Direct Impacts
Baxter's direct impacts are described by payments Baxter makes to and receives from stakeholder groups during the course of business. For example:
- Customers and patients buy Baxter's products and services;
- Baxter pays suppliers for product inputs, as well as other goods and services;
- Employees receive wages and benefits in exchange for their contributions;
- Investors provide Baxter capital in exchange for interest on loans, dividends and possible gains in share value (see graph);
- Governments receive tax payments from Baxter in exchange for providing various services and granting the right to conduct business; and
- Communities receive tax payments, as well as cash and product donations and community involvement of local employees (in some locations).
The following table summarizes these transactions.
| ECONOMIC VALUE GENERATED AND DISTRIBUTED (dollars in millions) | |||||
| 2002 | 2003 | 2004 | 2005 | 2006 | |
| ECONOMIC VALUE GENERATED | |||||
| Revenues | $8,099 | $8,904 | $9,509 | $9,849 | $10,378 |
| Net Income | 771 | 866 | 388 | 956 | 1,397 |
| ECONOMIC VALUE DISTRIBUTED | |||||
| SUPPLIERS | |||||
| Payments to Suppliers (approximate) | n/a | n/a | n/a | $4,000 | $4,100 |
| INVESTORS | |||||
| Interest, Net | 51 | 87 | 99 | 118 | 34 |
| Common Stock Cash Dividends | 349 | 346 | 361 | 359 | 364 |
| GOVERNMENTS | |||||
| Income Tax Expense/Benefit (U.S.) | 174 | 58 | (102) | 232 | 30 |
| Income Tax Expense (international) | 186 | 164 | 149 | 254 | 318 |
| COMMUNITIES | |||||
| Cash Donations1 | 4.6 | 8.8 | 7.2 | 17.6 | 20.7 |
| Product Donations | 2.2 | 5.7 | 7.9 | 17.8 | 14.9 |
| BAXTER (RETAINED/REINVESTED) | |||||
| Capital Expenses | 852 | 792 | 558 | 444 | 526 |
| R&D Expenses | 501 | 553 | 517 | 533 | 614 |
1Baxter and The Baxter International Foundation.
