Press Release

BD Announces Results For 2018 Third Fiscal Quarter; Raises Fiscal 2018 Revenue Guidance

Aug 2, 2018
- As reported, revenues of $4.278 billion increased 41.0 percent.
- On a comparable, currency-neutral basis, revenues increased 5.5 percent.
- As reported, diluted earnings per share of $2.03 increased 370.7 percent.
- As adjusted, diluted earnings per share of $2.91 increased 18.3 percent, or 11.0 percent on a currency-neutral basis.
- The company is raising full fiscal year 2018 revenue guidance, and narrowing its adjusted diluted earnings per share guidance.
- The company reaffirms that the acquisition of C.R. Bard is expected to be accretive to adjusted dilutive earnings per share on a high-single digit basis in fiscal year 2019.

FRANKLIN LAKES, N.J., Aug. 2, 2018 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.278 billion for the third fiscal quarter ended June 30, 2018.  This represents an increase of 41.0 percent from the prior-year period, which is primarily due to the acquisition of C. R. Bard.  On a comparable, currency-neutral basis that includes the revenues of C.R. Bard in the current and prior year, revenues increased 5.5 percent over the prior-year period.

"Our strong revenue growth and operating performance this quarter demonstrate that we are delivering on our strategy," said Vincent A. Forlenza, Chairman and CEO.  "We are on track with the integration of C. R. Bard and continue to deliver on our financial commitments while providing innovative solutions for our customers and their patients worldwide."

Third Quarter and Nine-Month Fiscal 2018 Operating Results
As reported, diluted earnings per share for the third quarter were $2.03, compared with $(0.75) in the prior-year period.  This represents an increase of 370.7 percent and is primarily due to a non-cash charge in the prior year related to the previously announced change in the U.S. dispensing business model.  Adjusted diluted earnings per share were $2.91, compared with $2.46 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 18.3 percent, or 11.0 percent on a currency-neutral basis.

For the nine-month period ended June 30, 2018, as reported, diluted earnings per share were $1.27, compared with $3.36 in the prior-year period.  This represents a decrease of 62.2 percent and is primarily due to purchase accounting expenses relating to acquisitions and additional tax expense relating to new U.S. tax legislation, as well as the aforementioned non-cash charge in the prior year related to the change in the U.S. dispensing model.  Adjusted diluted earnings per share were $8.08, compared with $7.09 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 14.0 percent, or 8.0 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.246 billion increased 20.0 percent from the prior-year period, primarily due to the acquisition of C. R. Bard.  On a comparable, currency-neutral basis, BD Medical revenues increased 5.7 percent over the prior-year period.  The segment's results were driven by strong performance in the Medication Delivery Solutions and Medication Management Solutions units.

For the nine-month period ended June 30, 2018, BD Medical revenues were $6.270 billion as reported, an increase of 14.5 percent from the prior-year period.  On a comparable, currency-neutral basis, BD Medical revenues of $6.480 billion increased 4.1 percent over the prior-year period, which includes an estimated 110 basis point adverse impact from the previously disclosed change in the U.S. dispensing business model.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $1.079 billion, an increase of 8.2 percent over the prior-year period, or 5.6 percent on a currency-neutral basis.  Revenue growth reflects strong performance across the Preanalytical Systems, Diagnostic Systems and Biosciences units.

For the nine-month period ended June 30, 2018, BD Life Sciences revenues were $3.222 billion as reported, an increase of 9.7 percent from the prior-year period, or an increase of 6.7 percent on a currency-neutral basis.

In the BD Interventional segment, as reported, worldwide revenues for the quarter were $0.954 billion.  On a comparable, currency-neutral basis, revenues increased 5.1 percent over the prior-year period.  The segment's results reflect strong performance in the Peripheral Intervention and Urology and Critical Care units.

For the nine-month period ended June 30, 2018, BD Interventional revenues were $2.089 billion as reported.  On a comparable, currency-neutral basis, BD Interventional revenues of $2.826 billion increased 4.9 percent.

