain of the matters discussed below. We are 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 our liability in connection with these claims cannot be estimated and the resolution thereof in any reporting period could have a significant impact on our 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 our consolidated financial position. While we believe that we have valid defenses in the matters set forth below, litigation is inherently uncertain, excessive verdicts do occur, and we may incur material judgments or enter into material settlements of claims. In addition to the matters described below, we remain 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 our operations and monetary sanctions, including significant civil or criminal penalties. With respect to intellectual property, we may be exposed to significant litigation concerning the scope of our 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 We are involved as a potentially responsible party (PRP) for environmental clean-up costs at six 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 these Superfund cases noted above, we are involved in an ongoing environmental remediations associated with historic operations at certain of our facilities. As of March 31, 2023 and December 31, 2022, our environmental reserves, which are measured on an undiscounted basis, were $17 million and $19 million, respectively. After considering these reserves, the outcome of these matters is not expected to have a material adverse effect on our financial position or results of operations. General Litigation In August 2019, we were named in an amended complaint filed by Fayette County, Georgia in the MDL In re: National Prescription Opiate Litigation pending in the U.S. District Court, Northern District of Ohio. The complaint alleges that multiple manufacturers and distributors of opiate products improperly marketed and diverted these products, which caused harm to Fayette County. The complaint is limited in its allegations as to Baxter and does not distinguish between injectable opiate products and orally administered opiates. We manufactured generic injectable opiate products in our facility in Cherry Hill, NJ, which we divested in 2011. In March 2020, two lawsuits were filed against us in the Northern District of Illinois by plaintiffs alleging injuries as a result of exposure to ethylene oxide used in our manufacturing facility in Mountain Home, Arkansas to sterilize certain of our products. The plaintiffs sought damages, including compensatory and punitive damages in an unspecified amount, and unspecified injunctive and declaratory relief. The parties reached agreement to settle these lawsuits in the third quarter of 2021 for amounts that were not material to our financial results, which were paid in the fourth quarter of 2021. We have since resolved, without litigation, additional claims of injuries from exposure to ethylene oxide at Mountain Home for amounts within accruals previously established as of December 31, 2021. On October 20, 2022, a lawsuit was filed against us in the Western District of Arkansas alleging injury as a result of exposure to ethylene oxide at Mountain Home. On December 16, 2022, we filed a motion to dismiss and for a more definite statement. In response, Plaintiffs filed a First Amended Complaint on January 6, 2023. We answered the First Amended Complaint on January 27, 2023. We acquired Hill-Rom Holdings, Inc. (Hillrom) on December 13, 2021. In July 2021, Hill-Rom, Inc., a wholly-owned subsidiary of Hillrom, received a subpoena from the United States Office of Inspector General for the Department of Health and Human Services (the DHHS) requesting documents and information related to compliance with the False Claims Act and the Anti-Kickback Statute. Hillrom has been working with the DHHS and the Department of Justice (DOJ) to provide information responsive to the subpoena. Hillrom also voluntarily began a related internal review and Hillrom and now Baxter have been cooperating fully with the DHHS and the DOJ with respect to these matters. In October 2022, the DOJ issued a separate Civil Investigative Demand (CID) addressed to Hillrom, requesting documents and information related to compliance with the False Claims Act and the Anti-Kickback Statute. Baxter is cooperating fully with the DOJ in responding to the CID. The DHHS and DOJ often issue these types of requests when investigating alleged violations of the False Claims Act. On December 28, 2021, Linet Americas, Inc. (Linet) filed a complaint against Hill-Rom Holdings, Inc., Hill-Rom Company, Inc., and Hill-Rom Services, Inc. in the United States District Court for the Northern District of Illinois, captioned Linet Americas, Inc. v. Hill-Rom Holdings, Inc.; Hill-Rom Company, Inc.; Hill-Rom Services, Inc. Linet alleges that Hillrom violated Sections 1, 2 and 3 of The Sherman Antitrust Act of 1890 and the Illinois Antitrust Act by allegedly engaging in anti-competitive conduct in alleged markets for standard, ICU and birthing beds. Hillrom filed an

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Cash Dividends Cash dividends declared per share for the three months ended March 31, 2023 and 2022 were $0.29 and $0.28, respectively. Stock Repurchase Programs

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income includes all changes in stockholders’ equity that do not arise from transactions with stockholders, and consists of net income, cumulative translation adjustments (CTA), certain gains and losses from pension and other postretirement employee benefit (OPEB) plans, gains and losses on cash flow hedges and unrealized gains and losses on available-for-sale debt securities. The following table is a net-of-tax summary of the changes in accumulated other comprehensive income (loss) (AOCI) by component for the three months ended March 31, 2023 and 2022. Gains (losses) (in millions) CTA Pension and OPEB plans Hedging activities Available-for-sale debt securities Total Balance as of December 31, 2022 $ (3,386) $ (331) $ (119) $ 3 $ (3,833) Other comprehensive income (loss) before reclassifications 102 (3) — — 99 Amounts reclassified from AOCI (a) — (3) (2) — (5) Net other comprehensive income (loss) 102 (6) (2) — 94 Balance as of March 31, 2023 $ (3,284) $ (337) $ (121) $ 3 $ (3,739) Gains (losses) (in millions) CTA Pension and OPEB plans Hedging activities Available-for-sale debt securities Total Balance as of December 31, 2021 $ (2,907) $ (347) $ (126) $ — $ (3,380) Other comprehensive income (loss) before (15) 2 (1) 1 (13) Amounts reclassified from AOCI (a) — 7 (1) — 6 Net other comprehensive income (loss) (15) 9 (2) 1 (7) Balance as of March 31, 2022 $ (2,922) $ (338) $ (128) $ 1 $ (3,387) (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 months ended March 31, 2023 and 2022. Amounts reclassified from AOCI (a) (in millions) Three months ended March 31, 2023 Three months ended March 31, 2022 Location of impact in income statement Pension and OPEB items Amortization of net losses and prior service costs or credits $ 5 $ (9) Other income, net Less: Tax effect (2) 2 Income tax expense $ 3 $ (7) Net of tax Gains (losses) on hedging activities Foreign exchange contracts $ 4 $ 2 Cost of sales Interest rate contracts (1) (1) Interest expense, net 3 1 Total before tax Less: Tax effect (1) — Income tax expense $ 2 $ 1 Net of tax Total reclassifications for the period $ 5 $ (6) Total net of tax (a) Amounts in parentheses indicate reductions to net income

