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美國
證券交易委員會
華盛頓特區20549
_________________________________________________________________________________
表格 10-Q
_________________________________________________________________________________
☒根據1934年《證券交易法》第13條或第15（d）條提交的季度報告
截至季度結束日期的財務報告2024年9月30日
☐根據1934年證券交易法第13或15(d)節的轉型報告書
過渡期從             到             
佣金文件編號 1-4448
_________________________________________________________________________________
百特國際
(根據其章程規定的註冊人準確名稱)
_________________________________________________________________________________
特拉華36-0781620
（國家或其他管轄區的
公司成立或組織）		（IRS僱主
唯一識別號碼）
一號巴克斯特大道,迪爾菲爾德,Illinois60015
(主要領導機構的地址)(郵政編碼)
224.948.2000
(註冊人電話號碼，包括區號)
_________________________________________________________________________________
在法案第12(b)條的規定下注冊的證券：
每一類的名稱交易標誌在其上註冊的交易所的名稱
普通股，面值爲$1.00BAX（紐約證券交易所）紐約證券交易所
紐交所芝加哥
1.3%全球貨幣2025年到期 BAX 25紐約證券交易所
1.3%全球貨幣2029年到期 BAX 29紐約證券交易所
用勾號指明註冊人 (1) 是否在過去 12 個月內（或在要求註冊人提交此類報告的較短時間內）提交了 1934 年《證券交易法》第 13 條或第 15 (d) 條要求提交的所有報告，以及 (2) 在過去的 90 天內是否受到此類申報要求的約束。 是的 x 沒有 o
請在以下複選框內表明註冊者是否已在過去的12個月內（或註冊者被要求提交這些文件的較短期間內）提交了根據規則405 of Regulation S-T所需提交的每個交互式數據文件。Yes x 沒有 o
勾選以下選框，指示申報人是大型加速評估提交人、加速評估提交人、非加速評估提交人、小型報告公司或新興成長型公司。關於「大型加速評估提交人」、「加速評估提交人」、「小型報告公司」和「新興成長型公司」的定義，請參見《交易所法規》第12億.2條。
大型加速報告人x加速文件提交人o
非加速文件提交人o較小的報告公司☐
新興成長公司☐
如果是新興成長型公司，請通過勾選表示公司選擇放棄使用依據《證券交易法》第13(a)節規定提供的任何新的或修改後的財務會計準則的延長過渡期來符合該規定的計劃。o
請用勾選符號表示註冊公司是否爲殼公司（如《交易法》120億.2條的定義）。是 ☐沒有 x
截至2024年10月31日，註冊公司普通股每股面值1.00美元的股份數量爲 510,587,581 股份。



百特國際
10-Q表格
截至2024年9月30日的季度期
目錄
頁碼
項目1A。
項目5。





























第一部分 財務信息
項目1。財務報表
百特國際
簡明合併資產負債表（未經審計）
(金額單位爲百萬，股份信息除外)
九月三十日,
2024		12月31日，
2023
流動資產：
現金及現金等價物 $1,420 3,078 
應收賬款，扣除$（2024年）和$（2023年）的撥備65 in 2024以及$62在2023年被Men's Journal評爲美國排名第一的健身房連鎖店
1,729 1,719 
存貨2,103 1,918 
預付費用和其他流動資產720 706 
已停止運營部門的流動資產2,892 2,179 
總流動資產8,864 9,600 
固定資產淨額2,833 2,871 
商譽 5,783 5,793 
其他無形資產淨額5,449 5,918 
經營租賃使用權資產327 336 
其他非流動資產886 809 
已終止經營的非流動資產2,534 2,949 
總資產 $26,676 $28,276 
流動負債:
長期債務及融資租賃義務的流動部分$2,498 $2,667 
應付賬款841 881 
應計費用及其他流動負債1,772 1,915 
已停止運營的流動負債1,089 1,040 
總流動負債 6,200 6,503 
長期債務及融資租賃負債的非本期部分10,437 11,089 
經營租賃負債259 265 
其他非流動負債1,263 1,400 
已經停止經營部分的非流動負債575 551 
總負債 18,734 19,808 
承諾和 contingencies
股東權益：
普通股，每股面值爲 $0.0001；1股票的面值，已授權2,000,000,000發行股份683,494,944 2024年和2023年發行了股票。
683 683 
截至2024年6月30日，公司庫存的普通股爲1,173,688股。 173,032,822 2024年發行股份和 175,861,8932023年的股份
(11,084)(11,230)
其他股東投入的資本6,391 6,389 
保留盈餘15,529 16,114 
累計其他綜合損失(3,647)(3,554)
貝克斯特總股東權益7,872 8,402 
非控制權益70 66 
總股權7,942 8,468 
負債和所有者權益總額$26,676 $28,276 
附註是這些簡明綜合財務報表的一部分。
2

百特國際
基本報表-損益表（未經審計）
（單位：百萬美元，除每股數據外）
截至三個月爲止
九月三十日,		截至九個月爲止
九月三十日，
2024202320242023
淨銷售額$2,699 $2,599 $7,883 $7,634 
銷售成本1,666 1,543 4,858 4,584 
Gross margin1,033 1,056 3,025 3,050 
Selling, general and administrative expenses754 744 2,206 2,270 
Research and development expenses129 133 379 391 
其他營業收入，淨額(5)— (9)(14)
營業利潤 155 179 449 403 
利息費用，淨額87 127 251 367 
其他（收益）費用，淨額(1)(12)(34)15 
未來營業收入淨額69 64 232 21 
所得稅費用8 27 70 59 
持續經營利潤（損失）61 37 162 (38)
停止經營項目的收入（虧損），稅後淨額83 2,474 (290)2,455 
淨利潤（虧損）144 2,511 (128)2,417 
包括在持續經營中的非控制權益相關的淨利潤— — — — 
包括在已停止經營中的非控制權益相關的淨利潤4 3 9 6 
歸屬於非控股權益的淨收入4 3 9 6 
歸屬於百特股東的淨利潤（虧損）$140 $2,508 $(137)$2,411 
每股持續經營收益（虧損）
基本$0.12 $0.07 $0.32 $(0.08)
稀釋$0.12 $0.07 $0.32 $(0.08)
終止經營業務的淨收益（損失）每股
基本$0.15 $4.88 $(0.59)$4.84 
稀釋$0.15 $4.86 $(0.59)$4.84 
每股普通股淨收益（損失）
基本$0.27 $4.95 $(0.27)$4.76 
稀釋$0.27 $4.93 $(0.27)$4.76 
加權平均股份份數
基本510 507 509 506 
稀釋512 509 511 506 
附帶的說明是這些簡明合併財務報表不可或缺的一部分。
3

百特國際
壓縮綜合收益（虧損）陳述（未經審計）
(以百萬計)
三個月結束
9月30日,		九個月結束
9月30日，
2024202320242023
持續經營利潤（損失）$61 $37 $162 $(38)
持續經營中其他綜合收益（損失），稅後：
貨幣翻譯調整，稅後費用（收益）爲（$19和$12 在2024年和2023年截至於9月30日的三個月內分別爲$3)和$2 分別爲截至2024年和2023年9月30日的九個月的。
106 (36)(61)(39)
養老金和其他退休福利，稅後費用(利益)爲($2和零 截至2024年和2023年9月30日三個月的稅前收入，分別爲 零 以及（$3截至2024年和2023年9個月的財務報表。
(6)(1)(2)(11)
對沖活動，扣除稅費($3)和$2 截至2024年和2023年9月30日的三個月，分別爲 零 和$3 截至2024年和2023年9個月的財務報表。
(9)5 2 10 
持續經營中來自其他全面收益（損失）淨額稅後91 (32)(61)(40)
持續經營活動的綜合損失152 5 101 (78)
停止經營項目的收入（虧損），稅後淨額83 2,474 (290)2,455 
終止運營的其他綜合收益(損失)
貨幣翻譯調整稅後費用（益處）爲$(11) and $(1）分別是2024年和2023年截至9月30日的三個月，分別爲$15)和$(1截至2024年和2023年9月30日止九個月的淨額。
90 134 (35)162 
退休金和其他離退休福利，扣除稅費支出（收益） 零 截至2024年和2023年9月30日的三個和九個月
— (4)(1)(5)
來自停止經營活動的其他全面收益（損失）總額90 130 (36)157 
停止經營活動綜合收益（損失）173 2,604 (326)2,612 
全面收入（損失）325 2,609 (225)2,534 
扣除歸屬於非控股權益的綜合收益4 3 9 6 
其他綜合損失歸屬於非控制權益— — (4)— 
歸屬於百特斯托股東的綜合收益（損失）$321 $2,606 $(230)$2,528 
附帶的說明是這些簡明合併財務報表不可或缺的一部分。
4

百特國際
簡明合併權益變動表（未經審計）
(以百萬計)
截至2024年9月30日的三個月
百特國際股東權益
普通股股份普通股普通股股份
在庫存中		普通股
庫存		其他股東投入的資本留存收益累計其他綜合收益
虧損		百特國際股東權益總計非控制權益股東權益總額
2024年7月1日的餘額683 $683 173 $(11,104)$6,353 $15,539 $(3,828)$7,643 $65 $7,708 
淨收入— — — — — 140 — 140 4 144 
其他全面收入（損失）— — — — — — 181 181 — 181 
員工福利計劃和其他發行的股票— — — 20 38 — — 58 — 58 
普通股分紅派息— — — — — (150)— (150)— (150)
非控制權益變動— — — — — — — — 1 1 
2024年9月30日的餘額
683 $683 173 $(11,084)$6,391 $15,529 $(3,647)$7,872 $70 $7,942 
截至2024年9月30日的九個月
百特國際股東權益
普通股股份普通股公司所持有的普通股份庫存中的普通股其他股東投入的資本留存收益累計其他綜合損失百特國際股東權益總計非控制權益股東權益總額
截至2024年1月1日的餘額683 $683 176 $(11,230)$6,389 $16,114 $(3,554)$8,402 $66 $8,468 
淨虧損— — — — — (137)— (137)9 (128)
其他全面收入（損失）— — — — — — (93)(93)(4)(97)
員工福利計劃和其他發行的股票— — (3)146 2 — — 148 — 148 
普通股分紅派息— — — — — (448)— (448)— (448)
非控制權益變動— — — — — — — — (1)(1)
2024年9月30日的餘額
683 $683 173 $(11,084)$6,391 $15,529 $(3,647)$7,872 $70 $7,942 
截至2023年9月30日三個月的業績
百特國際股東權益
普通股股份普通股庫存普通股股份庫存中的普通股其他股東投入的資本留存收益累計其他綜合損失百特國際股東權益總計非控制權益股東權益總額
截至2023年7月1日的餘額683 $683 177 $(11,296)$6,341 $13,655 $(3,814)$5,569 $62 $5,631 
淨收入— — — — —2,508 — 2,508 3 2,511 
其他全面收入（損失）— — — — — — 98 98 — 98 
員工福利計劃和其他發行的股票— — (1)47 27 — — 74 — 74 
普通股分紅派息— — — — — (148)—(148)— (148)
2023年9月30日的餘額683 $683 176 $(11,249)$6,368 $16,015 $(3,716)$8,101 $65 $8,166 
截至2023年9月30日的九個月
百特國際股東權益
普通股股份普通股庫存普通股股份庫存中的普通股其他股東投入的資本留存收益累計其他綜合收益虧損百特國際股東權益總計非控制權益股東權益總額
2023年1月1日餘額683 $683 179 $(11,389)$6,322 $14,050 $(3,833)$5,833 $62 $5,895 
淨收入— — — — — 2,411 — 2,411 6 2,417 
其他全面收入（損失）— — — — — — 117 117 — 117 
員工福利計劃和其他發行的股票— — (3)140 46 — — 186 — 186 
普通股分紅派息— — — — — (446)— (446)— (446)
非控制權益變動— — — — — — — — (3)(3)
截至2023年9月30日的餘額
683 $683 176 $(11,249)$6,368 $16,015 $(3,716)$8,101 $65 $8,166 
附帶的說明是這些簡明合併財務報表不可或缺的一部分。
5

百特國際
壓縮的現金流量表（未經審計）
(以百萬計)
截至9月30日的九個月
20242023
經營性現金流量
淨利潤（虧損）$(128)$2,417 
減：已終止經營的業務淨收益(稅後)(290)2,455 
持續經營利潤（損失）162 (38)
調整以將淨虧損調節爲經營活動現金流量：
折舊與攤銷752 720 
遞延所得稅(136)(239)
保修準備金75 90 
養老金和其他離退休後的定期支出(21)(19)
其他長期資產減值42 3 
其他20 25 
資產負債表項目的變動:
應收賬款淨額(17)52 
存貨(180)(120)
預付費用及其他流動資產(61)(41)
應付賬款3 161 
應計費用和其他流動負債(192)261 
其他(71)(63)
經營活動產生的現金流量 - 繼續經營376 792 
經營活動產生的現金流量 - 停止經營155 403 
經營活動產生的現金流量531 1,195 
投資活動現金流量
資本支出(314)(340)
開發科技和投資的收購(9)(4)
可市場出售的股權證券的收益34 — 
其他投資活動，淨額8 19 
投資活動現金流量-持續經營(281)(325)
投資活動現金流量-已停止經營(140)3,768 
投資活動現金流量(421)3,443 
籌資活動現金流量
還款債務(827)(353)
原始到期日在三個月或更短時期內的債務淨增加— 214 
普通股的現金分紅(443)(439)
員工福利計劃下發行的股票收入63 86 
其他籌資活動的淨金額(15)(62)
籌資活動現金流量(1,222)(554)
外匯匯率變動對現金、現金等價物和受限制資金的影響-持續經營(45)(37)
外匯匯率變動對現金、現金等價物和受限制資金的影響-已停止經營39 23 
現金、現金等價物和受限制的現金的增加（減少）(1,118)4,070 
期初現金、現金等價物和受限制的現金(1)
3,198 1,722 
期末現金、現金等價物和受限制的現金(1)
2,080 5,792 
終止經營的現金及現金等價物減少658 72 
持續經營的現金、現金等價物和受限現金$1,422 $5,720 
(1) 下表提供了截至2024年9月30日、2023年12月31日和2023年9月30日的壓縮合並資產負債表中報告的現金、現金等價物和受限現金的對賬（以百萬計）：
2024年9月30日December 31, 20232023年9月30日
現金及現金等價物$1,420 $3,078 $5,716 
包括在其他非流動資產中的受限現金2 4 4 
現金、現金等價物和受限制的現金$1,422 $3,082 $5,720 
附帶的說明是這些簡明合併財務報表不可或缺的一部分。
6

百特國際
基本財務報表附註（未經審計）
1. 提供的基礎
百特國際及其子公司的未經審計的中期合併基本報表（我們，我們的或百特）是根據證券交易委員會（SEC）關於中期財務報告的規則和規定編制的。因此，通常根據美國通用會計原則（U.S. GAAP）所編制的基本報表中包括的某些信息和附註披露已被縮減或省略。這些未經審計的中期合併基本報表應與我們截至2023年12月31日的年度報告（2023年度報告）中包含的合併基本報表和附註一併閱讀。
公司管理認爲，未經審計的中期簡表基本報表反映了對所呈現期間的財務狀況、經營結果和現金流的公正陳述所需的所有調整。除非在此處另有說明，所有此類調整均屬於正常、週期性的性質。我們對合並財務報表附註所披露的信息是根據持續經營業務的基礎呈現的。當前中期期間的經營結果未必能反映預計全年的經營結果。
2024年8月12日，我們與卡萊爾集團(Carlyle)的某些附屬公司簽署了一項股權購買協議(EPA)，售出我們的腎臟護理業務，該業務將被稱爲Vantive，交易總價爲$3.80 十億美元。經過某些交割調整後，我們目前預計將獲得大約$3.50 十億美元的現金，稅後淨收益目前估計在$3.15億美元3.25 十億美元的區間內。該交易目前預計將在2024年底或2025年初完成，需獲得慣常的監管批准並滿足其他交割條件。我們確認我們的腎臟護理業務符合在2024年8月被分類爲待售的標準，我們還得出結論，符合在該時間點報告爲已終止控件的條件。因此，我們的腎臟護理業務在附帶的簡明合併基本報表中被報告爲已終止控件，我們的前期結果已根據已終止控件的呈現進行了調整。有關更多信息，請參見附註2。
颶風海倫
2024年9月，颶風海倫給北卡羅來納州西部帶來了大雨和大規模洪水，對我們位於北卡羅來納州馬裏恩的北灣設施的某些資產造成損失，並中斷了該設施的運營。在我們努力全面恢復北灣製造業務的同時，我們正在積極與客戶、監管機構和其他利益相關者合作，管理庫存並最大限度地減少對患者護理的干擾。我們的保險單通常涵蓋遭受損失或損壞的資產的維修或更換，減去適用的免賠額，並受任何承保限額和例外情況的約束。我們正在與保險公司和理賠機構密切合作，以確定因颶風海倫造成的損害和損失（這些收益可能低於適用的損失）而應得的全部保險收益。我們的保險單還爲我們的業務中斷提供保障，包括利潤損失，並補償與所遭受的損害和損失相關的其他費用和成本。在2024年第三季度，我們錄得了美元25數百萬美元的稅前淨費用與颶風海倫造成的損失有關。這包括 $44百萬美元與損壞的庫存和固定資產的註銷有關，由應收賬款美元所抵消19百萬美元，這是扣除我們的保險免賠額後的損失金額，與這些資產註銷產生的預期保險賠償有關。這些金額作爲銷售成本的組成部分記錄在截至2024年9月30日的三個月和九個月期間的簡明合併收益表中。目前，無法估算財產損失和業務中斷成本的全部金額，也無法兌現任何額外的保險賠償，因此，截至2024年9月30日，尚未記錄任何額外金額。2024 年 11 月 1 日，我們收到了 $101與保險收益相關的百萬現金，其中包括資產負債表日之後發生的費用的回收款。我們預計將來會獲得額外的相關保險收益。
風險和不確定性
供應約束與全球經濟狀況
近年來，我們的全球供應鏈面臨着重大挑戰，包括生產延遲和中斷、成本上升以及原材料和零部件（包括樹脂和
7

