• | As reported, revenues of $4.222 billion increased 42.2 percent. |
• | On a comparable, currency-neutral basis, revenues increased 5.7 percent. |
• | As reported, diluted earnings per share of $(0.19) decreased 112.0 percent. |
• | As adjusted, diluted earnings per share of $2.65 increased 15.2 percent, or 7.8 percent on a currency-neutral basis. |
• | The company is raising full fiscal year 2018 revenue and 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. |
Three Months Ended March 31, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 4,222 | $ | 2,969 | 42.2 | |||||||
Cost of products sold | 2,619 | 1,537 | 70.4 | |||||||||
Selling and administrative expense | 1,057 | 724 | 46.1 | |||||||||
Research and development expense | 260 | 187 | 39.3 | |||||||||
Acquisitions and other restructurings | 104 | 76 | 37.2 | |||||||||
TOTAL OPERATING COSTS AND EXPENSES | 4,040 | 2,523 | 60.1 | |||||||||
OPERATING INCOME | 183 | 446 | (59.0 | ) | ||||||||
Interest expense | (185 | ) | (86 | ) | 114.3 | |||||||
Interest income | 4 | 7 | (46.0 | ) | ||||||||
Other income (expense), net | 4 | (5 | ) | 183.6 | ||||||||
INCOME BEFORE INCOME TAXES | 6 | 362 | (98.2 | ) | ||||||||
Income tax provision | 18 | 18 | 3.3 | |||||||||
NET (LOSS) INCOME | (12 | ) | 344 | (103.5 | ) | |||||||
Preferred stock dividends | (38 | ) | — | 100.0 | ||||||||
NET (LOSS) INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | (50 | ) | $ | 344 | (114.5 | ) | |||||
EARNINGS PER SHARE | ||||||||||||
Basic (Loss) Earnings per Share | $ | (0.19 | ) | $ | 1.61 | (111.8 | ) | |||||
Diluted (Loss) Earnings per Share | $ | (0.19 | ) | $ | 1.58 | (112.0 | ) | |||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 267,341 | 213,583 | ||||||||||
Diluted | 267,341 | 217,866 |
Six Months Ended March 31, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 7,302 | $ | 5,892 | 23.9 | |||||||
Cost of products sold | 4,148 | 3,007 | 38.0 | |||||||||
Selling and administrative expense | 1,831 | 1,432 | 27.8 | |||||||||
Research and development expense | 452 | 368 | 22.7 | |||||||||
Acquisitions and other restructurings | 458 | 163 | 181.7 | |||||||||
Other operating income | — | (336 | ) | 100.0 | ||||||||
TOTAL OPERATING COSTS AND EXPENSES | 6,889 | 4,634 | 48.7 | |||||||||
OPERATING INCOME | 413 | 1,257 | (67.1 | ) | ||||||||
Interest expense | (343 | ) | (181 | ) | 89.9 | |||||||
Interest income | 48 | 12 | 294.9 | |||||||||
Other expense, net | (6 | ) | (35 | ) | 81.5 | |||||||
INCOME BEFORE INCOME TAXES | 111 | 1,054 | (89.4 | ) | ||||||||
Income tax provision | 260 | 148 | 74.9 | |||||||||
NET (LOSS) INCOME | (148 | ) | 905 | (116.4 | ) | |||||||
Preferred stock dividends | (76 | ) | — | 100.0 | ||||||||
NET (LOSS) INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | (224 | ) | $ | 905 | (124.8 | ) | |||||
EARNINGS PER SHARE | ||||||||||||
Basic (Loss) Earnings per Share | $ | (0.90 | ) | $ | 4.24 | (121.2 | ) | |||||
Diluted (Loss) Earnings per Share | $ | (0.90 | ) | $ | 4.15 | (121.7 | ) | |||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 248,484 | 213,321 | ||||||||||
Diluted | 248,484 | 217,986 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 504 | $ | 345 | 45.9 | ||||||
