Name: Baxter International Inc. (NYSE:BAX) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Baxter International Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net sales	9,968)	16,671)	15,259)	14,190)	13,893)
Cost of sales	(5,822)	(8,514)	(7,664)	(6,889)	(6,847)
Gross margin	4,146)	8,157)	7,595)	7,301)	7,046)
Marketing and administrative expenses	(3,094)	(4,029)	(3,681)	(3,324)	(3,154)
Research and development expenses	(603)	(1,421)	(1,246)	(1,156)	(946)
Operating income	449)	2,707)	2,668)	2,821)	2,946)
Interest expense	(146)	(167)	(155)	(113)	(92)
Interest income	20)	22)	27)	26)	38)
Net interest expense	(126)	(145)	(128)	(87)	(54)
Foreign exchange	113)	—)	—)	—)	—)
Loss on debt extinguishment	(130)	—)	—)	—)	—)
Gain on litigation settlement	52)	—)	—)	—)	—)
Gain on sale of investments and other assets	38)	—)	—)	—)	—)
Other	32)	(123)	9)	155)	(83)
Other income (expense), net	105)	(123)	9)	155)	(83)
Income from continuing operations before income taxes	428)	2,439)	2,549)	2,889)	2,809)
Income tax expense	(35)	(493)	(537)	(563)	(553)
Income from continuing operations	393)	1,946)	2,012)	2,326)	2,256)
Income from discontinued operations, net of tax	575)	551)	—)	—)	—)
Net income	968)	2,497)	2,012)	2,326)	2,256)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	(32)
Net income attributable to Baxter	968)	2,497)	2,012)	2,326)	2,224)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Revenue demonstrated consistent growth between 2011 and 2014, increasing from 13,893 million USD to a peak of 16,671 million USD. However, a significant contraction occurred in 2015, with net sales falling to 9,968 million USD, representing a decrease of approximately 40% from the previous year. This sharp decline in the final period suggests a major structural change or divestiture within the organization.

Gross Profitability and Margin Trends: Gross margin grew in absolute terms from 2011 to 2014, rising from 7,046 million USD to 8,157 million USD. In 2015, this figure fell sharply to 4,146 million USD. While the gross margin percentage remained relatively stable between 49% and 51% from 2011 to 2014, it declined to approximately 41.6% in 2015, indicating a reduction in production efficiency or a shift in product mix following the revenue contraction.
Operating Expense Analysis: Marketing and administrative expenses, as well as research and development (R&D) costs, trended upward in correlation with sales growth from 2011 through 2014. Administrative expenses rose from 3,154 million USD to 4,029 million USD, while R&D spending increased from 946 million USD to 1,421 million USD over the same period. In 2015, both expense categories were reduced significantly, with R&D spending dropping to 603 million USD, reflecting an alignment of the cost structure with the lower revenue base.
Operating and Net Income Performance: Operating income remained relatively resilient between 2011 and 2014, fluctuating within a narrow range between 2,668 million USD and 2,946 million USD. However, operating income collapsed to 449 million USD in 2015. Despite this operational downturn, net income attributable to Baxter was partially buoyed by income from discontinued operations, which contributed 551 million USD in 2014 and 575 million USD in 2015. Consequently, while net income fell to 968 million USD in 2015, the impact was less severe than the decline seen in operating income.
Financial and Non-Operating Items: Net interest expense showed a steady increase from 54 million USD in 2011 to 145 million USD in 2014, before slightly moderating to 126 million USD in 2015. The 2015 fiscal year was characterized by higher volatility in non-operating items, including a 113 million USD gain from foreign exchange and a 130 million USD loss on debt extinguishment, highlighting a period of financial restructuring.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?