電機設備），運輸成本增加，極端天氣事件的不利影響（包括颶風海倫和我們北碼頭設施的洪水），通貨膨脹水平和利率期貨走高，對某些港口和全球航運航道的中斷，烏克蘭戰爭，中東衝突，中美之間的緊張關係，以及其他地緣政治事件。儘管我們已經看到零部件供應改善和原材料價格和運輸成本的提高，但我們預計一些挑戰（例如由於颶風海倫導致的額外運輸成本，因此我們在全球網絡中轉運產品，以增加靜脈和腹膜透析溶液的供應，同時努力全面修復我們的北碼頭設施）將對我們未來的業務結果產生負面影響。
2. 已停用業務
如果一個實體的組件滿足待售分類的標準，並且其處置代表了一項戰略性轉變，且對該實體的運營和基本報表結果產生了重大影響，則該組件會在停業經營中報告。以下描述的兩項戰略行動反映了簡明合併基本報表的停業經營展示。
終止運營 - 腎臟護理
2024年8月12日，我們簽訂了EPA，出售我們的腎臟護理業務，但前提是獲得慣常監管部門的批准並滿足其他成交條件。該業務由我們的腎臟護理部門組成，提供慢性和急性透析療法和服務，包括腹膜透析、血液透析、持續腎臟替代療法和其他器官支持療法。根據美國環保局，我們預計將Kidney Care業務出售給凱雷，總收購價爲美元3.80 十億。在某些調整生效後，我們目前預計將獲得約美元3.50 十億美元的淨稅前現金收益（約合美元）3.15十億到美元3.25 稅後十億美元）。該交易目前預計將於2024年底或2025年初完成，但須獲得慣常監管部門的批准和其他成交條件的滿足。根據我們規定的資本配置優先事項，我們打算使用本次交易的淨稅後收益來償還我們的某些債務。
我們認定我們的腎臟護理業務符合2024年8月被歸類爲待售狀態的標準。我們分析了與待售的腎臟護理業務相關的定量和定性因素，包括其對我們整體淨利潤（虧損）、每股收益（虧損）和淨資產的重要性，並確定了終止營運報告的條件已得到滿足。因此，該業務的財務狀況、經營結果和現金流量在附表的簡明綜合財務報表中作爲終止營運進行報告。之前期間的金額已調整以反映終止營運報告。
在腎臟護理業務待售交易完成後，巴克斯特和Vantive將簽訂幾項協議，包括製造和供應協議（腎臟護理MSA）、長期主服務協議、分銷協議、過渡服務協議（腎臟護理TSA）和知識產權協議。根據腎臟護理MSA，巴克斯特與腎臟護理剝離實體將相互提供某些與透析相關的產品、其他產品、產品元件和履約服務，期限最長爲 10 關閉後（根據其中的某些延長權利）長達 30 月的過渡服務（根據其中的某些延長權利）以確保業務連續性，儘量減少關閉後實體運營的中斷。TSA下提供的服務包括IT、供應鏈以及某些其他企業和行政服務。根據EPA，巴克斯特將保留（i）鹽水溶液的製造與銷售，以及（ii）巴克斯特及其子公司在阿肯色州山家工廠的塑料業務，該工廠不屬於腎臟護理業務。
終止運營 - 生物製藥解決方案
在2023年9月29日，我們將我們的生物製藥解決方案（BPS）業務出售給了國際投資者Advent International和Warburg Pincus（統稱BPS買家）。
BPS業務最初報告在我們之前的美洲部門，提供合同製造和開發服務，包括無菌填充-完成製造和壓力位服務，主要服務於藥品行業的客戶。BPS最初是
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通過我們以前完全擁有的子公司Baxter Pharmaceutical Solutions LLC（一家特拉華州有限責任公司）和Baxter Oncology GmbH（一家德國有限責任公司）（統稱爲已剝離的BPS實體）進行運營。
我們 concluded 2023年5月我們 BPS 業務符合被分類爲待出售的標準。我們分析了與剝離 BPS 業務相關的定量和定性因素，包括它對我們整體 淨利潤 和每股收益的重要性，並確定已滿足不再繼續經營呈報的條件。因此，該業務的財務狀況、運營結果和現金流被作爲不再繼續經營在附帶的簡明合併基本報表中報告。之前期間的金額已調整，以反映不再繼續經營的呈報。
在交易結束時，巴克斯特與被剝離實體簽署了過渡服務協議（BPS TSA）和主商業製造及供應協議（BPS MSA）。根據BPS TSA，巴克斯特與BPS被剝離實體在臨時基礎上相互提供具體的過渡服務，最長可達 24 個月，以幫助確保業務連續性並儘量減少干擾。根據BPS TSA提供的服務包括財務、信息技術、人力資源、綜合供應鏈以及其他某些行政服務。根據BPS MSA，BPS被剝離實體爲某些巴克斯特藥品提供開發、製造、監管和其他相關服務，最長可達 5 年（根據協議中規定的某些延展權利）。
終止經營的結果及終止經營的資產和負債
下表總結了2024年和2023年9月30日結束的三個月和九個月的停止經營所得(損失)中包含的主要類別的行項目淨額。
腎臟護理生物製藥解決方案總計
截至9月30日的三個月截至9月30日的三個月截至9月30日的三個月
(以百萬計)202420232024202320242023
淨銷售額$1,155 $1,109 $— $191 $1,155 $1,300 
銷售成本731 1,048 — 81 731 1,129 
毛利424 61 — 110 424 171 
銷售、一般和管理費用278 258 — 15 278 273 
研發費用41 33 — 1 41 34 
其他營業收入，淨額(1)— — — (1)— 
營業利潤（虧損）106 (230)— 94 106 (136)
利息費用淨額1 1 — — 1 1 
其他（收益）費用，淨額(8)5 — 2 (8)7 
來自於終止經營的收入（虧損），不包括處置收益和所得稅113 (236)— 92 113 (144)
處置收益— — — 2,890 — 2,890 
所得稅費用(利益)30 (250)— 522 30 272 
終止經營部門收入，稅後83 14 — 2,460 83 2,474 
減：在終止經營中包含的歸屬非控股權益的淨利潤4 3 — — 4 3 
在終止經營中歸屬於巴克斯特股東的淨利潤$79 $11 $— $2,460 $79 $2,471 
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腎臟護理生物製藥解決方案總計
截至9月30日的九個月截至9月30日的九個月截至9月30日的九個月
202420232024202320242023
淨銷售額$3,375 $3,294 $— $469 $3,375 $3,763 
銷售成本2,125 2,841 — 216 2,125 3,057 
毛利1,250 453 — 253 1,250 706 
銷售、一般和管理費用874 691 — 44 874 735 
研發費用140 104 — 2 140 106 
商譽減值430 — — — 430 — 
其他營業收入，淨額(1)— — — (1)— 
營業利潤（虧損）(193)(342)— 207 (193)(135)
利息費用淨額— 2 — — — 2 
其他（收益）費用，淨額(2)18 — 2 (2)20 
設計自動化。這一領域包括我們的先進硅芯片設計，驗證產品和服務以及系統集成產品。該領域還包括數字、定製和現場可編程門陣列（FPGA）集成電路（IC）設計軟件、驗證軟件和硬件產品，系統集成產品和服務，以及製造軟件產品。設計師使用這些產品來自動化複雜的IC設計過程，並降低可能導致昂貴的設計或製造重新調整或次優終端產品的缺陷。 (191)(362)— 205 (191)(157)
處置收益— — — 2,890 — 2,890 
所得稅費用(利益)99 (258)— 536 99 278 
停止經營項目的收入（虧損），稅後淨額(290)(104)— 2,559 (290)2,455 
減：歸屬於非控股利益的淨利潤，包括終止經營的計入9 6 — — 9 6 
歸屬於百特股東的淨利潤（損失），包括終止經營的計入$(299)$(110)$— $2,559 $(299)$2,449 
截至2024年9月30日的三個月和九個月，出售、一般和行政費用（SG&A）包括$69封信貸，金額分別爲$236百萬，分別與我們腎臟護理業務的待售相關的分離費用。截止2023年9月30日的三個月，SG&A包括與我們腎臟護理業務的待售相關的分離費用$67百萬和$8百萬，分別與我們腎臟護理業務的待售和BPS的銷售相關。截止2023年9月30日的九個月，SG&A包括與我們腎臟護理業務的待售相關的分離費用$108百萬和$15百萬，分別與我們腎臟護理業務的待售和BPS的銷售相關。
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下表總結了截至2024年9月30日和2023年12月31日，按簡化合並資產負債表分類的與我們腎臟護理業務相關的主要資產和負債的賬面價值，屬於終止運營。
(以百萬計)2024年9月30日December 31, 2023
現金及現金等價物$658 $116 
應收賬款淨額1,045 971 
存貨960 906 
預付費用及其他流動資產229 186 
已停止運營部門的流動資產2,892 2,179 
物業、廠房和設備，淨值1,542 1,562 
商譽276 721 
其他無形資產，淨額147 161 
經營租賃使用權資產209 188 
其他非流動資產360 317 
已終止經營的非流動資產2,534 2,949 
停止經營的業務的資產$5,426 $5,128 
融資租賃費用流動部分$— $1 
應付賬款396 360 
應計費用和其他流動負債693 679 
已停止運營的流動負債1,089 1,040 
長期融資租賃義務，減去流動部分40 41 
經營租賃負債186 173 
其他非流動負債349 337 
已經停止經營部分的非流動負債575 551 
已停用經營的負債$1,664 $1,591 