Medication Management Solutions | 461 | 464 | (0.7 | ) | |||||||
Diabetes Care | 131 | 124 | 5.8 | ||||||||
Pharmaceutical Systems | 82 | 76 | 7.9 | ||||||||
TOTAL | $ | 1,178 | $ | 1,009 | 16.7 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 181 | $ | 185 | (2.2 | ) | |||||
Diagnostic Systems | 201 | 173 | 16.4 | ||||||||
Biosciences | 116 | 110 | 5.5 | ||||||||
TOTAL | $ | 498 | $ | 467 | 6.5 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 276 | $ | 146 | NM | ||||||
Peripheral Intervention (a) | 194 | 4 | NM | ||||||||
Urology and Critical Care | 180 | — | NM | ||||||||
TOTAL | $ | 649 | $ | 150 | NM | ||||||
TOTAL UNITED STATES | $ | 2,325 | $ | 1,627 | 42.9 |
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) | $ | 454 | $ | 348 | $ | 30 | 30.7 | 22.0 | ||||||||||
Medication Management Solutions | 120 | 103 | 11 | 16.8 | 5.9 | |||||||||||||
Diabetes Care | 136 | 119 | 10 | 14.0 | 5.7 | |||||||||||||
Pharmaceutical Systems | 284 | 235 | 30 | 20.5 | 8.0 | |||||||||||||
TOTAL | $ | 994 | $ | 805 | $ | 81 | 23.5 | 13.4 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 200 | $ | 177 | $ | 15 | 12.8 | 4.4 | ||||||||||
Diagnostic Systems | 209 | 178 | 15 | 17.7 | 9.0 | |||||||||||||
Biosciences | 191 | 160 | 14 | 19.7 | 11.1 | |||||||||||||
TOTAL | $ | 600 | $ | 514 | $ | 44 | 16.6 | 8.1 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 75 | $ | 21 | $ | 6 | NM | NM | ||||||||||
Peripheral Intervention (a) | 145 | 1 | 12 | NM | NM | |||||||||||||
Urology and Critical Care | 84 | — | 6 | NM | NM | |||||||||||||
TOTAL | $ | 303 | $ | 23 | $ | 24 | NM | NM | ||||||||||
TOTAL INTERNATIONAL | $ | 1,898 | $ | 1,342 | $ | 149 | 41.4 | 30.2 |
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) | $ | 958 | $ | 693 | $ | 30 | 38.3 | 33.9 | ||||||||||
Medication Management Solutions | 581 | 567 | 11 | 2.5 | 0.5 | |||||||||||||
Diabetes Care | 267 | 243 | 10 | 9.8 | 5.7 | |||||||||||||
Pharmaceutical Systems | 366 | 312 | 30 | 17.4 | 7.9 | |||||||||||||
TOTAL | $ | 2,172 | $ | 1,815 | $ | 81 | 19.7 | 15.3 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 381 | $ | 363 | $ | 15 | 5.1 | 1.0 | ||||||||||
Diagnostic Systems | 410 | 350 | 15 | 17.0 | 12.6 | |||||||||||||
Biosciences | 307 | 269 | 14 | 13.9 | 8.9 | |||||||||||||
TOTAL | $ | 1,098 | $ | 982 | $ | 44 | 11.8 | 7.3 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 351 | $ | 168 | $ | 6 | NM | NM | ||||||||||
Peripheral Intervention (a) | 338 | 5 | 12 | NM | NM | |||||||||||||
Urology and Critical Care | 264 | — | 6 | NM | NM | |||||||||||||
TOTAL | $ | 952 | $ | 173 | $ | 24 | NM | NM | ||||||||||
TOTAL REVENUES | $ | 4,222 | $ | 2,969 | $ | 149 | 42.2 | 37.2 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 874 | $ | 691 | 26.5 | ||||||
Medication Management Solutions | 932 | 956 | (2.5 | ) | |||||||
Diabetes Care | 277 | 268 | 3.4 | ||||||||
Pharmaceutical Systems | 136 | 139 | (2.0 | ) | |||||||
TOTAL | $ | 2,218 | $ | 2,053 | 8.0 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 366 | $ | 361 | 1.2 | ||||||
Diagnostic Systems | 367 | 327 | 12.4 | ||||||||
Biosciences | 224 | 216 | 3.6 | ||||||||
TOTAL | $ | 957 | $ | 904 | 5.8 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 428 | $ | 292 | NM | ||||||
