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

Income Statement
Quarterly Data

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.

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Baxter International Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012	Sep 30, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011	Sep 30, 2011	Jun 30, 2011	Mar 31, 2011
Net sales	2,585)	2,375)	2,603)	2,487)	2,475)	2,403)	4,472)	4,197)	4,154)	3,848)	4,368)	3,774)	3,669)	3,448)	3,753)	3,477)	3,572)	3,388)	3,594)	3,479)	3,536)	3,284)
Cost of sales	(1,613)	(1,410)	(1,531)	(1,453)	(1,454)	(1,384)	(2,248)	(2,124)	(2,185)	(1,957)	(2,414)	(1,828)	(1,730)	(1,692)	(1,848)	(1,667)	(1,700)	(1,674)	(1,829)	(1,708)	(1,701)	(1,609)
Gross margin	972)	965)	1,072)	1,034)	1,021)	1,019)	2,224)	2,073)	1,969)	1,891)	1,954)	1,946)	1,939)	1,756)	1,905)	1,810)	1,872)	1,714)	1,765)	1,771)	1,835)	1,675)
Marketing and administrative expenses	(709)	(641)	(733)	(794)	(783)	(784)	(1,091)	(1,040)	(988)	(910)	(1,064)	(984)	(838)	(795)	(1,040)	(743)	(789)	(752)	(886)	(787)	(765)	(716)
Research and development expenses	(195)	(136)	(161)	(148)	(151)	(143)	(335)	(455)	(322)	(309)	(437)	(290)	(273)	(246)	(291)	(290)	(306)	(269)	(254)	(239)	(239)	(214)
Operating income	68)	188)	178)	92)	87)	92)	798)	578)	659)	672)	453)	672)	828)	715)	574)	777)	777)	693)	625)	745)	831)	745)
Net interest expense	(11)	(28)	(32)	(34)	(30)	(30)	(29)	(31)	(42)	(43)	(41)	(45)	(17)	(25)	(22)	(25)	(22)	(18)	(15)	(14)	(15)	(10)
Other income (expense), net	1,161)	3,169)	59)	(91)	51)	86)	(171)	39)	(15)	24)	19)	55)	(68)	3)	22)	14)	62)	57)	(62)	(4)	(13)	(4)
Income (loss) from continuing operations before income taxes	1,218)	3,329)	205)	(33)	108)	148)	598)	586)	602)	653)	431)	682)	743)	693)	574)	766)	817)	732)	548)	727)	803)	731)
Income tax (expense) benefit	(6)	58)	(22)	35)	(34)	(14)	(74)	(139)	(134)	(146)	(105)	(138)	(153)	(141)	(80)	(183)	(156)	(144)	(76)	(149)	(174)	(154)
Income from continuing operations	1,212)	3,387)	183)	2)	74)	134)	524)	447)	468)	507)	326)	544)	590)	552)	494)	583)	661)	588)	472)	578)	629)	577)
Income (loss) from discontinued operations, net of tax	—)	(7)	22)	(1)	258)	296)	429)	21)	52)	49)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net income	1,212)	3,380)	205)	1)	332)	430)	953)	468)	520)	556)	326)	544)	590)	552)	494)	583)	661)	588)	472)	578)	629)	577)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(9)	(2)	(14)	(7)
Net income attributable to Baxter	1,212)	3,380)	205)	1)	332)	430)	953)	468)	520)	556)	326)	544)	590)	552)	494)	583)	661)	588)	463)	576)	615)	570)

A significant structural shift in revenue and profitability occurred between late 2014 and early 2015. Net sales remained relatively stable, ranging between 3.2 billion and 4.5 billion dollars from 2011 through 2014, peaking in December 2014. However, beginning in March 2015, sales experienced a sharp contraction, dropping to approximately 2.4 billion dollars and remaining within the 2.3 billion to 2.6 billion dollar range through June 2016. This precipitous decline indicates a major divestiture or a fundamental reorganization of the company's business segments.

Operating Profitability and Margin Analysis: Gross margin followed the trajectory of net sales, maintaining a range of 1.7 billion to 2.2 billion dollars until March 2015, after which it collapsed to a range of 965 million to 1.07 billion dollars. Operating income suffered a corresponding decline; while it typically fluctuated between 570 million and 830 million dollars from 2011 to 2014, it fell to under 200 million dollars per quarter starting in 2015, signaling a significant reduction in the scale of core operations.
Expense Management Trends: Marketing and administrative expenses were reduced following the revenue contraction, shifting from a peak of 1.09 billion dollars in December 2014 to a range of 640 million to 790 million dollars in 2015 and 2016. Similarly, research and development spending, which averaged between 200 million and 450 million dollars prior to 2015, decreased to between 130 million and 200 million dollars in the subsequent period, suggesting a leaner operational footprint aligned with the reduced sales volume.
Non-Operating Impact and Net Income Volatility: Net income exhibited extreme volatility driven by non-core activities. While continuing operations showed a marked decline in profitability starting in 2015, this was offset by substantial gains from discontinued operations and other income. A notable anomaly occurred in the first half of 2016, where other income surged to 3.17 billion dollars in March and 1.16 billion dollars in June. These extraordinary gains, likely resulting from the sale of business units, caused net income to spike to 3.38 billion dollars in March 2016, despite the diminished performance of continuing operations.
Discontinued Operations Influence: The presence of income from discontinued operations began in early 2014 and peaked in December 2014 at 429 million dollars. This pattern reinforces the observation of a strategic exit from certain business lines, which initially bolstered net income before the full impact of the lost revenue was realized in the operating results of 2015 and 2016.

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Baxter International Inc. (NYSE:BAX)

Income StatementQuarterly Data

Income Statement
Quarterly Data