3. 補充財務信息
壞賬準備
下表總結了截至2024年和2023年9月30日的三個月和九個月內可疑賬款準備的變動情況。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
期初餘額$67 $61 $62 $50 
計入成本和費用4 2 4 17 
覈銷(3)1 (6)(2)
貨幣翻譯調整(3)2 5 1 
期末餘額$65 $66 $65 $66 
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庫存
(單位：百萬)九月三十日
2024		12月31日
2023
原材料$532 $530 
在製品256 234 
成品1,315 1,154 
存貨$2,103 $1,918 
物業、廠房和設備，淨值
(單位：百萬)九月三十日
2024		12月31日
2023
固定資產，按成本計$7,605 $7,650 
累計折舊(4,772)(4,779)
物業、廠房及設備，淨值$2,833 $2,871 
利息支出，淨額
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
利息費用，減去資本化利息$101 $136 $308 $394 
利息收入(14)(9)(57)(27)
利息費用，淨額$87 $127 $251 $367 
其他（收入）費用，淨額
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
匯率期貨損失，淨額$7 $10 $21 49 
養老金及其他退休後福利計劃(9)(15)(34)(37)
市場可交易股權證券的公允價值變動— (3)(3)3 
不可交易投資減值— — — 13 
其他，淨數1 (4)(18)(13)
其他（收益）費用，淨額$(1)$(12)$(34)$15 
非現金經營和投資活動
截至2024年9月30日和2023年9月30日的九個月內，因租賃義務獲得的使用權運營租賃資產爲$54 百萬和$55百萬，分別爲。
截至2024年和2023年9月30日，包含在應付賬款中的物業、廠房和設備的購買額爲$34 百萬和$30 百萬，分別爲。
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4. 商譽及其他無形資產, 淨值
商譽
以下是按部門分列的商譽調解。
(單位：百萬)醫療產品和療法醫療系統和技術製藥總計
截至2023年12月31日的餘額$1,241 $3,989 $563 $5,793 
貨幣翻譯 (7)— (3)(10)
截至2024年9月30日的餘額$1,234 $3,989 $560 $5,783 
其他無形資產，淨值
以下是我們其他無形資產的總結。
無限期無形資產
(單位：百萬)客戶關係開發的科技，包括專利商標名稱其他攤銷的無形資產商標名稱在過程中的研發
總計
2024年9月30日
其他無形資產總額$3,390 $3,182 $963 $87 $680 $157 $8,459 
累計攤銷(824)(2,027)(92)(67)— — (3,010)
其他無形資產，淨值$2,566 $1,155 $871 $20 $680 $157 $5,449 
2023年12月31日
其他無形資產總額$3,390 $3,181 $964 $86 $680 $157 $8,458 
累計攤銷(654)(1,782)(38)(66)— — (2,540)
其他無形資產，淨值$2,736 1,399 926 20 680 157 5,918 
無形資產攤銷費用爲$159 百萬和$147 百萬，分別爲2024年和2023年，以及截至2024年和2023年9月30日的九個月期間$471 百萬和$434 百萬，分別爲2024年和2023年。
5. 融資安排
信用設施
在2024年7月17日，我們簽訂了一份信貸協議，一組銀行承諾爲我們提供總額高達$ 的高級無擔保定期貸款（"過橋貸款設施"）。2.05此過橋貸款設施下的借款最多可通過三次提款來融資（a）再融資我們的 % 到期於2024年11月29日的高級票據，我們的浮動利率票據到期於2024年11月29日，以及我們現有定期貸款設施下的某些借款，和（b）支付因內部重組交易相關的某些美國稅務負債，交易涉及我們腎臟護理業務的待售。 1.322過橋貸款設施下的借款利率將基於我們長期債務評級的有效水平，2024年12月31日後任何未償借款的利率將增加。 0.25%. 我們還將對未提款的承諾收取基於我們長期債務評級有效水平的費用。銀行在過橋貸款設施下的融資承諾將在以下最早發生的情況終止：（i）我們完成上述債務償還和稅款支付，而沒有在過橋貸款設施下借款，（ii）我們選擇終止過橋貸款設施下的承諾，（iii）我們收到來自某些交易（包括待售的腎臟護理業務）的淨現金收益，（iv）過橋貸款設施下發生三次提款，以及（v）2024年12月31日。過橋貸款設施下的未償還借款將在首筆融資日期後364天和2025年11月24日之間的較早者到期。此外，我們需要使用來自某些交易的淨現金收益（包括待售的腎臟護理業務）來償還任何未償還的過橋貸款設施借款。過橋貸款設施包含財務和其他契約，包括淨槓桿契約，並規定了慣常的違約事件。還有 無 未償還的借款 截至此橋接融資 2024年9月30日。
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在2024年第一季度，我們修訂了管理我們美元計價的定期貸款信用設施和循環信用設施的信貸協議，以及關於我們歐元計價循環信用設施的擔保協議，以提高截至2024年6月30日、2024年9月30日、2024年12月31日、2025年3月31日、2025年6月30日和2025年9月30日的最高淨負債比率約定。修訂還規定將我們的美元計價循環信用設施的額度從$2.50十億到$2.00十億減少至2024年9月30日的較早日期或我們腎臟護理業務出售的日期。與修訂相關的費用不重大。
除了我們當前容量爲的美國美元計價循環信貸額度， $2.00 十億， 我們的歐元指數計價循環信貸額度容量爲 €200 百萬。這兩項信貸額度均於2026年到期。截至2024年9月30日或2023年12月31日，這些信貸額度下有 無 未償借款。 我們的商業票據借款安排要求我們在信貸額度下保持未提取的借款能力，金額至少等於我們未償的商業票據借款。截至2024年9月30日，根據我們的契約計算，我們有能力提取 全部金額 在我們的信貸設施下。
I在2024年的前九個月，我們償還了$822百萬的高級票據到期。
6. 承諾和或有事項
我們涉及產品責任、專利、商業、就業和其他在我們業務正常過程中出現的法律問題。當損失被認爲很可能發生且金額可以合理估計時，我們會記錄一項負債。如果可合理估計的可能損失是一個區間，並且區間內沒有任何金額比其他金額更好，那麼我們會預提區間內的最低金額。如果損失不太可能發生或可能損失無法合理估計，則不記錄負債。截至2024年9月30日和2023年12月31日，我們與法律和環保母基相關的總記錄準備金爲$41 百萬和$25 百萬，分別爲。
我們已經爲下述某些事項建立了準備金。對於某些沒有準備金的或已預留事項的額外損失，我們無法估計任何損失的金額或區間。雖然涉及這些索賠的責任無法估計，並且在任何報告期內的解決可能對我們該期間的經營成果和現金流產生重大影響，但這些法律程序的結果預計不會對我們的合併財務狀況產生實質性的不利影響。雖然我們相信在下面列出的事項中我們有有效的抗辯，但訴訟本質上是不確定的，確實會出現過高的判決，我們可能會面臨重大判決或進入重大索賠和解。
除了下面描述的事項外，我們仍然面臨未來行政和法律行動的風險。關於政府和監管事務，這些行動可能導致產品召回、禁令以及對我們運營的其他限制（包括我們推出新產品的能力）和經濟制裁，包括重大民事或刑事罰款。關於知識產權，我們可能面臨有關我們和他人權利範圍的重大訴訟。這種訴訟可能導致失去專利保護或市場營銷產品的能力，這可能導致銷售的重大損失，或者以其他方式對未來的經營結果產生重大影響。
Environmental
We are involved as a potentially responsible party (PRP) for environmental clean-up costs at six Superfund sites. Additionally, we are a defendant in a separate matter regarding a seventh Superfund site. 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 ongoing environmental remediations associated with historic operations at certain of our facilities. As of September 30, 2024 and December 31, 2023, our environmental reserves, which are measured on an undiscounted basis, were $30 million and $15 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 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
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amount, and unspecified injunctive and declaratory relief. The parties reached an 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. The parties reached an agreement to settle this lawsuit in the third quarter of 2023 for an amount that was not material to our financial results, which was paid in the fourth quarter of 2023. The case was dismissed on October 17, 2023. Since December 2023, 25 lawsuits (after giving effect to the amendment referenced below) have been filed against us in the Circuit Court of Cook County, Illinois by plaintiffs alleging injuries as a result of exposure to ethylene oxide used by several companies, including historic use by us for sterilization at our facility in Round Lake, Illinois. The plaintiffs seek damages in an unspecified amount. On July 16, 2024, Plaintiffs' counsel filed an omnibus motion seeking leave to add certain defendants to hundreds of previously-filed lawsuits, including Baxter with respect to 40 cases. The motion was denied on July 25, 2024, without prejudice to refiling multiple motions each addressing smaller groupings of cases and defendants. On September 11, 2024, the court granted leave to amend one previously-filed complaint to add Baxter as a defendant.
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. The subpoena was related to a lawsuit brought under the qui tam provisions of the False Claims Act. The allegations included in the unsealed complaint relate to conduct prior to our acquisition of Hillrom, and the division involved is no longer operational. Hillrom voluntarily began a related internal review, and Hillrom and Baxter cooperated fully with the DHHS and the Department of Justice (DOJ) with respect to this matter. In January 2024, the parties reached an agreement to settle the allegations. We paid the settlement amounts, which were not material to our financial results, in January 2024 and the matter was dismissed in February 2024. 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. In October 2024, the DOJ issued a subpoena (2024 Subpoena), pursuant to 18 U.S.C. 3846, to Hillrom. The 2024 Subpoena substantially overlaps with the CID and requests additional documents relating to Hillrom's respiratory health business. Baxter is cooperating fully with the DOJ in responding to the CID and the 2024 Subpoena. The DHHS and DOJ often issue these types of requests when investigating alleged violations of the federal health care laws.
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 and 2 of The Sherman Antitrust Act of 1890, Section 3 of the Clayton Act, and the Illinois Antitrust Act by allegedly engaging in anti-competitive conduct in alleged markets for standard, ICU and birthing beds. Hillrom filed an answer to the complaint on January 28, 2022 and filed a motion challenging certain aspects of plaintiff's case on May 27, 2022, which was denied on January 17, 2024, subject to further discovery.
On June 20, 2024, Reading Hospital filed a putative class action complaint against Hill-Rom Holdings, Inc., Hill-Rom Company, Inc., and Hill-Rom Services, Inc. in the United States District Court for the Eastern District of Pennsylvania. The complaint alleges that Hillrom violated Sections 1 and 2 of The Sherman Antitrust Act and Section 3 of the Clayton Act by allegedly engaging in anti-competitive conduct in alleged markets for standard, ICU and birthing beds. The plaintiff filed the action on behalf of itself and all "direct purchasers of Standard Hospital Beds, ICU Beds, and/or Birthing Beds from Hill-Rom during a period beginning at least as early as June 20, 2020” and continuing past the date of filing. On September 30, 2024, the plaintiff filed a First Amended Complaint.
7. STOCKHOLDERS’ EQUITY
Cash Dividends
Cash dividends declared per share for the three months ended September 30, 2024 and 2023 were $0.29 and for the nine months ended September 30, 2024 and 2023 were $0.87.
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Stock Repurchase Programs
In July 2012, our Board of Directors authorized a share repurchase program and the related authorization amount was subsequently increased a number of times. During the first nine months of 2024 and 2023 we did not repurchase any shares under this authority. We had $1.30 billion remaining available under the authorization as of September 30, 2024.
8. 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 (loss), 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.
下表是截至2024年和2023年9月30日的九個月內累計其他全面收益（損失）（AOCI）按組成部分的稅後彙總。
收益（損失）
(單位：百萬)CTA養老金和其他退休福利計劃對沖活動可供出售的債務證券總計
截至2023年12月31日的餘額
$(2,985)$(452)$(120)$3 $(3,554)
重新分類之前的其他全面收益（損失）(92)— 2 — (90)
從其他綜合收益重新分類的金額（a）— (3)— — (3)
其他綜合收益（損失）淨額 (92)(3)2 — (93)
截至2024年9月30日的餘額$(3,077)$(455)$(118)$3 $(3,647)
收益（損失）
(單位：百萬)CTA養老金和其他後福利計劃對沖活動可供出售的債務證券總計
截至2022年12月31日的餘額$(3,386)$(331)$(119)$3 $(3,833)
重新分類之前的其他全面收益（損失）(62)— 15 — (47)
重分類自其他綜合收益的金額 (a)
185 (16)(5)— 164 
淨其他綜合收益（損失） 123 (16)10 — 117 
截至2023年9月30日的餘額$(3,263)$(347)$(109)$3 $(3,716)
（a）    請參見下表了解關於這些重新分類的詳細信息。
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以下是截至2024年和2023年9月30日的三個月和九個月間，從其他綜合收益（AOCI）重分類到凈利潤（或虧損）的金額彙總。
從其他綜合收益（AOCI）重分類的金額（a）
(單位：百萬)截至2024年9月30日的三個月截至2024年9月的九個月在損益表中的影響位置
養老金和其他後補福利項目
淨虧損及以前的服務成本或信貸的攤銷$1 $4 其他（收益）費用，淨額
減：稅收影響— (1)所得稅費用
$1 $3 稅後
對沖活動的收益（損失）
匯率期貨合約$4 $9 銷售成本
利率合約(1)(4)利息費用，淨額
公允價值對沖— (5)其他（收益）費用，淨額
3 — 稅前總額
減：稅收影響(1)— 所得稅費用
$2 $— 稅後
本期間的總重分類$3 $3 總凈利潤稅後
從其他綜合收益重新分類的金額 (a)
(單位：百萬)截至2023年9月30日的三個月截至2023年9月30日的九個月在收益表中的影響位置
CTA
將累積翻譯損失重新分類爲因BPS剝離而產生的收益$(185)$(185)處置業務的稅後收入
減：稅收影響— — 處置業務的稅後收入
$(185)$(185)稅後
養老金和其他福利項目
淨損失和之前服務成本或信貸的攤銷$5 $15 其他（收益）費用，淨額
BPS剝離的養老金結算4 4 處置業務的稅後收入
9 19 稅前總額
減：稅收影響— (3)所得稅費用
$9 $16 稅後
對沖活動的收益（損失）
匯率期貨合約$3 $10 銷售成本
利率合約(1)(4)利息費用，淨額
2 6 稅前總額
減：稅收影響— (1)所得稅費用
$2 $5 稅後
本期間的總重分類$(174)$(164)稅後總淨額
(a)    括號中的金額表示對凈利潤的減少
有關養老金和其他後退休福利項目的攤銷的額外信息，請參閱附註11；有關對沖活動的額外信息，請參閱附註14。.
9. 營業收入
營業收入是指我們預計在交易所轉移商品或提供服務時所收到的對價金額。履行義務是合同中承諾轉移特定商品或服務的承諾。
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客戶是合同中的賬戶單位。合同的交易價格分配給每個獨特的履約義務，並在履約義務滿足時或滿足時確認營業收入。我們的某些合同有多個履約義務。對於具有多個履約義務的合同，我們使用對合同中每個獨特商品或服務的獨立銷售價格的最佳估計，分配合同的交易價格。我們的全球貨幣支付條款通常在 30-90 天數。
我們的主要客戶是醫院、醫療分銷公司和代表提供者購買醫療產品的政府機構。我們的大部分履約義務是在某一時刻完成的。這包括在我們的業務部門內銷售廣泛的基本醫療產品組合。我們從無菌靜脈輸液溶液、輸液系統和設備、腸外營養治療、吸入麻醉劑、仿製注射藥品、外科止血和密封膠產品、智能牀系統、患者監測和診斷技術、呼吸健康設備以及用於外科領域的愛文思控股設備中獲得收入。在大多數這些產品中，我們的履約義務在交付給客戶時完成。交通和處理活動被視爲履行活動，而不被視爲單獨的履約義務。
在較小程度上，我們會進行一些安排，以便能在一段時間內確認營業收入。例如，我們向客戶出租醫療設備，採用經營租賃方式，並在租賃期間按月確認相關營業收入。我們的醫療系統與技術部門包括連接護理解決方案和協作工具，這些工具會隨着時間的推移而實施。我們根據評估客戶何時獲得所承諾的貨物或服務的控制權，在這些安排中確認營業收入，有時是隨着時間推移，也有時是特定時點。我們還通過合同製造活動獲得營業收入，該收入隨着服務的進行而確認。當我們創建或增強客戶控制的資產時，或在我們的表現沒有創建可替代用途的資產且我們有權獲得已完成績效的付款時，營業收入將在一段時間內確認。
截至2024年9月30日，我們有$2.75 在與原始期限超過一年的已執行合同相關的剩餘履行義務中分配的交易價格達到十億，這主要包括在醫療產品和療法部門。美國的某些合同包含在此金額中，具有依賴於指數的價格上漲，此時尚不清楚。我們預計在2024年剩餘時間內大約可以確認該金額的 25% 作爲營業收入， 25% 在2025年， 20% 在2026年和2027年，以及 10% 之後。
重大判斷
產品銷售收入按淨銷售價格記錄，其中包括主要與折扣和批發商退款相關的可變對價的估計。這些儲備金基於對相關銷售收入或將要申報的金額的估計，包含在應計費用和其他流動負債中，並作爲應收賬款減少額，扣除簡明的合併資產負債表。管理層的估計考慮了歷史經驗、當前的合同和法定要求、特定的已知市場事件和趨勢、行業數據以及預測的客戶購買和付款模式。總體而言，這些儲備金反映了我們根據合同條款使用預期價值法對我們有權獲得的對價金額的最佳估計。淨銷售價格中包含的可變對價金額僅限於相關不確定性得到解決後收入可能不會發生重大逆轉的金額。截至2024年9月30日和2023年9月30日的三個月和九個月中確認的與前期履行的績效義務相關的收入爲 不t 材質。此外，我們與客戶簽訂的合同通常包括向客戶轉讓多種產品和服務的承諾。確定產品和服務是否被視爲應單獨考慮的不同履約義務以及確定交易價格的分配，可能需要作出重大判斷。
合同餘額
營業收入、開票和現金收款的時機導致在我們的簡明合併資產負債表上確認交易應收賬款、未開票應收款、合同資產、客戶預付款以及存款（合同負債）。淨交易應收賬款爲$1.54截至2024年9月30日和2023年12月31日爲億。
對於合同製造安排，營業收入主要在生產週期內確認，通常持續到 90 天，這導致在相關服務完成並向客戶開具賬單之前確認合同資產。此外，對於某些包含交付可與醫療設備一起使用的軟體的履約義務的安排，我們在軟體交付時確認營業收入，這導致在客戶分期付款時確認合同資產，通常在 一個 至 五年。對於捆綁的
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涉及設備一次性交付和持續交付的醫療產品的合同，合同的營業收入在設備和一次性醫療產品之間進行分配。在某些這種安排中，會產生合同資產，該合同資產是交付時確認的設備收入與客戶最初應收款項之間的差額。在這些安排中，合同資產在交付和開票的一次性醫療產品交付過程中轉變爲交易應收賬款，一般在 一個 至 七年.
下表總結了我們的合同資產：
(單位：百萬)九月三十日
2024		12月31日
2023
合同製造服務$4 $4 
軟體銷售46 45 
打包設備和一次性醫療產品合同95 116 
合同資產$145 $165 
合同負債代表因客戶現金支付而產生的遞延營業收入，或在服務計費時間早於滿意履行我們履行義務的情況下產生的。剩餘的履行義務代表合同價格中尚未完成工作的部分，主要與我們的安裝和服務合同相關。我們預計將在未來12個月內滿足大部分剩餘履行義務，並確認與安裝和服務合同相關的營業收入，大部分非流動履行義務將在24個月內滿足。
下表總結了截至2024年9月30日和2023年9月30日的九個月合同負債活動。合同負債餘額代表分配給剩餘履約義務的交易價格。
截至9月30日的九個月
(單位：百萬)
2024
2023
期初餘額$169 $173 
新的營業收入遞延383 401 
在滿足履行義務後確認營業收入(389)(407)
貨幣轉換(3)2 
期末餘額$160 $169 
截至2024年9月30日和2023年9月30日的九個月，$94 百萬和$111 在2023年和2022年12月31日的合同負債中確認了$ 百萬的營業收入。
下表總結了在簡明合併資產負債表中報告的合同資產和合同負債的分類：
(單位：百萬)九月三十日
2024		12月31日
2023
預付款項及其他流動資產$54 $53 
其他非流動資產91 112 
合同資產$145 $165 
應計費用和其他流動負債$124 $128 
其他非流動負債36 41 
合同負債$160 $169 
淨銷售的分解
有關我們的淨銷售額，包括各個業務部門內的淨銷售額分解和按地域劃分的淨銷售額，請參見注釋16獲取更多信息。
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租賃收入
我們向客戶租賃醫療設備，如智能牀和輸液泵，通常與提供一次性醫療產品（如靜脈輸液和吸入麻醉劑）的安排一起進行。我們的某些設備租賃被歸類爲銷售型租賃，其餘爲經營租賃。相關合同的條款，包括固定與變量付款的比例以及縮短或延長租賃期限的任何期權，因客戶而異。我們根據設備租賃和醫療產品的單獨銷售價格分配營業收入。
截至2024年和2023年9月30日的三個月和九個月的租賃營業收入組成部分爲：
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
銷售型租賃營業收入$3 $2 $8 $6 
經營性租賃營業收入102 98 288 302 
變量租賃營業收入10 3 22 15 
租賃營業收入總額$115 $103 $318 $323 
我們在銷售型租賃中的淨投資爲$36 百萬，截至2024年9月30日，其中$5 百萬源於2020年及之前，$10 百萬來自2021年，$5百萬來自2022年，$7 2023年爲百萬，2022年爲$9百萬來自2024年。
10. 業務優化費用
近年來，我們採取了一系列措施來改造我們的成本結構並提高運營效率。這些努力包括重組組織，優化製造業佈局、研發運營和供應鏈網絡，實施嚴格的成本管理，以及集中化和精簡某些壓力位職能。這些措施相關的成本主要包括員工解僱成本、實施成本、合同終止成本和資產減值。我們目前預計將發生額外的稅前成本，主要與實施業務優化程序相關，約爲$5 百萬，直到目前正在進行的計劃完成。我們繼續追求節省成本的倡議，包括與我們新實施的運營模式相關的成本節約，旨在簡化和精簡我們的運營，並且如果發現進一步的成本節約機會（包括待完成的腎臟護理銷售後），我們將會在未來的時期內發生額外的重組費用和實施業務優化程序的成本。

截至2024年和2023年9月30日的三個月和九個月期間，我們記錄了與業務優化方案相關的以下費用。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
重組費用$15 $41 $36 $140 
實施業務優化方案的成本3 7 13 27 
總的業務優化費用$18 $48 $49 $167 
對於分段報告的目的，業務優化費用是未分配的開支。
Costs to implement business optimization programs for the three and nine months ended September 30, 2024 and 2023, 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.
20