Peripheral Intervention (a) | 198 | 7 | NM | ||||||||
Urology and Critical Care | 180 | — | NM | ||||||||
TOTAL | $ | 806 | $ | 299 | NM | ||||||
TOTAL UNITED STATES | $ | 3,982 | $ | 3,257 | 22.3 |
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) | $ | 826 | $ | 697 | $ | 42 | 18.5 | 12.5 | ||||||||||
Medication Management Solutions | 237 | 212 | 18 | 11.5 | 3.2 | |||||||||||||
Diabetes Care | 267 | 243 | 14 | 10.2 | 4.4 | |||||||||||||
Pharmaceutical Systems | 475 | 400 | 39 | 18.8 | 9.0 | |||||||||||||
TOTAL | $ | 1,806 | $ | 1,552 | $ | 113 | 16.3 | 9.0 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 391 | $ | 356 | $ | 21 | 9.7 | 3.9 | ||||||||||
Diagnostic Systems | 423 | 357 | 21 | 18.5 | 12.6 | |||||||||||||
Biosciences | 372 | 322 | 19 | 15.3 | 9.4 | |||||||||||||
TOTAL | $ | 1,186 | $ | 1,036 | $ | 61 | 14.5 | 8.6 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 99 | $ | 44 | $ | 7 | NM | NM | ||||||||||
Peripheral Intervention (a) | 146 | 2 | 12 | NM | NM | |||||||||||||
Urology and Critical Care | 84 | — | 6 | NM | NM | |||||||||||||
TOTAL | $ | 329 | $ | 47 | $ | 25 | NM | NM | ||||||||||
TOTAL INTERNATIONAL | $ | 3,321 | $ | 2,635 | $ | 199 | 26.0 | 18.5 |
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) | $ | 1,700 | $ | 1,388 | $ | 42 | 22.5 | 19.4 | ||||||||||
Medication Management Solutions | 1,168 | 1,168 | 18 | — | (1.5 | ) | ||||||||||||
Diabetes Care | 544 | 511 | 14 | 6.6 | 3.9 | |||||||||||||
Pharmaceutical Systems | 612 | 539 | 39 | 13.5 | 6.1 | |||||||||||||
TOTAL | $ | 4,024 | $ | 3,606 | $ | 113 | 11.6 | 8.5 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 756 | $ | 718 | $ | 21 | 5.4 | 2.5 | ||||||||||
Diagnostic Systems | 791 | 684 | 21 | 15.6 | 12.5 | |||||||||||||
Biosciences | 596 | 539 | 19 | 10.6 | 7.1 | |||||||||||||
TOTAL | $ | 2,143 | $ | 1,940 | $ | 61 | 10.4 | 7.3 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 528 | $ | 336 | $ | 7 | NM | NM | ||||||||||
Peripheral Intervention (a) | 344 | 9 | 12 | NM | NM | |||||||||||||
Urology and Critical Care | 264 | — | 6 | NM | NM | |||||||||||||
TOTAL | $ | 1,135 | $ | 346 | $ | 25 | NM | NM | ||||||||||
TOTAL REVENUES | $ | 7,302 | $ | 5,892 | $ | 199 | 23.9 | 20.6 |
A | B | C=A+B | D | E | F | G | H=D+E+F+G | I=(C-H)/H | |||||||||||||||||||||||||||||
BD Reported | Divestiture Adjustments (b) | Comparable | BD Reported (a) | Bard (c) | Intercompany Adjustment (d) | Divestiture Adjustments (b) | Comparable | Comparable % Change | |||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 504 | $ | — | $ | 504 | $ | 345 | $ | 146 | $ | (4 | ) | $ | — | $ | 488 | 3.2 | |||||||||||||||||||
Medication Management Solutions | 461 | — | 461 | 464 | — | — | — | 464 | (0.7 | ) | |||||||||||||||||||||||||||
Diabetes Care | 131 | — | 131 | 124 | — | — | — | 124 | 5.8 | ||||||||||||||||||||||||||||
Pharmaceutical Systems | 82 | — | 82 | 76 | — | — | — | 76 | 7.9 | ||||||||||||||||||||||||||||
TOTAL | $ | 1,178 | $ | — | $ | 1,178 | $ | 1,009 | $ | 146 | $ | (4 | ) | $ | — | $ | 1,152 | 2.2 | |||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 181 | $ | — | $ | 181 | $ | 185 | $ | — | $ | — | $ | — | $ | 185 | (2.2 | ) | |||||||||||||||||||