REVENUES

REVENUES	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUES	REVENUES Revenue is measured as the amount of consideration we expect 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 our contracts have multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our global payment terms are typically between 30-90 days. Most of our performance obligations are satisfied at a point in time. This includes sales of our broad portfolio of essential healthcare products across our business segments. Our three legacy Baxter geographic segments include 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. Our legacy Hillrom segment includes smart bed systems; patient monitoring and diagnostic technologies; respiratory health devices; and advanced equipment for the surgical space. For most of those sales, our 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, we enter into arrangements for which revenue may be recognized over time. For example, our Americas segment includes contract manufacturing arrangements, our Hillrom segment includes digital and connected care solutions and collaboration tools that are implemented over time and all of our segments include equipment leases and certain subscription software and licensing arrangements. We recognize revenue for these arrangements over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services. Revenue is recognized over time when we are creating or enhancing an asset that the customer controls as the asset is created or enhanced or our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed. As of March 31, 2023, we had $9.9 billion of transaction price allocated to remaining performance obligations related to executed contracts with an original duration of more than one year, which are primarily included in the Americas segment. Some contracts in the United States included in this amount contain index-dependent price increases, which are not known at this time. We expect to recognize approximately 25% of this amount as revenue over the remainder of 2023, 35% in 2024, 20% in 2025, 10% in 2026 and 10% thereafter. Significant Judgments Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration primarily related to rebates and wholesaler chargebacks. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are included in accrued expenses and other current liabilities and accounts receivable, net on the condensed consolidated balance sheets. Management's estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the contract using the expected value method. The amount of variable consideration included in the net sales price is limited to the amount for which it is probable that a significant reversal in revenue will not occur when the related uncertainty is resolved. Revenue recognized during the three months ended March 31, 2023 and 2022 related to performance obligations satisfied in prior periods was not material. Additionally, our contracts with customers often 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 and determining the allocation of the transaction price may require significant judgement. Contract Balances The timing of revenue recognition, billings and cash collections results in the recognition of trade accounts receivable, unbilled receivables, contract assets and customer advances and deposits (contract liabilities) on our condensed consolidated balance sheets. Net trade accounts receivable was $2.3 billion and $2.4 billion as of March 31, 2023 and December 31, 2022, respectively. For contract manufacturing arrangements, revenue is primarily recognized throughout the production cycle, which typically lasts up to 90 days, resulting in the recognition of contract assets until the related services are completed and the customers are billed. Additionally, for certain arrangements containing a performance obligation to deliver software that can be used with medical devices, we recognize revenue upon delivery of the software, which results in the recognition of contract assets when customers are billed over time, generally over one one The following table summarizes our contract assets: (in millions) March 31, December 31, Contract manufacturing services $ 49 $ 51 Software sales 42 43 Bundled equipment and consumable medical products contracts 120 121 Contract assets $ 211 $ 215 Contract liabilities represent deferred revenues that arise as a result of cash received from customers or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within the next 12 months with most of the non-current performance obligations satisfied within 24 months. The following table summarizes contract liability activity for the three months ended March 31, 2023 and 2022. The contract liability balance represents the transaction price allocated to the remaining performance obligations. Three Months Ended March 31, (in millions) 2023 2022 Balance at beginning of period $ 244 $ 246 New revenue deferrals 113 116 Revenue recognized upon satisfaction of performance obligations (121) (122) Currency translation 1 — Balance at end of period $ 237 $ 240 For the three months ended March 31, 2023 and 2022, $68 million and $50 million of revenue was recognized that was included in contract liabilities as of December 31, 2022 and 2021, respectively. The following table summarizes the classification of contract assets and contract liabilities as reported in the condensed consolidated balance sheets: (in millions) March 31, December 31, Prepaid expenses and other current assets $ 92 $ 93 Other non-current assets 119 122 Contract assets $ 211 $ 215 Accrued expenses and other current liabilities $ 160 $ 164 Other non-current liabilities 77 80 Contract liabilities $ 237 $ 244 Disaggregation of Net Sales The following tables disaggregate our net sales from contracts with customers by product category between the U.S. and international: Three Months Ended March 31, 2023 2022 (in millions) U.S. International Total U.S. International Total Renal Care 1 $ 232 $ 660 $ 892 $ 225 $ 669 $ 894 Medication Delivery 2 436 251 687 472 234 706 Pharmaceuticals 3 173 350 523 157 364 521 Clinical Nutrition 4 78 146 224 84 143 227 Advanced Surgery 5 144 102 246 136 92 228 Acute Therapies 6 61 119 180 68 120 188 BioPharma Solutions 7 69 70 139 52 104 156 Patient Support Systems 8 260 88 348 295 88 383 Front Line Care 9 221 81 302 207 87 294 Global Surgical Solutions 10 38 43 81 37 41 78 Other 11 22 5 27 24 8 32 Total Baxter $ 1,734 $ 1,915 $ 3,649 $ 1,757 $ 1,950 $ 3,707 1 Renal Care includes sales of our peritoneal dialysis (PD), hemodialysis (HD) and additional dialysis therapies and services. 2 Medication Delivery includes sales of our intravenous (IV) therapies, infusion pumps, administration sets and drug reconstitution devices. 3 Pharmaceuticals includes sales of our premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services. 4 Clinical Nutrition includes sales of our parenteral nutrition therapies and related products. 5 Advanced Surgery includes sales of our biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention. 6 Acute Therapies includes sales of our continuous renal replacement therapies (CRRT) and other organ support therapies focused in the intensive care unit (ICU). 7 BioPharma Solutions includes sales of contracted services we provide to various pharmaceutical and biopharmaceutical companies. 8 Patient Support Systems includes sales of our connected care solutions: devices, software, communications and integration technologies and smart beds. 9 Front Line Care includes sales of our integrated patient monitoring and diagnostic technologies to help diagnose, treat and manage a wide variety of illness and diseases, including respiratory therapy, cardiology, vision screening and physical assessment. 10 Global Surgical Solutions includes sales of our surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. 11 Other includes sales of miscellaneous product and service offerings. Lease Revenue We lease medical equipment, such as smart beds, renal dialysis equipment and infusion pumps, to customers, often in conjunction with arrangements to provide consumable medical products such as dialysis therapies, IV fluids and inhaled anesthetics. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options to shorten or extend the lease term, vary by customer. We allocate revenue between equipment leases and medical products based on their standalone selling prices. The components of lease revenue for the three months ended March 31, 2023 and 2022 were: (in millions) Three months ended March 31, 2023 Three months ended March 31, 2022 Sales-type lease revenue $ 4 $ 3 Operating lease revenue 124 122 Variable lease revenue 15 20 Total lease revenue $ 143 $ 145 Our net investment in sales-type leases was $82 million as of March 31, 2023, of which $24 million originated in 2019 and prior, $21 million in 2020, $20 million in 2021, $14 million in 2022, and $3 million in 2023.

BUSINESS OPTIMIZATION CHARGES

BUSINESS OPTIMIZATION CHARGES	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
BUSINESS OPTIMIZATION CHARGES	BUSINESS OPTIMIZATION CHARGES In recent years, we have undertaken actions to transform our 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. From the commencement of our business optimization activities in the second half of 2015 through March 31, 2023, we have incurred cumulative pre-tax costs of $1.6 billion related to these actions. The costs consisted primarily of employee termination costs, implementation costs, contract termination costs, asset impairments and accelerated depreciation. We currently expect to incur additional pre-tax costs, primarily related to implementation of business optimization programs, of approximately $24 million through the completion of initiatives that are currently underway. We continue to pursue cost savings initiatives, including those related the ongoing implementation of our previously announced new operating model intended to simplify and streamline our operations, and, to the extent further cost savings opportunities are identified, we would incur additional restructuring charges and costs to implement business optimization programs in future periods. During the three months ended March 31, 2023 and 2022, we recorded the following charges related to business optimization programs. Three Months Ended March 31, (in millions) 2023 2022 Restructuring charges $ 110 $ 67 Costs to implement business optimization programs 24 14 Total business optimization charges $ 134 $ 81 For segment reporting purposes, business optimization charges are unallocated expenses. Costs to implement business optimization programs for the three months ended March 31, 2023 and 2022, respectively, consisted primarily of external consulting and transition costs, including employee compensation and related costs. These costs were primarily included within cost of sales and SG&A expense. During the three months ended March 31, 2023 and 2022, we recorded the following restructuring charges. Three months ended March 31, 2023 (in millions) COGS SG&A R&D Total Employee termination costs $ 17 $ 63 $ 7 $ 87 Contract termination and other costs 3 — — 3 Asset impairments 12 8 — 20 Total restructuring charges $ 32 $ 71 $ 7 $ 110 Three months ended March 31, 2022 (in millions) COGS SG&A R&D Total Employee termination costs $ 2 $ 47 $ — $ 49 Contract termination and other costs — 12 — 12 Asset impairments — 6 — 6 Total restructuring charges $ 2 $ 65 $ — $ 67 For the three months ended March 31, 2023, $78 million of the restructuring charges reflected in the table above, consisting of employee termination costs, were related to the ongoing implementation of our previously announced new operating model intended to simplify and streamline our operations. For the three months ended March 31, 2022, $56 million of the restructuring charges reflected in the table above were related to integration activities for the Hillrom acquisition, consisting of $38 million of employee termination costs, $12 million of contract termination and other costs and $6 million of asset impairments. The following table summarizes activity in the liability related to our restructuring initiatives. (in millions) Liability balance as of December 31, 2022 $ 107 Charges 93 Payments (23) Reserve adjustments (3) Currency translation 1 Liability balance as of March 31, 2023 $ 175 Substantially all of our restructuring liabilities as of March 31, 2023 relate to employee termination costs, with the remaining liabilities attributable to contract termination costs. Substantially all of the cash payments for those liabilities are expected to be disbursed by the end of 2024.

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS	PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS The following is a summary of net periodic benefit cost relating to our pension and OPEB plans. Three months ended (in millions) 2023 2022 Pension benefits Service cost $ 6 $ 19 Interest cost 37 24 Expected return on plan assets (44) (39) Amortization of net losses and prior service costs 1 12 Net periodic pension cost $ — $ 16 OPEB Interest cost $ 2 $ 1 Amortization of net loss and prior service credit (6) (3) Net periodic OPEB cost (income) $ (4) $ (2)

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective income tax rate was 35.7% and 22.3% for the three months ended March 31, 2023 and 2022, respectively. Our effective income tax rate can differ from the 21% U.S. federal statutory rate due to a number of factors, including foreign rate differences, tax incentives, non-deductible expenses, non-taxable income, increases or decreases in valuation allowances, increases or decreases in liabilities for uncertain tax positions and excess tax benefits or shortfalls on stock compensation awards. For the three months ended March 31, 2023, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to tax shortfalls on stock compensation awards and an increase in our liabilities for uncertain tax positions, partially offset by a favorable geographic earnings mix. For the three months ended March 31, 2022, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to discrete tax matters in various foreign jurisdictions, of which none were individually material, and an increase in our liabilities for uncertain tax positions, partially offset by excess tax benefits on stock compensation awards and a favorable geographic earnings mix.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The numerator for both basic and diluted earnings per share (EPS) is net income attributable to Baxter stockholders. The denominator for basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, RSUs and 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 (in millions) 2023 2022 Basic shares 505 503 Effect of dilutive securities 2 6 Diluted shares 507 509

