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Document and Entity Information	6 Months Ended
Document and Entity Information	Mar. 31, 2019 shares
Document And Entity Information [Abstract]
Entity registrant name	BECTON DICKINSON & CO
Trading symbol	BDX
Entity central index key	0000010795
Current fiscal year end date	--09-30
Entity filer category	Large Accelerated Filer
Document type	10-Q
Document period end date	Mar. 31, 2019
Document fiscal year focus	2019
Document fiscal period focus	Q2
Amendment flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity common stock, shares outstanding (shares)	269,731,903

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2019	Sep. 30, 2018
Current Assets:
Cash and equivalents	$ 686	$ 1,140
Restricted cash	81	96
Short-term investments	10	17
Trade receivables, net	2,279	2,319
Inventories:
Materials	555	510
Work in process	325	297
Finished products	1,748	1,644
Inventories	2,627	2,451
Assets held for sale	0	137
Prepaid expenses and other	1,161	1,251
Total Current Assets	6,844	7,411
Property, Plant and Equipment	10,875	10,485
Less allowances for depreciation and amortization	5,402	5,111
Property, Plant and Equipment, Net	5,473	5,375
Goodwill	23,513	23,600
Developed Technology, Net	11,625	12,184
Customer Relationships, Net	3,564	3,723
Other Intangibles, Net	518	534
Other Assets	1,061	1,078
Total Assets	52,598	53,904
Current Liabilities:
Short-term debt	3,057	2,601
Payables and accrued expenses	4,050	4,615
Total Current Liabilities	7,108	7,216
Long-Term Debt	17,556	18,894
Long-Term Employee Benefit Obligations	815	1,056
Deferred Income Taxes and Other	5,810	5,743
Commitments and Contingencies
Shareholders’ Equity
Preferred stock	2	2
Common stock	347	347
Capital in excess of par value	16,177	16,179
Retained earnings	12,792	12,596
Deferred compensation	23	22
Common stock in treasury - at cost	(6,192)	(6,243)
Accumulated other comprehensive loss	(1,839)	(1,909)
Total Shareholders’ Equity	21,309	20,994
Total Liabilities and Shareholders’ Equity	$ 52,598	$ 53,904

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenues	$ 4,195	$ 4,222	$ 8,355	$ 7,302
Cost of products sold	2,221	2,616	4,408	4,143
Selling and administrative expense	1,089	1,056	2,161	1,829
Research and development expense	252	259	510	451
Acquisitions and other restructurings	101	104	191	458
Other operating expense, net	396	0	61	0
Total Operating Costs and Expenses	4,059	4,036	7,332	6,881
Operating Income	136	186	1,024	422
Interest expense	(171)	(185)	(342)	(343)
Interest income	18	4	6	48
Other income (expense), net	20	1	30	(15)
Income Before Income Taxes	3	6	718	111
Income tax (benefit) provision	(17)	18	98	260
Net Income (Loss)	20	(12)	619	(148)
Preferred stock dividends	(38)	(38)	(76)	(76)
Net (loss) income applicable to common shareholders	$ (18)	$ (50)	$ 544	$ (224)
Basic (Loss) Earnings per Share (USD per share)	$ (0.07)	$ (0.19)	$ 2.02	$ (0.90)
Diluted (Loss) Earnings per Share (USD per share)	(0.07)	(0.19)	1.98	(0.90)
Dividends per Common Share (USD per share)	$ 0.77	$ 0.75	$ 1.54	$ 1.50

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 20	$ (12)	$ 619	$ (148)
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustments	76	128	42	92
Defined benefit pension and postretirement plans	13	(90)	28	(72)
Cash flow hedges	(1)	(2)	0	(1)
Other Comprehensive Income, Net of Tax	88	36	70	18
Comprehensive Income (Loss)	$ 108	$ 24	$ 689	$ (130)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income (loss)	$ 619	$ (148)
Adjustments to net income (loss) to derive net cash provided by operating activities:
Depreciation and amortization	1,126	844
Share-based compensation	152	207
Deferred income taxes	(109)	(400)
Change in operating assets and liabilities	(531)	702
Pension obligation	(202)	(72)
Excess tax benefits from payments under share-based compensation plans	38	56
Gain on sale of business	(335)	0
Product liability-related charge	331	0
Other, net	(63)	(172)
Net Cash Provided by Operating Activities	1,027	1,017
Investing Activities
Capital expenditures	(362)	(391)
Proceeds from sale of investments, net	5	7
Acquisitions of businesses, net of cash acquired	0	(15,006)
Proceeds from divestitures, net	477	100
Other, net	(90)	(84)
Net Cash Provided by (Used for) Investing Activities	30	(15,373)
Financing Activities
Change in credit facility borrowings	0	380
Proceeds from long-term debt and term loans	0	3,622
Payments of debt and term loans	(905)	(1,833)
Dividends paid	(491)	(449)
Other, net	(135)	(155)
Net Cash (Used for) Provided by Financing Activities	(1,532)	1,565
Effect of exchange rate changes on cash and equivalents and restricted cash	5	29
Net decrease in cash and equivalents and restricted cash	(469)	(12,762)
Opening Cash and Equivalents and Restricted Cash	1,236	14,179
Closing Cash and Equivalents and Restricted Cash	767	1,417
Non-Cash Investing Activities
Fair value of shares issued as acquisition consideration	0	8,004
Fair value of equity awards issued as acquisition consideration	$ 0	$ 613