Diagnostic Systems | 201 | — | 201 | 173 | — | — | — | 173 | 16.4 | ||||||||||||||||||||||||||||
Biosciences | 116 | — | 116 | 110 | — | — | — | 110 | 5.5 | ||||||||||||||||||||||||||||
TOTAL | $ | 498 | $ | — | $ | 498 | $ | 467 | $ | — | $ | — | $ | — | $ | 467 | 6.5 | ||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 276 | $ | (5 | ) | $ | 271 | $ | 146 | $ | 131 | $ | — | $ | (10 | ) | $ | 267 | 1.6 | ||||||||||||||||||
Peripheral Intervention (a) | 194 | — | 194 | 4 | 171 | — | — | 175 | 10.8 | ||||||||||||||||||||||||||||
Urology and Critical Care | 180 | — | 180 | — | 169 | — | — | 169 | 6.6 | ||||||||||||||||||||||||||||
TOTAL | $ | 649 | $ | (5 | ) | $ | 645 | $ | 150 | $ | 470 | $ | — | $ | (10 | ) | $ | 610 | 5.6 | ||||||||||||||||||
TOTAL UNITED STATES | $ | 2,325 | $ | (5 | ) | $ | 2,320 | $ | 1,627 | $ | 617 | $ | (4 | ) | $ | (10 | ) | $ | 2,230 | 4.0 |
(a) | Reflects a reclassification of $150 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
(c) | 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. |
(d) | 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. |
A | B | C=A+B | D | E | F | G=D+E+F | H | I=(C-G-H)/G | |||||||||||||||||||||||||||||
BD Reported | Divestiture Adjustments (b) | Comparable | BD Reported (a) | Bard (c) | Divestiture Adjustments (b) | Comparable | FX Impact | FXN % Change | |||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 454 | $ | — | $ | 454 | $ | 348 | $ | 49 | $ | — | $ | 397 | $ | 30 | 6.9 | ||||||||||||||||||||
Medication Management Solutions | 120 | — | 120 | 103 | — | — | 103 | 11 | 5.9 | ||||||||||||||||||||||||||||
Diabetes Care | 136 | — | 136 | 119 | — | — | 119 | 10 | 5.7 | ||||||||||||||||||||||||||||
Pharmaceutical Systems | 284 | — | 284 | 235 | — | — | 235 | 30 | 8.0 | ||||||||||||||||||||||||||||
TOTAL | $ | 994 | $ | — | $ | 994 | $ | 805 | $ | 49 | $ | — | $ | 854 | $ | 81 | 6.9 | ||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 200 | $ | — | $ | 200 | $ | 177 | $ | — | $ | — | $ | 177 | $ | 15 | 4.4 | ||||||||||||||||||||
Diagnostic Systems | 209 | — | 209 | 178 | — | — | 178 | 15 | 9.0 | ||||||||||||||||||||||||||||
Biosciences | 191 | — | 191 | 160 | — | — | 160 | 14 | 11.1 | ||||||||||||||||||||||||||||
TOTAL | $ | 600 | $ | — | $ | 600 | $ | 514 | $ | — | $ | — | $ | 514 | $ | 44 | 8.1 | ||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 75 | $ | (1 | ) | $ | 74 | $ | 21 | $ | 39 | $ | (3 | ) | $ | 58 | $ | 6 | 16.1 | ||||||||||||||||||
Peripheral Intervention (a) | 145 | — | 145 | 1 | 118 | — | 120 | 12 | 11.0 | ||||||||||||||||||||||||||||
Urology and Critical Care | 84 | — | 84 | — | 73 | — | 73 | 6 | 6.3 | ||||||||||||||||||||||||||||
TOTAL | $ | 303 | $ | (1 | ) | $ | 302 | $ | 23 | $ | 231 | $ | (3 | ) | $ | 251 | $ | 24 | 10.8 | ||||||||||||||||||
TOTAL INTERNATIONAL | $ | 1,898 | $ | (1 | ) | $ | 1,897 | $ | 1,342 | $ | 280 | $ | (3 | ) | $ | 1,620 | $ | 149 | 7.9 |
(a) | Reflects a reclassification of $23 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
(c) | Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure. |
A | B | C=A+B | D | E | F | G | H=D+E+F+G | I | J=(C-H-I)/H | ||||||||||||||||||||||||||||||||