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We operate on a global basis and are exposed to the risk that our earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange and interest rates. Our hedging policy attempts to manage these risks to an acceptable level based on our judgment of the appropriate trade-off between risk, opportunity and costs. We are 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 Renminbi, Korean Won, Australian Dollar, Canadian Dollar, Japanese Yen, Colombian Peso, Brazilian Real, Mexican Peso, Turkish Lira, Indian Rupee and Swedish Krona. We manage our foreign currency exposures on a consolidated basis, which allows us to net exposures and take advantage of any natural offsets. In addition, we use derivative and nonderivative instruments to further reduce the net exposure to foreign exchange risk. Gains and losses on the hedging instruments offset losses and gains on the hedged transactions and reduce the earnings and equity volatility resulting from changes in foreign exchange rates. Financial market and currency volatility may limit our ability to cost-effectively hedge these exposures. We are also exposed to the risk that our earnings and cash flows could be adversely impacted by fluctuations in interest rates. Our policy is to manage interest costs using the mix of fixed- and floating-rate debt that we believe is appropriate at that time. To manage this mix in a cost-efficient manner, we periodically enter into interest rate swaps in which we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. We do not hold any instruments for trading purposes and none of our outstanding derivative instruments contain credit-risk-related contingent features. All derivative instruments are generally 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. We designate certain of our derivatives and foreign-currency denominated debt as hedging instruments in cash flow, fair value or net investment hedges. Cash Flow Hed g es We 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. We periodically use treasury rate locks to hedge the risk to earnings associated with movements in interest rates relating to anticipated issuances of debt. For each derivative instrument that is designated and effective as a cash flow hedge, the gain or loss on the derivative is recorded in 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 cost of sales and interest expense, net, and are primarily related to forecasted intra-company sales denominated in foreign currencies and forecasted interest payments on anticipated issuances of debt, respectively. The notional amounts of foreign exchange contracts designated as cash flow hedges were $386 million and $398 million as of March 31, 2023 and December 31, 2022, respectively. The maximum term over which we have cash flow hedge contracts in place related to forecasted transactions at March 31, 2023 is 12 months for foreign exchange contracts. There were no outstanding interest rate contracts designated as cash flow hedges as of March 31, 2023 and December 31, 2022. Fair Value Hed g es We periodically use interest rate swaps to convert a portion of our fixed-rate debt into variable-rate debt. These instruments hedge our 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 changes in fair value attributable to a particular risk, such as changes in interest rates, of the hedged item, which are also recognized in earnings. Changes in the fair value of hedge instruments designated as fair value hedges are classified in interest expense, net, as they hedge the interest rate risk associated with certain of our fixed-rate debt. There were no outstanding interest rate contracts designated as fair value hedges as of March 31, 2023 and December 31, 2022. Net Investment Hed g es In May 2017, we issued €600 million of senior notes due May 2025. In May 2019, we issued €750 million of senior notes due May 2024 and €750 million of senior notes due May 2029. We have designated these debt obligations as hedges of our net investment in our European operations and, as a result, mark to spot rate adjustments on the outstanding debt balances are recorded as a component of AOCI. As of March 31, 2023, we had an accumulated pre-tax unrealized translation gain in AOCI of $47 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, we discontinue hedge accounting prospectively. Gains or losses relating to terminations of effective cash flow hedges generally continue to be deferred and are recognized consistent with the loss or income recognition of the underlying hedged items. However, if it is probable that the hedged forecasted transactions will not occur, any gains or losses would be immediately reclassified from AOCI to earnings. There were no cash flow hedge dedesignations in the first three months of 2023 or 2022 resulting from changes in our assessment of the probability that the hedged forecasted transactions would occur. If we terminate a fair value hedge, an amount equal to the cumulative fair value adjustment to the hedged item at the date of termination is amortized to earnings over the remaining term of the hedged item. There were no fair value hedges terminated during the first three months of 2023 or 2022. If we remove a net investment hedge designation, any gain or loss recognized in AOCI is not reclassified to earnings until we sell, liquidate, or deconsolidate the foreign investments that were being hedged. There were no net investment hedges terminated during the first three months of 2023 or 2022. Undesignated Derivative Instruments We use forward contracts to hedge earnings from the effects of foreign exchange relating to certain of our intra-company and third-party receivables and payables denominated in a foreign currency. These derivative instruments are generally not formally designated as hedges and the terms of these instruments generally do not exceed one month. The total notional amount of undesignated derivative instruments was $632 million as of March 31, 2023 and $753 million as of December 31, 2022. Gains and Losses on Hedging Instruments and Undesignated Derivative Instruments The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the three months ended March 31, 2023 and 2022. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2023 2022 2023 2022 Cash flow hedges Interest rate contracts $ — $ — Interest expense, net $ (1) $ (1) Foreign exchange contracts — (3) Cost of sales 4 2 Net investment hedges (48) 42 Other income, net — — Total $ (48) $ 39 $ 3 $ 1 Location of gain (loss) in income statement Gain (loss) recognized in income (in millions) 2023 2022 Undesignated derivative instruments Foreign exchange contracts Other income, net $ (3) $ 3 As of March 31, 2023, $3 million of deferred, net after-tax losses on derivative instruments included in AOCI are expected to be recognized in earnings during the next 12 months, coinciding with when the hedged items are expected to impact earnings. Derivative Assets and Liabilities The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of March 31, 2023. 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 current assets $ 5 Accrued expenses and other current liabilities $ 5 Total derivative instruments designated as hedges 5 5 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other current assets 3 Accrued expenses and other current liabilities 3 Total derivative instruments $ 8 $ 8 The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2022. 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 current assets $ 8 Accrued expenses and other current liabilities $ 5 Total derivative instruments designated as hedges 8 5 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other current assets 6 Accrued expenses and other current liabilities 7 Total derivative instruments $ 14 $ 12 While some of our derivatives are subject to master netting arrangements, we present our assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets. Additionally, we are not required to post collateral for any of our outstanding derivatives. The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty. March 31, 2023 December 31, 2022 (in millions) Asset Liability Asset Liability Gross amounts recognized in the condensed consolidated balance sheets $ 8 $ 8 $ 14 $ 12 Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet (3) (3) (4) (4) Total $ 5 $ 5 $ 10 $ 8 The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges: Carrying amount of hedged item Cumulative amount of fair value hedging adjustment included (in millions) Balance as of March 31, 2023 Balance as of December 31, 2022 Balance as of March 31, 2023 Balance as of December 31, 2022 Long-term debt $ 101 $ 101 $ 4 $ 4 (a) These fair value hedges were terminated in 2018 and earlier periods.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis. Basis of fair value measurement (in millions) Balance as of March 31, 2023 Quoted prices in active markets for identical assets Significant other Significant Assets Foreign exchange contracts $ 8 $ — $ 8 $ — Available-for-sale debt securities 42 — — 42 Marketable equity securities 38 38 — — Total $ 88 $ 38 $ 8 $ 42 Liabilities Foreign exchange contracts $ 8 $ — $ 8 $ — Contingent payments related to acquisitions 70 — — 70 Total $ 78 $ — $ 8 $ 70 Basis of fair value measurement (in millions) Balance as of December 31, 2022 Quoted prices in active markets for identical assets Significant other Significant Assets Foreign exchange contracts $ 14 $ — $ 14 $ — Available-for-sale debt securities 47 — — 47 Marketable equity securities 32 32 — — Total $ 93 $ 32 $ 14 $ 47 Liabilities Foreign exchange contracts $ 12 $ — $ 12 $ — Contingent payments related to acquisitions 84 — — 84 Total $ 96 $ — $ 12 $ 84 As of March 31, 2023 and December 31, 2022, cash and cash equivalents of $1.7 billion, respectively, included money market and other short-term funds of approximately $369 million and $341 million, respectively, which 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 us 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, which are considered observable and vary depending on the type of derivative, include contractual terms, interest rate yield curves, foreign exchange rates and volatility. Available-for-sale debt securities, which consist of convertible debt and convertible redeemable preferred shares issued by nonpublic entities, are measured using discounted cash flow and option pricing models. Those available-for-sale debt securities are classified as Level 3 fair value measurements when there are no observable transactions near the balance sheet date due to the lack of observable data over certain fair value inputs such as equity volatility. The fair values of available-for-sale debt securities increase when interest rates decrease, equity volatility increases, or the fair values of the equity shares underlying the conversion options increase. Contingent payments related to acquisitions, which consist of milestone payments and sales-based payments, 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 the expected 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 increases or the expected timing of payment is accelerated. The following table is a reconciliation of recurring fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and available-for-sale debt securities. Three months ended March 31, 2023 2022 (in millions) Contingent payments related to acquisitions Available-for-sale debt securities Contingent payments related to acquisitions Available-for-sale debt securities Fair value at beginning of period $ 84 $ 47 $ 143 $ 30 Additions — — — 21 Change in fair value recognized in earnings (13) — (17) — Change in fair value recognized in AOCI — — — 2 Transfers out of Level 3 — (5) — — Payments (1) — (2) — Fair value at end of period $ 70 $ 42 $ 124 $ 53 Financial Instruments Not Measured at Fair Value In addition to the financial instruments that we are required to recognize at fair value in the condensed consolidated balance sheets, we have certain financial instruments that are recognized at amortized 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 estimated fair values as of March 31, 2023 and December 31, 2022. Book values Fair values(a) (in millions) 2023 2022 2023 2022 Liabilities Short-term debt $ 50 $ 299 $ 50 $ 299 Current maturities of long-term debt and finance lease obligations 1,103 1,105 1,084 1,079 Long-term debt and finance lease obligations 15,278 15,232 14,011 13,657 (a) These fair value amounts are classified as Level 2 within the fair value hierarchy as they are estimated based on observable inputs. The carrying value of short-term debt approximates its fair value due to the short-term maturities of the obligations. The estimated fair values of current and long-term debt were computed by multiplying price by the notional amount of the respective debt instruments. Price is calculated using the stated terms of the respective debt instrument and yield curves commensurate with our credit risk. The carrying values of other financial instruments, such as accounts receivable and accounts payable, approximate their fair values due to the short-term maturities of most of those assets and liabilities. The carrying values of equity investments without readily determinable fair values that we measure at cost, less impairment were $103 million as of March 31, 2023 and $104 million as of December 31, 2022. When applicable, we also adjust the measurement of such equity investments for observable prices in orderly transactions for an identical

