Inventory Accounting Policy
Inventories are stated at the lower of cost (first-in, first-out method) or market value. Market value for raw materials is based on replacement costs, and market value for work in process and finished goods is based on net realizable value. Baxter reviews inventories on hand at least quarterly and records provisions for estimated excess, slow-moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value.
Source: Baxter International Inc., Annual Report
Inventory Disclosure
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Baxter International Inc., Statement of Financial Position, Inventory
Source: Based on data from Baxter International Inc. Annual Reports
| Item |
Description |
The company |
| Raw materials |
Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. |
Baxter International Inc.'s raw materials declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.
|
| Work in process |
Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. |
Baxter International Inc.'s work in process declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
| Finished goods |
Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. |
Baxter International Inc.'s finished goods declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.
|
| Inventories |
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). |
Baxter International Inc.'s inventories declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