Geographic Results
As reported, third quarter revenues in the U.S. of $2.338 billion increased 45.9 percent from the prior-year period, primarily due to the acquisition of C. R. Bard.  On a comparable basis, U.S. revenues increased 5.9 percent over the prior-year period.  Growth in the U.S. was driven by strong performance across the BD Medical and BD Life Sciences segments, and in the Peripheral Intervention and Urology and Critical Care units within the BD Interventional segment.

As reported, revenues outside of the U.S. of $1.941 billion increased 35.4 percent from the prior-year period, primarily due to the acquisition of C. R. Bard.  On a comparable, currency-neutral basis, revenues outside of the U.S. increased 5.1 percent over the prior-year period.  International revenue growth was driven by strong performance across the BD Life Sciences segment, as well as in the Medication Delivery Solutions and Medication Management Solutions units within the BD Medical segment, and the Surgery and Peripheral Intervention units in the BD Interventional segment.

For the nine-month period ended June 30, 2018, U.S. revenues were $6.319 billion as reported, an increase of 30.0 percent over the prior-year period.  On a comparable basis, U.S. revenues of $6.916 billion increased 3.7 percent over the prior-year period, including an estimated 140 basis point adverse impact from the change in the U.S. dispensing business model.  As reported, revenues outside of the U.S. of $5.261 billion increased 29.3 percent over the prior-year period.  On a comparable, currency-neutral basis, revenues outside the U.S. of $5.611 billion increased 6.6 percent over the prior-year period.

Fiscal 2018 Outlook for Full Year
The company is raising its full fiscal year 2018 revenue guidance and now expects growth to exceed 31.5 percent on a reported basis, compared to previous guidance of approximately 31.0 to 31.5 percent growth.  On a comparable, currency-neutral basis, the company is also raising its revenue guidance and now expects growth to exceed 5.5 percent, compared to previous guidance of 5.0 to 5.5 percent growth.  Comparable revenue guidance continues to include an estimated 50 basis point adverse impact from the change in the U.S. dispensing business model and the estimated sales impact from Hurricane Maria in Puerto Rico on Bard's business during BD's first fiscal quarter.

The company is narrowing its full fiscal year 2018 adjusted diluted earnings per share guidance to a range of $10.95 to $11.05, from a range of $10.90 to $11.05 previously. This represents growth of approximately 15.5 to 16.5 percent over fiscal 2017 adjusted diluted earnings per share, and reflects the company's increased revenue outlook as well as a small decrease in the expected benefit from foreign currency.  On a currency-neutral basis, the company continues to expect full fiscal year adjusted diluted earnings per share growth of approximately 12.0 percent.

Estimated adjusted diluted earnings per share for fiscal 2018 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax and litigation matters.  BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts.  In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  Such items could have a substantial impact on GAAP measures of BD's financial performance.

Conference Call Information
A conference call regarding BD's third quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET)Thursday, August 2, 2018.  The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 9, 2018, confirmation number 2788137.

Non-GAAP Financial Measures/Financial Tables
This news release contains certain non-GAAP financial measures.  Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables.  Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers.  Percentages and earnings per share amounts presented are calculated from the underlying amounts.

All "comparable" basis revenue growth rates relating to fiscal year 2018 presented throughout this release include the results of C. R. Bard, Inc. ("Bard") in the current and prior-year periods and are further adjusted for certain items as detailed in the attached tables. Beginning in the second quarter of fiscal year 2018, the Company's organizational structure was based upon three principal business segments: BD Medical ("Medical"), BD Life Sciences ("Life Sciences") and BD Interventional ("Interventional").  The Interventional segment was added upon the Company's completion of its acquisition of Bard, and this new segment includes the majority of Bard's product offerings and certain product offerings which were previously reported in the Medical segment.  Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit.  Prior-year amounts have been revised to reflect the movement of certain product offerings which were previously reported in the Medical segment and which are now reported in the Interventional segment, as discussed above.  Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; the reversal of a litigation reserve; and the loss on debt extinguishment.  We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable.  We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results.  Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.  As previously announced, comparable historical revenue schedules inclusive of Bard for BD's 2016 and 2017 fiscal years, and the first quarter of BD's 2018 fiscal year, are available on the Investor page of BD's website, www.bd.com/investors.

