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

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Baxter International Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income	968)	2,497)	2,012)	2,326)	2,256)
Currency translation adjustments, net of tax	(1,094)	(1,332)	236)	(98)	(205)
Pension and other employee benefits, net of tax	165)	(400)	592)	(111)	(263)
Hedging activities, net of tax	15)	24)	15)	(7)	5)
Available-for-sale securities, net of tax	4,438)	34)	(9)	(3)	1)
Other comprehensive income (loss), net of tax	3,524)	(1,674)	834)	(219)	(462)
Comprehensive income	4,492)	823)	2,846)	2,107)	1,794)
Comprehensive income attributable to noncontrolling interests	—)	—)	—)	—)	(22)
Comprehensive income attributable to Baxter	4,492)	823)	2,846)	2,107)	1,772)

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).

An analysis of the comprehensive income trends from 2011 to 2015 reveals a significant divergence between net income and comprehensive income, primarily driven by volatile components of other comprehensive income. While net income remained relatively stable for the first four years of the period, the overall comprehensive income experienced substantial fluctuations due to currency translations and investment valuations.

Net Income Performance: Net income demonstrated stability between 2011 and 2014, fluctuating within a range of 2,012 million to 2,497 million US$. However, a sharp decline occurred in 2015, where net income dropped to 968 million US$, representing a decrease of approximately 61% from the previous year's peak.
Other Comprehensive Income (OCI) Volatility: Other comprehensive income exhibited extreme volatility, shifting from a gain of 834 million US$ in 2013 to a loss of 1,674 million US$ in 2014. The most notable shift occurred in 2015, with a positive swing to 3,524 million US$. This volatility was largely influenced by two primary factors: significant currency translation losses in 2014 and 2015, and a substantial increase in the value of available-for-sale securities in 2015, which surged to 4,438 million US$.
Comprehensive Income Trends: Comprehensive income did not follow the trajectory of net income. It reached a period low in 2014 at 823 million US$, heavily impacted by negative currency translation adjustments. Conversely, it reached a period peak in 2015 at 4,492 million US$. This peak was not a result of operational profitability, as net income was at its lowest point, but was instead driven by the unrealized gains in available-for-sale securities.
Impact of Noncontrolling Interests: The impact of noncontrolling interests on comprehensive income was negligible and only recorded in 2011 at -22 million US$, indicating that for the majority of the analyzed period, comprehensive income was almost entirely attributable to the parent company.

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