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 in exchange for their contributions;
- 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) | |||||
| 2004 | 2005 | 2006 | 2007 | 2008 | |
| Economic Value Generated | |||||
| Revenues | $9,509 | $9,849 | $10,378 | $11,263 | $12,348 |
| Net Income | 388 | 956 | 1,397 | 1,707 | 2,014 |
| Economic Value Distributed | |||||
| Suppliers | |||||
| Payments to Suppliers (approximate) | n/a | $4,000 | $4,100 | $4,100 | $4,400 |
| Investors | |||||
| Share Repurchases | 18 | 0 | 737 | 1,855 | 1,986 |
| Common Stock Cash Dividends | 361 | 359 | 364 | 704 | 546 |
| Governments | |||||
| Income Tax Expense ( U.S.) | (102) | 232 | 30 | 228 | 205 |
| Income Tax Expense (international) | 149 | 254 | 318 | 179 | 232 |
| Communities | |||||
| Cash Donations1 | 7.2 | 17.6 | 20.7 | 23.5 | 28.9 |
| Product Donations | 7.9 | 17.8 | 14.9 | 31.1 | 10.9 |
| Baxter (Reinvested) | |||||
| Capital Expenditures | 558 | 444 | 526 | 692 | 954 |
| R&D Expenses | 517 | 533 | 614 | 760 | 868 |
1 Baxter and The Baxter International Foundation.
BAXTER SHARE PERFORMANCE
The following graph compares the change in Baxter’s cumulative total shareholder return on its 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 with benefits beyond the company. In some Baxter plants, such as in Baxter’s Cuernavaca, Mexico, facility, Baxter supports physicians employed by the plant to provide free or inexpensive healthcare to employees’ families and community members. In 2008, the Cuernavaca plant as well as Baxter plants in Aibonito, Puerto Rico; Miyazaki, Japan; and Mountain Home, Arkansas, United States, provided flu vaccinations to employee family members at no charge.
In addition, many Baxter facilities support local charities (see Critical Community Needs for detail).