About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care.  The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers.  BD and its 65,000 employees have a passion and commitment to help improve patient outcomes, improve the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to better diagnose disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues.  By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care.  In 2017, BD welcomed C. R. Bard and its products into the BD family.  For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2018 Outlook for Full Year", contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues and earnings per share.  All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties.  Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement.  With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially.  These factors include, but are not limited to: risks relating to the integration of the C.R. Bard operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; the impact of the recent U.S. tax reform; legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services, utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; risks relating to our ability to continue to successfully integrate CareFusion's operations in order to fully obtain the benefits of the transaction; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; and issuance of new or revised accounting standards, as well as other factors discussed in BD's filings with the Securities and Exchange Commission.  We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

 

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

(Unaudited; Amounts in millions, except share and per share data)

 
   

Three Months Ended June 30,

   

2018

 

2017

 

% Change

REVENUES

 

$

4,278

 

$

3,035

 

41.0

             

Cost of products sold

 

2,262

 

1,532

 

47.7

Selling and administrative expense

 

1,081

 

719

 

50.3

Research and development expense

 

277

 

186

 

49.1

Acquisitions and other restructurings

 

146

 

81

 

81.3

Other operating expense, net

 

 

741

 

(100.0)

TOTAL OPERATING COSTS AND EXPENSES

 

3,766

 

3,258

 

15.6

OPERATING INCOME (LOSS)

 

513

 

(223)

 

330.2

             

Interest expense

 

(182)

 

(184)

 

(1.0)

Interest income

 

8

 

19

 

(59.4)

Other income (expense), net

 

308

 

(16)

 

2,063.0

INCOME (LOSS) BEFORE INCOME TAXES

 

647

 

(404)

 

260.4

Income tax provision (benefit)

 

53

 

(271)

 

119.6

NET INCOME (LOSS)

 

594

 

(132)

 

548.9

Preferred stock dividends

 

(38)

 

(32)

 

16.9

NET INCOME (LOSS) APPLICABLE TO COMMON
SHAREHOLDERS

 

$

556

 

$

(165)

 

437.6

             

EARNINGS PER SHARE

           

Basic Earnings (Loss) per Share

 

$

2.08

 

$

(0.75)

 

377.3

Diluted Earnings (Loss) per Share

 

$

2.03

 

$

(0.75)

 

370.7

             

AVERAGE SHARES OUTSTANDING (in thousands)

           

Basic

 

267,836

 

220,807

   

Diluted

 

273,925

 

220,807

   

 

 

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

(Unaudited; Amounts in millions, except share and per share data)

 
   

Nine Months Ended June 30,

   

2018

 

2017

 

% Change

REVENUES

 

$

11,581

 

$

8,927

 

29.7

             

Cost of products sold

 

6,410

 

4,539

 

41.2

Selling and administrative expense

 

2,912

 

2,151

 

35.3

Research and development expense

 

728

 

554

 

31.6

Acquisitions and other restructurings

 

604

 

243

 

148.4

Other operating expense, net

 

 

405

 

(100.0)

TOTAL OPERATING COSTS AND EXPENSES

 

10,655

 

7,892

 

35.0

OPERATING INCOME

 

926

 

1,035

 

(10.5)

             

Interest expense

 

(525)

 

(364)

 

44.1

Interest income

 

55

 

31

 

80.5

Other income (expense), net

 

302

 

(51)

 

697.3

INCOME BEFORE INCOME TAXES

 

759

 

650

 

16.6

Income tax provision (benefit)

 

313

 

(123)

 

354.9

NET INCOME

 

446

 

773

 

(42.3)

Preferred stock dividends

 

(114)

 

(32)

 

250.6

NET INCOME APPLICABLE TO COMMON
SHAREHOLDERS

 

$

332

 

$

741

 

(55.2)

             

EARNINGS PER SHARE

           

Basic Earnings per Share

 

$

1.30

 

$

3.43

 

(62.1)

Diluted Earnings per Share

 

$

1.27

 

$

3.36

 

(62.2)

             