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We manage our business based on four segments, consisting of the following geographic segments related to our legacy Baxter business: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific), and a global segment for our Hillrom business. The Americas, EMEA and APAC segments provide a broad portfolio of essential healthcare products, including acute and chronic dialysis therapies; sterile IV solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; and surgical hemostat and sealant products. The Hillrom segment provides digital and connected care solutions and collaboration tools, including smart bed systems; patient monitoring and diagnostic technologies; respiratory health devices; and advanced equipment for the surgical space. We use operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of our business segments. Intersegment sales are eliminated in consolidation. Certain items are maintained at Corporate and are not allocated to a segment. They primarily include corporate headquarters costs, certain R&D costs, manufacturing variances and centrally managed supply chain costs, product category support costs, stock compensation expense, certain employee benefit plan costs, and certain gains, losses, and other charges (such as business optimization, acquisition and integration costs, intangible asset amortization and asset impairments). Our chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Financial information for our segments is as follows. Three months ended (in millions) 2023 2022 Net sales: Americas $ 1,602 $ 1,626 EMEA 714 699 APAC 602 627 Hillrom 731 755 Total net sales $ 3,649 $ 3,707 Operating income : Americas $ 481 $ 610 EMEA 106 119 APAC 107 151 Hillrom 158 200 Total segment operating income $ 852 $ 1,080 The following is a reconciliation of segment operating income to income before income taxes per the condensed consolidated statements of income. Three months ended (in millions) 2023 2022 Total segment operating income $ 852 $ 1,080 Corporate and other (666) (917) Total operating income 186 163 Interest expense, net 117 85 Other income, net (1) (16) Income before income taxes $ 70 $ 94 We are implementing a new operating model intended to simplify and streamline our operations and we expect that our reportable segments will be changed to align with that new operating model when it is fully implemented, which is currently expected in the second half of 2023.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (we, our or Baxter) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. 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 our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report).In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the current interim period are not necessarily indicative of the results of operations to be expected for the full year.
Risks and Uncertainties Related to COVID-19 and Global Economic and Other Conditions	Risks and Uncertainties Supply Constraints and Global Economic Conditions We have experienced significant challenges to our global supply chain in recent periods, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices) and higher transportation costs, resulting from the pandemic and other exogenous factors including significant weather events, elevated inflation levels, disruptions to certain ports of call around the world, the war in Ukraine and other geopolitical events. We expect to experience some of these and other challenges related to our supply chain in future periods. These challenges, including the unavailability of certain raw materials and component parts, have also had a negative impact on our sales for certain product categories due to our inability to fully satisfy demand and may continue to have a negative impact on our sales in the future. We expect that the challenges caused by global economic conditions, among other factors, may continue to have an adverse effect on our business.

SUPPLEMENTAL FINANCIAL INFORM_2

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The following table is a summary of the changes in our allowance for doubtful accounts for the three months ended March 31, 2023 and 2022. Three months ended (in millions) 2023 2022 Balance at beginning of period $ 114 $ 122 Charged to costs and expenses 7 6 Write-offs (1) (1) Currency translation adjustments 2 2 Balance at end of period $ 122 $ 129
Inventories	Inventories (in millions) March 31, December 31, Raw materials $ 812 $ 738 Work in process 316 293 Finished goods 1,794 1,687 Inventories $ 2,922 $ 2,718
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net (in millions) March 31, December 31, Property, plant and equipment, at cost $ 11,622 $ 11,421 Accumulated depreciation (6,622) (6,442) Property, plant and equipment, net $ 5,000 $ 4,979
Interest Expense, Net	Interest Expense, Net Three months ended (in millions) 2023 2022 Interest expense, net of capitalized interest $ 127 $ 88 Interest income (10) (3) Interest expense, net $ 117 $ 85
Other (Income) Expense, Net	Other Income, Net Three months ended (in millions) 2023 2022 Foreign exchange (gains) losses, net $ 14 $ (11) Pension and other postretirement benefit plans (10) (5) Change in fair value of marketable equity securities (5) 1 Other, net — (1) Other income, net $ (1) $ (16)

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following is a reconciliation of goodwill by business segment. (in millions) Americas EMEA APAC Hillrom Total Balance as of December 31, 2022 $ 2,356 $ 289 $ 210 $ 3,988 $ 6,843 Currency translation 18 2 2 3 25 Balance as of March 31, 2023 $ 2,374 $ 291 $ 212 $ 3,991 $ 6,868
Other Intangible Assets, Net	The following is a summary of our other intangible assets. Indefinite-lived intangible assets (in millions) Customer relationships Developed technology, including patents Other amortized intangible assets Trade names In process Research and Development Total March 31, 2023 Gross other intangible assets $ 3,454 $ 3,862 $ 326 $ 1,571 $ 202 $ 9,415 Accumulated amortization (529) (2,000) (246) — — (2,775) Other intangible assets, net $ 2,925 $ 1,862 $ 80 $ 1,571 $ 202 $ 6,640 December 31, 2022 Gross other intangible assets $ 3,452 $ 3,836 $ 325 $ 1,571 $ 202 $ 9,386 Accumulated amortization (470) (1,888) (235) — — (2,593) Other intangible assets, net $ 2,982 $ 1,948 $ 90 $ 1,571 $ 202 $ 6,793

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Summary of Changes in AOCI by Component	The following table is a net-of-tax summary of the changes in accumulated other comprehensive income (loss) (AOCI) by component for the three months ended March 31, 2023 and 2022. Gains (losses) (in millions) CTA Pension and OPEB plans Hedging activities Available-for-sale debt securities Total Balance as of December 31, 2022 $ (3,386) $ (331) $ (119) $ 3 $ (3,833) Other comprehensive income (loss) before reclassifications 102 (3) — — 99 Amounts reclassified from AOCI (a) — (3) (2) — (5) Net other comprehensive income (loss) 102 (6) (2) — 94 Balance as of March 31, 2023 $ (3,284) $ (337) $ (121) $ 3 $ (3,739) Gains (losses) (in millions) CTA Pension and OPEB plans Hedging activities Available-for-sale debt securities Total Balance as of December 31, 2021 $ (2,907) $ (347) $ (126) $ — $ (3,380) Other comprehensive income (loss) before (15) 2 (1) 1 (13) Amounts reclassified from AOCI (a) — 7 (1) — 6 Net other comprehensive income (loss) (15) 9 (2) 1 (7) Balance as of March 31, 2022 $ (2,922) $ (338) $ (128) $ 1 $ (3,387) (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 months ended March 31, 2023 and 2022. Amounts reclassified from AOCI (a) (in millions) Three months ended March 31, 2023 Three months ended March 31, 2022 Location of impact in income statement Pension and OPEB items Amortization of net losses and prior service costs or credits $ 5 $ (9) Other income, net Less: Tax effect (2) 2 Income tax expense $ 3 $ (7) Net of tax Gains (losses) on hedging activities Foreign exchange contracts $ 4 $ 2 Cost of sales Interest rate contracts (1) (1) Interest expense, net 3 1 Total before tax Less: Tax effect (1) — Income tax expense $ 2 $ 1 Net of tax Total reclassifications for the period $ 5 $ (6) Total net of tax (a) Amounts in parentheses indicate reductions to net income

