Baxter International Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Baxter International Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

BAXTER INTERNATIONAL INC (BAX) filed a Annual Report (10-K) with the SEC on February 8, 2024. Baxter International Inc. filed its 2023 Form 10-K on February 8, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal executive offices are located at One Baxter Parkway, Deerfield, IL. Baxter International Inc. is classified under SIC code 3841 for Surgical & Medical Instruments & Apparatus. The filing includes financial data and disclosures for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking BAXTER INTERNATIONAL INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Baxter's financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's value and future prospects. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, profitability, debt levels, and potential challenges, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — BAXTER INTERNATIONAL INC shows moderate risk based on this filing. The company operates in the highly regulated medical device industry, facing risks related to product development, regulatory approvals, and market competition, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Baxter's performance and potential challenges in the medical device sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-08 — Filing Date (Date of submission)
• 3841 — SIC Code (Industry classification)
• 001-04448 — SEC File Number (SEC registration number)

Key Players & Entities

• BAXTER INTERNATIONAL INC (company) — Filer name
• BAX (company) — Ticker symbol
• 2024-02-08 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• One Baxter Parkway (address) — Business address
• Deerfield, IL (address) — Business address city and state
• 3841 (industry_code) — Standard Industrial Classification
• 1934 Act (regulation) — SEC Act

Forward-Looking Statements

• Baxter will continue to operate primarily in the surgical and medical instruments and apparatus sector. (BAXTER INTERNATIONAL INC) — high confidence, target: 2025-12-31

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: The company must comply with extensive regulations from bodies like the FDA, which can impact product development, manufacturing, and marketing.
• Competition [high — market]: The medical device market is highly competitive, with numerous players vying for market share, potentially affecting pricing and profitability.
• Supply Chain Disruptions [medium — operational]: Disruptions in the global supply chain can impact the availability of raw materials and the timely delivery of products.
• Interest Rate Fluctuations [medium — financial]: Changes in interest rates can affect the cost of borrowing and the company's overall financial leverage.

Key Dates

• 2024-02-08: 10-K Filing — Submission of the annual report for fiscal year 2023.
• 2023-12-31: Fiscal Year End — End date of the reporting period.

Key Financial Figures

• $1.00 — ange on Which Registered Common stock, $1.00 par value BAX (NYSE) New York Stock Exc
• $45.56 — on the per share closing sale price of $45.56 on that date and the assumption for the
• $4.45 billion — ess. In both 2023 and 2022 we generated $4.45 billion of net sales from our Kidney Care segme
• $3.96 billion — business and received cash proceeds of $3.96 billion from that transaction. The financial po
• $2.88 billion — lows of our BPS business, including the $2.88 billion pre-tax gain ($2.59 billion net of tax)
• $2.59 billion — cluding the $2.88 billion pre-tax gain ($2.59 billion net of tax) from the sale of that busin
• $514 million — tain of our debt obligations, including $514 million of commercial paper borrowings and $2.2
• $2.28 billion — lion of commercial paper borrowings and $2.28 billion of long-term debt that we repaid during
• $10.48 billion — Inc. (Hillrom) for a purchase price of $10.48 billion. Including the assumption of Hillrom's
• $12.84 billion — enterprise value of the transaction was $12.84 billion. Hillrom was a global medical technolog
• $3.01 billion — nologies segment generated net sales of $3.01 billion and $2.94 billion, respectively. During
• $2.94 b — enerated net sales of $3.01 billion and $2.94 billion, respectively. During 2022, we al
• $2.81 billion — tively. During 2022, we also recognized $2.81 billion of goodwill impairments and $332 millio
• $332 million — .81 billion of goodwill impairments and $332 million of indefinite-lived intangible asset im
• $2.80 billion — ses over the longer term. We paid down $2.80 billion of debt during 2023, using proceeds fro

Filing Documents

• bax-20231231.htm (10-K) — 3563KB
• bax-20231231xexx1027.htm (EX-10.27) — 103KB
• bax-20231231xexx1031.htm (EX-10.31) — 34KB
• bax-20231231xexx21.htm (EX-21) — 38KB
• bax-20231231xexx23.htm (EX-23) — 2KB
• bax-20231231xexx311.htm (EX-31.1) — 9KB
• bax-20221231xexx312.htm (EX-31.2) — 9KB
• bax-20231231xexx321.htm (EX-32.1) — 4KB
• bax-20231231xexx322.htm (EX-32.2) — 4KB
• bax-20231231xexx971.htm (EX-97.1) — 28KB
• bax-20231231_g1.jpg (GRAPHIC) — 9KB
• bax-20231231_g2.gif (GRAPHIC) — 25KB
• image.jpg (GRAPHIC) — 374KB
• image1.jpg (GRAPHIC) — 151KB
• 0001628280-24-003932.txt (&nbsp;) — 23776KB
• bax-20231231.xsd (EX-101.SCH) — 152KB
• bax-20231231_cal.xml (EX-101.CAL) — 233KB
• bax-20231231_def.xml (EX-101.DEF) — 863KB
• bax-20231231_lab.xml (EX-101.LAB) — 1799KB
• bax-20231231_pre.xml (EX-101.PRE) — 1335KB
• bax-20231231_htm.xml (XML) — 4386KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. Reserved 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 64 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 65 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 133 Item 9A.

Controls and Procedures

Controls and Procedures 133 Item 9B. Other Information 133 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 133 Item 10. Directors, Executive Officers and Corporate Governance 134 Item 11.

Executive Compensation

Executive Compensation 134 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 134 Item 13. Certain Relationships and Related Transactions, and Director Independence 135 Item 14. Principal Accountant Fees and Services 135 Item 15. Exhibits and Financial Statement Schedules 135 Item 16. Form 10-K Summary 135 PART I

Business

Item 1. Business. Company Overview Baxter International Inc., through its subsidiaries, provides a broad portfolio of essential healthcare products, including acute and chronic dialysis therapies; sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors' offices and patients at home under physician supervision. Our global footprint and the critical nature of our products and services play a key role in expanding access to healthcare in emerging and developed countries. As of December 31, 2023, we manufactured products in over 20 countries and sold them in over 100 countries. Baxter International Inc. was incorporated under Delaware law in 1931. As used in this report, "Baxter International" means Baxter International Inc. and "we", "our" or "us" means Baxter International and its consolidated subsidiaries, unless the context otherwise requires. Recent Strategic Actions In mid-2022, our Board of Directors authorized a strategic review of our business portfolio, with the goal of increasing stockholder value. As part of that review process, we identified and evaluated a range of potential strategic actions, including opportunities for sales and other separation transactions. In January 2023, following the completion of that review, we announced the following planned strategic actions that are intended to enhance our operational effectiveness, accelerate innovation and drive additional stockholder value: (a) a proposed spinoff of our Kidney Care business into an independent publicly traded company focused on kidney care and organ support (the proposed spinoff), (b) our

View Full Filing

View this 10-K filing on SEC EDGAR