AVERAGE SHARES OUTSTANDING (in thousands)

           

Basic

 

254,934

 

215,817

   

Diluted

 

260,860

 

220,406

   

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended June 30,

(Unaudited; Amounts in millions)

 
   

A

 

B

 

C=(A-B)/B

   

2018

 

2017

 

% Change

BD MEDICAL

           

Medication Delivery Solutions (a)

 

$

505

 

$

335

 

50.8

Medication Management
Solutions

 

483

 

447

 

8.1

Diabetes Care

 

138

 

132

 

4.7

Pharmaceutical Systems

 

103

 

93

 

11.6

TOTAL

 

$

1,230

 

$

1,006

 

22.2

             

BD LIFE SCIENCES

           

Preanalytical Systems

 

$

199

 

$

191

 

4.2

Diagnostic Systems

 

151

 

145

 

4.2

Biosciences

 

126

 

115

 

9.7

TOTAL

 

$

476

 

$

451

 

5.6

             

BD INTERVENTIONAL

           

Surgery (a)

 

$

259

 

$

142

 

NM

Peripheral Intervention (a)

 

195

 

3

 

NM

Urology and Critical Care

 

178

 

 

NM

TOTAL

 

$

632

 

$

145

 

NM

             

TOTAL UNITED STATES

 

$

2,338

 

$

1,603

 

45.9

 

(a) The presentation of prior-period amounts reflects a reclassification of $145 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

 
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2018

 

2017

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions (a)

 

$

471

 

$

367

 

$

23

 

28.3

 

22.1

Medication Management
Solutions

 

127

 

109

 

9

 

17.1

 

9.1

Diabetes Care

 

138

 

131

 

7

 

5.4

 

0.1

Pharmaceutical Systems

 

279

 

258

 

19

 

8.4

 

1.0

TOTAL

 

$

1,016

 

$

864

 

$

58

 

17.5

 

10.8

                     

BD LIFE SCIENCES

                   

Preanalytical Systems

 

$

205

 

$

185

 

$

8

 

10.7

 

6.2

Diagnostic Systems

 

211

 

191

 

10

 

10.7

 

5.7

Biosciences

 

188

 

171

 

8

 

9.7

 

4.9

TOTAL

 

$

603

 

$

547

 

$

26

 

10.4

 

5.6

                     

BD INTERVENTIONAL

                   

Surgery (a)

 

$

77

 

$

20

 

$

5

 

NM

 

NM

Peripheral Intervention (a)

 

157

 

1

 

10

 

NM

 

NM

Urology and Critical Care

 

87

 

 

5

 

NM

 

NM

TOTAL

 

$

322

 

$

22

 

$

19

 

NM

 

NM

                     

TOTAL INTERNATIONAL

 

$

1,941

 

$

1,433

 

$

103

 

35.4

 

28.2

 

(a) The presentation of prior-period amounts reflects a reclassification of $22 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

 
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2018

 

2017

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions (a)

 

$

977

 

$

702

 

$

23

 

39.0

 

35.8

Medication Management
Solutions

 

610

 

556

 

9

 

9.8

 

8.3

Diabetes Care

 

276

 

263

 

7

 

5.1

 

2.4

Pharmaceutical Systems

 

383

 

350

 

19

 

9.3

 

3.8

TOTAL

 

$

2,246

 

$

1,871

 

$

58

 

20.0

 

16.9

                     

BD LIFE SCIENCES

                   

Preanalytical Systems

 

$

404

 

$

376

 

$

8

 

7.4

 

5.2

Diagnostic Systems

 

362

 

335

 

10

 

7.9

 

5.0

Biosciences

 

314

 

286

 

8

 

9.7

 

6.8

TOTAL

 

$

1,079

 

$

997

 

$

26

 

8.2

 

5.6

                     

BD INTERVENTIONAL

                   

Surgery (a)

 

$

336

 

$

163

 

$

5

 

NM

 

NM

Peripheral Intervention (a)

 

353

 

5

 

10

 

NM

 

NM

Urology and Critical Care

 

265

 

 

5

 

NM

 

NM

TOTAL

 