在截至2024年和2023年9月30日的三個月和九個月期間，我們記錄了以下重組費用。
截至2024年9月30日的三個月
(單位：百萬)銷售成本銷售和管理費用總計
員工終止費用$2 $10 $12 
合同終止和其他費用— 3 3 
總重組費用$2 $13 $15 
截至2023年9月30日的三個月
(單位：百萬)銷售成本銷售和管理費用研發總計
員工終止費用$6 $29 $4 $39 
合同終止和其他費用— 2 — 2 
總重組費用$6 $31 $4 $41 
截至2024年9月30日的九個月
(單位：百萬)銷售成本銷售和管理費用總計
員工終止費用$4 $25 $29 
合同終止和其他費用1 6 7 
總重組費用$5 $31 $36 
截至2023年9月30日的九個月
(單位：百萬)銷售成本銷售和管理費用研發總計
員工終止費用$25 $89 $10 $124 
合同終止和其他費用— 5 — 5 
資產減值3 8 — 11 
總重組費用$28 $102 $10 $140 
截至2024年9月30日的三個月和九個月，$7百萬和$14上述表格中反映的重組費用爲 百萬美元，包含員工辭退費用，涉及我們醫療系統與技術部門的業務優化舉措。此外，截至2024年9月30日的九個月中，$7上述表格中反映的重組費用爲 百萬美元，包含員工辭退費用，涉及我們最近實施的新運營模式，旨在簡化和優化我們的運營。
截至2023年9月30日的三個月和九個月，$11百萬和$79在上表中反映的重組費用分別爲百萬美元，包括與我們之前宣佈的新運營模式的實施相關的員工解僱成本，該模式旨在簡化和優化我們的運營。
下表總結了與我們重組計劃相關的負債活動。
(單位：百萬)
截至2023年12月31日的負債餘額$95 
費用42 
付款(59)
準備金調整(8)
貨幣轉換4 
截至2024年9月30日的負債餘額$74 
截至2024年9月30日，我們幾乎所有的重組負債與員工解僱成本有關，其餘的負債則歸因於合同終止成本。這些負債的現金支付預計將於2025年底前全部支付。
21

11. 養老金和其他退休後福利計劃
以下是與我們的養老金和其他後福利計劃相關的淨定期福利成本的總結。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
養老福利
服務成本$4 $6 $13 $18 
利息成本33 45 123 137 
計劃資產的預期回報(43)(57)(160)(166)
淨損失和以前服務成本的攤銷4 1 11 4 
淨定期養老金成本$(2)$(5)$(13)$(7)
其他退休後福利
利息成本$2 $2 $6 $6 
淨損失和以前服務信貸的攤銷(5)(6)(14)(18)
淨定期OPEB成本（收入）$(3)$(4)$(8)$(12)
12. 所得稅
我們的有效所得稅率爲 11.6% 42.22024年和2023年截至9月30日的三個月中爲% , 30.2% 281.02024年和2023年截至9月30日的九個月中爲%。我們的有效所得稅率可能與 21美國聯邦法定稅率%有所不同，原因包括外國稅率差異、稅收激勵、不可扣除費用、免稅收入、估值準備金的增加或減少、不確定稅務職位的負債增加或減少，以及股票補償獎勵的額外稅收利益或不足。
截至2024年9月30日的三個月期間，我們的有效所得稅稅率與美國聯邦法定稅率之間的差異主要歸因於有利的地理收益組合、由於颶風海倫造成的在我們北灣設施的受損庫存和固定資產的核銷的稅務影響，以及我們對正在進行的腎臟護理部門出售的再投資境外收益的主張的變化，部分抵消了$26百萬的估值準備金被記錄下來，以減少與我們正在進行的腎臟護理部門出售相關的美國稅務屬性結轉的賬面價值。
截至2024年9月30日的九個月期間，我們的有效所得稅率與美國聯邦法定稅率之間的差異主要歸因於$26在美國爲了降低與我們腎臟護理業務待售相關的稅務屬性結轉的賬面價值而記錄了價值準備金百萬美元，因未來預期收入變動而在外國轄區增加的價值準備金，因與我們腎臟護理業務待售相關的內部重組交易所產生的所得稅費用增加，以及由於各種不確定稅務事項導致的負債增加，部分被有利的地域收益組合抵消。
截至2023年9月30日的三個月內，我們的實際所得稅稅率與美國聯邦法定稅率之間的差異主要歸因於由於未來預計收入的變化導致外國管轄區的估值準備金增加，部分被有利的地域收入組合所抵消。
截至 九 截至2023年9月30日，我們的有效所得稅率與美國聯邦法定稅率之間的差異主要歸因於$30與因之前實施的瑞士稅收改革立法而產生的稅務基礎增值相關的遞延稅資產的估值準備增加的 百萬美元，未來預計收入變化導致的外部管轄區的估值準備增加，以及股票補償獎勵的稅收短缺過多。
13. 每股收益
基本和攤薄後每股收益（EPS）的分子是歸屬於百特股東的凈利潤（虧損）。基本每股收益的分母是期間內流通在外的加權平均股票數量。以國庫股票法反映了期權、限售股票單位（RSU）和績效股票單位（PSU）對攤薄後每股收益的稀釋影響。
22

下表是持續經營的收益（損失）與歸屬於百特股東的凈利潤（損失）之間的調節。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
持續經營業務的收入（損失）$61 $37 $162 $(38)
減：包含在持續經營中的歸屬於非控制性權益的凈利潤— — — — 
歸屬於百特股東的持續經營收入（損失）61 37 162 (38)
終止經營的收入（損失）83 2,474 (290)2,455 
減：包含在終止經營中的歸屬於非控制性權益的凈利潤4 3 9 6 
歸屬於巴克斯特股東的終止運營的收入（損失）79 2,471 (299)2,449 
歸屬於巴克斯特股東的凈利潤（損失）$140 $2,508 $(137)$2,411 

下表是基本股份與攤薄股份的對賬。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
基本股份510 507 509 506 
稀釋證券的影響2 2 2 — 
稀釋股512 509 511 506 
截至2023年9月30日的九個月，基本和攤薄股份相同。 由於我們來自於針對貝克特股東的持續經營業務的虧損。攤薄證券的影響包括未行使的股票期權、尚未歸屬的限制性股票單位和與授予的績效股票單位相關的有條件可發行股份。攤薄後每股收益的計算不包括 18 百萬 19 截至2024年9月30日的三個月和九個月內可以發行的百萬股股份，以及 18 百萬 25 截至2023年9月30日的三個月和九個月內可以發行的百萬股股份，因爲其包含會對攤薄後每股收益產生反攤薄的影響。
14. 衍生工具和對沖活動
我們在全球範圍內運營，並面臨匯率期貨和利率期貨波動可能對我們的收益、現金流和股本產生不利影響的風險。我們的對沖政策試圖根據我們對風險、機會和成本之間合適權衡的判斷，管理這些風險至可接受的水平。

我們主要面臨與認可的資產和負債、預測的交易以及以歐元、英鎊、人民幣、日幣、瑞典克朗、墨西哥披索、澳幣、加幣、土耳其里拉和印度盧比計價的淨資產相關的外匯風險。我們以合併的方式管理我們的外幣風險，這使我們能夠進行淨暴露並利用任何自然抵消。此外，我們還使用衍生工具和非衍生工具進一步降低我們對外匯風險的淨暴露。對沖工具的收益和損失抵消被對沖交易的損失和收益，並減少因匯率變化引起的收益和股本波動。金融市場和貨幣波動可能會限制我們以具有成本效益的方式對沖這些暴露的能力。
我們也面臨盈利和現金流可能受到利率波動的不利影響的風險。我們的政策是利用我們認爲在當時適當的固定利率和浮動利率債務組合來管理利息成本。爲了以成本有效的方式管理這一組合，我們定期簽訂利率互換協議，同意在指定時間間隔內交換基於約定名義金額計算的固定利率和浮動利率之間的差額。
我們不持有任何用於交易目的的工具，並且我們未到期的衍生工具中沒有包含與信用風險相關的或有條件特徵。
23

衍生工具在簡明合併資產負債表中以公允價值被確認爲資產或負債，並根據工具的到期時間安排分類爲短期或開多。我們將其中某些衍生工具和外幣計 denominated 的債務指定爲現金流、 fair value 或淨投資對沖的對沖工具。
現金流對沖g個
我們可能會使用期權，包括保護性期權和購買的期權、遠期合約和交叉貨幣掉期，以對沖與預測交易和已確認的資產和負債相關的匯率風險。我們週期性地使用國債利率期權來對沖與預期債務發行相關的利率波動對收益的風險。
對於每個指定並有效作爲現金流套期保值的衍生工具，衍生工具的收益或損失記錄在其他綜合收益（AOCI）中，然後根據基礎對沖項目的情況在收益中確認。期權溢價或淨支付的溢價最初被記錄爲資產，並在期權的生命週期內重新分類至其他綜合收益（OCI），然後根據基礎對沖項目的情況在收益中確認。現金流套期保值被歸類爲銷售成本和利息支出（淨額），主要與用外幣計價的預計公司內部銷售和預計債務發行的利息支付相關。
截至2024年9月30日，作爲現金流對沖的匯率期貨合約的名義金額爲$225 百萬和$340 百萬，分別爲2024年9月30日和2023年12月31日。截止2024年9月30日，與預測交易相關的現金流對沖合約的最長期限爲 12 個月的匯率期貨合約。 無 截至2024年9月30日和2023年12月31日，共有
公允價值對沖g個
我們定期使用利率期貨將部分固定利率債務轉換爲變量債務。這些工具對沖由於指定基準利率波動而導致的債務公允價值變化對我們收益的影響。對於每一個被指定爲有效公允價值對沖的衍生金融工具，其收益或損失會立即計入收益，並抵消因某種風險（例如，利率變化）而導致的被對沖項目公允價值的變化，這些變化同樣會計入收益。被指定爲公允價值對沖的對沖工具的公允價值變化被歸類爲利息支出淨額，因爲它們對沖與我們某些固定利率債務相關的利率風險。
截至2024年11月14日，註冊人的普通股總共有 無 截至2024年9月30日和2023年12月31日，作爲公允價值對沖的傑出利率合約。
在2023年10月，我們簽訂了一份名義金額爲$的外幣遠期合約。798百萬，並將該衍生工具指定爲我們2024年5月到期的€%優先票據的公允價值對沖。750百萬的 0.40該遠期合約於2024年5月到期。
淨投資對沖g個
在2017年5月，我們發行了€600 百萬的 1.3% 的高級票據，直到2025年5月。 在2019年5月，我們發行了€750 百萬的 1.3% 的高級票據，直到2029年5月。 我們已將這些債務義務指定爲我們在歐洲業務中的淨投資的對沖，因此，對未償債務餘額的現貨匯率調整被記錄爲AOCI的一部分。
在2019年5月，我們發行了€750 百萬的 0.40%的高級票據，到期日爲2024年5月。我們已將這些債務義務指定爲我們在歐洲運營的投資對沖，因此，未償還債務餘額的即期匯率調整先前被記錄爲其他綜合收益（AOCI）的一個組成部分。2023年10月，我們取消了這一之前指定的淨投資對沖，並同時進入了上述「公允價值對沖」部分討論的公允價值對沖關係。
截至2024年9月30日，我們在其他綜合收益中累計的未實現稅前匯兌收益爲$18 百萬，涉及以歐元計價的高級票據。
24

取消指定
如果確定衍生品或非衍生品對沖工具不再具備高度有效的對沖，我們將前瞻性地停止對沖會計。有關有效現金流對沖終止的收益或損失通常會繼續遞延，並根據基礎對沖項目的損失或收入確認一致地被確認。然而，如果預計對沖的預測交易將不會發生，則任何收益或損失將立即從其他綜合收益重新分類至收益。
截至2024年11月14日，註冊人的普通股總共有 無 2024年或2023年前九個月因我們對對沖預期交易發生概率的評估變化而進行的現金流對沖解除指定。
如果我們終止公平價值對沖，終止日對沖項目的累積公平價值調整金額將在對沖項目的剩餘期限內攤銷到收益中。 無 在2024年或2023年的前九個月中，共有終止的公平價值對沖。
如果我們取消了淨投資對沖的指定，任何在其他綜合收益中確認的損益在我們出售、清算或去整合被對沖的外資投資之前不會重新分類到收益中。 無 在2024年或2023年的前九個月，共終止了淨投資對沖。
未指定衍生工具
我們使用遠期合同來對沖來自於貨幣匯率波動對我們某些內部交易和第三方應收賬款和應付賬款影響的收益，這些款項以外幣計價。通常情況下，這些衍生工具並未正式指定爲對沖工具，且這些工具的期限通常不超過一個月。
截至2024年9月30日，未指定衍生工具的名義總額爲$527百萬，金額爲$305 百萬，截止日期爲2023年12月31日。
對沖工具和未指定衍生工具的收益和損失
以下表格總結了我們對沖工具的收益和損失，以及這些收益和損失在我們截至2024年和2023年9月30日的合併基本報表中的分類。
在其他綜合收益中確認的收益（損失）收益（損失）的位置
在損益表中		從其他綜合收益重新分類至損益
(單位：百萬)2024202320242023
現金流對沖
利率合約$— $— 利息費用，淨額$(1)$(1)
匯率期貨合約(9)9 銷售成本4 3 
淨投資對沖(68)48 其他（收益）費用，淨額— — 
總計$(77)$57 $3 $2 
損益表中的收益（損失）位置確認的收益（損失）在收入中
(單位：百萬)20242023
未指定的衍生工具
匯率期貨合約其他（收益）費用，淨額6 (1)
總計$6 $(1)

