BAXTER INTERNATIONAL INC [BAX] Filings

10-Q 1 bax-20220630.htm 10-Q bax-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________________________________________________________

FORM 10-Q

_________________________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-4448

_________________________________________________________________________________

BAXTER INTERNATIONAL INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________________________________

Delaware

36-0781620

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

One Baxter Parkway,

Deerfield,

Illinois

60015

(Address of Principal Executive Offices)

(Zip Code)

224.

948.2000

(Registrant’s telephone number, including area code)

_________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

BAX (NYSE)

New York Stock Exchange

Chicago Stock Exchange

0.4% Global Notes due 2024

BAX 24

New York Stock Exchange

1.3% Global Notes due 2025

BAX 25

New York Stock Exchange

1.3% Global Notes due 2029

BAX 29

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The number of shares of the registrant’s Common Stock, par value $1.00 per share, outstanding as of July 21, 2022 was 503,610,722 shares.

BAXTER INTERNATIONAL INC.

FORM 10-Q

For the quarterly period ended June 30, 2022

TABLE OF CONTENTS


		Page Number
PART I.	FINANCIAL INFORMATION	2
Item 1.	Financial Statements (unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Income	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Changes in Equity	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.	Controls and Procedures	47

PART II.	OTHER INFORMATION	48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	49
Signature		50

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Baxter International Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in millions, except share information)


	June 30, 2022		December 31, 2021
Current assets:
Cash and cash equivalents	$	1,852	$	2,951
Accounts receivable, net of allowances of $125 in 2022 and $122 in 2021	2,473		2,629
Inventories	2,663		2,453
Prepaid expenses and other current assets	894		839
Total current assets	7,882		8,872
Property, plant and equipment, net	4,976		5,178
Goodwill	9,644		9,836
Other intangible assets, net	7,459		7,792
Operating lease right-of-use assets	566		630
Other non-current assets	1,304		1,213
Total assets	$	31,831	$	33,521
Current liabilities:
Short-term debt	$	200	$	301
Current maturities of long-term debt and finance lease obligations	208		210
Accounts payable	1,282		1,246
Accrued expenses and other current liabilities	2,226		2,479
Total current liabilities	3,916		4,236
Long-term debt and finance lease obligations, less current portion	16,278		17,149
Operating lease liabilities	470		522
Other non-current liabilities	2,264		2,493
Total liabilities	22,928		24,400
Commitments and contingencies
Equity:
Common stock, $1 par value, authorized 2,000,000,000 shares, issued 683,494,944 shares in 2022 and 2021	683		683
Common stock in treasury, at cost,179,687,824 shares in 2022 and 181,879,516 shares in 2021	(11,409)		(11,488)
Additional contributed capital	6,253		6,197
Retained earnings	17,099		17,065
Accumulated other comprehensive (loss) income	(3,767)		(3,380)
Total Baxter stockholders’ equity	8,859		9,077
Noncontrolling interests	44		44
Total equity	8,903		9,121
Total liabilities and equity	$	31,831	$	33,521

The accompanying notes are an integral part of these condensed consolidated financial statements.

Baxter International Inc.

Condensed Consolidated Statements of Income (unaudited)

(in millions, except per share data)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net sales	$	3,746	$	3,098	$	7,453	$	6,044
Cost of sales	2,293		1,865		4,652		3,666
Gross margin	1,453		1,233		2,801		2,378
Selling, general and administrative expenses	976		675		2,028		1,302
Research and development expenses	148		139		298		267
Other operating income, net	(11)		(5)		(28)		(5)
Operating income	340		424		503		814
Interest expense, net	89		34		174		68
Other (income) expense, net	(44)		(2)		(60)		3
Income before income taxes	295		392		389		743
Income tax expense	40		91		61		142
Net income	255		301		328		601
Net income attributable to noncontrolling interests	3		3		5		5
Net income attributable to Baxter stockholders	$	252	$	298	$	323	$	596
Earnings per share
Basic	$	0.50	$	0.59	$	0.64	$	1.18
Diluted	$	0.50	$	0.59	$	0.64	$	1.17
Weighted-average number of shares outstanding
Basic	504		503		503		504
Diluted	508		509		508		510

The accompanying notes are an integral part of these condensed consolidated financial statements.