$

954

 

$

167

 

$

19

 

NM

 

NM

                       

TOTAL REVENUES

 

$

4,278

 

$

3,035

 

$

103

 

41.0

 

37.6

 

(a) The presentation of prior-period amounts reflects a reclassification of $167 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

 
   

A

 

B

 

C=(A-B)/B

   

2018

 

2017

 

% Change

BD MEDICAL

           

Medication Delivery Solutions (a)

 

$

1,379

 

$

1,026

 

34.4

Medication Management
Solutions

 

1,415

 

1,403

 

0.9

Diabetes Care

 

415

 

400

 

3.8

Pharmaceutical Systems

 

239

 

231

 

3.5

TOTAL

 

$

3,448

 

$

3,060

 

12.7

             

BD LIFE SCIENCES

           

Preanalytical Systems

 

$

565

 

$

552

 

2.2

Diagnostic Systems

 

518

 

471

 

9.9

Biosciences

 

350

 

331

 

5.7

TOTAL

 

$

1,433

 

$

1,355

 

5.8

             

BD INTERVENTIONAL

           

Surgery (a)

 

$

687

 

$

434

 

NM

Peripheral Intervention (a)

 

393

 

10

 

NM

Urology and Critical Care

 

358

 

 

NM

TOTAL

 

$

1,438

 

$

444

 

NM

             

TOTAL UNITED STATES

 

$

6,319

 

$

4,859

 

30.0

 

(a) The presentation of prior-period amounts reflects a reclassification of $444 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

 
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2018

 

2017

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions (a)

 

$

1,298

 

$

1,065

 

$

65

 

21.9

 

15.8

Medication Management
Solutions

 

364

 

321

 

26

 

13.4

 

5.2

Diabetes Care

 

405

 

374

 

21

 

8.5

 

2.9

Pharmaceutical Systems

 

755

 

658

 

59

 

14.7

 

5.8

TOTAL

 

$

2,822

 

$

2,417

 

$

171

 

16.7

 

9.7

                     

BD LIFE SCIENCES

                   

Preanalytical Systems

 

$

595

 

$

541

 

$

29

 

10.0

 

4.7

Diagnostic Systems

 

634

 

548

 

31

 

15.8

 

10.2

Biosciences

 

559

 

494

 

27

 

13.4

 

7.9

TOTAL

 

$

1,789

 

$

1,582

 

$

87

 

13.1

 

7.6

                     

BD INTERVENTIONAL

                   

Surgery (a)

 

$

177

 

$

65

 

$

12

 

NM

 

NM

Peripheral Intervention (a)

 

303

 

4

 

22

 

NM

 

NM

Urology and Critical Care

 

171

 

 

11

 

NM

 

NM

TOTAL

 

$

651

 

$

68

 

$

45

 

NM

 

NM

                     

TOTAL INTERNATIONAL

 

$

5,261

 

$

4,068

 

$

302

 

29.3

 

21.9

 

(a) The presentation of prior-period amounts reflects a reclassification of $68 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

 
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2018

 

2017

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions (a)

 

$

2,677

 

$

2,091

 

$

65

 

28.0

 

24.9

Medication Management
Solutions

 

1,778

 

1,723

 

26

 

3.2

 

1.7

Diabetes Care

 

820

 

773

 

21

 

6.1

 

3.4

Pharmaceutical Systems

 

994

 

889

 

59

 

11.8

 

5.2

TOTAL

 

$

6,270

 

$

5,477

 

$

171

 

14.5

 

11.4

                     

BD LIFE SCIENCES

                   

Preanalytical Systems

 

$

1,160

 

$

1,094

 

$

29

 

6.1

 

3.4

Diagnostic Systems

 

1,152

 

1,019

 

31

 

13.1

 

10.1

Biosciences

 

910

 

825

 

27

 

10.3

 

7.0

TOTAL

 

$

3,222

 

$

2,937

 

$

87

 

9.7

 

6.7

                     

BD INTERVENTIONAL

                   

Surgery (a)

 

$

864

 

$

499

 

$

12

 

NM

 

NM

Peripheral Intervention (a)