25

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 nine months ended September 30, 2024 and 2023.
Gain (loss) recognized in OCILocation of gain (loss)
in income statement		Gain (loss) reclassified from AOCI into income
(in millions)2024202320242023
Cash flow hedges
Interest rate contracts$— $— Interest expense, net$(4)$(4)
Foreign exchange contracts5 19 Cost of sales9 10 
Fair value hedges
Foreign exchange contracts(3)— Other (income) expense, net(5)— 
Net investment hedges(19)10 Other (income) expense, net— — 
Total$(17)$29 $— $6 
Location of gain (loss) in income statementGain (loss) recognized in income
(in millions)20242023
Fair value hedges
Foreign exchange contractsOther (income) expense, net$(24)$— 
Undesignated derivative instruments
Foreign exchange contractsOther (income) expense, net— (9)
Total$(24)$(9)
As of September 30, 2024, $8 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
以下表格總結了截至2024年9月30日合併資產負債表中報告的衍生工具的分類和公允價值。
資產頭寸中的衍生工具負債頭寸中的衍生工具
(單位：百萬)資產負債表位置公允價值資產負債表位置公允價值
未指定的衍生工具
匯率期貨合約預付款項及其他流動資產$2 應計費用和其他流動負債$2
指定爲對沖的衍生工具
匯率期貨合約預付款項及其他流動資產— 應計費用和其他流動負債5
總衍生工具$2 $7
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下表總結了截至2023年12月31日的合併資產負債表中報告的衍生工具的分類和公允價值。
資產頭寸中的衍生工具負債頭寸中的衍生工具
(單位：百萬)資產負債表位置公允價值資產負債表位置公允價值
未指定的衍生工具
匯率期貨合約預付款項及其他流動資產$41 應計費用和其他流動負債$— 
指定爲對沖的衍生工具
匯率期貨合約預付款項及其他流動資產4 應計費用和其他流動負債5 
總衍生工具$45 $5 
雖然我們的一些衍生品受到主淨額安排的約束，但我們在綜合最新資產負債表中以總額的方式展示與衍生金融工具相關的資產和負債。此外，我們並不需要爲任何未結衍生品提供擔保。
下表提供了我們衍生品頭寸的信息，假設它們以淨額方式呈現，允許通過對手方抵消的權利。
2024年9月30日2023年12月31日
(單位：百萬)資產責任資產責任
在簡明合併資產負債表中確認的總金額$2 $7 $45 $5 
在簡明合併資產負債表中未抵銷的主淨額結算安排中需抵銷的總金額(1)(1)(4)(4)
總計$1 $6 $41 $1 
下表展示了與公允價值對沖相關的合併資產負債表上記錄的金額：
對沖項目的賬面價值包括在對沖項目賬面價值中的公允價值對沖累計調整金額
 在對沖項目的賬面價值中（a）
(單位：百萬)截至2024年9月30日的餘額截至2023年12月31日的餘額截至2024年9月30日的餘額截至2023年12月31日的餘額
長期債務$100 $100 $3 $3 
(a) 這些公允價值對沖在2018年及之前的時期被終止。
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15. 公允價值計量
以下表格總結了我們以公允價值持續計量的資產和負債。
公允價值計量的基礎
(單位：百萬)截至2024年9月30日的餘額活躍市場中同類資產的報價
(一級)		其他
可觀察輸入
（二級）		顯著
不可觀察的輸入
(三級)
資產
匯率期貨合約$2 $— $2 $— 
可供出售的債務證券1 — — 1 
可交易股票13 13 — — 
總計$16 $13 $2 $1 
負債
匯率期貨合約$7 $— $7 $— 
與收購相關的或有支付12 — — 12 
總計$19 $— $7 $12 
公允價值計量的基礎
(單位：百萬)截至2023年12月31日的餘額活躍市場中相同資產的報價
(一級)		其他
可觀察輸入
（二級）		顯著
不可觀察的輸入
(三級)
資產
匯率期貨合約$45 $— $45 $— 
可供出售的債務證券1 — — 1 
可交易股票44 44 — — 
總計$90 $44 $45 $1 
負債
匯率期貨合約$5 $— $5 $— 
與收購相關的或有支付14 — — 14 
總計$19 $— $5 $14 
截至2024年9月30日和2023年12月31日，現金及現金等價物爲$1.42 十億和$3.08 十億，分別包括大約$427 百萬和$1.63 十億，分別被視爲公允價值層次中的第二層。
對於使用活躍市場中報價進行計量的資產，公允價值是每單位的市場公佈價格乘以持有單位的數量，不考慮交易成本。我們進入的多數衍生品是採用內部評估技術進行估值的，因爲沒有此類工具的報價市場價格。用於估值這些工具的主要技術包括折現現金流和布萊克-斯科爾斯模型。關鍵輸入被視爲可觀察且根據衍生品的類型變化，包括合同條款、利率收益曲線、匯率和波動性。
可供出售的債務證券，包括由非上市實體發行的可轉換債務和可轉換可贖回優先股，採用折現現金流和期權定價模型進行計量。當由於缺乏某些公允價值輸入（如股權波動性）的可觀察數據而導致在資產負債表日期附近沒有可觀察交易時，這些可供出售的債務證券被歸類爲第3級公允價值計量。當利率下降、股權波動性增加或與轉換期權相關的股權股價的公允價值增加時，可供出售的債務證券的公允價值會增加。
與收購相關的或有支付，包括里程碑支付和基於銷售的支付，使用折現現金流技術進行估值，這些技術結合了管理層對未來結果的預期。里程碑支付的公平價值隨着支付概率的提高或支付時間的加速而增加。基於銷售的支付的公平價值取決於概率加權的未來營業收入。
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預計，隨着營業收入預測的增加，更高營業收入場景的概率加權增加，或付款的預期時間加快。
下表是對使用重要不可觀察輸入（Level 3）的重複公允價值計量的調節，包括與收購相關的或有支付和可供出售債務證券。
截至9月30日的三個月
20242023
(單位：百萬)與收購相關的或有支付可供出售的債務證券與收購相關的或有支付可供出售的債務證券
期初公允價值$14 $1 $21 $17 
付款(2)— (2)— 
期末的公平價值$12 $1 $19 $17 
截至9月30日的九個月
20242023
(單位：百萬)與收購相關的或有支付可供出售的債務證券與收購相關的或有支付可供出售的債務證券
期初公允價值$14 $1 $84 $27 
確認在收益中公允價值的變動— — (14)(5)
從第三級轉出— — — (5)
付款(2)— (51)— 
期末的公平價值$12 $1 $19 $17 
截至2023年9月30日的九個月期間，銷售性債務證券在轉換爲可流通的股票證券後，從第3級重新分類爲第1級，這些股票證券在投資公司首次公開募股時根據公允價值等級進行分類。
未按公允價值計量的金融工具
除了我們需要在簡明合併資產負債表中按公允價值確認的金融工具外，我們還擁有一些按攤餘成本或其他非公允價值基礎確認的金融工具。 對於這些金融工具，下表提供了在簡明合併資產負債表中確認的價值，以及截至2024年9月30日和2023年12月31日的估計公允價值。
賬面價值公允價值(a)
(單位：百萬)2024202320242023
負債
長期債務和融資租賃義務的當前到期部分$2,498 $2,667 $2,493 $2,621 
長期債務和融資租賃負債10,437 11,089 9,612 10,026 
(a)    這些公允價值金額在公允價值層級中被分類爲第二級，因爲它們是基於可觀察輸入估算的。
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 not presented in the above table, such as accounts receivable and accounts payable, approximate their fair values due to the short-term maturities of most of those assets and liabilities.
Investments Without Readily Determinable Fair Values
The carrying values of equity investments without readily determinable fair values that we measure at cost, less impairment were $33 million as of September 30, 2024 and December 31, 2023. When applicable, we also adjust the measurement of such equity investments for observable prices in orderly transactions for an identical or similar investment of the same issuer. Those investments are included in Other non-current assets on our condensed
29

consolidated balance sheets. During the first nine months of 2023, several of our investees either completed or were in the process of undertaking new financing rounds at lower enterprise valuations as compared to their valuations at the time of our investments. As a result, we recognized $8 million of impairments of equity investments without readily determinable fair values in the prior year period. In addition, we recognized a $5 million impairment of a convertible debt investment, which is accounted for as an available-for-sale security, during the first nine months of 2023. The fair value measurements of investments in non-marketable equity and convertible debt securities are classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs.
16. SEGMENT INFORMATION
In the third quarter of 2023, we completed the implementation of a new operating model intended to simplify and streamline our operations and better align our manufacturing and supply chain to our commercial activities. Under this new operating model, our business is currently comprised of four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care (which we are planning to divest through the pending sale and accordingly, the results are reported in discontinued operations as discussed in Note 1).
醫療產品和治療領域包括我們無菌靜脈注射溶液、輸液系統、給藥裝置、腸外營養療法以及外科止血劑、密封膠和粘附預防產品的銷售。醫療系統和技術領域包括我們連通護理解決方案和協作工具的銷售，包括智能牀系統、病人監護系統和診斷技術、呼吸健康設備，以及用於手術領域的先進設備，包括手術室集成技術、精確定位裝置和其他配件。製藥領域包括特種注射藥物、吸入麻醉劑和藥物配製的銷售。其他未分配到某一領域的銷售主要包括通過我們某些製造設施直接提供的產品和服務的銷售，以及在2023年初我們收購相關產品權利時結束的業務發展安排下的特許權收入。
淨銷售的分解
以下表格展示了我們在美國和國際市場的分解淨銷售額。表格中沒有列出合併中被抵消的內部銷售額。
截至9月30日的三個月
20242023
(單位：百萬)美國國際總計美國國際總計
輸液治療與技術
$613 $457 $1,070 $570 $433 $1,003 
愛文思控股手術
149 123 272 139 116 255 
醫療產品和療法762 580 1,342 709 549 1,258 
護理與連接解決方案
335 121 456 317 126 443 
前線護理
222 74 296 234 67 301 
醫療系統和技術
557 195 752 551 193 744 
注射劑與麻醉
178 143 321 195 156 351 
藥物配製— 267 267 — 229 229 
製藥178 410 588 195 385 580 
其他3 14 17 12 5 17 
總巴克斯$1,500 $1,199 $2,699 $1,467 $1,132 $2,599 
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截至9月30日的九個月
20242023
(單位：百萬)美國國際總計美國國際總計
輸注療法與技術
$1,718 $1,363 $3,081 $1,654 $1,264 $2,918 
愛文思控股外科
446 366 812 433 340 773 
醫療產品和療法2,164 1,729 3,893 2,087 1,604 3,691 
護理與連接解決方案
945 365 1,310 926 381 1,307 
前線護理
635 222 857 681 230 911 
醫療系統和技術
1,580 587 2,167 1,607 611 2,218 
注射劑與麻醉
566 424 990 550 437 987 
藥物配製— 778 778 — 665 665 
製藥566 1,202 1,768 550 1,102 1,652 
其他30 25 55 56 17 73 
總巴克斯$4,340 $3,543 $7,883 $4,300 $3,334 $7,634 

地理銷售信息
我們的淨銷售額歸因於以下地理區域，基於客戶的位置。
截至9月30日的三個月截至9月30日的九個月
2024202320242023
美國$1,500 $1,467 $4,340 $4,300 
新興市場1
347 353 1,001 985 
其他國家2
852 779 2,542 2,349 
總巴克斯$2,699 $2,599 $7,883 $7,634 
1 新興市場包括我們在東歐、中東、非洲、拉丁美洲和亞洲（不包括日本）的業務銷售。
2 全球其他地區包括我們在西歐、加拿大、日本、澳洲和新西蘭的銷售。
細分運營收入
我們使用分部營業收入來評估各分部的業績，並做出資源分配決策。分部營業收入代表在扣除所得稅、利息和其他非經營收入或費用、未分配的公司成本、無形資產攤銷以及其他特殊項目之前的收入。特殊項目在我們將分部營業收入與繼續經營的所得稅前收入進行調節時列出，因爲它們具有高度的變量性，難以預測，並且可能對我們報告的期間經營結果產生實質性影響。
大多數全球貨幣的功能支持成本、間接費用和其他對我們各個部門有益的共享成本都分配給這些部門。未分配給我們各個部門的企業成本，以及實際企業成本與分配給我們各個部門的金額之間的任何差異，被呈現爲未分配企業成本。由於我們的腎臟護理部門的結果被計入已停業業務，之前分配給腎臟護理部門的企業成本不會隨着待售的腎臟護理部門而轉移，
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現在以未分配的公司成本呈現。 下表展示了我們的部門營業收入以及部門營業收入與稅前持續經營收入的調節。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬)2024202320242023
醫療產品和療法$268 $245 $733 $706 
醫療系統和技術136 115 323 327 
製藥58 108 211 284 
其他2 6 15 19 
總計464 474 1,282 1,336 
未分配的企業費用(73)(73)(227)(285)
無形資產攤銷費用(159)(147)(471)(434)
法律事務(17)(13)(17)(13)
業務優化項目(18)(48)(49)(167)
收購和整合項目(5)(2)(16)(2)
歐洲醫療設備法規(9)(12)(25)(32)
颶風海倫費用(25)— (25)— 
產品相關項目(3)— (3)— 
總營業收入 155 179 449 403 
利息費用，淨額87 127 251 367 
其他（收益）費用，淨額(1)(12)(34)15 
持續經營的收入在所得稅之前$69 $64 $232 $21 
Our chief operating decision maker does not receive any asset information by reportable segment and, accordingly, we do not report asset information by reportable segment.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
Refer to our Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report) for management’s discussion and analysis of our financial condition and results of operations. The following is management’s discussion and analysis of our financial condition and results of operations for the three and nine months ended September 30, 2024 and 2023.
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 a number of planned strategic actions, as discussed below, which are intended to enhance our operational effectiveness, accelerate innovation and drive additional stockholder value.
Pending Sale of Kidney Care Business
On August 12, 2024, we entered into an Equity Purchase Agreement (EPA) with certain affiliates of Carlyle Group Inc. (Carlyle) to sell our Kidney Care business for an aggregate purchase price of $3.80 billion. After giving effect to certain closing adjustments, we currently expect to receive approximately $3.50 billion in cash with net after-tax proceeds currently estimated to be in the range of $3.15 billion to $3.25 billion. The transaction is currently expected to close in late 2024 or early 2025, subject to the receipt of customary regulatory approvals and satisfaction of other closing conditions. We determined that our Kidney Care business met the criteria to be classified as held-for-sale in August 2024, and we also concluded that it met the conditions to be reported as a discontinued operation at that time. Accordingly, our Kidney Care business is reported in discontinued operations in the accompanying condensed consolidated financial statements, and our prior period results have been adjusted to reflect discontinued operations presentation.
Since the initial announcement of the proposed separation of our Kidney Care business (which is now structured as a pending sale), we have incurred significant separation-related costs, which are reflected in discontinued operations, that have adversely impacted our earnings and cash flows. We expect to continue to incur significant separation costs, which will continue to adversely impact our earnings and cash flows, in connection with the pending sale transaction. Additionally, upon completion of the pending sale transaction, we expect to incur some amount of dis-synergies due to the reduced size of our company and, as a result, we will need to undertake various actions, including cost savings initiatives, to help ensure that our cost structure is appropriate to support our remaining businesses.
There can be no guarantees that the pending sale of our Kidney Care business or our proposed cost savings initiatives will be completed in the manner or over the timeframe described above, or at all, or that they will achieve their intended results.
Implementation of New Operating Model and Resulting Segment Change
In the third quarter of 2023, we completed the implementation of a new operating model intended to simplify and streamline our operations and better align our manufacturing and supply chain to our commercial activities. Under this new operating model, our business is currently comprised of four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care (which we are planning to divest through the pending sale and accordingly, the results are reported in discontinued operations as discussed in Note 1 in Item 1 of this Quarterly Report on Form 10-Q). Our segments were changed during the third quarter of 2023 to align with our new operating model. See Note 16 in Item 1 of this Quarterly Report on Form 10-Q for additional information. As discussed above, we have entered into the EPA to sell our Kidney Care business in a transaction that is currently expected to close in late 2024 or early 2025, subject to the receipt of customary regulatory approvals and satisfaction of other closing conditions.
Sale of BioPharma Solutions (BPS) Business
On September 29, 2023, we completed the sale of our BioPharma Solutions (BPS) business and received cash proceeds of $3.96 billion from that transaction. The results of operations and cash flows of our BPS business for the three and nine months ended September 30, 2023 are reported as discontinued operations in the accompanying condensed consolidated financial statements. We used substantially all of the after-tax proceeds from this transaction
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to repay certain of our debt obligations, including $514 million of commercial paper borrowings and $2.28 billion of long-term debt that we repaid during the fourth quarter of 2023, as well as €750 million of senior notes that we repaid during the second quarter of 2024. See Note 2 in Item 1 of this Quarterly Report on Form 10-Q for additional information.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Hurricane Helene
In September 2024, Hurricane Helene, which brought significant rain and extensive flooding to Western North Carolina, caused damage to certain of our assets at our North Cove facility in Marion, N.C. and disrupted operations at that facility. We are actively working with customers, regulators and other stakeholders to manage inventory and minimize disruption to patient care as we work to fully restore our North Cove manufacturing operations. Given the temporary disruptions to our facility as a result of the storm, we currently expect net sales in the fourth quarter to be negatively impacted by approximately $200 million, including an estimated $40 million to $50 million impact on Kidney Care sales and an estimated $150 million to $160 million impact on Medical Products & Therapies sales. We also expect to incur an estimated $350 million to $400 million of charges in the fourth quarter primarily consisting of remediation costs, air freight (as we transfer product across our global network in the interest of increasing the availability of intravenous and peritoneal dialysis solutions for our customers while we work to fully remediate our North Cove facility) and other charges, which we expect to be partially offset by insurance recoveries. Refer to Footnote 1 for further discussion of insurance recoveries related to Hurricane Helene.
Supply Constraints, Global Economic Conditions, and Regulatory Matters
In recent years, we have experienced significant challenges to our global supply chain, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices), higher transportation costs, adverse impacts from significant weather events (including Hurricane Helene and the flooding of our North Cove facility), elevated inflation levels and interest rates, disruptions to certain ports of call and access to shipping ports around the world, the war in Ukraine, the conflict in the Middle East, tensions amongst China, Taiwan, and the U.S., and other geopolitical events. While we have seen improvements in the availability of component parts and improved pricing in raw materials and on transportation costs, some of these challenges (including certain of those set forth above as we work to fully remediate our North Cove facility) are expected to have a negative impact on our results of operations in the future.

Our results of operations are also affected by macroeconomic conditions and levels of business confidence. The war in Ukraine, the conflict in the Middle East, tensions amongst China, Taiwan, and the U.S., and the sanctions and other measures being imposed in response to these conflicts (and the potential for escalation of these conflicts) have increased the levels of economic and political uncertainty and we continue to closely monitor the developing situations. While we have substantially completed our wind down efforts related to our business in Russia, a significant escalation or expansion of economic disruption or the current scope of the war in Ukraine could have an adverse effect on our operations (including our supply chain) in the region.