Baxter International Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)

(in millions)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net income	$	255	$	301	$	328	$	601
Other comprehensive income (loss), net of tax:
Currency translation adjustments, net of tax expense (benefit) of $2 and $(4) for the three months ended June 30, 2022 and 2021, respectively, and ($9) and $13 for the six months ended June 30, 2022 and 2021, respectively.	(417)		88		(432)		(120)
Pension and other postretirement benefits, net of tax expense of $5 and $3 for the three months ended June 30, 2022 and 2021, respectively, and $8 and $11 for the six months ended June 30, 2022 and 2021, respectively.	23		11		32		41
Hedging activities, net of tax expense of $4 and $2 for the three months ended June 30, 2022 and 2021, respectively, and $3 and $5 for the six months ended June 30, 2022 and 2021, respectively.	13		5		11		17
Available-for-sale debt securities, net of tax expense of zero for the three months ended June 30, 2022 and 2021, respectively, and $1 and zero for the six months ended June 30, 2022 and 2021, respectively.	1		—		2		—
Total other comprehensive income (loss), net of tax	(380)		104		(387)		(62)
Comprehensive income (loss)	(125)		405		(59)		539
Less: Comprehensive income attributable to noncontrolling interests	3		3		5		5
Comprehensive income (loss) attributable to Baxter stockholders	$	(128)	$	402	$	(64)	$	534

The accompanying notes are an integral part of these condensed consolidated financial statements.

Baxter International Inc.

Condensed Consolidated Statements of Changes in Equity (unaudited)

(in millions)


	For the three months ended June 30, 2022
	Baxter International Inc. stockholders' equity
	Common stock shares	Common stock		Common stock shares in treasury	Common stock in treasury		Additional contributed capital		Retained earnings		Accumulated other comprehensive income (loss)		Total Baxter stockholders' equity		Noncontrolling interests		Total equity
Balance as of April 1, 2022	683	$	683	180	$	(11,422)	$	6,207	$	16,994	$	(3,387)	$	9,075	$	44	$	9,119

Net income	—	—		—	—		—		252		—		252		3		255
Other comprehensive income (loss)	—	—		—	—		—		—		(380)		(380)		—		(380)
Purchases of treasury stock	—	—		—	(8)		—		—		—		(8)		—		(8)
Stock issued under employee benefit plans and other	—	—		—	21		46		—		—		67		—		67
Dividends declared on common stock	—	—		—	—		—		(147)		—		(147)		—		(147)
Change in noncontrolling interests	—	—		—	—		—		—		—		—		(3)		(3)
Balance as of June 30, 2022	683	$	683	180	$	(11,409)	$	6,253	$	17,099	$	(3,767)	$	8,859	$	44	$	8,903


	For the six months ended June 30, 2022
	Baxter International Inc. stockholders' equity
	Common stock shares	Common stock		Common stock shares in treasury	Common stock in treasury		Additional contributed capital		Retained earnings		Accumulated other comprehensive income (loss)		Total Baxter stockholders' equity		Noncontrolling interests		Total equity
Balance as of January 1, 2022	683	$	683	182	$	(11,488)	$	6,197	$	17,065	$	(3,380)	$	9,077	$	44	$	9,121

Net income	—	—		—	—		—		323		—		323		5		328
Other comprehensive income (loss)	—	—		—	—		—		—		(387)		(387)		—		(387)
Purchases of treasury stock	—	—		—	(8)		—		—		—		(8)		—		(8)
Stock issued under employee benefit plans and other	—	—		(2)	87		56		—		—		143		—		143
Dividends declared on common stock	—	—		—	—		—		(289)		—		(289)		—		(289)
Change in noncontrolling interests	—	—		—	—		—		—		—		—		(5)		(5)
Balance as of June 30, 2022	683	$	683	180	$	(11,409)	$	6,253	$	17,099	$	(3,767)	$	8,859	$	44	$	8,903


	For the three months ended June 30, 2021
	Baxter International Inc. stockholders' equity
	Common stock shares	Common stock		Common stock shares in treasury	Common stock in treasury		Additional contributed capital		Retained earnings		Accumulated other comprehensive income (loss)		Total Baxter stockholders' equity		Noncontrolling interests		Total equity
Balance as of April 1, 2021	683	$	683	181	$	(11,296)	$	6,043	$	16,502	$	(3,480)	$	8,452	$	38	$	8,490