 

697

 

14

 

22

 

NM

 

NM

Urology and Critical Care

 

529

 

 

11

 

NM

 

NM

TOTAL

 

$

2,089

 

$

513

 

$

45

 

NM

 

NM

                     

TOTAL REVENUES

 

$

11,581

 

$

8,927

 

$

302

 

29.7

 

26.3

 

(a) The presentation of prior-period amounts reflects a reclassification of $513 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES

Three Months Ended June 30,

(Unaudited; Amounts in millions)

 
                                 
   

A

   

B

 

C

 

D

 

E

 

F=B+C+D+E

   

G=(A-F)/F

   

BD
Reported

   

BD
Reported (a)

 

Bard (b)

 

Intercompany
Adjustment
(c)

 

Divestiture
Adjustments
(d)

 

Comparable

   

Comparable
% Change

   

2018

   

2017

 

2017

   

2017

   

BD MEDICAL

                               

Medication Delivery Solutions (a)

 

$

505

   

$

335

 

$

144

 

$

(3)

 

$

 

$

476

   

6.2

Medication Management Solutions

 

483

   

447

 

 

 

 

447

   

8.1

Diabetes Care

 

138

   

132

 

 

 

 

132

   

4.7

Pharmaceutical Systems

 

103

   

93

 

 

 

 

93

   

11.6

TOTAL

 

$

1,230

   

$

1,006

 

$

144

 

$

(3)

 

$

 

$

1,147

   

7.2

                                 

BD LIFE SCIENCES

                               

Preanalytical Systems

 

$

199

   

$

191

 

$

 

$

 

$

 

$

191

   

4.2

Diagnostic Systems

 

151

   

145

 

 

 

 

145

   

4.2

Biosciences

 

126

   

115

 

 

 

 

115

   

9.7

TOTAL

 

$

476

   

$

451

 

$

 

$

 

$

 

$

451

   

5.6

                                 

BD INTERVENTIONAL

                               

Surgery (a)

 

$

259

   

$

142

 

$

129

 

$

 

$

(9)

 

$

262

   

(1.4)

Peripheral Intervention (a)

 

195

   

3

 

178

 

 

 

181

   

7.6

Urology and Critical Care

 

178

   

 

167

 

 

 

167

   

6.9

TOTAL

 

$

632

   

$

145

 

$

474

 

$

 

$

(9)

 

$

610

   

3.5

                                 

TOTAL UNITED STATES

 

$

2,338

   

$

1,603

 

$

618

 

$

(3)

 

$

(9)

 

$

2,208

   

5.9

   

(a)

Reflects a reclassification of $145 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

(b)

Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure.  Also reflects the elimination of revenues from the Peripheral Intervention unit related to a royalty income stream, reported as revenues by Bard, which BD reports as non-operating income in the current-year period.

(c)

Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.

(d)

Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

SUPPLEMENTAL INFORMATION

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

                                 
   

A

   

B

 

C

 

D

 

E=B+C+D

   

F

 

G=(A-E-F)/E

   

BD
Reported

   

BD
Reported (a)

 

Bard (b)

 

Divestiture
Adjustments
(c)

 

Comparable

   

FX Impact

 

FXN %
Change

   

2018

   

2017

 

2017

   

2017

     

BD MEDICAL

                               

Medication Delivery Solutions (a)

 

$

471

   

$

367

 

$

59

 

$

 

$

426

   

$

23

 

5.3

Medication Management Solutions

 

127

   

109

 

 

 

109

   

9

 

9.1

Diabetes Care

 

138

   

131

 

 

 

131

   

7

 

0.1

Pharmaceutical Systems

 

279

   

258

 

 

 

258

   

19

 

1.0

TOTAL

 

$

1,016

   

$

864

 

$

59

 

$

 

$

923

   

$

58

 

3.8

                                 

BD LIFE SCIENCES

                               

Preanalytical Systems

 

$

205

   

$

185

 

$

 

$

 

$

185

   

$

8

 

6.2

Diagnostic Systems

 

211

   

191

 

 

 

191

   

10

 

5.7

Biosciences

 

188

   