Basis of Presentation	6 Months Ended
Basis of Presentation	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of the management of Becton, Dickinson and Company (the "Company"), include all adjustments which are of a normal recurring nature, necessary for a fair presentation of the financial position and the results of operations and cash flows for the periods presented. However, the financial statements do not include all information and accompanying notes required for a presentation in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2018 Annual Report on Form 10-K. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

Accounting Changes	6 Months Ended
Accounting Changes	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Accounting Changes	Accounting Changes New Accounting Principles Adopted On October 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606") using the modified retrospective method. Under ASC 606, revenue is recognized upon the transfer of control of goods or services to customers and reflects the amount of consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company assessed the impact of this new standard on its consolidated financial statements based upon a review of contracts that were not completed as of October 1, 2018. Amounts presented in the Company's financial statements for the prior-year periods have not been revised and are reflective of the revenue recognition requirements which were in effect for those periods. This accounting standard adoption, which is further discussed in Note 6, did not materially impact any line items of the Company's consolidated income statements and balance sheet. On October 1, 2018, the Company retrospectively adopted an accounting standard update which requires all components of net periodic pension and postretirement benefit costs to be disaggregated from the service cost component and to be presented on the income statement outside a subtotal of income from operations, if one is presented. Upon the Company's adoption of the accounting standard update, which did not have a material impact on its consolidated financial statements, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other income (expense), net on its consolidated income statements for all periods presented. Revisions of prior-year period amounts were estimated based upon previously disclosed amounts. On October 1, 2018, the Company adopted an accounting standard update which requires that the income tax effects of intercompany sales or transfers of assets, except those involving inventory, be recognized in the income statement as income tax expense (or benefit) in the period that the sale or transfer occurs. The Company adopted this accounting standard update, which did not have a material impact on its consolidated financial statements, using the modified retrospective method. New Accounting Principle Not Yet Adopted In February 2016, the FASB issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet. The new standard also requires expanded disclosures regarding leasing arrangements. The Company will adopt the standard on October 1, 2019 and continues to evaluate the impact on its consolidated financial statements.

Shareholders' Equity

6 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Changes in certain components of shareholders' equity for the first two quarters of fiscal years 2019 and 2018 were as follows:



	Common Stock Issued at Par Value		Capital in Excess of Par Value			Retained Earnings			Deferred Compensation			Treasury Stock
(Millions of dollars)	Common Stock Issued at Par Value		Capital in Excess of Par Value			Retained Earnings			Deferred Compensation			Shares (in thousands)		Amount
Balance at September 30, 2018	$	347	$	16,179		$	12,596		$	22		(78,463	)	$	(6,243	)
Net income	—		—			599			—			—		—
Common dividends ($0.77 per share)	—		—			(207		)	—			—		—
Preferred dividends	—		—			(38		)	—			—		—
Common stock issued for share-based compensation and other plans, net	—		(97		)	—			2			851		9
Share-based compensation	—		92			—			—			—		—
Common stock held in trusts, net (a)	—		—			—			—			(12	)	—
Effect of changes in accounting principles (see Note 2)	—		—			68			—			—		—
Balance at December 31, 2018	$	347	$	16,174		$	13,018		$	24		(77,624	)	$	(6,235	)
Net income	—		—			20			—			—		—
Common dividends ($0.77 per share)	—		—			(208		)	—			—		—
Preferred dividends	—		—			(38		)	—			—		—
Common stock issued for share-based compensation and other plans, net	—		(57		)	(1		)	(1		)	618		42
Share-based compensation	—		60			—			—			—		—
Common stock held in trusts, net (a)	—		—			—			—			50		—
Balance at March 31, 2019	$	347	$	16,177		$	12,792		$	23		(76,955	)	$	(6,192	)