Net income	—	—		—	—		—		298		—		298		3		301
Other comprehensive income (loss)	—	—		—	—		—		—		104		104		—		104
Purchases of treasury stock	—	—		3	(300)		—		—		—		(300)		—		(300)
Stock issued under employee benefit plans and other	—	—		—	35		47		—		—		82		—		82
Dividends declared on common stock	—	—		—	—		—		(142)		—		(142)		—		(142)

Balance as of June 30, 2021	683	$	683	184	$	(11,561)	$	6,090	$	16,658	$	(3,376)	$	8,494	$	41	$	8,535


	For the six months ended June 30, 2021
	Baxter International Inc. stockholders' equity
	Common stock shares	Common stock		Common stock shares in treasury	Common stock in treasury		Additional contributed capital		Retained earnings		Accumulated other comprehensive income (loss)		Total Baxter stockholders' equity		Noncontrolling interests		Total equity
Balance as of January 1, 2021	683	$	683	179	$	(11,051)	$	6,043	$	16,328	$	(3,314)	$	8,689	$	37	$	8,726

Net income	—	—		—	—		—		596		—		596		5		601
Other comprehensive income (loss)	—	—		—	—		—		—		(62)		(62)		—		(62)
Purchases of treasury stock	—	—		7	(600)		—		—		—		(600)		—		(600)
Stock issued under employee benefit plans and other	—	—		(2)	90		47		—		—		137		—		137
Dividends declared on common stock	—	—		—	—		—		(266)		—		(266)		—		(266)
Change in noncontrolling interests	—	—		—	—		—		—		—		—		(1)		(1)
Balance as of June 30, 2021	683	$	683	184	$	(11,561)	$	6,090	$	16,658	$	(3,376)	$	8,494	$	41	$	8,535

The accompanying notes are an integral part of these condensed consolidated financial statements.

Baxter International Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

(in millions)


	Six months ended June 30,
	2022		2021
Cash flows from operations
Net income	$	328	$	601
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization	735		439
Deferred income taxes	(87)		(36)
Stock compensation	77		59
Net periodic pension and other postretirement costs	28		51

Other	(41)		10
Changes in balance sheet items:
Accounts receivable, net	43		(42)
Inventories	(308)		(155)
Prepaid expenses and other current assets	(67)		(24)
Accounts payable	91		(9)
Accrued expenses and other current liabilities	(231)		(9)
Other	(86)		(31)


Cash flows from operations	482		854
Cash flows from investing activities
Capital expenditures	(311)		(329)
Acquisitions, net of cash acquired, and investments	(190)		(417)
Other investing activities, net	10		20
Cash flows from investing activities	(491)		(726)
Cash flows from financing activities
Repayments of debt	(749)		—

Net increases (decreases) in debt with original maturities of three months or less	(45)		51
Cash dividends on common stock	(281)		(249)
Proceeds from stock issued under employee benefit plans	88		93
Purchases of treasury stock	—		(565)

Other financing activities, net	(30)		(37)
Cash flows from financing activities	(1,017)		(707)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(74)		(17)
Decrease in cash, cash equivalents and restricted cash	(1,100)		(596)
Cash, cash equivalents and restricted cash at beginning of period (1)	2,956		3,736
Cash, cash equivalents and restricted cash at end of period (1)	$	1,856	$	3,140

(1) The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to the amounts reported within the condensed consolidated balance sheet as of June 30, 2022, December 31, 2021, and June 30, 2021 (in millions):


	June 30, 2022		December 31, 2021		June 30, 2021
Cash and cash equivalents	$	1,852	$	2,951	$	3,136
Restricted cash included in prepaid expenses and other current assets	4		5		4
Cash, cash equivalents and restricted cash	$	1,856	$	2,956	$	3,140

The accompanying notes are an integral part of these condensed consolidated financial statements.

Baxter International Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

1. BASIS OF PRESENTATION

The unaudited interim condensed consolidated financial statements of Baxter International Inc. and its subsidiaries (we or our) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) in the United States have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (2021 Annual Report).

In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the current interim period are not necessarily indicative of the results of operations to be expected for the full year.