171

 

 

 

171

   

8

 

4.9

TOTAL

 

$

603

   

$

547

 

$

 

$

 

$

547

   

$

26

 

5.6

                                 

BD INTERVENTIONAL

                               

Surgery (a)

 

$

77

   

$

20

 

$

45

 

$

(2)

 

$

64

   

$

5

 

14.4

Peripheral Intervention (a)

 

157

   

1

 

134

 

 

136

   

10

 

8.7

Urology and Critical Care

 

87

   

 

80

 

 

80

   

5

 

3.0

TOTAL

 

$

322

   

$

22

 

$

259

 

$

(2)

 

$

279

   

$

19

 

8.4

                                 

TOTAL INTERNATIONAL

 

$

1,941

   

$

1,433

 

$

318

 

$

(2)

 

$

1,749

   

$

103

 

5.1

   

(a)

Reflects a reclassification of $22 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

(b)

Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure.

(c)     

Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

 
                                     
   

A

   

B

 

C

 

D

 

E

 

F=B+C+D+E

   

G

 

H=(A-F-G)/F

   

BD
Reported

   

BD
Reported (a)

 

Bard (b)

 

Intercompany
Adjustment
(c)

 

Divestiture
Adjustments
(d)

 

Comparable

   

FX Impact

 

FXN %
Change

   

2018

   

2017

 

2017

     

2017

     

BD MEDICAL

                                   

Medication Delivery Solutions (a)

 

$

977

   

$

702

 

$

203

 

$

(3)

 

$

 

$

902

   

$

23

 

5.8

Medication Management
Solutions

 

610

   

556

 

 

 

 

556

   

9

 

8.3

Diabetes Care

 

276

   

263

 

 

 

 

263

   

7

 

2.4

Pharmaceutical Systems

 

383

   

350

 

 

 

 

350

   

19

 

3.8

TOTAL

 

$

2,246

   

$

1,871

 

$

203

 

$

(3)

 

$

 

$

2,070

   

$

58

 

5.7

                                     

BD LIFE SCIENCES

                                   

Preanalytical Systems

 

$

404

   

$

376

 

$

 

$

 

$

 

$

376

   

$

8

 

5.2

Diagnostic Systems

 

362

   

335

 

 

 

 

335

   

10

 

5.0

Biosciences

 

314

   

286

 

 

 

 

286

   

8

 

6.8

TOTAL

 

$

1,079

   

$

997

 

$

 

$

 

$

 

$

997

   

$

26

 

5.6

                                     

BD INTERVENTIONAL

                                   

Surgery (a)

 

$

336

   

$

163

 

$

175

 

$

 

$

(11)

 

$

326

   

$

5

 

1.7

Peripheral Intervention (a)

 

353

   

5

 

312

 

 

 

317

   

10

 

8.1

Urology and Critical Care

 

265

   

 

246

 

 

 

246

   

5

 

5.6

TOTAL

 

$

954

   

$

167

 

$

733

 

$

 

$

(11)

 

$

889

   

$

19

 

5.1

                                     

TOTAL REVENUES

 

$

4,278

   

$

3,035

 

$

936

 

$

(3)

 

$

(11)

 

$

3,957

   

$

103

 

5.5

   

(a)

Reflects a reclassification of $167 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

(b)

Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure.  Also reflects the elimination of revenues from the Peripheral Intervention unit related to a royalty income stream, reported as revenues by Bard, which BD reports as non-operating income in the current-year period.

(c)

Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.

(d)

Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

 
   

A

 

B

 

C

 

D

 

E=A+B+C+D

   

F

 

G

 

H

 

I

 

J=F+G+H+I

   

K=(E-J)/J

   

BD
Reported

 

Bard Q1 (b)

 

Intercompany
Adjustment (c)

 

Divestiture
Adjustments
(d)

 

Comparable

   

BD
Reported (a)

 

Bard (b)

 

Intercompany
Adjustment
(c)

 

Divestiture
Adjustments
(d)

 

Comparable

   

Comparable
% Change

   

2018

 

2018

     

2018

   

2017

 

2017

     

2017

   

BD MEDICAL