BD Reported | Divestiture Adjustments (b) | Comparable | BD Reported (a) | Bard (c) | Intercompany Adjustment (d) | Divestiture Adjustments (b) | Comparable | FX Impact | FXN % Change | ||||||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 958 | $ | — | $ | 958 | $ | 693 | $ | 195 | $ | (4 | ) | $ | — | $ | 885 | $ | 30 | 4.9 | |||||||||||||||||||||
Medication Management Solutions | 581 | — | 581 | 567 | — | — | — | 567 | 11 | 0.5 | |||||||||||||||||||||||||||||||
Diabetes Care | 267 | — | 267 | 243 | — | — | — | 243 | 10 | 5.7 | |||||||||||||||||||||||||||||||
Pharmaceutical Systems | 366 | — | 366 | 312 | — | — | — | 312 | 30 | 7.9 | |||||||||||||||||||||||||||||||
TOTAL | $ | 2,172 | $ | — | $ | 2,172 | $ | 1,815 | $ | 195 | $ | (4 | ) | $ | — | $ | 2,006 | $ | 81 | 4.2 | |||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 381 | $ | — | $ | 381 | $ | 363 | $ | — | $ | — | $ | — | $ | 363 | $ | 15 | 1.0 | ||||||||||||||||||||||
Diagnostic Systems | 410 | — | 410 | 350 | — | — | — | 350 | 15 | 12.6 | |||||||||||||||||||||||||||||||
Biosciences | 307 | — | 307 | 269 | — | — | — | 269 | 14 | 8.9 | |||||||||||||||||||||||||||||||
TOTAL | $ | 1,098 | $ | — | $ | 1,098 | $ | 982 | $ | — | $ | — | $ | — | $ | 982 | $ | 44 | 7.3 | ||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 351 | $ | (5 | ) | $ | 345 | $ | 168 | $ | 170 | $ | — | $ | (12 | ) | $ | 326 | $ | 6 | 4.2 | ||||||||||||||||||||
Peripheral Intervention (a) | 338 | — | 338 | 5 | 289 | — | — | 294 | 12 | 10.9 | |||||||||||||||||||||||||||||||
Urology and Critical Care | 264 | — | 264 | — | 242 | — | — | 242 | 6 | 6.5 | |||||||||||||||||||||||||||||||
TOTAL | $ | 952 | $ | (5 | ) | $ | 947 | $ | 173 | $ | 701 | $ | — | $ | (12 | ) | $ | 862 | $ | 24 | 7.1 | ||||||||||||||||||||
TOTAL REVENUES | $ | 4,222 | $ | (5 | ) | $ | 4,217 | $ | 2,969 | $ | 897 | $ | (4 | ) | $ | (12 | ) | $ | 3,850 | $ | 149 | 5.7 |
(a) | Reflects a reclassification of $173 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
(c) | 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. |
(d) | 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. |
A | B | C | D | E=A+B+C+D | F | G | H | I | J=F+G+H+I | K | |||||||||||||||||||||||||||||||||||
BD Reported | Bard Q1 (b) | Presentation Alignment Adjustments (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 | |||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 874 | $ | 145 | $ | (3 | ) | $ | — | $ | 1,015 | $ | 691 | $ | 285 | $ | (8 | ) | $ | — | $ | 969 | 4.8 | ||||||||||||||||||||||
Medication Management Solutions | 932 | — | — | — | 932 | 956 | — | — | — | 956 | (2.5 | ) | |||||||||||||||||||||||||||||||||
Diabetes Care | 277 | — | — | — | 277 | 268 | — | — | — | 268 | 3.4 | ||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 136 | — | — | — | 136 | 139 | — | — | — | 139 | (2.0 | ) | |||||||||||||||||||||||||||||||||
TOTAL | $ | 2,218 | $ | 145 | $ | (3 | ) | $ | — | $ | 2,360 | $ | 2,053 | $ | 285 | $ | (8 | ) | $ | — | $ | 2,331 | 1.3 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 366 | $ | — | $ | — | $ | — | $ | 366 | $ | 361 | $ | — | $ | — | $ | — | $ | 361 | 1.2 | ||||||||||||||||||||||||
Diagnostic Systems | 367 | — | — | — | 367 | 327 | — | — | — | 327 | 12.4 | ||||||||||||||||||||||||||||||||||