Risks and Uncertainties Related to COVID-19 and Global Economic and Other Conditions

Our global operations expose us to risks associated with public health crises and epidemics/pandemics, such as the novel strain of coronavirus (COVID-19). COVID-19 has had, and we expect will continue to have, an adverse impact on our operations, supply chains and distribution systems and has increased and we expect will continue to increase our expenses. Initial measures taken in 2020 led to unprecedented restrictions on, disruptions in, and other related impacts on business and personal activities, including a shift in healthcare priorities, which resulted in a significant decline in medical procedures in 2020. As a result, the pandemic has created significant volatility in the demand for our products. For further information about our revenues by product category, refer to Note 9. Significant uncertainty remains regarding the duration and overall impact of the COVID-19 pandemic. For example, concerns remain regarding the pace of economic recovery due to virus resurgence across the globe from the Omicron variants, subvariants and other virus mutations as well as vaccine distribution and hesitancy. The U.S. and other governments may continue existing measures or implement new restrictions and other requirements in light of the continuing spread of the pandemic (including with respect to mandatory vaccinations for certain of our employees, moratoriums on elective procedures and mandatory quarantines and travel restrictions). These measures have caused, and may continue to cause in the future, increased levels of absenteeism, including at our manufacturing and distributing facilities. Many of our manufacturing plant and distribution center personnel are currently unvaccinated, and we may also experience employee resistance in complying with current and future government vaccine and testing mandates, which may cause labor shortages significantly impacting manufacturing production and distribution center productivity. Due to the uncertainty caused by the pandemic, our operating performance and financial results, particularly in the short term, may be subject to volatility.

We have experienced significant challenges to our global supply chain in recent periods, including production delays and interruptions, increased costs and shortages of raw materials and component parts (including resins and electromechanical devices) and higher transportation costs, resulting from the pandemic and other exogenous factors including significant weather events, elevated inflation levels, disruptions to certain ports of call around the world, the war in Ukraine and certain other geopolitical events. We may continue to experience these and other challenges related to our supply chain in future periods. These challenges, including the unavailability of certain raw materials and component parts, have also had a negative impact on our sales for certain product categories due to our inability to fully satisfy demand and may continue to have a negative impact on our sales in the future.

We expect that these challenges as well as evolving governmental restrictions and requirements, among other factors, may continue to have an adverse effect on our business.

New Accounting Standards

Recently adopted accounting pronouncements

As of January 1, 2022, we adopted Accounting Standards Update (ASU) 2021-05, Leases (Topic 842), which requires a lessor to classify a lease with variable lease payments (that do not depend on an index or rate) as an operating lease if (1) the lease would have been classified as a sales-type or direct financing lease, and (2) the lessor would

have recognized a selling loss at lease commencement. These changes are intended to avoid recognizing a day-one loss for a lease with variable payments even though the lessor expects the arrangement will be profitable overall. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements.

2. ACQUISITIONS AND OTHER ARRANGEMENTS

Hillrom

On December 13, 2021, we completed our acquisition of all outstanding equity interests of Hill-Rom Holdings, Inc. (Hillrom) for a purchase price of $10.5 billion. Including the assumption of Hillrom's outstanding debt, the enterprise value of the transaction was approximately $12.8 billion. Under the terms of the transaction agreement, Hillrom shareholders received $156.00 in cash per outstanding Hillrom common share.

The following table summarizes the fair value of the total consideration paid:


(in millions)
Cash consideration paid to Hillrom shareholders(a)	$	10,474
Fair value of equity awards issued to Hillrom equity award holders(b)	2
Total Consideration	$	10,476

(a) Represents cash consideration transferred of $156.00 per outstanding Hillrom common share to existing shareholders and holders of equity awards that vested at closing pursuant to their original terms.

(b) Represents the pre-acquisition service portion of the fair value of 668 thousand replacement restricted stock units issued to Hillrom equity award holders at closing.

The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2022. Finalization of the valuation during the measurement period could result in a change in the amounts recorded for acquired intangible assets, goodwill and income taxes among other items. The completion of the valuation will occur no later than one year from the acquisition date. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date:


(in millions)
Assets acquired and liabilities assumed
Cash and cash equivalents	$	399
Accounts receivable	562
Inventories	557
Prepaid expenses and other current assets	49
Property, plant and equipment	502
Goodwill	6,820
Other intangible assets	6,029
Operating lease right-of-use assets	74
Other non-current assets	132
Short-term debt	(250)
Accounts payable	(140)
Accrued expenses and other current liabilities	(557)
Long-term debt and finance lease obligations	(2,118)
Operating lease liabilities	(57)
Other non-current liabilities	(1,526)
Total assets acquired and liabilities assumed	$	10,476

In the first half of 2022 we recorded measurement period adjustments, primarily impacting accounts receivable, other intangible assets, and deferred income tax liabilities. Individually the measurement period adjustments were not

material and in total increased goodwill by $35 million. The measurement period adjustments did not have a significant impact to our results of operations.