The existence of high inflation rates in the United States and in many of the countries where we conduct business has resulted in, and may in the future result in, higher interest rates, shipping costs, labor costs, and other costs and expenses. Additionally, adverse changes in foreign currency exchange rates have increased, and could continue to increase, our costs of sourcing certain raw materials in some jurisdictions. We have experienced and may in the future experience inflationary increases in manufacturing costs and operating expenses and we may not be able to pass these cost increases on to our customers in a timely manner or at all, which could have a material adverse impact on our profitability and results of operations. Inflation and general macroeconomic factors have caused certain of our customers to reduce or delay orders for our products and services and could cause them to do so in the future, which could have a material adverse impact on our sales and results of operations.
As a medical products company, our operations and many of the products manufactured or sold by us are subject to extensive regulation by numerous government agencies, both within and outside the United States. These regulations (as described in Item 1, Government Regulation, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023) require that we obtain specific approval from the Food and Drug Administration (FDA) or applicable non-U.S. regulatory authorities before we can market and sell most of our products in a particular country. Failure to obtain or maintain those approvals or clearances (including temporary importation authorizations) could have a material adverse impact on our business (including with respect to our ability to compete in the product
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markets in which we currently operate). Furthermore, the FDA in the United States, the European Medicines Agency in Europe, the China Food and Drug Administration in China, and other government agencies, inside and outside of the United States, administer requirements covering the testing, safety, effectiveness, manufacturing, labeling, promotion and advertising, pricing, distribution, and post-market surveillance of our products. Our failure to comply with these requirements may subject us to various actions, including warning letters, product recalls or seizures, monetary sanctions, injunctions to halt the manufacture and distribution of products, civil or criminal sanctions, refusal of a government to grant approvals or licenses, restrictions on operations or withdrawal of existing approvals and licenses, and may have a material adverse impact on our results of operations.
For further discussion, please refer to Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
NON-GAAP FINANCIAL MEASURES
Our presentation of percentage changes in net sales at constant currency rates, which is computed using current period local currency sales at the prior period’s foreign exchange rates, is a non-GAAP financial measure. This measure provides information about growth (or declines) in our net sales as if foreign currency exchange rates had not changed between the prior period and the current period. We believe that the non-GAAP measure of percent change in net sales at constant currency rates, when used in conjunction with the U.S. GAAP measure of percent change in net sales at actual currency rates, may provide a more complete understanding and facilitate a fuller analysis of our results of operations, particularly in evaluating performance from one period to another.
RESULTS OF OPERATIONS
Net income attributable to Baxter stockholders for the three months ended September 30, 2024 was $140 million, or $0.27 per diluted share compared to $2.51 billion, or $4.93 per diluted share for the three months ended September 30, 2023. For the three months ended September 30, 2024, our results included special items that adversely impacted net income attributable to Baxter stockholders by $271 million, or $0.53 per diluted share. For the three months ended September 30, 2023, our results included special items which increased net income attributable to Baxter stockholders by $2.09 billion, or $4.11 per diluted share. Net income (loss) attributable to Baxter stockholders for the nine months ended September 30, 2024 as $(137) million, or $(0.27) per diluted share compared to $2.41 billion, or $4.76 per diluted share for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, our results included special items that adversely impacted net income attributable to Baxter stockholders by $1.22 billion, or $2.40 per diluted share. For the nine months ended September 30, 2023, our results included special items which increased net income attributable to Baxter stockholders by $1.36 billion, or $2.69 per diluted share.
Net income from continuing operations for the three months ended September 30, 2024 was $61 million, or $0.12 per diluted share compared to $37 million, or $0.07 per diluted share for the three months ended September 30, 2023. Net income from continuing operations for the three months ended September 30, 2024 included special items that adversely impacted net income by $191 million, or $0.37 per diluted share. Net income from continuing operations for the three months ended September 30, 2023 included special items that adversely impacted net income by $184 million, or $0.36 per diluted share. Net income (loss) from continuing operations for the nine months ended September 30, 2024 was $162 million, or $0.32 per diluted share compared to $(38) million, or $(0.08) per diluted share for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, our results included special items that adversely impacted net income (loss) from continuing operations by $507 million, or $0.99 per diluted share. For the nine months ended September 30, 2023, our results included special items that impacted net income (loss) from continuing operations by $571 million, or $1.13 per diluted share.
See the subsection entitled “Special Items” for information about special items for all periods presented.
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CONSOLIDATED NET SALES
Three Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
United States$1,500 $1,467 2 %2 %
Emerging markets2
347 353 (2)%1 %
Rest of world3
852 779 9 %8 %
Total net sales$2,699 $2,599 4 %4 %
Nine Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
United States$4,340 $4,300 1 %1 %
Emerging markets2
1,001 985 2 %3 %
Rest of world3
2,542 2,349 8 %8 %
Total net sales$7,883 $7,634 3 %3 %
1     Percent change in net sales at constant currency rates is a non-GAAP financial measure. See the section entitled “Non-GAAP Financial Measures” for additional information about our use of that measure.
2    Emerging markets includes sales from our operations in Eastern Europe, the Middle East, Africa, Latin America, and Asia (except for Japan).
3    Rest of world includes sales from our operations in Western Europe, Canada, Japan, Australia, and New Zealand.
As set forth above, foreign currency had no impact on net sales during the three months ended September 30, 2024, compared to the prior year period, due to the strengthening of the U.S. Dollar relative to the Turkish Lira, Mexican Peso, and Brazilian Real, offset by the weakening of the U.S. Dollar relative to the Euro, British Pound, Australian Dollar and Chinese Renminbi. Foreign currency had no impact on net sales during the nine months ended September 30, 2024, compared to the prior year period, due to the strengthening of the U.S. Dollar relative to Turkish Lira, Japanese Yen, Chinese Renminbi, and Brazilian Real, offset by the weakening of the U.S. Dollar relative to the Colombian Peso, British Pound, and Euro.
NET SALES BY SEGMENT
Medical Products and Therapies
Our Medical Products and Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant, and adhesion prevention products.
Three Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Infusion Therapies and Technologies
$1,070 $1,003 7 %7 %
Advanced Surgery272 255 7 %7 %
Total Medical Product and Therapies net sales$1,342 $1,258 7 %7 %
Nine Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Infusion Therapies and Technologies
$3,081 $2,918 6 %6 %
Advanced Surgery812 773 5 %6 %
Total Medical Product and Therapies net sales$3,893 $3,691 5 %6 %
1     Percent change in net sales at constant currency rates is a non-GAAP financial measure. See the section entitled “Non-GAAP Financial Measures” for additional information about our use of that measure.
Medical Product and Therapies segment net sales increased 7% in the third quarter and increased 5% in the first nine months of 2024, as compared to the prior year periods.
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Infusion Therapies and Technologies net sales increased 7% in the third quarter and increased 6% in the first nine months of 2024, as compared to the prior year periods. Sales performance in the third quarter primarily reflected growth in Infusion Systems as a result of our Novum IQ large volume infusion and syringe pump sales in the U.S., and to a lesser extent, sales of IV solutions and nutrition product offerings, which collectively were attributable to both pricing initiatives and increased sales volume.
Advanced Surgery net sales increased 7% in the third quarter and increased 5% in the first nine months of 2024, as compared to the prior year periods. Sales performance primarily reflected growth in hemostats and sealants and was primarily attributable to increased sales volume. Foreign currency exchange rates adversely impacted sales growth by 1% for the first nine months of 2024, as compared to the prior year period.
Healthcare Systems and Technologies
Our Healthcare Systems and Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices, and other accessories.
Three Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Care and Connectivity Solutions$456 $443 3 %3 %
Front Line Care296 301 (2)%(2)%
Total Healthcare Systems and Technologies net sales$752 $744 1 %1 %
Nine Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Care and Connectivity Solutions$1,310 $1,307 0 %0 %
Front Line Care857 911 (6)%(6)%
Total Healthcare Systems and Technologies net sales$2,167 $2,218 (2)%(3)%
1     Percent change in net sales at constant currency rates is a non-GAAP financial measure. See the section entitled “Non-GAAP Financial Measures” for additional information about our use of that measure.
Healthcare Systems and Technologies segment net sales increased 1% in the third quarter and decreased 2% in the first nine months of 2024, as compared to the prior year periods.
Care and Connectivity Solutions net sales increased 3% in the third quarter and were flat in the first nine months of 2024, as compared to the prior year periods. The growth in the third quarter was primarily driven by increased order volume associated with capital spending as compared to the prior year quarterly period, partially offset by declines in care communications products driven by the shifting of installations to future periods and lower sales outside of the U.S.
Front Line Care net sales decreased 2% in the third quarter and decreased 6% in the first nine months of 2024, as compared to the prior year periods. The sales decline as compared to the prior year periods was primarily driven by a backlog reduction in the prior year period, as well as softer demand in the primary care market and lower government orders, partially offset by growth in our cardiology products.
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Pharmaceuticals
Our Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding.
Three Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Injectables and Anesthesia
$321 $351 (9)%(9)%
Drug Compounding267 229 17 %14 %
Total Pharmaceuticals net sales$588 $580 1 %1 %
Nine Months Ended September 30,Percent change
(in millions)20242023At actual
currency rates
At constant currency rates 1
Injectables and Anesthesia
$990 $987 0 %1 %
Drug Compounding778 665 17 %17 %
Total Pharmaceuticals net sales$1,768 $1,652 7 %7 %
1     Percent change in net sales at constant currency rates is a non-GAAP financial measure. See the section entitled “Non-GAAP Financial Measures” for additional information about our use of that measure.
Pharmaceuticals segment net sales increased 1% in the third quarter and increased 7% in the first nine months of 2024, as compared to the prior year periods.
Injectables and Anesthesia net sales decreased 9% in the third quarter and were flat for the first nine months of 2024, as compared to the prior year periods. The decrease in the third quarter was driven by the the timing of certain orders shifting to the fourth quarter, a delay of an anticipated new product launch, as well as supply constraints impacting international sales. Despite the decrease in the third quarter, we believe the Injectables fundamentals and growth prospects remain strong driven largely driven by strength in both core products and recent new product launches in the U.S., partially offset by inhaled anesthesia products. Foreign currency exchange rates adversely impacted sales growth by 1% for the first nine months of 2024, as compared to the prior year period.
Drug Compounding net sales increased 17% in the third quarter and for the first nine months of 2024, as compared to the prior year periods. The increase in the current year periods was driven by increased demand for our international pharmacy compounding offerings due, in part, to customer capacity constraints that resulted in increased outsourcing of compounding activities. Foreign currency exchange rates favorably impacted sales growth by 3% for the third quarter of 2024, as compared to the prior year period.
Other
Other sales, which represent sales not attributable to our reportable segments, were $17 million for both the three months ended September 30, 2024 and 2023, and $55 million and $73 million for the nine months ended September 30, 2024 and 2023, respectively. In the current and prior year periods, Other sales primarily represent revenues earned by certain of our manufacturing facilities from contract manufacturing activities. The nine-month period ended September 30, 2023 also included royalty income under a business development arrangement. The decrease in other sales for the nine months ended September 30, 2024 as compared to the prior year period primarily reflects lower contract manufacturing volume and, to a lesser extent, termination of the royalty arrangement following our acquisition of the rights to the underlying product.
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COSTS AND EXPENSES
Special Items
The following table provides a summary of our special items from continuing operations and the related impact by line item on our results for the three and nine months ended September 30, 2024 and 2023.
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Gross Margin
Intangible asset amortization expense$(108)$(96)$(316)$(279)
Business optimization items1
(2)— (8)(23)
Acquisition and integration items2
— (1)(1)(1)
European medical devices regulation3
(9)(12)(25)(32)
Product related items4
(3)— (3)— 
Hurricane Helene costs5
(25)— (25)— 
Total Special Items$(147)$(109)$(378)$(335)
Impact on Gross Margin Ratio(5.4) pts(4.2) pts(4.8) pts(4.3) pts
Selling, General and Administrative (SG&A) Expenses
Intangible asset amortization expense$51 $51 $155 $155 
Business optimization items1
16 44 41 134 
Acquisition and integration items2
5 1 15 15 
Legal matters6
17 13 17 13 
Total Special Items$89 $109 $228 $317 
Impact on SG&A Ratio3.3 pts4.2 pts2.9 pts4.1 pts
Research and Development (R&D) Expenses
Business optimization items1
$— $4 $— $10 
Total Special Items$— $4 $— $10 
Impact on R&D Ratio(0.0) pts0.1 pts(0.0) pts0.1 pts
Other Operating Income, net
Acquisition and integration items2
$— $— $— $(14)
Total Special Items$— $— $— $(14)
Other (Income) Expense, net
Investment impairments7
$— $— $— $10 
Total Special Items$— $— $— $10 
Income Tax Expense
Tax matters8
$11 $16 $45 $67 
Tax effects of special items9
(56)(54)(144)(154)
Total Special Items$(45)$(38)$(99)$(87)
Impact on Effective Tax Rate(5.8) pts19.5 pts10.0 pts259.5 pts
1Our results for third quarter of 2024 and 2023 included business optimization charges of $18 million and $48 million, respectively. Our results for the first nine months of 2024 and 2023 included business optimization charges of $49 million and $167 million, respectively. These restructuring and other business optimization costs included costs primarily related to our implementation of a new operating model intended to simplify and streamline our operations and better align our manufacturing and supply chain to our commercial activities, third-party costs incurred to support the transformation of certain general and administrative functions, and rationalization of certain other manufacturing and distribution facilities. Refer to Note 10 in Item 1 of this Quarterly Report on Form 10-Q for further information regarding these charges and related liabilities.
2Our results for the third quarter of 2024 and 2023 included $5 million and $2 million, respectively, and for both the first nine months of 2024 and 2023 included $16 million, of integration costs which primarily reflected third party consulting costs related to our integration of Hillrom. In 2023, those costs were partially offset by a $14 million benefit in the first nine months related to changes in the estimated fair values of contingent consideration liabilities.
3Our results for the third quarter of 2024 and 2023 included $9 million and $12 million, respectively, and for the first nine months of 2024 and 2023 included $25 million and $32 million, respectively, of incremental costs to comply with the European Union's medical device regulations for
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previously registered products, which primarily consist of contractor costs and other direct third-party costs. We consider the adoption of these regulations to be a significant one-time regulatory charge and believe that the costs of initial compliance for previously registered products over the implementation period are not indicative of our core operating results.
4Our results for the third quarter and first nine months of 2024 included charges of $3 million related to a revised estimate of warranty and remediation activities arising from a field corrective action on certain of our infusion pumps initially recorded in 2022.
5Our results in the third quarter and first nine months of 2024 included net charges of $25 million related to Hurricane Helene. This amount consisted of a charge of $44 million related to the write-off of damaged inventory and fixed assets, partially offset by a $19 million benefit related to insurance recoveries expected as a result of those asset write-offs. Refer to Note 1 in Item 1 of this Quarterly Report on Form 10-Q for further information.
6Our results in the third quarter and first nine months of 2024 included charges of $17 million related to environmental reserves for remediation actions associated with historic operations at certain of our facilities. Our results in the third quarter and first nine months of 2023 included costs, including associated legal fees, of $13 million related to matters involving alleged violations of the False Claims Act related to a now-discontinued legacy Hillrom sales line and alleged injury from environmental exposure.
7Our results in 2023 included $10 million of pre-tax losses from non-marketable investments in several early stage companies in the first nine months, consisting of $13 million of noncash impairment write-downs, partially offset by a $3 million gain from the sale of an investment.
8Our results for the third quarter of 2024 included $11 million of income tax expense consisting of a $26 million valuation allowance recorded to reduce the carrying amount of a tax attribute carryforward in the U.S. related to the pending sale of our Kidney Care segment, partially offset by application of the intraperiod tax allocation between continuing operations and discontinued operations. Our results for the third quarter of 2023 included $16 million of income tax expense resulting from separation-related income tax costs associated with the sale of our BPS business. Our results for the first nine months of 2024 included $45 million of income tax expense consisting of a $26 million valuation allowance recorded to reduce the carrying amount of a tax attribute carryforward in the U.S. and internal reorganization transactions related to the pending sale of our Kidney Care segment. Our results for the first nine months of 2023 included $67 million of income tax expense consisting of a $30 million valuation allowance recorded to reduce the carrying amount of a deferred tax asset for a tax basis step-up related to previously enacted Swiss tax reform legislation to reflect our current estimate of its recoverability and separation-related income tax costs associated with the sale of our BPS business.
9This item reflects the income tax impact of the special items identified in this table. The tax effect of each special item is based on the jurisdiction in which the item was incurred and the tax laws in effect for each such jurisdiction.
Gross Margin and Expense Ratios
Three Months Ended September 30,
2024% of net sales2023% of net sales$ change% change
Gross margin$1,033 38.3 %$1,056 40.6 %$(23)(2.2)%
SG&A$754 27.9 %$744 28.6 %$10 1.3 %
R&D$129 4.8 %$133 5.1 %$(4)(3.0)%
Nine Months Ended September 30,
2024% of net sales2023% of net sales$ change% change
Gross margin$3,025 38.4 %$3,050 40.0 %$(25)(0.8)%
SG&A$2,206 28.0 %$2,270 29.7 %$(64)(2.8)%
R&D$379 4.8 %$391 5.1 %$(12)(3.1)%