	Common Stock Issued at Par Value		Capital in Excess of Par Value			Retained Earnings			Deferred Compensation		Treasury Stock
(Millions of dollars)	Common Stock Issued at Par Value		Capital in Excess of Par Value			Retained Earnings			Deferred Compensation		Shares (in thousands)		Amount
Balance at September 30, 2017	$	347	$	9,619		$	13,111		$	19	(118,745	)	$	(8,427	)
Net loss	—		—			(136		)	—		—		—
Common dividends ($0.75 per share)	—		—			(172		)	—		—		—
Preferred dividends	—		—			(38		)	—		—		—
Common stock issued for acquisition	—		6,487			—			—		37,306		2,121
Common stock issued for share-based compensation and other plans, net	—		(51		)	—			—		1,021		(37		)
Share-based compensation	—		142			—			—		—		—
Common stock held in trusts, net (a)	—		—			—			—		(27	)	—
Balance at December 31, 2017	$	347	$	16,197		$	12,765		$	19	(80,445	)	$	(6,343	)
Net loss	—		—			(12		)	—		—		—
Common dividends ($0.75 per share)	—		—			(201		)	—		—		—
Preferred dividends	—		—			(38		)	—		—		—
Common stock issued for acquisition	—		(9		)	—			—		—		—
Common stock issued for share-based compensation and other plans, net	—		(94		)	(1		)	2		943		44
Share-based compensation	—		76			—			—		—		—
Common stock held in trusts, net (a)	—		—			—			—		17		—
Effect of changes in accounting principles (see Note 2)	—		—			103			—		—		—
Balance at March 31, 2018	$	347	$	16,170		$	12,616		$	21	(79,485	)	$	(6,300	)


(a)	Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan.

The components and changes of Accumulated other comprehensive income (loss) for the first two quarters of fiscal years 2019 and 2018 were as follows:



(Millions of dollars)	Total			Foreign Currency Translation			Benefit Plans			Cash Flow Hedges
Balance at September 30, 2018	$	(1,909	)	$	(1,162	)	$	(729	)	$	(17	)
Other comprehensive (loss) income before reclassifications, net of taxes	(32		)	(35		)	3			(1		)
Amounts reclassified into income, net of taxes	14			—			13			1
Balance at December 31, 2018	$	(1,927	)	$	(1,197	)	$	(714	)	$	(16	)
Other comprehensive income (loss) before reclassifications, net of taxes	74			76			—			(2		)
Amounts reclassified into income, net of taxes	14			—			13			1
Balance at March 31, 2019	$	(1,839	)	$	(1,121	)	$	(701	)	$	(17	)



(Millions of dollars)	Total			Foreign Currency Translation			Benefit Plans			Cash Flow Hedges
Balance at September 30, 2017	$	(1,723	)	$	(1,001	)	$	(703	)	$	(18	)
Other comprehensive loss before reclassifications, net of taxes	(36		)	(36		)	—			—
Amounts reclassified into income, net of taxes	18			—			17			1
Balance at December 31, 2017	$	(1,740	)	$	(1,037	)	$	(686	)	$	(17	)
Other comprehensive income before reclassifications, net of taxes	128			128			—			—
Amounts reclassified into income, net of taxes	11			—			9			2
Tax effects reclassified into retained earnings	(103		)	—			(99		)	(4		)
Balance at March 31, 2018	$	(1,704	)	$	(909	)	$	(776	)	$	(20	)

The amount of foreign currency translation recognized in other comprehensive income during the three and six months ended March 31, 2019 and 2018 included net (losses) gains relating to net investment hedges, as further discussed in Note 13. During the second quarter of 2018, as permitted under U.S. GAAP guidance, the Company reclassified stranded income tax effects on items within Accumulated other comprehensive income (loss) resulting from the enactment of new U.S. tax legislation to Retained earnings. The reclassified tax effects related to prior service credits and net actuarial losses relating to benefit plans, as well as to terminated cash flow hedges. The tax effects relating to these items are generally recognized as such amounts are amortized into earnings.

Earnings Per Share

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings per Share

The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) were as follows:



	Three Months Ended March 31,		Six Months Ended March 31,
	2019	2018	2019	2018
Average common shares outstanding	269,882	267,341	269,454	248,484
Dilutive share equivalents from share-based plans	—	—	4,975	—
Average common and common equivalent shares outstanding – assuming dilution	269,882	267,341	274,429	248,484

Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive:
Mandatory convertible preferred stock	11,685	11,685	11,685	11,685
Share-based plans	4,405	6,352	—	5,439