Biosciences | 224 | — | — | — | 224 | 216 | — | — | — | 216 | 3.6 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 957 | $ | — | $ | — | $ | — | $ | 957 | $ | 904 | $ | — | $ | — | $ | — | $ | 904 | 5.8 | ||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 428 | $ | 105 | $ | — | $ | (15 | ) | $ | 518 | $ | 292 | $ | 261 | $ | — | $ | (20 | ) | $ | 534 | (2.9 | ) | |||||||||||||||||||||
Peripheral Intervention (a) | 198 | 188 | — | — | 386 | 7 | 343 | — | — | 350 | 10.3 | ||||||||||||||||||||||||||||||||||
Urology and Critical Care | 180 | 177 | — | — | 357 | — | 343 | — | — | 343 | 4.0 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 806 | $ | 470 | $ | — | $ | (15 | ) | $ | 1,261 | $ | 299 | $ | 947 | $ | — | $ | (20 | ) | $ | 1,227 | 2.8 | ||||||||||||||||||||||
TOTAL UNITED STATES | $ | 3,982 | $ | 614 | $ | (3 | ) | $ | (15 | ) | $ | 4,578 | $ | 3,257 | $ | 1,232 | $ | (8 | ) | $ | (20 | ) | $ | 4,462 | 2.6 |
(a) | Reflects a reclassification of $299 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts in 2018 represent revenues for the quarter ended December 31, 2017; amounts in 2017 represent revenues for the quarters ended December 31, 2016 and March 31, 2017. 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. |
A | B | C | D=A+B+C | E | F | G | H=E+F+G | I | J=(D-H-I)/H | ||||||||||||||||||||||||||||||||
BD Reported | Bard Q1 (b) | Divestiture Adjustments (c) | Comparable | BD Reported (a) | Bard (b) | Divestiture Adjustments (c) | Comparable | FX Impact | FXN % Change | ||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 826 | $ | 68 | $ | — | $ | 895 | $ | 697 | $ | 105 | $ | — | $ | 803 | $ | 44 | 5.9 | ||||||||||||||||||||||
Medication Management Solutions | 237 | — | — | 237 | 212 | — | — | 212 | 18 | 3.2 | |||||||||||||||||||||||||||||||
Diabetes Care | 267 | — | — | 267 | 243 | — | — | 243 | 14 | 4.4 | |||||||||||||||||||||||||||||||
Pharmaceutical Systems | 475 | — | — | 475 | 400 | — | — | 400 | 39 | 9.0 | |||||||||||||||||||||||||||||||
TOTAL | $ | 1,806 | $ | 68 | $ | — | $ | 1,874 | $ | 1,552 | $ | 105 | $ | — | $ | 1,658 | $ | 115 | 6.1 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 391 | $ | — | $ | — | $ | 391 | $ | 356 | $ | — | $ | — | $ | 356 | $ | 21 | 3.9 | ||||||||||||||||||||||
Diagnostic Systems | 423 | — | — | 423 | 357 | — | — | 357 | 21 | 12.6 | |||||||||||||||||||||||||||||||
Biosciences | 372 | — | — | 372 | 322 | — | — | 322 | 19 | 9.4 | |||||||||||||||||||||||||||||||
TOTAL | $ | 1,186 | $ | — | $ | — | $ | 1,186 | $ | 1,036 | $ | — | $ | — | $ | 1,036 | $ | 61 | 8.6 | ||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 99 | $ | 49 | $ | (3 | ) | $ | 145 | $ | 44 | $ | 81 | $ | (5 | ) | $ | 120 | $ | 9 | 13.3 | ||||||||||||||||||||
Peripheral Intervention (a) | 146 | 146 | — | 292 | 2 | 244 | — | 247 | 17 | 11.5 | |||||||||||||||||||||||||||||||
Urology and Critical Care | 84 | 90 | — | 174 | — | 160 | — | 160 | 8 | 4.1 | |||||||||||||||||||||||||||||||
TOTAL | $ | 329 | $ | 285 | $ | (3 | ) | $ | 611 | $ | 47 | $ | 485 | $ | (5 | ) | $ | 527 | $ | 33 | 9.7 | ||||||||||||||||||||
TOTAL INTERNATIONAL | $ | 3,321 | $ | 353 | $ | (3 | ) | $ | 3,671 | $ | 2,635 | $ | 591 | $ | (5 | ) | $ | 3,220 | $ | 209 | 7.5 |