Gross Margin
Our gross margin ratio was 38.3% and 40.6% for the three months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had an unfavorable impact of approximately 5.4 and 4.2 percentage points on the gross margin ratio for the three months ended September 30, 2024 and 2023, respectively. Our gross margin ratio was 38.4% and 40.0% for the nine months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had an unfavorable impact of approximately 4.8 and 4.3 percentage points on the gross margin ratio for the nine months ended September 30, 2024 and 2023, respectively. Refer to the Special Items caption above for additional detail.
Excluding the impact of special items, the gross margin ratio decreased by 1.1 percentage points in both the third quarter and first nine months of 2024, respectively, compared to the prior year periods. The lower gross margins were driven by an unfavorable product mix, partially offset by initiatives to reduce our manufacturing and supply chain costs.
SG&A
Our SG&A expenses ratio was 27.9% and 28.6% for the three months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had an unfavorable impact of approximately 3.3 and 4.2
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percentage points on the SG&A expenses ratio for the three months ended September 30, 2024 and 2023, respectively. Our SG&A expenses ratio was 28.0% and 29.7% for the nine months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had an unfavorable impact of approximately 2.9 and 4.1 percentage points on the SG&A expenses ratio for the nine months ended September 30, 2024 and 2023, respectively.
Excluding the impact of special items, the SG&A expenses ratio increased by 0.2 percentage points in the third quarter compared to the prior year period, due to higher corporate function costs and annual compensation increases, partially offset by lower accruals under our annual employee incentive compensation plans. Excluding the impact of special items, the SG&A expenses ratio decreased 0.5 percentage points in first nine months of 2024 compared to the prior year period, due to lower accruals under our annual employee incentive compensation plans, partially offset by annual compensation increases.
R&D
Our R&D expenses ratio was 4.8% and 5.1% for the three months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had no impact and an unfavorable impact of 0.1 percentage points on the R&D expense ratio in the third quarter of 2024 and 2023, respectively. The R&D expenses ratio was 4.8% and 5.1% for the nine months ended September 30, 2024 and 2023, respectively. The special items identified earlier in this section had no impact and an unfavorable impact of 0.1 percentage points on the R&D expenses ratio for the nine months ended September 30, 2024 and 2023, respectively.
Excluding the impact of special items, the R&D expenses ratio decreased by 0.2 percentage points in both the third quarter and first nine months of 2024, compared to the prior year periods.
Business Optimization Items
In recent years, we have undertaken actions to transform our cost structure and enhance operational efficiency. These efforts have included restructuring the organization, optimizing our manufacturing footprint, R&D operations, and supply chain network, employing disciplined cost management, and centralizing and streamlining certain support functions. The related costs of these actions consisted primarily of employee termination costs, implementation costs, contract termination costs, and asset impairments.
For the three months ended months ended September 30, 2024, $7 million and $14 million of the restructuring charges, consisting of employee termination costs, related to business optimization initiatives within our Healthcare Systems and Technologies segment. Additionally, for the nine months ended September 30, 2024, $7 million of the restructuring charges, consisting of employee termination costs, related to our recent implementation of a new operating model intended to simplify and streamline our operations.
We currently expect to incur additional pre-tax costs, primarily related to the implementation of business optimization programs, of approximately $5 million through the completion of initiatives that are currently underway. We continue to pursue cost savings initiatives and, to the extent further cost savings opportunities are identified (including after the completion of the pending sale of our Kidney Care business), we would incur additional restructuring charges and costs to implement business optimization programs in future periods. Refer to Note 10 in Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our business optimization programs.
Other Operating Income, Net
Other operating income, net was $5 million for the three months ended September 30, 2024. In the third quarter of 2024, this amount was comprised of income from transition services arrangements related to the divestiture of our BPS business. Other operating income, net was $9 million and $14 million for the nine months ended September 30, 2024 and 2023, respectively. In the first nine months of 2024, this amount was comprised of income from transition services arrangements related to the divestiture of our BPS business. In the first nine months of 2023, this amount was comprised of gains from changes in the estimated fair value of contingent consideration arrangements.
Interest Expense, Net
Interest expense, net was $87 million and $127 million for the three months ended September 30, 2024 and 2023, respectively and $251 million and $367 million for the nine months ended September 30, 2024 and 2023, respectively.
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The decrease in 2024 was driven by debt repayments in the fourth quarter of 2023 and, to a lesser extent, higher interest income due to a higher average cash balance and higher interest rates during the current year period.
Other (Income) Expense, net
Other (income) expense, net was income of $1 million and income of $12 million for the three months ended September 30, 2024 and 2023, respectively, and income of $34 million and expense of $15 million for the nine months ended September 30, 2024 and 2023, respectively. In the current year periods, other income, net was primarily driven by pension and other postretirement benefits, partially offset by foreign exchange losses. In the three months ended September 30, 2023, other income, net was primarily driven by pension and other postretirement benefits. In the nine months ended September 30, 2023, other expense, net was primarily driven by foreign exchange losses, non-marketable investment impairments and decreases in the fair value of marketable equity securities, partially offset by pension and postretirement benefits.
Income Taxes
Our effective income tax rate was 11.6% and 42.2% in the third quarter of 2024 and 2023, respectively, and 30.2% and 281.0% for the first nine months of 2024 and 2023, 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. Our effective income tax rate during interim periods reflects our estimated annual effective tax rate and discrete items.
For the three months ended September 30, 2024, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to a favorable geographic earnings mix, the tax impacts of the write-off of damaged inventory and fixed assets at our North Cove facility caused by Hurricane Helene, and a change in our assertion on the reinvested foreign earnings related to the pending sale of our Kidney Care segment allocated to continuing operations, partially offset by a $26 million valuation allowance recorded to reduce the carrying amount of a tax attribute carryforward in the U.S. related to the pending sale of our Kidney Care segment.
For the nine months ended September 30, 2024, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to a $26 million valuation allowance recorded to reduce the carrying amount of a tax attribute carryforward in the U.S. related to the pending sale of our Kidney Care segment, an increase in a valuation allowance in a foreign jurisdiction resulting from changes in future projected income, an increase in income tax expense resulting from internal reorganization transactions related to the pending sale of our Kidney Care segment, and an increase in our liabilities for various uncertain tax positions, partially offset by a favorable geographic earnings mix.
For the three months ended September 30, 2023, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to an increase in the valuation allowance in a foreign jurisdiction resulting from changes in future projected income, partially offset by a favorable geographic earnings mix.
For the nine months ended September 30, 2023, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily attributable to a $30 million increase in the valuation allowance related to a deferred tax asset from a tax basis step-up that arose from previously enacted Swiss tax reform legislation, an increase in the valuation allowance in a foreign jurisdiction resulting from changes in future projected income, and excess tax shortfalls on stock compensation awards.
The Organization of Economic Co-operation and Development (OECD) and the G20 Inclusive Framework on Base Erosion and Profit Shifting (the Inclusive Framework) has put forth two proposals—Pillar One and Pillar Two—that (i) revise the existing profit allocation and nexus rules and (ii) ensure a minimal level of taxation, respectively. On December 12, 2022, the EU member states agreed to implement the Inclusive Framework’s global corporate minimum tax rate of 15%, and various countries both within and outside the EU have enacted new laws implementing Pillar Two or have draft legislation proposed for adoption. The OECD continues to release additional guidance on the two-pillar framework, with widespread implementation occurring in 2024. We currently expect that the impact of the Pillar Two legislation on our income tax expense for the year ending December 31, 2024 will be approximately $10 million to $15 million. We are continuing to evaluate the potential impacts of the Inclusive Framework for 2025 and future years, pending legislative adoption by individual countries, which could result in further adverse impacts on our income tax expense and cash flows.
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Discontinued Operations
In August 2024, we entered into a definitive agreement to sell our Kidney Care business and its results have been presented as discontinued operations for the three and nine months ended September 30, 2024 and 2023. On September 29, 2023, we completed the sale of our BPS business and it's results have been presented as discontinued operations for the three and nine months ended September 30, 2023. Income from discontinued operations, net of tax was $83 million in the third quarter of 2024, compared to $2.47 billion in the third quarter of 2023. Income (loss) from discontinued operations, net of tax was $(290) million in the first nine months of 2024, compared to $2.46 billion in the first nine months of 2023. The decreases were primarily driven by the $2.89 billion pre-tax gain from the sale of BPS ($2.60 billion net of tax). Refer to Note 2 within Item 1 for additional information.
SEGMENT OPERATING INCOME
The following is a summary of our operating income for our reportable segments.
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Medical Products and Therapies$268 $245 $733 $706 
% of Segment Net Sales20.0 %19.5 %18.8 %19.1 %
Healthcare Systems and Technologies136 115 323 327 
% of Segment Net Sales18.1 %15.5 %14.9 %14.7 %
Pharmaceuticals58 108 211 284 
% of Segment Net Sales9.9 %18.6 %11.9 %17.2 %
Other2 6 15 19 
Total464 474 1,282 1,336 
Unallocated corporate costs(73)(73)(227)(285)
Intangible asset amortization expense(159)(147)(471)(434)
Legal matters(17)(13)(17)(13)
Business optimization items(18)(48)(49)(167)
Acquisition and integration items(5)(2)(16)(2)
European Medical Devices Regulation(9)(12)(25)(32)
Product-related items(3)— (3)— 
Hurricane Helene Costs(25)— (25)— 
Total operating income155 179 449 403 
Interest expense, net87 127 251 367 
Other (income) expense, net(1)(12)(34)15 
Loss from continuing operations before income taxes$69 $64 $232 $21 
Medical Products and Therapies
Segment operating income was $268 million and $245 million for the third quarter of 2024 and 2023, respectively, and $733 million and $706 million for the first nine months of 2024 and 2023, respectively. The increase in segment operating income in the third quarter and the nine months ended September 30, 2024 compared to the prior year periods was primarily driven by higher sales in the current year periods, partially offset by increased allocations of manufacturing and supply chain overheads, annual compensation increases, and higher corporate shared costs.
Healthcare Systems and Technologies
Segment operating income was $136 million and $115 million for the three months ended September 30, 2024 and 2023, respectively, and $323 million and $327 million for the nine months ended September 30, 2024 and 2023, respectively. Segment operating income increased in the third quarter compared to the prior year period primarily due to increased gross profit and lower operating expenses from margin improvement initiatives and increased gross profit from higher sales of Care and Connectivity Solutions product offerings, partially offset by lower sales of our Front Line
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Care product offerings. Segment operating income decreased in the nine months ended September 30, 2024 compared to the prior year period primarily due to decreased gross profit from lower sales.
Pharmaceuticals
Segment operating income was $58 million and $108 million for the three months ended September 30, 2024 and 2023, respectively, and $211 million and $284 million for the nine months ended September 30, 2024 and 2023, respectively. The decreases in segment operating income for these periods were driven by lower gross margin percentages, due to an unfavorable product mix in the third quarter and reflecting the increased cost of certain inventory manufactured by our former BPS business, which now includes a third-party mark-up following our divestiture of that business in September 2023, and increased operating expenses, including marketing-related costs in connection with recent product launches.
Other
Other operating income, which represents operating income not attributable to our reportable segments, was $2 million and $6 million for the three months ended September 30, 2024 and 2023, respectively, and $15 million and $19 million for both the nine months ended September 30, 2024 and 2023, respectively. In the current and prior year periods, other operating income primarily represents income from revenues earned by certain of our manufacturing facilities from contract manufacturing activities. The prior year period also includes royalty income under a business development arrangement. The decrease in the third quarter of 2024 as compared to the prior year periods reflects the termination of the royalty arrangement following our acquisition of the rights to the underlying product, partially offset by improved gross margins from contract manufacturing.
Unallocated Corporate Costs
Under our new operating model, most global functional support costs, overhead costs and other shared costs that benefit our segments are allocated to those segments. Corporate costs that are not allocated to our segments, as well as any differences between actual corporate costs and the amounts allocated to our segments, are presented as unallocated corporate costs. With the results of our Kidney Care segment reported in discontinued operations, corporate costs that had previously been allocated to the Kidney Care segment which will not convey with the Kidney Care segment in the pending sale, are now presented as unallocated corporate costs. Additionally, intangible asset amortization and other special items are not allocated to our segments. Prior to the implementation of our new operating model in the third quarter of 2023, more costs were maintained at corporate and were not allocated to our previous segments. Certain of the costs that were previously maintained at corporate under our prior segment structure that are now allocated to our segments include manufacturing variances and centrally managed supply chain costs, certain R&D costs, product category support costs, stock compensation expense, and certain employee benefit plan costs.
LIQUIDITY AND CAPITAL RESOURCES
The following table is a summary of the statement of cash flows for the nine-month periods ended September 30, 2024 and 2023.
Nine Months Ended September 30,
(in millions)20242023
Cash flows from operations - continuing operations$376 $792 
Cash flows from investing activities - continuing operations(281)$(325)
Cash flows from financing activities(1,222)$(554)
Cash Flows from Operations - Continuing Operations
For the nine months ended September 30, 2024 and 2023, operating cash flows from continuing operations were $376 million and $792 million, respectively. Operating cash flows from continuing operations in the current year period were unfavorably impacted, as compared to the prior year period, by higher annual payouts under our employee incentive compensation plans, which were determined based on our 2023 performance and the timing of accounts receivable collections and accounts payable payments.
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Cash Flows from Investing Activities - Continuing Operations
For the nine months ended September 30, 2024, cash used in investing activities from continuing operations primarily included capital expenditures of $314 million, partially offset by $34 million of proceeds from sales of marketable securities. For the nine months ended September 30, 2023, cash used in investing activities from continuing operations primarily included capital expenditures of $340 million.
Cash Flows from Financing Activities
For the nine months ended September 30, 2024, cash used in financing activities included debt repayments of $827 million and dividend payments of $443 million, partially offset by proceeds from stock issued under employee benefit plans of $63 million. For the nine months ended September 30, 2023, cash used for financing activities included dividend payments of $439 million and debt repayments of $353 million and a net increase in commercial paper borrowings of $214 million, partially offset by proceeds from stock issued under employee benefit plans of $86 million.
As authorized by our Board of Directors, we repurchase our stock depending upon our cash flows, net debt levels and market conditions. In July 2012, our Board of Directors authorized a share repurchase program and the related authorization was subsequently increased a number of times. We did not repurchase any shares under this authority in the first nine months of 2024. We had $1.30 billion remaining available under this authorization as of September 30, 2024.
Credit Facilities, Commercial Paper Program and Access to Capital and Credit Ratings
Credit Facilities and Commercial Paper Program
As of September 30, 2024, we had a U.S. dollar-denominated term loan credit facility, which had two tranches of term loans outstanding, a U.S. dollar-denominated revolving credit facility and a Euro-denominated revolving credit facility.
As of September 30, 2024, we had $130 million outstanding under one tranche of our U.S. dollar-denominated term loan credit facility that matures in 2024 and $1.64 billion outstanding under the other tranche of our U.S. dollar-denominated term loan credit facility that matures in 2026. Borrowings under the term loan credit facility bear interest on the principal amount outstanding at either Term SOFR plus an applicable margin plus a credit spread adjustment or a “base rate” plus an applicable margin. The term loan credit facility contains various covenants, including a maximum net leverage ratio. We have the option to prepay outstanding amounts under the term loan credit facility in whole or in part at any time.
As of September 30, 2024, our U.S. dollar-denominated revolving credit facility and Euro-denominated revolving credit facility had a maximum capacity of $2.00 billion and €200 million, respectively. There were no borrowings outstanding under these credit facilities as of September 30, 2024 or December 31, 2023. 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.
On July 17, 2024, we entered into a credit agreement in which a group of banks have committed to provide us senior unsecured term loans in an aggregate principal amount of up to $2.05 billion ("the bridge facility"). Borrowings under the bridge facility will be available in up to three drawings to fund (a) the refinancing of our 1.322% Senior Notes due November 29, 2024, our Floating Rate Notes due November 29, 2024, and certain borrowings under our existing term loan facility and (b) payment of certain U.S. tax liabilities arising from internal reorganization transactions related to the pending sale of our Kidney Care business. Borrowings under the bridge facility will bear interest at a rate based on our long-term debt ratings in effect from time to time and the interest rate on any borrowings outstanding beyond December 31, 2024 would increase by 0.25%. We will also incur a ticking fee on undrawn commitments at a rate based on our long-term debt ratings in effect from time to time. The banks’ funding commitments under the bridge facility will terminate upon the earliest to occur of: (i) our consummation of the debt repayments and tax payments described above without us having borrowed under the bridge facility, (ii) our election to terminate the commitments under the bridge facility, (iii) our receipt of net cash proceeds from certain transactions (including from the pending sale of our Kidney Care business), (iv) the occurrence of three drawings under the bridge facility, and (v) December 31, 2024. Outstanding borrowings under the bridge facility will mature on the earlier of 364 days from the first funding date and November 24, 2025. Additionally, we are required to use the net cash proceeds from certain transactions (including from the pending sale of our Kidney Care business) to repay any outstanding borrowings under the bridge facility. The bridge facility contains financial and other covenants, including a net leverage covenant, and provides for
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customary events of default. There were no borrowings outstanding under this bridge facility as of September 30, 2024.
In the first quarter of 2024, 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 to increase the maximum net leverage ratio covenant for the six fiscal quarters ending June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025. The amendment further provides for the reduction of the capacity under our U.S dollar-denominated revolving credit facility from $2.50 billion to $2.00 billion on the earlier of September 30, 2024 or the date of the sale or spinoff of our Kidney Care business. As of September 30, 2024, we were in compliance with the financial covenants in these agreements. Based on our covenant calculations as of September 30, 2024, we had capacity to draw on the full amounts under our credit facilities. The non-performance of any financial institution supporting either of the credit facilities would reduce the maximum capacity of these facilities by the institution’s respective commitment. Additionally, a deterioration in our financial performance may further reduce our ability to draw on our credit facilities.
We have a commercial paper program that currently enables us to borrow efficiently at short-term interest rates. Upon maturity of any commercial paper borrowings under this program, and to the extent old issuances are not repaid by cash on hand, we are exposed to the rollover risk of not being able to issue new commercial paper. Our commercial paper borrowing arrangements require us to maintain undrawn borrowing capacity under our revolving credit facilities for an amount at least equal to our outstanding commercial paper borrowings. If we were not able to issue new commercial paper, we have the option of drawing on the revolving credit facilities; however, electing to do so would result in higher interest expense. We had no commercial paper borrowings outstanding as of September 30, 2024.
Access to Capital and Credit Ratings
We intend to fund short-term and long-term obligations as they mature through cash on hand, future cash flows from operations, and potentially by issuing debt, which could include commercial paper, bond issuances, or other financing arrangements, including the bridge facility. We had $1.42 billion of cash and cash equivalents as of September 30, 2024, with adequate cash available to meet operating requirements in each jurisdiction in which we operate. We invest our excess cash in money market and other funds and diversify the concentration of cash among different financial institutions. As of September 30, 2024, we had approximately $12.94 billion of long-term debt and finance lease obligations, including current maturities, and no short-term debt. We used substantially all of the remaining net after-tax cash proceeds from the BPS divestiture to repay indebtedness in the first half of 2024. Subject to market conditions, we regularly evaluate opportunities with respect to our capital structure. We intend to use the net after-tax proceeds from the pending sale of our Kidney Care business to repay certain of our debt obligations, consistent with our stated capital allocation priorities. Prior to the pending sale of our Kidney Care business, we plan to bring back a portion of the cash related to our Kidney Care business after giving effect to any applicable taxes and which is currently classified in discontinued operations.
Our ability to generate cash flows from operations and issue debt on acceptable terms or at all could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers, deterioration in our key financial ratios or credit ratings, or other significantly unfavorable changes in market conditions. However, we believe we have sufficient financial flexibility to issue debt, enter into other financing arrangements, and attract long-term capital on acceptable terms to support our growth objectives and reduce our post-Hillrom acquisition debt levels as we take actions consistent with our capital allocation priorities and strategic initiatives (including completion of the pending Kidney Care sale).
In January 2024, Fitch revised our senior debt credit rating from BBB to BBB-, our senior debt credit rating outlook from rating watch negative to stable and our short-term debt credit rating from F2 to F3. In May 2024, our contract with Fitch expired. In June 2024, Fitch affirmed and withdrew ratings and coverage on us. As a result they no longer maintain ratings on our senior debt or our short-term debt. There have been no changes to our investment grade credit ratings from Standard & Poor's and Moody's that we disclosed in our 2023 Annual Report.
CRITICAL ACCOUNTING POLICIES
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. A summary of our significant accounting policies is included in Note 1 to our consolidated financial statements in our 2023 Annual Report. Certain of our accounting policies are considered critical, as these policies are the most important to the depiction of our financial statements and require significant, difficult or complex judgments by us, often employing the use of estimates
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about the effects of matters that are inherently uncertain. Such policies are summarized in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section in our 2023 Annual Report.
Impairment of Goodwill and Other Long-Lived Assets