Contingencies	6 Months Ended
Contingencies	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the investigative subpoena issued by the Department of Defense Inspector General and the Department of Health and Human Services and the civil investigative demand served by the Department of Justice, as discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. Product Liability Matters The Company believes that certain settlements and judgments, as well as legal defense costs, relating to product liability matters are or may be covered in whole or in part under its product liability insurance policies with a limited number of insurance carriers, or, in some circumstances, indemnification obligations to the Company from other parties, which if disputed, the Company intends to vigorously contest. Amounts recovered under the Company’s product liability insurance policies or indemnification arrangements may be less than the stated coverage limits or less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers or other parties will pay claims or that coverage or indemnity will be otherwise available. Hernia Product Claims As of March 31, 2019, the Company is defending approximately 6,755 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The majority of those claims are currently pending in a coordinated proceeding in Rhode Island State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. From time to time, the Company engages in resolution discussions with plaintiffs’ law firms regarding certain of the Hernia Product Claims, but the Company also intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. Trials are scheduled throughout 2019 in various state and/or federal courts. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. In August 2018, a new hernia multi-district litigation (“MDL”) was ordered to be established in the Southern District of Ohio. The Company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Women’s Health Product Claims As of March 31, 2019, the Company is defending approximately 1,050 product liability claims involving the Company’s line of pelvic mesh devices. The majority of those claims are currently pending in either the federal MDL in the United States District Court for the Southern District of West Virginia, or a coordinated proceeding in New Jersey State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include putative class actions filed in the United States. Not included in the figures above are approximately 1,015 filed and unfiled claims that have been asserted or threatened against the Company but lack sufficient information to determine whether a pelvic mesh device of the Company is actually at issue. The claims identified above also include products manufactured by both the Company and two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the Company. Medtronic has an obligation to defend and indemnify the Company with respect to any product defect liability relating to products its subsidiaries had manufactured. As described below, in July 2015 the Company reached an agreement with Medtronic (which was amended in June 2017) regarding certain aspects of Medtronic’s indemnification obligation. The foregoing lawsuits, unfiled claims, putative class actions, and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as the “Women’s Health Product Claims.” The Women’s Health Product Claims generally seek damages for personal injury allegedly resulting from use of the products. As of March 31, 2019, the Company has reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 15,160 of the Women’s Health Product Claims. The Company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which are not included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The Company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements. Starting in 2014 in the MDL, the court entered certain pre-trial orders requiring trial work up and remand of a significant number of Women’s Health Product Claims, including an order entered in the MDL on January 30, 2018, that requires the work up and remand of all remaining unsettled cases (the “WHP Pre-Trial Orders”). The WHP Pre-Trial Orders may result in material additional costs or trial verdicts in future periods in defending Women’s Health Product Claims. Trials are anticipated throughout 2019 in state courts. A trial in the New Jersey coordinated proceeding began in March 2018, and in April 2018 a jury entered a verdict against the Company in the total amount of $68 million ($33 million compensatory; $35 million punitive). The Company is in the process of appealing that verdict. A consolidated trial involving two plaintiffs is scheduled to begin in September 2019 in the New Jersey coordinated proceeding. The Company expects additional trials of Women’s Health Product Claims to take place over the next 12 months, which may potentially include consolidated trials. In July 2015, as part of the agreement with Medtronic noted above, Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the Company under supply agreements with Medtronic, and the Company has paid Medtronic $121 million towards these potential settlements. In June 2017, the Company amended the agreement with Medtronic to transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on terms similar to the July 2015 agreement, including with respect to the obligation to make payments to Medtronic towards these potential settlements. The Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any. During the course of engaging in settlement discussions with plaintiffs’ law firms, the Company has learned, and may in future periods learn, additional information regarding these and other unfiled claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. Filter Product Claims As of March 31, 2019, the Company is defending approximately 6,960 product liability claims involving the Company’s line of inferior vena cava filters (collectively, the “Filter Product Claims”). The majority of those claims are currently pending in an MDL in the United States District Court for the District of Arizona, but claims are also pending in other state and/or federal court jurisdictions, including a coordinated proceeding in Arizona State Court. In addition, those claims include putative class actions filed in the United States and Canada. The Filter Product Claims generally seek damages for personal injury allegedly resulting from use of the products. The Company has limited information regarding the nature and quantity of certain of the Filter Product Claims. The Company continues to receive claims and lawsuits and may in future periods learn additional information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. Trials are scheduled throughout 2019 in the MDL and state courts. On March 30, 2018, a jury in the first MDL trial found the Company liable for negligent failure to warn and entered a verdict in favor of plaintiffs. The jury found the Company was not liable for (a) strict liability design defect; (b) strict liability failure to warn; and (c) negligent design. The Company has appealed that verdict. On June 1, 2018, a jury in the second MDL trial unanimously found in favor of the Company on all claims. On August 17, 2018, the Court entered summary judgment in favor of the Company on all claims in the third MDL trial. On October 5, 2018, a jury in the fourth MDL trial unanimously found in favor of the Company on all claims. The final MDL bellwether trial is scheduled to begin in May 2019. The MDL Court has indicated that as of May 31, 2019, it will no longer accept direct filings or transfers of cases into the Filter Product Claims MDL. The Company expects additional trials of Filter Product Claims may take place over the next 12 months. In most product liability litigations (like those described above), plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters. In January 2017, the Company reached an agreement to resolve litigation filed in the Southern District of New York by its insurance carriers in connection with Women’s Health Product Claims and Filter Product Claims. The agreement requires the insurance carriers to reimburse the Company for certain future costs incurred in connection with Filter Product Claims up to an agreed amount. For certain product liability claims or lawsuits, the Company does not maintain or has limited remaining insurance coverage. Other Legal Matters Since early 2013, the Company has received subpoenas or Civil Investigative Demands from a number of State Attorneys General seeking information related to the sales and marketing of certain of the Company’s products that are the subject of the Hernia Product Claims and the Women’s Health Product Claims. The Company is cooperating with these requests. Although the Company has had, and continues to have, discussions with the State Attorneys General with respect to overall potential resolution of this matter, there can be no assurance that a resolution will be reached or what the terms of any such resolution may be. In July 2017, a civil investigative demand was served by the Department of Justice seeking documents and information relating to an investigation into possible violations of the False Claims Act in connection with the sales and marketing of FloChec^® and QuantaFlo^TM devices. The Company is cooperating with these requests. Since it is not feasible to predict the outcome of these matters, the Company cannot give any assurances that the resolution of these matters will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. However, one or more of the proceedings could be material to the Company’s business and/or results of operations. The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to these suits pending against the Company and is engaged in a vigorous defense of each of these matters. Litigation Reserves The Company regularly monitors and evaluates the status of product liability and other legal matters, and may, from time-to-time, engage in settlement and mediation discussions taking into consideration developments in the matters and the risks and uncertainties surrounding litigation. These discussions could result in settlements of one or more of these claims at any time. In the second quarter of 2019, the Company recorded a pre-tax charge to Other operating expense, net, of approximately $331 million related to certain of the product liability matters discussed above under the heading “Product Liability Matters,” including the related legal defense costs. The Company recorded this charge based on additional information obtained during the quarter, including but not limited to: the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the Company; and the stage of litigation. Accruals for the Company's product liability claims which are specifically discussed above, as well as the related legal defense costs, amounted to approximately $2.0 billion at both March 31, 2019 and September 30, 2018. As of March 31, 2019 and September 30, 2018, the Company had $80 million and $94 million, respectively, in qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain product liability matters. Payments to QSFs are recorded as a component of Restricted cash. The Company's expected recoveries related to product liability claims and related legal defense costs were approximately $152 million and $343 million at March 31, 2019 and September 30, 2018, respectively. A substantial amount of these expected recoveries at March 31, 2019 and September 30, 2018 related to the Company’s agreements with Medtronic related to certain Women’s Health Product Claims. During the six months ended March 31, 2019, Medtronic provided the Company with releases from liability for certain claims that were the subject of the agreement discussed further above. Accordingly, adjustments to reduce accruals for the Company's product liability claims, as well as the balance recorded for expected recoveries related to product liability claims, were recorded during the six months ended March 31, 2019. The terms of the Company’s agreements with Medtronic are substantially consistent with the assumptions underlying, and the manner in which, the Company has recorded expected recoveries related to the indemnification obligation. The expected recoveries at March 31, 2019 related to the indemnification obligation are not in dispute with respect to claims that Medtronic settles pursuant to the agreements. As described above, the agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any, and the Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms.