REVENUES (Tables)

REVENUES (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract with Customer, Contract Asset	The following table summarizes our contract assets: (in millions) March 31, December 31, Contract manufacturing services $ 49 $ 51 Software sales 42 43 Bundled equipment and consumable medical products contracts 120 121 Contract assets $ 211 $ 215 The following table summarizes contract liability activity for the three months ended March 31, 2023 and 2022. The contract liability balance represents the transaction price allocated to the remaining performance obligations. Three Months Ended March 31, (in millions) 2023 2022 Balance at beginning of period $ 244 $ 246 New revenue deferrals 113 116 Revenue recognized upon satisfaction of performance obligations (121) (122) Currency translation 1 — Balance at end of period $ 237 $ 240 For the three months ended March 31, 2023 and 2022, $68 million and $50 million of revenue was recognized that was included in contract liabilities as of December 31, 2022 and 2021, respectively. The following table summarizes the classification of contract assets and contract liabilities as reported in the condensed consolidated balance sheets: (in millions) March 31, December 31, Prepaid expenses and other current assets $ 92 $ 93 Other non-current assets 119 122 Contract assets $ 211 $ 215 Accrued expenses and other current liabilities $ 160 $ 164 Other non-current liabilities 77 80 Contract liabilities $ 237 $ 244
Net Sales from Contracts with Customers by Global Business Unit	The following tables disaggregate our net sales from contracts with customers by product category between the U.S. and international: Three Months Ended March 31, 2023 2022 (in millions) U.S. International Total U.S. International Total Renal Care 1 $ 232 $ 660 $ 892 $ 225 $ 669 $ 894 Medication Delivery 2 436 251 687 472 234 706 Pharmaceuticals 3 173 350 523 157 364 521 Clinical Nutrition 4 78 146 224 84 143 227 Advanced Surgery 5 144 102 246 136 92 228 Acute Therapies 6 61 119 180 68 120 188 BioPharma Solutions 7 69 70 139 52 104 156 Patient Support Systems 8 260 88 348 295 88 383 Front Line Care 9 221 81 302 207 87 294 Global Surgical Solutions 10 38 43 81 37 41 78 Other 11 22 5 27 24 8 32 Total Baxter $ 1,734 $ 1,915 $ 3,649 $ 1,757 $ 1,950 $ 3,707 1 Renal Care includes sales of our peritoneal dialysis (PD), hemodialysis (HD) and additional dialysis therapies and services. 2 Medication Delivery includes sales of our intravenous (IV) therapies, infusion pumps, administration sets and drug reconstitution devices. 3 Pharmaceuticals includes sales of our premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services. 4 Clinical Nutrition includes sales of our parenteral nutrition therapies and related products. 5 Advanced Surgery includes sales of our biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention. 6 Acute Therapies includes sales of our continuous renal replacement therapies (CRRT) and other organ support therapies focused in the intensive care unit (ICU). 7 BioPharma Solutions includes sales of contracted services we provide to various pharmaceutical and biopharmaceutical companies. 8 Patient Support Systems includes sales of our connected care solutions: devices, software, communications and integration technologies and smart beds. 9 Front Line Care includes sales of our integrated patient monitoring and diagnostic technologies to help diagnose, treat and manage a wide variety of illness and diseases, including respiratory therapy, cardiology, vision screening and physical assessment. 10 Global Surgical Solutions includes sales of our surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. 11 Other includes sales of miscellaneous product and service offerings.
Sales-type Lease, Lease Income	The components of lease revenue for the three months ended March 31, 2023 and 2022 were: (in millions) Three months ended March 31, 2023 Three months ended March 31, 2022 Sales-type lease revenue $ 4 $ 3 Operating lease revenue 124 122 Variable lease revenue 15 20 Total lease revenue $ 143 $ 145
Operating Lease, Lease Income	The components of lease revenue for the three months ended March 31, 2023 and 2022 were: (in millions) Three months ended March 31, 2023 Three months ended March 31, 2022 Sales-type lease revenue $ 4 $ 3 Operating lease revenue 124 122 Variable lease revenue 15 20 Total lease revenue $ 143 $ 145

BUSINESS OPTIMIZATION CHARGES (

BUSINESS OPTIMIZATION CHARGES (Tables)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Summary of Business Optimization Charges	During the three months ended March 31, 2023 and 2022, we recorded the following charges related to business optimization programs. Three Months Ended March 31, (in millions) 2023 2022 Restructuring charges $ 110 $ 67 Costs to implement business optimization programs 24 14 Total business optimization charges $ 134 $ 81
Components of Restructuring Charges	During the three months ended March 31, 2023 and 2022, we recorded the following restructuring charges. Three months ended March 31, 2023 (in millions) COGS SG&A R&D Total Employee termination costs $ 17 $ 63 $ 7 $ 87 Contract termination and other costs 3 — — 3 Asset impairments 12 8 — 20 Total restructuring charges $ 32 $ 71 $ 7 $ 110 Three months ended March 31, 2022 (in millions) COGS SG&A R&D Total Employee termination costs $ 2 $ 47 $ — $ 49 Contract termination and other costs — 12 — 12 Asset impairments — 6 — 6 Total restructuring charges $ 2 $ 65 $ — $ 67
Summary of Activity in Reserves Related to Restructuring Initiatives	The following table summarizes activity in the liability related to our restructuring initiatives. (in millions) Liability balance as of December 31, 2022 $ 107 Charges 93 Payments (23) Reserve adjustments (3) Currency translation 1 Liability balance as of March 31, 2023 $ 175

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Net Periodic Benefit Cost Relating to Pension and Other Postemployment Employee Benefit Plans	The following is a summary of net periodic benefit cost relating to our pension and OPEB plans. Three months ended (in millions) 2023 2022 Pension benefits Service cost $ 6 $ 19 Interest cost 37 24 Expected return on plan assets (44) (39) Amortization of net losses and prior service costs 1 12 Net periodic pension cost $ — $ 16 OPEB Interest cost $ 2 $ 1 Amortization of net loss and prior service credit (6) (3) Net periodic OPEB cost (income) $ (4) $ (2)

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
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 (in millions) 2023 2022 Basic shares 505 503 Effect of dilutive securities 2 6 Diluted shares 507 509