Front Line Care Reporting Unit
In connection with our November 1, 2023 annual goodwill impairment tests, we determined that the fair value of the Front Line Care reporting unit within our Healthcare Systems and Technologies segment exceeded its carrying value by approximately 5%. While no triggering events were identified during the nine months ended September 30, 2024, we are continuing to closely monitor the performance of this reporting unit, and if there is a significant adverse change in our outlook for this business in the future, a goodwill impairment could arise at that time. As of September 30, 2024, the carrying amount of goodwill for our Front Line Care reporting unit was $2.42 billion.
There have been no significant changes in the application of our critical accounting policies during the first nine months of 2024.
RECENT ACCOUNTING PRONOUNCEMENTS
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures about segment expenses on an annual and interim basis. This standard is effective for our annual consolidated financial statements for the year ending December 31, 2024 and for interim periods beginning in 2025. Upon adoption of this standard, we expect to disclose additional income statement information for our reportable segments.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, which requires (1) disclosure of specific categories in the rate reconciliation and (2) additional information for reconciling items that meet a quantitative threshold. Additionally, the amendment requires disclosure of certain disaggregated information about income taxes paid, income from continuing operations before income tax expense (benefit) and income tax expense (benefit). The standard is effective for our annual consolidated financial statements for the year ending December 31, 2025. We are currently evaluating the impact of this standard on our consolidated financial statements.
LEGAL CONTINGENCIES
Refer to Note 6 within Item 1 for a discussion of our legal contingencies. Upon resolution of any of these uncertainties, we may incur charges in excess of presently established liabilities. While our liability in connection with certain claims cannot be estimated with any certainty, and although the resolution in any reporting period of one or more of these matters 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 these matters, litigation is inherently uncertain, excessive verdicts do occur, and we may in the future incur material judgments or enter into material settlements of claims.
CERTAIN REGULATORY MATTERS
In July 2017, immediately prior to the closing of our acquisition of Claris Injectables Limited (Claris), the U.S. Food and Drug Administration (FDA) commenced an inspection of the Claris’ facilities in Ahmedabad, India. FDA completed the inspection and subsequently issued a Warning Letter based on observations identified in the 2017 inspection (2017 Warning Letter).¹ FDA re-inspected the facilities and issued a Form FDA 483 on May 17, 2022. On September 1, 2022, FDA notified us that the inspection had been classified as voluntary action indicated. From January 19, 2023 to January 27, 2023, FDA performed an inspection at the Ahmedabad site, concluding with the issuance of a Form FDA 483. On April 26, 2023, FDA notified us that the inspection had been classified as official action indicated. We received a Warning Letter on July 25, 2023 based on observations identified in the January 2023 inspection (2023 Warning Letter)2. Since the issuance of the 2017 Warning Letter, we have implemented corrective and preventive actions to address FDA's related observations, as well as other enhancements at the site. We have fully responded to the 2023 Warning Letter, have implemented additional corrective and preventive actions, and continue to engage with FDA regarding the agency's observations. In addition, since the issuance of the 2017 Warning Letter, we have
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secured other sites in our manufacturing network and have launched and distribute select products from those sites in the U.S.
1 Available online at https://www.fda.gov/ICECI/EnforcementActions/WarningLetters/ucm613538.htm
2 Available online at https://www.fda.gov/inspections-compliance-enforcement-and-criminal-investigations/warning-letters/baxter-healthcare-corporation-654136-07252023
FORWARD-LOOKING INFORMATION
Certain statements contained in this quarterly report on Form 10-Q may constitute “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements by their nature address matters that are uncertain to different degrees. Use of the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “seeks,” “intends,” “evaluates,” “pursues,” “anticipates,” “continues,” “designs,” “impacts,” “affects,” “forecasts,” “target,” “outlook,” “initiative,” “objective,” “designed,” “priorities,” “goal,” or the negative of those words or other similar expressions may identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements may include statements with respect to the pending sale of our Kidney Care business and other portfolio management activities we may undertake in the future, the costs, structure, and timing associated with strategic initiatives including the pending sale, the viability and accuracy of anticipated benefits of our strategic actions, our ability to successfully integrate acquisitions and complete divestitures, the expected growth rates for our segments, accounting estimates and assumptions (including with respect to goodwill and other intangible asset impairments), global economic conditions, severe storms and storm-related impacts, litigation-related matters, future regulatory filings (or the withdrawal or resubmission of any pending submissions) and our R&D pipeline (including anticipated product approvals or clearances), sales from new product offerings, credit exposure to foreign governments, the adequacy of cash flows and credit facilities, potential developments with respect to credit ratings, investment of foreign earnings, estimates of liabilities including those related to uncertain tax positions, contingent payments, future pension plan contributions, costs, discount rates and rates of return, our exposure to financial market volatility and foreign currency, interest rate and credit risks, our net interest expense, the impact of inflation on our business, the impact of competition, future sales growth, business development activities, cost saving initiatives, future capital and R&D expenditures, future debt issuances and refinancings, the adequacy of tax provisions and reserves, the effective income tax rate, and all other statements that do not relate to historical facts.

These forward-looking statements are based on certain assumptions and analyses made in light of our experience and perception of historical trends, current conditions, and expected future developments as well as other factors that we believe are appropriate in the circumstances. While these statements represent our judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results. Whether actual future results and developments will conform to expectations and predictions is subject to a number of risks and uncertainties, including the following factors, many of which are beyond our control:
•our ability to execute and complete strategic initiatives, asset dispositions, and other transactions, including the pending sale of our Kidney Care business, our plans to simplify our manufacturing footprint and the timing for such transactions, the ability of the parties to secure any required regulatory approvals or satisfy any applicable conditions, and our ability to realize the expected proceeds, consideration, and benefits of these transactions (including with respect to any post-sale arrangements or cost savings initiatives);
•failure to accurately forecast or achieve our short-and long-term financial performance and goals (including with respect to our strategic initiatives and other actions), market and category growth rates, and related impacts on our liquidity;
•our ability to finance and develop new products or enhancements on commercially acceptable terms or at all;
•product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale, and the general unpredictability associated with the product development cycle;
•demand and market acceptance risks for, and competitive pressures related to, new and existing products, challenges with accurately predicting changing customer preferences and future expenditures and inventory
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levels and with being able to monetize new and existing products and services (and to sustain any related price increases), the impact of those products on quality and patient safety concerns, and the need for ongoing training and support for our products;
•our ability to successfully integrate acquisitions including the acquisition of Hillrom, and the related impact on our organization structure, senior leadership, culture, functional alignment, outsourcing and other areas, our management of resulting related personnel capacity constraints and potential institutional knowledge loss, and our ability to achieve anticipated performance or financial targets and maintain our reputation following integration;
•our ability to execute on our capital allocation plans, including our debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds (including those resulting from the pending Kidney Care sale);
•the impact of global economic conditions (including, among other things, inflation levels, interest rates, financial market volatility, banking crises, the potential for a recession, the war in Ukraine, the conflict in the Middle East (including recent attacks on merchant ships in the Red Sea), tensions amongst China, Taiwan, and the U.S. and the potential for escalation of these conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars and global public health crises, pandemics and epidemics, or the anticipation of any of the foregoing, on our operations and our employees, customers, suppliers, and foreign governments in countries in which we operate;
•the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events, including our ability to import and distribute product from other facilities in connection with temporary importation authorizations, the reallocation of manufacturing capacity, the ability to receive necessary regulatory or other approvals required to reopen all or a portion of impacted facilities, the ability to resume production at our North Cove facility on the expected time frame or at all and physical, environmental or other obstacles identified during the course of remediation, including with respect to the availability of third party contractors and any equipment, transportation or other supplies needed to support the remediation efforts;
•inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties, including as a result of natural disaster, war, terrorism, global public health crises and epidemics/pandemics, regulatory actions, or otherwise;
•downgrades to our credit ratings or ratings outlooks, or withdrawals by rating agencies from rating us and our indebtedness, and the related impact on our funding costs and liquidity;
•the impact of any goodwill, intangible asset, or other long-lived asset impairments on our operating results;
•regulatory agency inspections, product quality or patient safety issues leading to product recalls, withdrawals, labeling changes, launch delays, warning letters, import bans, denial of import certifications, sanctions, seizures, litigation, or declining sales, including the focus on evaluating product portfolios for the potential presence or formation of nitrosamines;
•future actions of, or failures to act or delays in acting by FDA, the European Medicines Agency, or any other regulatory body or government authority (including the SEC, DOJ, or the Attorney General of any state) that could delay, limit, or suspend product development, manufacturing, or sale, or result in seizures, recalls, injunctions, monetary sanctions, or criminal or civil liabilities;
•breaches, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in, our information technology systems, or products;
•the continuity, availability, and pricing of acceptable raw materials and component parts, our ability to pass some or all of these costs to our customers through price increases or otherwise, and the related continuity of our manufacturing and distribution and those of our suppliers;
•loss of key employees (including those involved with any key strategic actions), the occurrence of labor disruptions (including as a result of labor disagreements under bargaining agreements or national trade union agreements or disputes with works councils) or the inability to attract, develop, retain, and engage employees;
•failures with respect to our quality, compliance, or ethics programs;
•future actions of third parties, including third-party payors and our customers and distributors (including GPOs and IDNs);
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•changes to legislation and regulation and other governmental pressures in the United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, including new or amended laws, rules, and regulations, as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification, and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation, and rebate policies;
•the outcome of pending or future litigation;
•the impact of competitive products and pricing, including generic competition, drug reimportation, and disruptive technologies;
•global regulatory, trade, and tax policies, including with respect to climate change and other sustainability matters;
•the ability to protect or enforce our patents or other proprietary rights (including trademarks, copyrights, trade secrets, and know-how) or where the patents of third parties prevent or restrict our manufacture, sale, or use of affected products or technology;
•fluctuations in foreign exchange and interest rates;
•any changes in law concerning the taxation of income (whether with respect to current or future tax reform);
•actions by tax authorities in connection with ongoing tax audits;
•other factors identified elsewhere in this report and other filings with the SEC, including those factors described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, all of which are available on our website.
Actual results may differ materially from those projected in the forward-looking statements, which are more fully discussed in our Annual Report on Form 10-K for the year ended December 31, 2023. These forward-looking statements are not exclusive and are in addition to other factors discussed elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023. Further, other unknown or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement in this Quarterly Report on Form 10-Q speaks only as of the date on which it is made. Except as required by law, we assume no obligation, and expressly disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information or future events.
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Item 3.    Quantitative and Qualitative Disclosures About Market Risk
Currency Risk
We are primarily exposed to foreign exchange risk with respect to revenues generated outside of the United States denominated in the Euro, British Pound, Chinese Renminbi, Korean Won, Australian Dollar, Canadian Dollar, Japanese Yen, Colombian Peso, Brazilian Real, Mexican Peso, 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 financial instruments to further reduce our net exposure to foreign exchange. Gains and losses on the hedging instruments offset losses and gains on the hedged transactions and reduce the earnings and stockholders’ equity volatility relating to foreign exchange. However, we don't hedge our entire foreign exchange exposure and are still subject to earnings and stockholders' equity volatility relating to foreign exchange risk. Financial market and currency volatility may limit our ability to cost-effectively hedge these exposures.
We primarily use forward contracts to hedge the foreign exchange risk to earnings relating to forecasted transactions and recognized assets and liabilities denominated in foreign currencies. The maximum term over which we have cash flow hedge contracts in place related to foreign exchange risk on forecasted transactions as of September 30, 2024 is 12 months. We also enter into derivative instruments to hedge foreign exchange risk on certain intra-company and third-party receivables and payables and debt denominated in foreign currencies.
As part of our risk-management program, we perform sensitivity analyses to assess potential changes in the fair value of our foreign exchange instruments relating to hypothetical and reasonably possible near-term movements in foreign exchange rates.
A sensitivity analysis of changes in the fair value of foreign exchange contracts outstanding as of September 30, 2024, while not predictive in nature, indicated that if the U.S. Dollar uniformly weakened by 10% against all currencies, the net pre-tax liability balance of $5 million with respect to those contracts would change by $5 million.
The sensitivity analysis model recalculates the fair value of the foreign exchange contracts outstanding as of September 30, 2024 by replacing the actual exchange rates as of September 30, 2024 with exchange rates that are 10% weaker compared to the actual exchange rates for each applicable currency. All other factors are held constant. These sensitivity analyses disregard the possibility that currency exchange rates can move in opposite directions and that gains from one currency may or may not be offset by losses from another currency. The analyses also disregard the offsetting change in value of the underlying hedged transactions and balances.
Interest Rate and Other Risks
Refer to the caption “Interest Rate and Other Risks” in the “Financial Instrument Market Risk” section of the 2023 Annual Report. There were no significant changes during the quarter ended September 30, 2024.
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Item 4.    Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act), as of September 30, 2024. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2024.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1.    Legal Proceedings
The information in Part I, Item 1, Note 6 is incorporated herein by reference.
Item 1A. Risk Factors

We do not believe that there have been any material changes to the risk factors previously disclosed in our 2023 Annual Report.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
In July 2012, the Board of Directors authorized a share repurchase program and the related authorization was subsequently increased a number of times. During the third quarter of 2024, we did not repurchase any shares under this authority. We had $1.30 billion remaining under this program as of September 30, 2024. This program does not have an expiration date.
Item 5. Other Information
Certain of our officers and directors have made elections to participate in, and are participating in, our employee stock purchase plan or have made, and may from time to time make, elections to have shares withheld to cover withholding taxes or pay the exercise price of options, which may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).


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Item 6.    Exhibits
Exhibit Index:
Exhibit
Number		Description
2.1
10.1
C 10.2*
C 10.3*
31.1*
31.2*
32.1**
32.2**
101.INS*XBRL Instance Document
101.SCH*XBRL Taxonomy Extension Schema Document
101.CAL*XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*XBRL Taxonomy Extension Label Linkbase Document
101.PRE*XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*XBRL Taxonomy Extension Definition Linkbase Document
104*Cover Page Interactive Data File (formatted as Inline XBRL and contained within the Inline XBRL Instance Document in Exhibit 101)
_____________________________________
*    Filed herewith.
**    Furnished herewith. This exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
C     Management contract or compensatory plan or arrangement
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BAXTER INTERNATIONAL INC.
(Registrant)
Date: November 12, 2024
By:/s/ Joel T. Grade
Joel T. Grade
Executive Vice President, Chief Financial Officer and Interim Chief Accounting Officer, (duly authorized officer, principal financial officer and principal accounting officer)

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