(a) | Reflects a reclassification of $47 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts in 2018 represent revenues for the quarter ended December 31, 2017; amounts in 2017 represent revenues for the quarters ended December 31, 2016 and March 31, 2017. 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. |
A | B | C | D | E=A+B+C+D | F | G | H | I | J=F+G+H+I | K | L=(E-J-K)/J | ||||||||||||||||||||||||||||||||||||||
BD Reported | Bard Q1 (b) | Presentation Alignment Adjustments (c) | Divestiture Adjustments (d) | Comparable | BD Reported (a) | Bard (b) | Intercompany Adjustment (c) | Divestiture Adjustments (d) | Comparable | FX Impact | FXN % Change | ||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 1,700 | $ | 213 | $ | (3 | ) | $ | — | $ | 1,910 | $ | 1,388 | $ | 391 | $ | (8 | ) | $ | — | $ | 1,771 | $ | 44 | 5.3 | ||||||||||||||||||||||||
Medication Management Solutions | 1,168 | — | — | — | 1,168 | 1,168 | — | — | — | 1,168 | 18 | (1.5 | ) | ||||||||||||||||||||||||||||||||||||
Diabetes Care | 544 | — | — | — | 544 | 511 | — | — | — | 511 | 14 | 3.9 | |||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 612 | — | — | — | 612 | 539 | — | — | — | 539 | 39 | 6.1 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 4,024 | $ | 213 | $ | (3 | ) | $ | — | $ | 4,234 | $ | 3,606 | $ | 391 | $ | (8 | ) | $ | — | $ | 3,989 | $ | 115 | 3.3 | ||||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 756 | $ | — | $ | — | $ | — | $ | 756 | $ | 718 | $ | — | $ | — | $ | — | $ | 718 | $ | 21 | 2.5 | ||||||||||||||||||||||||||
Diagnostic Systems | 791 | — | — | — | 791 | 684 | — | — | — | 684 | 21 | 12.5 | |||||||||||||||||||||||||||||||||||||
Biosciences | 596 | — | — | — | 596 | 539 | — | — | — | 539 | 19 | 7.1 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 2,143 | $ | — | $ | — | $ | — | $ | 2,143 | $ | 1,940 | $ | — | $ | — | $ | — | $ | 1,940 | $ | 61 | 7.3 | ||||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 528 | $ | 153 | $ | — | $ | (18 | ) | $ | 663 | $ | 336 | $ | 342 | $ | — | $ | (25 | ) | $ | 654 | $ | 9 | 0.1 | ||||||||||||||||||||||||
Peripheral Intervention (a) | 344 | 334 | — | — | 678 | 9 | 587 | — | — | 597 | 17 | 10.8 | |||||||||||||||||||||||||||||||||||||
Urology and Critical Care | 264 | 267 | — | — | 531 | — | 503 | — | — | 503 | 8 | 4.0 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,135 | $ | 755 | $ | — | $ | (18 | ) | $ | 1,872 | $ | 346 | $ | 1,432 | $ | — | $ | (25 | ) | $ | 1,753 | $ | 33 | 4.9 | ||||||||||||||||||||||||
TOTAL REVENUES | $ | 7,302 | $ | 968 | $ | (3 | ) | $ | (18 | ) | $ | 8,249 | $ | 5,892 | $ | 1,823 | $ | (8 | ) | $ | (25 | ) | $ | 7,682 | $ | 209 | 4.7 |
(a) | Reflects a reclassification of $346 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts in 2018 represent revenues for the quarter ended December 31, 2017; amounts in 2017 represent revenues for the quarters ended December 31, 2016 and March 31, 2017. 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. |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted (Loss) Earnings per Share | $ | (0.19 | ) | $ | 1.58 | $ | (1.77 | ) | $ | 0.16 | $ | (1.93 | ) | (112.0 | )% | (122.2 | )% | |||||||||