DERIVATIVE INSTRUMENTS AND HE_2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Gains and Losses on Derivative Instruments	The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the three months ended March 31, 2023 and 2022. Gain (loss) recognized in OCI Location of gain (loss) Gain (loss) reclassified from AOCI into income (in millions) 2023 2022 2023 2022 Cash flow hedges Interest rate contracts $ — $ — Interest expense, net $ (1) $ (1) Foreign exchange contracts — (3) Cost of sales 4 2 Net investment hedges (48) 42 Other income, net — — Total $ (48) $ 39 $ 3 $ 1 Location of gain (loss) in income statement Gain (loss) recognized in income (in millions) 2023 2022 Undesignated derivative instruments Foreign exchange contracts Other income, net $ (3) $ 3
Classification and 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 March 31, 2023. 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 current assets $ 5 Accrued expenses and other current liabilities $ 5 Total derivative instruments designated as hedges 5 5 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other current assets 3 Accrued expenses and other current liabilities 3 Total derivative instruments $ 8 $ 8 The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2022. 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 current assets $ 8 Accrued expenses and other current liabilities $ 5 Total derivative instruments designated as hedges 8 5 Undesignated derivative instruments Foreign exchange contracts Prepaid expenses and other current assets 6 Accrued expenses and other current liabilities 7 Total derivative instruments $ 14 $ 12
Derivative Positions Presented On Net Basis	The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty. March 31, 2023 December 31, 2022 (in millions) Asset Liability Asset Liability Gross amounts recognized in the condensed consolidated balance sheets $ 8 $ 8 $ 14 $ 12 Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet (3) (3) (4) (4) Total $ 5 $ 5 $ 10 $ 8
Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges	The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges: Carrying amount of hedged item Cumulative amount of fair value hedging adjustment included (in millions) Balance as of March 31, 2023 Balance as of December 31, 2022 Balance as of March 31, 2023 Balance as of December 31, 2022 Long-term debt $ 101 $ 101 $ 4 $ 4 (a) These fair value hedges were terminated in 2018 and earlier periods.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Financial Instruments Measured at Fair Value on Recurring Basis	The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis. Basis of fair value measurement (in millions) Balance as of March 31, 2023 Quoted prices in active markets for identical assets Significant other Significant Assets Foreign exchange contracts $ 8 $ — $ 8 $ — Available-for-sale debt securities 42 — — 42 Marketable equity securities 38 38 — — Total $ 88 $ 38 $ 8 $ 42 Liabilities Foreign exchange contracts $ 8 $ — $ 8 $ — Contingent payments related to acquisitions 70 — — 70 Total $ 78 $ — $ 8 $ 70 Basis of fair value measurement (in millions) Balance as of December 31, 2022 Quoted prices in active markets for identical assets Significant other Significant Assets Foreign exchange contracts $ 14 $ — $ 14 $ — Available-for-sale debt securities 47 — — 47 Marketable equity securities 32 32 — — Total $ 93 $ 32 $ 14 $ 47 Liabilities Foreign exchange contracts $ 12 $ — $ 12 $ — Contingent payments related to acquisitions 84 — — 84 Total $ 96 $ — $ 12 $ 84
Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs	The following table is a reconciliation of recurring fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and available-for-sale debt securities. Three months ended March 31, 2023 2022 (in millions) Contingent payments related to acquisitions Available-for-sale debt securities Contingent payments related to acquisitions Available-for-sale debt securities Fair value at beginning of period $ 84 $ 47 $ 143 $ 30 Additions — — — 21 Change in fair value recognized in earnings (13) — (17) — Change in fair value recognized in AOCI — — — 2 Transfers out of Level 3 — (5) — — Payments (1) — (2) — Fair value at end of period $ 70 $ 42 $ 124 $ 53
Book Values and Fair Values of Financial Instruments	For these financial instruments, the following table provides the values recognized in the condensed consolidated balance sheets and the estimated fair values as of March 31, 2023 and December 31, 2022. Book values Fair values(a) (in millions) 2023 2022 2023 2022 Liabilities Short-term debt $ 50 $ 299 $ 50 $ 299 Current maturities of long-term debt and finance lease obligations 1,103 1,105 1,084 1,079 Long-term debt and finance lease obligations 15,278 15,232 14,011 13,657 (a) These fair value amounts are classified as Level 2 within the fair value hierarchy as they are estimated based on observable inputs.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Summary of Financial Information for Our Segments	Financial information for our segments is as follows. Three months ended (in millions) 2023 2022 Net sales: Americas $ 1,602 $ 1,626 EMEA 714 699 APAC 602 627 Hillrom 731 755 Total net sales $ 3,649 $ 3,707 Operating income : Americas $ 481 $ 610 EMEA 106 119 APAC 107 151 Hillrom 158 200 Total segment operating income $ 852 $ 1,080
Operating Income to Income Before Income Taxes Reconciliation	The following is a reconciliation of segment operating income to income before income taxes per the condensed consolidated statements of income. Three months ended (in millions) 2023 2022 Total segment operating income $ 852 $ 1,080 Corporate and other (666) (917) Total operating income 186 163 Interest expense, net 117 85 Other income, net (1) (16) Income before income taxes $ 70 $ 94

SUPPLEMENTAL FINANCIAL INFORM_3

SUPPLEMENTAL FINANCIAL INFORMATION - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 114	$ 122
Charged to costs and expenses	7	6
Write-offs	(1)	(1)
Currency translation adjustments	2	2
Balance at end of period	$ 122	$ 129

SUPPLEMENTAL FINANCIAL INFORM_4

SUPPLEMENTAL FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 812	$ 738
Work in process	316	293
Finished goods	1,794	1,687
Inventories	$ 2,922	$ 2,718

SUPPLEMENTAL FINANCIAL INFORM_5

SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property, plant and equipment, at cost	$ 11,622	$ 11,421
Accumulated depreciation	(6,622)	(6,442)
Property, plant and equipment, net	$ 5,000	$ 4,979

SUPPLEMENTAL FINANCIAL INFORM_6

SUPPLEMENTAL FINANCIAL INFORMATION - Interest Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest Income Expense Net
Interest expense, net of capitalized interest	$ 127	$ 88
Interest income	(10)	(3)
Interest expense, net	$ 117	$ 85

SUPPLEMENTAL FINANCIAL INFORM_7

SUPPLEMENTAL FINANCIAL INFORMATION - Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income, net
Foreign exchange (gains) losses, net	$ 14	$ (11)
Pension and other postretirement benefit plans	(10)	(5)
Change in fair value of marketable equity securities	(5)	1
Other, net	0	(1)
Other income, net	$ (1)	$ (16)

SUPPLEMENTAL FINANCIAL INFORM_8

SUPPLEMENTAL FINANCIAL INFORMATION - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	$ 26	$ 14
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Capital expenditures incurred but not yet paid	$ 70	$ 53

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 6,843
Currency translation	25
Goodwill, ending balance	6,868
Americas
Goodwill [Roll Forward]
Goodwill, beginning balance	2,356
Currency translation	18
Goodwill, ending balance	2,374
EMEA
Goodwill [Roll Forward]
Goodwill, beginning balance	289
Currency translation	2
Goodwill, ending balance	291
APAC
Goodwill [Roll Forward]
Goodwill, beginning balance	210
Currency translation	2
Goodwill, ending balance	212
Hillrom
Goodwill [Roll Forward]
Goodwill, beginning balance	3,988
Currency translation	3
Goodwill, ending balance	$ 3,991

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairments	$ 0
Intangible asset amortization expense	$ 162	$ 217

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets, Net (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets	$ 9,415	$ 9,386
Accumulated amortization	(2,775)	(2,593)
Other intangible assets, net	6,640	6,793
Trade names
Intangible Asset Excluding Goodwill [Line Items]
Indefinite-lived intangible assets	1,571	1,571
In process Research and Development
Intangible Asset Excluding Goodwill [Line Items]
Indefinite-lived intangible assets	202	202
Customer relationships
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets, finite-lived	3,454	3,452
Accumulated amortization	(529)	(470)
Other intangible assets, net, finite-lived	2,925	2,982
Developed technology, including patents
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets, finite-lived	3,862	3,836
Accumulated amortization	(2,000)	(1,888)
Other intangible assets, net, finite-lived	1,862	1,948
Other amortized intangible assets
Intangible Asset Excluding Goodwill [Line Items]
Gross other intangible assets, finite-lived	326	325
Accumulated amortization	(246)	(235)
Other intangible assets, net, finite-lived	$ 80	$ 90

FINANCING ARRANGEMENTS (Details

FINANCING ARRANGEMENTS (Details) € in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2023 EUR (€)
Debt Instrument [Line Items]
Repayments of debt	$ 3,000,000	$ 404,000,000
Commercial paper, average outstanding	50,000,000		$ 299,000,000
Original weighted-average term			32 days
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, current borrowing capacity	2,500,000,000			€ 200
Borrowings outstanding	0		$ 0
Domestic Line of Credit
Debt Instrument [Line Items]
Line of credit, current borrowing capacity	$ 2,200,000,000
Commercial Paper
Debt Instrument [Line Items]
Weighted average interest rate	5.42%		4.75%	5.42%
Original weighted-average term	28 days

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) site	Dec. 31, 2022 USD ($)	Mar. 31, 2020 lawsuit
Loss Contingencies [Line Items]
Litigation reserve	$ 29	$ 28
Number of lawsuits | lawsuit			2
Superfund Sites | Environmental Clean-up
Loss Contingencies [Line Items]
Number of sites | site	6
Environmental reserves	$ 17	$ 19

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Billions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Oct. 31, 2020	Nov. 30, 2018	Feb. 28, 2018	Nov. 30, 2016	Jul. 31, 2012
Share-Based Payment Arrangement [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 0.29	$ 0.28
Stock repurchase program, authorized amount							$ 2
Stock repurchase program, additional authorized amount			$ 1.5	$ 2	$ 1.5	$ 1.5
Remaining value available under stock repurchase programs	$ 1.3

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Changes in AOCI by Component (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	$ 5,895	$ 9,121
Other comprehensive income (loss) before reclassifications	99	(13)
Amounts reclassified from AOCI	(5)	6
Net other comprehensive income (loss)	94	(7)
Balance, end of period (in usd)	5,941	9,119
CTA
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	(3,386)	(2,907)
Other comprehensive income (loss) before reclassifications	102	(15)
Amounts reclassified from AOCI	0	0
Net other comprehensive income (loss)	102	(15)
Balance, end of period (in usd)	(3,284)	(2,922)
Pension and OPEB plans
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	(331)	(347)
Other comprehensive income (loss) before reclassifications	(3)	2
Amounts reclassified from AOCI	(3)	7
Net other comprehensive income (loss)	(6)	9
Balance, end of period (in usd)	(337)	(338)
Hedging activities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	(119)	(126)
Other comprehensive income (loss) before reclassifications	0	(1)
Amounts reclassified from AOCI	(2)	(1)
Net other comprehensive income (loss)	(2)	(2)
Balance, end of period (in usd)	(121)	(128)
Available-for-sale debt securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	3	0
Other comprehensive income (loss) before reclassifications	0	1
Amounts reclassified from AOCI	0	0
Net other comprehensive income (loss)	0	1
Balance, end of period (in usd)	3	1
Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in usd)	(3,833)	(3,380)
Balance, end of period (in usd)	$ (3,739)	$ (3,387)