Revenues Revenues (Notes)	6 Months Ended
Revenues Revenues (Notes)	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Revenues As previously discussed in Note 2, the Company adopted ASC 606 using the modified retrospective method. The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. Timing of Revenue Recognition The Company's revenues are primarily recognized when the customer obtains control of the product sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized when customer acceptance of these installed products has been confirmed. For certain service arrangements, including extended warranty and software maintenance contracts, revenue is recognized ratably over the contract term. The majority of revenues relating to extended warranty contracts associated with certain instruments and equipment is generally recognized within a few years whereas deferred revenue relating to software maintenance contracts is generally recognized over a longer period. Measurement of Revenues The Company acts as the principal in substantially all of its customer arrangements and as such, generally records revenues on a gross basis. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. The Company considers its shipping and handling costs to be costs of contract fulfillment and has made the accounting policy election to record these costs within Selling and administrative expense. Payment terms extended to the Company's customers are based upon commercially reasonable terms for the markets in which the Company's products are sold. Because the Company generally expects to receive payment within one year or less from when control of a product is transferred to the customer, the Company does not generally adjust its revenues for the effects of a financing component. The Company’s estimate of probable credit losses relating to trade receivables is determined based on historical experience and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectible. Such amounts are not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration include rebates, sales discounts and sales returns. Because these deductions represent estimates of the related obligations, judgment is required when determining the impact of these revenue deductions on gross revenues for a reporting period. Rebates provided by the Company are based upon prices determined under the Company's agreements with its end-user customers. Additional factors considered in the estimate of the Company's rebate liability include the quantification of inventory that is either in stock at or in transit to the Company's distributors, as well as the estimated lag time between the sale of product and the payment of corresponding rebates. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. The Company's agreements with customers within certain organizational units including Medication Management Solutions, Diagnostic Systems and Biosciences, contain multiple performance obligations including both products and certain services noted above. The transaction price for these agreements is allocated to each performance obligation based upon its relative standalone selling price. Standalone selling price is the amount at which the Company would sell a promised good or service separately to a customer. The Company generally estimates standalone selling prices using its list prices and a consideration of typical discounts offered to customers. Effects of Revenue Arrangements on Consolidated Balance Sheet Due to the nature of the majority of the Company's products and services, the Company typically does not incur costs to fulfill a contract in advance of providing the customer with goods or services. Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's consolidated balance sheets. The Company's costs to obtain contracts are comprised of sales commissions which are paid to the Company's employees or third party agents. The majority of the sales commissions incurred by the Company relate to revenue that is recognized over a period that is less than one year and as such, the Company has elected a practical expedient provided under ASC 606 to record the majority of its expense associated with sales commissions as it is incurred. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's consolidated balance sheets. The Company records contract liabilities for unearned revenue that is allocable to performance obligations, such as extended warranty and software maintenance contracts, which are performed over time as discussed further above. These contract liabilities are immaterial to the Company's consolidated financial results. The Company's liability for product warranties provided under its agreements with customers is not material to its consolidated balance sheets. Remaining Performance Obligations The Company's obligations relative to service contracts, which are further discussed above, and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing and noncancelable contracts which are attributable to products and/or services that have not yet been installed or provided are estimated to be approximately $1.6 billion at March 31, 2019 and the Company expects to recognize the majority of this revenue over the next three years. Within the Company's Medication Management Solutions, Medication Delivery Solutions, Diagnostic Systems and Biosciences units, some contracts also contain minimum purchase commitments of reagents or other consumables and the future sales of these consumables represent additional unsatisfied performance obligations of the Company. The revenue attributable to the unsatisfied minimum purchase commitment-related performance obligations will be recognized over the customer relationship period, which usually encompasses the current agreement term and subsequent renewal terms. Disaggregation of Revenues A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 7.

