- GRI Items:
- EC1
Direct Impacts
Baxter's direct impacts are described by payments Baxter makes to and receives from various stakeholder groups during the course of business. For example:
- Customers buy Baxter's products;
- Baxter pays suppliers for raw materials and other goods and services;
- Employees receive wages and benefits;
- Investors provide Baxter capital in exchange for dividends and possible gains in share value (see graph); and
- Communities may receive tax payments, as well as cash and product donations and volunteerism efforts of local employees (in some locations).
The following table summarizes these transactions.
| Economic Value Generated and Distributed (Dollars in Millions) | |||||
|---|---|---|---|---|---|
| 2006 | 2007 | 2008 | 2009 | 2010 | |
| Economic Value Generated | |||||
| Net Sales | $10,378 | $11,263 | $12,348 | $12,562 | $12,843 |
| Net Income Attributable to Baxter | 1,397 | 1,707 | 2,014 | 2,205 | 1,420 |
| Economic Value Distributed | |||||
| Suppliers | |||||
| Payments to Suppliers (approximate) | $4,100 | $4,100 | $4,400 | $4,400 | $5,500 |
| Investors | |||||
| Share Repurchases | 737 | 1,855 | 1,986 | 1,216 | 1,453 |
| Cash Dividends on Common Stock | 364 | 704 | 546 | 632 | 688 |
| Governments | |||||
| Income Tax Expense (U.S.) | 30 | 228 | 205 | 273 | 284 |
| Income Tax Expense (international) | 318 | 179 | 232 | 246 | 179 |
| Communities | |||||
| Cash Donations* | 20.7 | 23.5 | 32.9 | 34.0 | 31.4 |
| Product Donations | 14.9 | 31.1 | 10.9 | 18.9 | 48.1** |
| Baxter (Reinvested) | |||||
| Capital Expenditures | 526 | 692 | 954 | 1,014 | 963 |
| R&D Expenses | 614 | 760 | 868 | 917 | 915 |
| * | Baxter and The Baxter International Foundation |
| ** | Includes value of product donations calculated using average sales price (ASP). Variations in Baxter's annual product donations are due to fluctuations in community needs, the regulatory environment, manufacturing processes and marketing. The company identifies opportunities to donate and responds to community requests as appropriate. The amount in 2010 reflects a change in the method of reporting donations through the company's Patient Assistance Program to ASP, and significant donations to assist earthquake victims in Haiti as well as victims of a subsequent cholera outbreak in that country. |
Baxter Share Performance
The following graph compares the change in cumulative total shareholder return (including reinvested dividends) on Baxter's common stock with the Standard & Poor's 500 Composite Index and the Standard & Poor's 500 Health Care Index as of December 31 of each year.
For additional detail, see Baxter's interactive stock chart.
Local communities may benefit from Baxter's presence in addition to the wages the company pays employees, such as when Baxter makes infrastructure investments that benefit the community in addition to the company. In some Baxter manufacturing plants, Baxter employs physicians that provide free or inexpensive healthcare to employees' families and community members in addition to employees. In 2010, Baxter facilities in the following locations offered free or subsidized seasonal flu vaccinations to employee family members: Argentina (Buenos Aires), Australia (Toongabbie), Japan (Miyazaki), Korea (Seoul), Malta (Marsa), Philippines (Canlubang), Puerto Rico (Aibonito and Catano) and the United States (Mountain Home, Arkansas, and Largo, Florida).
In addition, many Baxter facilities support local charities (see Critical Community Needs for detail).