The goodwill from the Hillrom acquisition, which is not deductible for tax purposes, includes the value of an assembled workforce as well as the overall strategic benefits provided to our product portfolio and is included in the Hillrom segment.

For the six months ended June 30, 2022, we recognized $159 million of incremental costs of sales from the fair value step-ups on acquired Hillrom inventory that was sold in the first quarter.

Other Business Development Activities

In March 2022, we entered into an agreement with a subsidiary of Pfizer Inc. to acquire the rights to Zosyn, a premixed frozen piperacillin-tazobactam product, in the U.S. and Canada. Zosyn is used for the treatment of intra-abdominal infections, nosocomial pneumonia, skin and skin structure infections, female pelvic infections and community-acquired pneumonia. Under the terms of the acquisition, we paid the acquisition price of $122 million currently, received specified intellectual property, including patent rights, in the first quarter and will receive additional intellectual property, including the product rights to Zosyn, in the first quarter of 2023. Under the arrangement, we are entitled to receive profit sharing payments from sales of Zosyn until the product rights transfer to us in March 2023.

The transaction has been accounted for as an asset acquisition, as substantially all of the fair value of the assets being acquired under the arrangement was concentrated in the product rights that we will receive, which we classify as a developed technology intangible asset. Accordingly, the $122 million purchase price was primarily allocated to the developed technology intangible asset class and will be amortized over an estimated useful life of 9 years.

3. SUPPLEMENTAL FINANCIAL INFORMATION

Allowance for Doubtful Accounts

The following table is a summary of the changes in our allowance for doubtful accounts for the three and six months ended June 30, 2022 and 2021.


	Three months ended June 30,				Six months ended June 30,
(in millions)	2022		2021		2022		2021
Balance at beginning of period	$	129	$	120	$	122	$	125

Charged to costs and expenses	3		(4)		9		(3)
Write-offs	(1)		(1)		(2)		(1)
Currency translation adjustments	(6)		2		(4)		(4)
Balance at end of period	$	125	$	117	$	125	$	117

Inventories


(in millions)	June 30, 2022		December 31, 2021
Raw materials	$	678	$	591
Work in process	317		300
Finished goods	1,668		1,562
Inventories	$	2,663	$	2,453

Property, Plant and Equipment, Net


(in millions)	June 30, 2022		December 31, 2021
Property, plant and equipment, at cost	$	11,504	$	11,728
Accumulated depreciation	(6,528)		(6,550)
Property, plant and equipment, net	$	4,976	$	5,178

Interest Expense, Net


	Three months ended June 30,				Six months ended June 30,
(in millions)	2022		2021		2022		2021
Interest expense, net of capitalized interest	$	93	$	37	$	181	$	74
Interest income	(4)		(3)		(7)		(6)
Interest expense, net	$	89	$	34	$	174	$	68

Other (Income) Expense, Net


	Three months ended June 30,				Six months ended June 30,
(in millions)	2022		2021		2022		2021
Foreign exchange (gains) losses, net	$	(15)	$	8	$	(26)	$	5
Pension and other postretirement benefit plans	(7)		3		(12)		7
Pension curtailment	(11)		—		(11)		—
Change in fair value of marketable equity securities	(8)		(9)		(8)		(7)
Other, net	(3)		(4)		(3)		(2)
Other (income) expense, net	$	(44)	$	(2)	$	(60)	$	3

Non-Cash Operating and Investing Activities

Right-of-use operating lease assets obtained in exchange for lease obligations for the six months ended June 30, 2022 and 2021 were $23 million and $21 million, respectively.

Purchases of property, plant and equipment included in accounts payable as of June 30, 2022 and 2021 were $66 million and $70 million, respectively.

Unsettled share repurchases included in accrued expenses and other current liabilities as of June 30, 2022 and 2021 were $8 million and $35 million, respectively.

4. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill

The following is a reconciliation of goodwill by business segment.


(in millions)	Americas		EMEA		APAC		Hillrom		Total
Balance as of December 31, 2021	$	2,517	$	309	$	224	$	6,786	$	9,836


Acquisition accounting adjustments	—		—		—		35		35
Currency translation	(150)		(17)		(14)		(46)		(227)
Balance as of June 30, 2022	$	2,367	$	292	$