ACCUMULATED OTHER COMPREHENSI_4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Amounts Reclassification from AOCI to Net Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income, net	$ 1	$ 16
Income tax expense	(25)	(21)
Cost of sales	(2,302)	(2,359)
Total before tax	70	94
Total net of tax	44	71
Amounts reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total net of tax	5	(6)
Amounts reclassified from AOCI | Pension and OPEB items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income, net	5	(9)
Income tax expense	(2)	2
Total net of tax	3	(7)
Amounts reclassified from AOCI | Gains (losses) on hedging activities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	(1)	0
Total before tax	3	1
Total net of tax	2	1
Amounts reclassified from AOCI | Gains (losses) on hedging activities | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	4	2
Amounts reclassified from AOCI | Gains (losses) on hedging activities | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net	$ (1)	$ (1)

REVENUES - Additional Informati

REVENUES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Line Items]
Transaction price allocated to remaining performance obligations	$ 9,900
Net trade accounts receivable	2,300		$ 2,400
Revenue recognized upon satisfaction of performance obligations	68	$ 50
Sales-type lease, net of investment in lease	82
Sales-type leases, receivables	$ 3		$ 14	$ 20	$ 21	$ 24
Minimum
Revenue From Contract With Customer [Line Items]
Global payment terms (in days)	30 days
Minimum | Software sales
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period	1 year
Minimum | Consumable Medical Products
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period	1 year
Maximum
Revenue From Contract With Customer [Line Items]
Global payment terms (in days)	90 days
Maximum | Contract manufacturing services
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period	90 days
Maximum | Software sales
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period	5 years
Maximum | Consumable Medical Products
Revenue From Contract With Customer [Line Items]
Revenue recognized contract period	7 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01
Revenue From Contract With Customer [Line Items]
Remaining revenue performance obligation, percentage of revenue expected to be recognized	25%
Remaining performance obligations period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Revenue From Contract With Customer [Line Items]
Remaining revenue performance obligation, percentage of revenue expected to be recognized	35%
Remaining performance obligations period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Revenue From Contract With Customer [Line Items]
Remaining revenue performance obligation, percentage of revenue expected to be recognized	20%
Remaining performance obligations period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01
Revenue From Contract With Customer [Line Items]
Remaining revenue performance obligation, percentage of revenue expected to be recognized	10%
Remaining performance obligations period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01
Revenue From Contract With Customer [Line Items]
Remaining revenue performance obligation, percentage of revenue expected to be recognized	10%
Remaining performance obligations period

REVENUES - Contract Assets and

REVENUES - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	$ 211		$ 215
Contract with Customer, Liability	237	$ 240	244
Revenue From Contract With Customer [Roll Forward]
Balance at beginning of period	244	246
New revenue deferrals	113	116
Revenue recognized upon satisfaction of performance obligations	(121)	(122)
Currency translation	1	0
Balance at end of period	237	$ 240
Prepaid expenses and other current assets
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	92		93
Other non-current assets
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	119		122
Accrued Expenses And Other Current Liabilities [Member]
Revenue From Contract With Customer [Line Items]
Contract with Customer, Liability	160		164
Revenue From Contract With Customer [Roll Forward]
Balance at beginning of period	164
Balance at end of period	160
Other non-current liabilities
Revenue From Contract With Customer [Line Items]
Contract with Customer, Liability	77		80
Revenue From Contract With Customer [Roll Forward]
Balance at beginning of period	80
Balance at end of period	77
Contract manufacturing services
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	49		51
Software sales
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	42		43
Bundled equipment and consumable medical products contracts
Revenue From Contract With Customer [Line Items]
Contract with Customer, Asset, after Allowance for Credit Loss	$ 120		$ 121

REVENUES - Net Sales from Contr

REVENUES - Net Sales from Contracts with Customers by Global Business Unit (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue From Contract With Customer [Line Items]
Net sales	$ 3,649	$ 3,707
U.S.
Revenue From Contract With Customer [Line Items]
Net sales	1,734	1,757
International
Revenue From Contract With Customer [Line Items]
Net sales	1,915	1,950
Renal Care
Revenue From Contract With Customer [Line Items]
Net sales	892	894
Renal Care | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	232	225
Renal Care | International
Revenue From Contract With Customer [Line Items]
Net sales	660	669
Medication Delivery
Revenue From Contract With Customer [Line Items]
Net sales	687	706
Medication Delivery | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	436	472
Medication Delivery | International
Revenue From Contract With Customer [Line Items]
Net sales	251	234
Pharmaceuticals
Revenue From Contract With Customer [Line Items]
Net sales	523	521
Pharmaceuticals | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	173	157
Pharmaceuticals | International
Revenue From Contract With Customer [Line Items]
Net sales	350	364
Clinical Nutrition
Revenue From Contract With Customer [Line Items]
Net sales	224	227
Clinical Nutrition | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	78	84
Clinical Nutrition | International
Revenue From Contract With Customer [Line Items]
Net sales	146	143
Advanced Surgery
Revenue From Contract With Customer [Line Items]
Net sales	246	228
Advanced Surgery | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	144	136
Advanced Surgery | International
Revenue From Contract With Customer [Line Items]
Net sales	102	92
Acute Therapies
Revenue From Contract With Customer [Line Items]
Net sales	180	188
Acute Therapies | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	61	68
Acute Therapies | International
Revenue From Contract With Customer [Line Items]
Net sales	119	120
BioPharma Solutions
Revenue From Contract With Customer [Line Items]
Net sales	139	156
BioPharma Solutions | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	69	52
BioPharma Solutions | International
Revenue From Contract With Customer [Line Items]
Net sales	70	104
Patient Support Systems
Revenue From Contract With Customer [Line Items]
Net sales	348	383
Patient Support Systems | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	260	295
Patient Support Systems | International
Revenue From Contract With Customer [Line Items]
Net sales	88	88
Front Line Care
Revenue From Contract With Customer [Line Items]
Net sales	302	294
Front Line Care | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	221	207
Front Line Care | International
Revenue From Contract With Customer [Line Items]
Net sales	81	87
Surgical Solutions
Revenue From Contract With Customer [Line Items]
Net sales	81	78
Surgical Solutions | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	38	37
Surgical Solutions | International
Revenue From Contract With Customer [Line Items]
Net sales	43	41
Other
Revenue From Contract With Customer [Line Items]
Net sales	27	32
Other | U.S.
Revenue From Contract With Customer [Line Items]
Net sales	22	24
Other | International
Revenue From Contract With Customer [Line Items]
Net sales	$ 5	$ 8

REVENUES - Lease Revenue (Detai

REVENUES - Lease Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Sales-type lease revenue	$ 4	$ 3
Operating lease revenue	124	122
Variable lease revenue	15	20
Total lease revenue	$ 143	$ 145

BUSINESS OPTIMIZATION CHARGES -

BUSINESS OPTIMIZATION CHARGES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Cumulative pre-tax costs incurred	$ 1,600
Expected additional pre-tax costs	24
Charges	110	$ 67
Employee termination costs
Restructuring Cost and Reserve [Line Items]
Charges	87	49
Employee termination costs | New Operating Model
Restructuring Cost and Reserve [Line Items]
Charges	78
Contract termination and other costs
Restructuring Cost and Reserve [Line Items]
Charges	3	12
Asset impairments
Restructuring Cost and Reserve [Line Items]
Charges	$ 20	6
Hillrom | Integration Activities
Restructuring Cost and Reserve [Line Items]
Charges		56
Hillrom | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Charges		38
Hillrom | Contract termination and other costs
Restructuring Cost and Reserve [Line Items]
Charges		12
Hillrom | Asset impairments
Restructuring Cost and Reserve [Line Items]
Charges		$ 6

BUSINESS OPTIMIZATION CHARGES_2

BUSINESS OPTIMIZATION CHARGES - Summary of Business Optimization Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 110	$ 67
Business Optimization Programs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	110	67
Costs to implement business optimization programs	24	14
Total business optimization charges	$ 134	$ 81

BUSINESS OPTIMIZATION CHARGES_3

BUSINESS OPTIMIZATION CHARGES - Components of Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 110	$ 67
COGS
Restructuring Cost and Reserve [Line Items]
Restructuring charges	32	2
SG&A
Restructuring Cost and Reserve [Line Items]
Restructuring charges	71	65
R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7	0
Employee termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	87	49
Employee termination costs | COGS
Restructuring Cost and Reserve [Line Items]
Restructuring charges	17	2
Employee termination costs | SG&A
Restructuring Cost and Reserve [Line Items]
Restructuring charges	63	47
Employee termination costs | R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7	0
Contract termination and other costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3	12
Contract termination and other costs | COGS
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3	0
Contract termination and other costs | SG&A
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	12
Contract termination and other costs | R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0
Asset impairments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	20	6
Asset impairments | COGS
Restructuring Cost and Reserve [Line Items]
Restructuring charges	12	0
Asset impairments | SG&A
Restructuring Cost and Reserve [Line Items]
Restructuring charges	8	6
Asset impairments | R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0

