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.

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)

Net Sales: Net sales exhibited fluctuations across the quarters from 2011 to mid-2016. After a general upward trend peaking in December 2013 at 4,368 million USD, sales declined sharply starting in 2015, reaching 2,375 million USD in March 2016. This indicates volatility in revenue generation, with a notable reduction in sales volume or pricing effectiveness during the later periods.
Cost of Sales: The cost of sales correlated closely with net sales trends, showing increases through late 2013, peaking at 2,414 million USD in December 2013. Subsequent periods saw a reduction in cost, mirroring declining sales. The overall pattern suggests efforts to control costs, although margins compressed significantly after 2013.
Gross Margin: Gross margin followed sales trends, increasing until late 2013 with a peak margin around 2,224 million USD in December 2014. Afterward, it sharply dropped, halving by early 2016. This decline in gross margin signals pressure on the company’s direct profitability, possibly due to reduced sales volumes or increased cost pressures.
Marketing and Administrative Expenses: Marketing and administrative expenses generally increased from 2011 to 2014, peaking around 1,091 million USD in December 2014. However, a material decline occurred through 2015 and into mid-2016, with expenses dropping to approximately 641-709 million USD. This reduction may reflect cost-cutting initiatives in response to declining sales.
Research and Development Expenses: Research and development expenses fluctuated, increasing significantly in some quarters—most notably reaching 455 million USD in September 2014—but decreased sharply from 2015 onwards, falling to under 200 million USD by mid-2016. This suggests a shift in resource allocation away from R&D or project completion phases reducing ongoing expenses.
Operating Income: Operating income displayed strong volatility. It peaked multiple times, with notably high values in mid-2013 and late 2014. However, from early 2015, operating income plummeted dramatically, with some quarters barely reaching positive territory, indicating operational challenges and margin pressures during this timeframe.
Net Interest Expense: Net interest expense remained relatively stable throughout the periods, fluctuating modestly between 10 and 45 million USD. There is no significant trend suggesting increasing financial leverage or interest burden changes.
Other Income (Expense), Net: This line item experienced considerable volatility, including irregular and substantial gains such as 3,169 million USD in March 2016 likely due to extraordinary items or asset disposals. Other periods saw moderate gains or losses, indicating variability in non-operating income components.
Income from Continuing Operations Before Income Taxes: The income before income taxes mostly tracked operating income patterns, with peaks occurring through 2011-2014, followed by sharp decreases in 2015, until extraordinary positive spikes appeared in early 2016. This pattern reflects underlying operating performance with occasional non-operating influences.
Income Tax Expense: Income tax expenses generally paralleled pre-tax income, with smaller absolute values in later quarters due to reduced operating profitability. Some periods showed benefits or low tax expenses correlating with reduced incomes or reporting adjustments.
Income from Continuing Operations: Continuing operations income followed net income before taxes, reduced by tax expenses. After steady profits between 2011 and 2014, income declined sharply in 2015 but rebounded substantially due to extraordinary income in early 2016.
Income from Discontinued Operations: Discontinued operations were reported sporadically from late 2013, showing significant positive results in late 2014 and early 2015 quarters, which contributed to temporarily improved overall profitability during this period.
Net Income: Net income mirrored trends in operating performance with some noteworthy variability due to discontinued operations and other income. Gains were evident through 2014, followed by a pronounced drop by late 2015, although early 2016 registered unusually large net income figures, driven by non-recurring items.
Net Income Attributable to Noncontrolling Interests: Amounts attributable to noncontrolling interests were minimal and sporadic, with no clear trend or substantial impact on consolidated net income.
Summary: Overall, the data presents a company experiencing growth in sales and profitability from 2011 through 2014, followed by a period of steep declines in both revenues and earnings in 2015. The company implemented reductions in marketing, administrative, and research expenses, likely in response to these challenges. The large extraordinary income items in early 2016 suggest significant non-operating transactions that temporarily bolstered profitability. The trends indicate operational difficulties in the later periods, warranting further investigation into underlying causes such as market conditions, competitive pressures, or strategic shifts.

Download chart

Baxter International Inc. (NYSE:BAX)

Income Statement Quarterly Data

Income Statement
Quarterly Data