Segment Data

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Data

The Company's organizational structure is based upon three principal business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Company's segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon segment operating income, which represents revenues reduced by product costs and operating expenses.

Revenues by segment, organizational unit and geographical areas for the three and six-month periods are detailed below. The Company has no material intersegment revenues. On December 29, 2017, the Company completed its acquisition of C.R. Bard, Inc. ("Bard"), which is further discussed in Note 9. Bard's operating results were included in the Company’s consolidated results of operations beginning on January 1, 2018 and as such, are not included in the financial results detailed below for the first quarter of the prior-year six-month period.



	Three Months Ended March 31,
(Millions of dollars)	2019						2018
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions	$	484	$	446	$	929	$	504	$	454	$	958
Medication Management Solutions	497		118		615		461		120		581
Diabetes Care	137		133		270		131		136		267
Pharmaceutical Systems	93		273		366		82		284		366
Total segment revenues	$	1,211	$	969	$	2,180	$	1,178	$	994	$	2,172

Life Sciences
Preanalytical Systems	$	171	$	195	$	366	$	181	$	200	$	381
Diagnostic Systems	180		209		389		201		209		410
Biosciences	120		177		297		116		191		307
Total segment revenues	$	470	$	582	$	1,052	$	498	$	600	$	1,098

Interventional
Surgery	$	271	$	75	$	345	$	276	$	75	$	351
Peripheral Intervention	194		148		342		194		145		338
Urology and Critical Care	195		80		275		180		84		264
Total segment revenues	$	659	$	303	$	963	$	649	$	303	$	952

Total Company revenues	$	2,341	$	1,854	$	4,195	$	2,325	$	1,898	$	4,222



	Six Months Ended March 31,
(Millions of dollars)	2019						2018
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions	$	1,004	$	883	$	1,887	$	874	$	826	$	1,700
Medication Management Solutions	1,003		236		1,239		932		237		1,168
Diabetes Care	282		261		544		277		267		544
Pharmaceutical Systems	161		485		646		136		475		612
Total segment revenues	$	2,450	$	1,865	$	4,316	$	2,218	$	1,806	$	4,024

Life Sciences
Preanalytical Systems	$	371	$	387	$	758	$	366	$	391	$	756
Diagnostic Systems	355		416		771		367		423		791
Biosciences	228		350		579		224		372		596
Total segment revenues	$	954	$	1,153	$	2,108	$	957	$	1,186	$	2,143

Interventional
Surgery	$	545	$	148	$	693	$	428	$	99	$	528
Peripheral Intervention	385		294		679		198		146		344
Urology and Critical Care	393		168		560		180		84		264
Total segment revenues	$	1,323	$	609	$	1,932	$	806	$	329	$	1,135

Total Company revenues	$	4,728	$	3,628	$	8,355	$	3,982	$	3,321	$	7,302

Segment income for the three and six-month periods was as follows:



	Three Months Ended March 31,						Six Months Ended March 31,
(Millions of dollars)	2019			2018			2019			2018
Income Before Income Taxes
Medical (a) (b)	$	599		$	588		$	1,265		$	1,211
Life Sciences	293			336			598			652
Interventional (b)	231			(154		)	441			(72		)
Total Segment Operating Income	1,123			770			2,303			1,791
Acquisitions and other restructurings	(101		)	(104		)	(191		)	(458		)
Net interest expense	(153		)	(181		)	(336		)	(295		)
Other unallocated items (c)	(866		)	(479		)	(1,058		)	(926		)
Income Before Income Taxes	$	3		$	6		$	718		$	111


(a)	The amounts in 2019 include $65 million of estimated remediation costs recorded to Other operating expense, net relating to a recall of a product component, which generally pre-dated the Company's acquisition of CareFusion in fiscal year 2015, within the Medication Management Solutions unit's infusion systems platform.


(b)	The amounts in 2018 included expense of $53 million and $369 million for the Medical and Interventional segments, respectively, related to the recognition of a fair value step-up adjustment of $422 million related to Bard's inventory on the acquisition date.

(c)

Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amounts in 2019 include a pre-tax charge of $331 million related to certain product liability matters, which is further discussed in Note 5. In addition, the amount for the six months ended March 31, 2019 included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $335 million, which is further discussed in Note 10.

Benefit Plans

6 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Benefit Plans

The Company has defined benefit pension plans covering certain employees in the United States and certain international locations. The measurement date used for these plans is September 30.

Net pension cost included the following components for the three and six months ended March 31:



	Three Months Ended March 31,						Six Months Ended March 31,
(Millions of dollars)	2019			2018			2019			2018
Service cost	$	33		$	34		$	68		$	64
Interest cost	26			22			54			41
Expected return on plan assets	(45		)	(40		)	(91		)	(72		)
Amortization of prior service credit	(3		)	(3		)	(7		)	(7		)
Amortization of loss	19			19			39			39
Settlements	—			2			—			2
Net pension cost	$	31		$	35		$	63		$	67

The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods.

As further discussed in Note 2, upon adopting an accounting standard update on October 1, 2018, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other income (expense), net on its consolidated statements of income, for all periods presented.

Acquisition	6 Months Ended
Acquisition	Mar. 31, 2019
Business Combinations [Abstract]
Acquisition	Acquisition Bard On December 29, 2017, the Company completed its acquisition of Bard. The operating activities of Bard from the acquisition date through December 31, 2017 were not material to the Company’s consolidated results of operations. As such, Bard's operating results were included in the Company’s consolidated results of operations beginning on January 1, 2018. During the first quarter of fiscal year 2019, the Company finalized its allocation of the fair value of consideration transferred to the individual assets acquired and liabilities assumed in this acquisition, which resulted in no material adjustments to the allocation.

Divestiture	6 Months Ended
Divestiture	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Divestiture	Divestiture The Company completed the sale of its Life Sciences segment's Advanced Bioprocessing business in October 2018 pursuant to a definitive agreement that was signed in September 2018. Assets held for sale on the consolidated balance sheet at September 30, 2018, subject to this agreement, were approximately $137 million. Liabilities held for sale under the agreement were immaterial. The Company recognized a pre-tax gain on the sale of approximately $335 million which was recorded as a component of Other operating expense, net. The historical financial results for the Advanced Bioprocessing business have not been classified as a discontinued operation.

Business Restructuring Charges

6 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Business Restructuring Charges

The Company incurred restructuring costs during the six months ended March 31, 2019, largely in connection with its acquisition of Bard, which were recorded as Acquisitions and other restructurings. Restructuring liability activity for the six months ended March 31, 2019 was as follows:



(Millions of dollars)	Employee Termination						Other						Total
	Bard			Other Initiatives			Bard (a)			Other Initiatives			Bard			Other Initiatives
Balance at September 30, 2018	$	33		$	23		$	—		$	4		$	33		$	27
Charged to expense	9			8			38			17			47			25
Cash payments	(22		)	(11		)	(2		)	(14		)	(24		)	(25		)
Non-cash settlements	—			—			(36		)	(4		)	(36		)	(4		)
Balance at March 31, 2019	$	20		$	20		—			$	3		$	20		$	23


(a)	Largely represents the cost associated with certain pre-acquisition equity awards of Bard which, to encourage post-acquisition employee retention, were converted to BD equity awards with substantially the same terms and conditions as were applicable under such Bard awards immediately prior to the acquisition date.