BUSINESS OPTIMIZATION CHARGES_4

BUSINESS OPTIMIZATION CHARGES - Summary of Activity in Reserves Related to Restructuring Initiatives (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Reserve [Roll Forward]
Charges	$ 110	$ 67
Severance and Other Employee Related Costs
Restructuring Reserve [Roll Forward]
Reserve, beginning balance	107
Charges	93
Payments	(23)
Reserve adjustments	(3)
Currency translation	1
Reserve, ending balance	$ 175

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS - Net Periodic Benefit Cost Relating to Pension and Other Postemployment Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension benefits
Net periodic benefit cost
Service cost	$ 6	$ 19
Interest cost	37	24
Expected return on plan assets	(44)	(39)
Amortization of net losses and prior service costs	1	12
Net periodic pension cost (income)	0	16
OPEB
Net periodic benefit cost
Interest cost	2	1
Amortization of net losses and prior service costs	(6)	(3)
Net periodic pension cost (income)	$ (4)	$ (2)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	35.70%	22.30%
U.S. Federal statutory rate	21%

EARNINGS PER SHARE - Reconcilia

EARNINGS PER SHARE - Reconciliation of Basic Shares to Diluted Shares (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reconciliation of Basic Shares to Diluted Shares
Basic (in shares)	505	503
Effect of dilutive securities (in shares)	2	6
Diluted (in shares)	507	509

EARNINGS PER SHARE - Additional

EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of EPS (in shares)	17	4

DERIVATIVE INSTRUMENTS AND HE_3

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) € in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2019 EUR (€)	May 31, 2017 EUR (€)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 0	$ 0
Derivative, fair value, terminated	0	0
Derivative, net investment terminated	0	$ 0
Deferred, net after-tax gains on derivative instruments	3,000,000
Undesignated derivative instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	632,000,000		$ 753,000,000
Net investment hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Accumulated pre-tax unrealized translation gain in AOCI	47,000,000
1.30% Senior Notes Due May 2025
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Senior notes | €					€ 600
0.4% Senior Notes Due May 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Senior notes | €				€ 750
1.3% Senior Notes Due May 2029
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Senior notes | €				€ 750
Foreign exchange contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 386,000,000		398,000,000
Maximum length of time hedge in cash flow hedge	12 months
Interest rate contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, fair value, net	$ 0		0
Interest rate swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, fair value, net	$ 0		$ 0

DERIVATIVE INSTRUMENTS AND HE_4

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Gains and Losses on Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), cash flow hedge and net investment hedge, gain (loss), before reclassification, tax	$ (48)	$ 39
Other comprehensive income (loss), reclassification adjustment from AOCI, cash flow hedges and net investment hedges, net of tax	3	1
Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), net investment hedge, gain (loss), before reclassification and tax	(48)	42
Net Investment Hedging | Other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), net investment hedge, gain (loss), before reclassification and tax	0	0
Interest rate contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax	0	0
Interest rate contracts | Cash Flow Hedging | Interest expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	(1)	(1)
Foreign exchange contracts | Other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income, undesignated derivative instruments	(3)	3
Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax	0	(3)
Foreign exchange contracts | Cash Flow Hedging | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	$ 4	$ 2

DERIVATIVE INSTRUMENTS AND HE_5

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Classification and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 8	$ 14
Derivative liability, fair value	8	12
Derivative instruments designated as hedges
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	5	8
Derivative liability, fair value	5	5
Derivative instruments designated as hedges | Foreign exchange contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	5	8
Derivative instruments designated as hedges | Foreign exchange contracts | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	5	5
Undesignated derivative instruments | Foreign exchange contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	3	6
Undesignated derivative instruments | Foreign exchange contracts | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 3	$ 7

DERIVATIVE INSTRUMENTS AND HE_6

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Positions Presented On Net Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Asset
Derivative asset, fair value	$ 8	$ 14
Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet	(3)	(4)
Derivative asset, fair value, total	5	10
Liability
Derivative liability, fair value	8	12
Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet	(3)	(4)
Derivative liability, fair value, total	$ 5	$ 8

DERIVATIVE INSTRUMENTS AND HE_7

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges (Details) - Long-term debt - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Carrying amount of hedged item	$ 101	$ 101
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged item	$ 4	$ 4

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Assets
Foreign exchange contracts	$ 8	$ 14
Available-for-sale debt securities	42	47
Marketable equity securities	38	32
Total assets	88	93
Liabilities
Foreign exchange contracts	8	12
Contingent payments related to acquisitions	70	84
Total liabilities	78	96
Quoted prices in active markets for identical assets (Level 1)
Assets
Foreign exchange contracts	0	0
Available-for-sale debt securities	0	0
Marketable equity securities	38	32
Total assets	38	32
Liabilities
Foreign exchange contracts	0	0
Contingent payments related to acquisitions	0	0
Total liabilities	0	0
Significant other observable inputs (Level 2)
Assets
Foreign exchange contracts	8	14
Available-for-sale debt securities	0	0
Marketable equity securities	0	0
Total assets	8	14
Liabilities
Foreign exchange contracts	8	12
Contingent payments related to acquisitions	0	0
Total liabilities	8	12
Significant unobservable inputs (Level 3)
Assets
Foreign exchange contracts	0	0
Available-for-sale debt securities	42	47
Marketable equity securities	0	0
Total assets	42	47
Liabilities
Foreign exchange contracts	0	0
Contingent payments related to acquisitions	70	84
Total liabilities	$ 70	$ 84

FAIR VALUE MEASUREMENTS - Addit

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Fair Value Disclosures [Line Items]
Cash and cash equivalents	$ 1,673	$ 1,718	$ 2,294
Other Assets
Fair Value Disclosures [Line Items]
Other equity investments without readily determinable fair values	103	104
Significant other observable inputs (Level 2)
Fair Value Disclosures [Line Items]
Money market funds, at carrying value	$ 369	$ 341

FAIR VALUE MEASUREMENTS - Recon

FAIR VALUE MEASUREMENTS - Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Contingent payments related to acquisitions
Contingent payments related to acquisitions
Fair value at beginning of period	$ 70	$ 124	$ 84	$ 143
Additions	0	0
Change in fair value recognized in earnings	(13)	(17)
Change in fair value recognized in AOCI	0	0
Transfers out of Level 3	0	0
Payments	(1)	(2)
Fair value at end of period	70	124
Available-for-sale debt securities
Available-for-sale debt securities
Fair value at beginning of period	47	30
Additions	0	21
Change in fair value recognized in earnings	0	0
Change in fair value recognized in AOCI	0	2
Transfers out of Level 3	(5)	0
Payments	0	0
Fair value at end of period	$ 42	$ 53

FAIR VALUE MEASUREMENTS - Book

FAIR VALUE MEASUREMENTS - Book Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Book values
Fair Value And Carrying Value By Balance Sheet Grouping [Line Items]
Short-term debt	$ 50	$ 299
Current maturities of long-term debt and finance lease obligations	1,103	1,105
Long-term debt and finance lease obligations, less current portion	15,278	15,232
Fair values
Fair Value And Carrying Value By Balance Sheet Grouping [Line Items]
Short-term debt	50	299
Current maturities of long-term debt and finance lease obligations	1,084	1,079
Long-term debt and finance lease obligations, less current portion	$ 14,011	$ 13,657

SEGMENT INFORMATION - Summary o

SEGMENT INFORMATION - Summary of Financial Information for Our Segments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	4
Total net sales	$ 3,649	$ 3,707
Total segment operating income	186	163
Operating Segments
Segment Reporting Information [Line Items]
Total net sales	3,649	3,707
Total segment operating income	852	1,080
Operating Segments | Americas
Segment Reporting Information [Line Items]
Total net sales	1,602	1,626
Total segment operating income	481	610
Operating Segments | EMEA
Segment Reporting Information [Line Items]
Total net sales	714	699
Total segment operating income	106	119
Operating Segments | APAC
Segment Reporting Information [Line Items]
Total net sales	602	627
Total segment operating income	107	151
Operating Segments | Hillrom
Segment Reporting Information [Line Items]
Total net sales	731	755
Total segment operating income	$ 158	$ 200

SEGMENT INFORMATION - Operating

SEGMENT INFORMATION - Operating Income to Income Before Income Taxes Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	$ 186	$ 163
Interest expense, net	117	85
Other income, net	(1)	(16)
Income before income taxes	70	94
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	852	1,080
Corporate and other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	$ (666)	$ (917)