Intangible Assets

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of:



	March 31, 2019				September 30, 2018
(Millions of dollars)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Developed technology	$	13,976	$	2,352	$	13,966	$	1,782
Customer relationships	4,586		1,022		4,584		861
Product rights	118		60		121		58
Trademarks	407		93		407		84
Patents and other	407		295		397		288
Amortized intangible assets	$	19,495	$	3,822	$	19,475	$	3,073
Unamortized intangible assets
Acquired in-process research and development	$	31			$	37
Trademarks	2				2
Unamortized intangible assets	$	33			$	39

Intangible amortization expense for the three months ended March 31, 2019 and 2018 was $376 million and $370 million, respectively. Intangible amortization expense for the six months ended March 31, 2019 and 2018 was $754 million and $505 million, respectively. The increase in intangible amortization expense for the six months ended March 31, 2019 was attributable to assets acquired in the Bard transaction, which is further discussed in Note 9.

The following is a reconciliation of goodwill by business segment:



(Millions of dollars)	Medical			Life Sciences			Interventional			Total
Goodwill as of September 30, 2018	$	10,054		$	775		$	12,771		$	23,600
Divestiture-related adjustments	—			3			—			3
Purchase accounting adjustments (a)	(15		)	—			(70		)	(84		)
Currency translation	(3		)	(2		)	—			(5		)
Goodwill as of March 31, 2019	$	10,036		$	776		$	12,701		$	23,513


(a)	The purchase accounting adjustments were primarily driven by adjustments to tax-related balances.

Derivative Instruments and Hedging Activities

6 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below.

Foreign Currency Risks and Related Strategies

The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts and currency options. Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. As such, the gains or losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. The net amounts recognized in Other income (expense), net, during the three and six months ended March 31, 2019 and 2018 were immaterial to the Company's consolidated financial results.

The total notional amounts of the Company’s outstanding foreign exchange contracts as of March 31, 2019 and September 30, 2018 were $1.5 billion and $3.1 billion, respectively.

In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has designated $2.6 billion of Euro-denominated debt and $327 million of British Pound-denominated debt as net investment hedges. Accordingly, net gains or losses relating to this debt, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as accumulated foreign currency translation in Other comprehensive income (loss). Net (losses) gains recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three and six-month periods were as follows:



	Three Months Ended March 31,						Six Months Ended March 31,
(Millions of dollars)	2019			2018			2019		2018
Net (losses) gains on net investment hedges	$	(18	)	$	(103	)	$	41	$	(104	)

Interest Rate Risks and Related Strategies

The Company’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Company’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges.

For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates.

Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are offset by amounts recorded in Other comprehensive income (loss). If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings over the remaining life of the hedged debt. The net realized loss related to terminated interest rate swaps expected to be reclassified and recorded in Interest expense within the next 12 months is $6 million, net of tax.

The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $1.2 billion at March 31, 2019 and September 30, 2018. The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The amounts recorded during the three and six months ended March 31, 2019 and 2018 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results.

Other Risk Exposures

The Company purchases resins, which are oil-based components used in the manufacture of certain products. Significant increases in world oil prices that lead to increases in resin purchase costs could impact future operating results. From time to time, the Company has managed price risks associated with these commodity purchases through commodity derivative forward contracts. The Company's outstanding commodity derivative forward contracts at March 31, 2019 were immaterial to the Company's consolidated financial results. The Company had no outstanding commodity derivative forward contracts at September 30, 2018.

Financial Statement Effects

The fair values of derivative instruments outstanding at March 31, 2019 and September 30, 2018 were not material to the Company's consolidated balance sheets.

The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during the three and six months ended March 31, 2019 and 2018 were not material to the Company's consolidated financial results.

Financial Instruments and Fair Value Measurements

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at March 31, 2019 and September 30, 2018 to the total of these amounts shown on the Company's consolidated statements of cash flows:



(Millions of dollars)	March 31, 2019		September 30, 2018
Cash and equivalents	$	686	$	1,140
Restricted cash	81		96
Cash and equivalents and restricted cash	$	767	$	1,236

Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters.

The Company’s cash and equivalents includes institutional money market accounts which permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. The fair values of these accounts were $25 million and $228 million at March 31, 2019 and September 30, 2018, respectively. The Company’s remaining cash and equivalents, excluding restricted cash, were $661 million and $913 million at March 31, 2019 and September 30, 2018, respectively.

Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year.

Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $18.2 billion and $18.8 billion at March 31, 2019 and September 30, 2018, respectively. The fair value of the current portion of long-term debt was $3.0 billion and $1.9 billion at March 31, 2019 and September 30, 2018, respectively.

All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt	6 Months Ended
Debt	Mar. 31, 2019
Debt Disclosure [Abstract]
Debt	Debt In March 2019, the Company redeemed an aggregate principal amount of $250 million of its outstanding floating rate senior unsecured U.S. notes due December 29, 2020. Based upon the $249 million carrying value of the notes redeemed and the $250 million the Company paid to redeem the aggregate principal amount of the notes, the Company recorded a loss on this debt extinguishment transaction in the second quarter of fiscal year 2019 of $1 million as Other income (expense), net, on its consolidated statements of income.