Purchase accounting adjustments ($790 million and $129 million pre-tax, respectively) (1) | 2.96 | 0.59 | ||||||||||||||||||||||||
Restructuring costs ($19 million and $11 million pre-tax, respectively) (2) | 0.07 | 0.05 | 0.01 | |||||||||||||||||||||||
Integration costs ($79 million and $63 million pre-tax, respectively) (2) | 0.29 | 0.29 | ||||||||||||||||||||||||
Transaction costs ($7 million and $8 million pre-tax, respectively) (2) | 0.03 | 0.04 | ||||||||||||||||||||||||
Hurricane recovery costs ($5 million) (3) | 0.02 | — | ||||||||||||||||||||||||
Losses on debt extinguishment ($13 million pre-tax) (4) | 0.05 | — | ||||||||||||||||||||||||
Dilutive impact (5) | (0.06 | ) | — | |||||||||||||||||||||||
Income tax benefit of special items ($137 million and $54 million, respectively) | (0.51 | ) | (0.25 | ) | ||||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 2.65 | $ | 2.30 | $ | 0.35 | $ | 0.17 | $ | 0.18 | 15.2 | % | 7.8 | % |
(1) | Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. The amount in 2018 also included a fair value step-up adjustment of $422 million recorded relative to Bard's inventory on the acquisition date. |
(2) | Represents integration, restructuring and transaction costs which are associated with the Bard and CareFusion acquisitions, as well as restructuring and transaction costs associated with other portfolio rationalization initiatives. |
(3) | Represents costs incurred as a result of hurricane-related damage to production facilities in Puerto Rico. |
(4) | Represents losses recognized upon the extinguishment of certain long-term senior notes. |
(5) | Represents the dilutive impact of share equivalents associated with share-based plans that were excluded from the reported diluted shares outstanding calculation because the result would have been antidilutive. The adjusted diluted average shares outstanding (in thousands) were 273,693. |
Six Months Ended March 31, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted (Loss) Earnings per Share | $ | (0.90 | ) | $ | 4.15 | $ | (5.05 | ) | $ | 0.22 | $ | (5.27 | ) | (121.7 | )% | (127.0 | )% | |||||||||
Purchase accounting adjustments ($925 million and $255 million pre-tax, respectively) (1) | 3.72 | 1.17 | 0.01 | |||||||||||||||||||||||
Restructuring costs ($255 million and $46 million pre-tax, respectively) (2) | 1.02 | 0.21 | 0.01 | |||||||||||||||||||||||
Integration costs ($153 million and $109 million pre-tax, respectively) (2) | 0.61 | 0.50 | ||||||||||||||||||||||||
Transaction costs ($51 million and $14 million pre-tax, respectively) (2) | 0.20 | 0.06 | ||||||||||||||||||||||||
Financing impacts ($49 million pre-tax) (3) | 0.20 | — | ||||||||||||||||||||||||
Hurricane recovery costs ($12 million pre-tax) (4) | 0.05 | — | ||||||||||||||||||||||||
Losses on debt extinguishment ($13 million and $42 million pre-tax), respectively (5) | 0.05 | 0.19 | ||||||||||||||||||||||||
Litigation-related item ($(336) million pre-tax) (6) | — | (1.54 | ) | |||||||||||||||||||||||
Dilutive Impact (7) | 0.20 | — | ||||||||||||||||||||||||
Income tax benefit of special items and impact of tax reform ($2 million and $27 million, respectively) (8) | (0.01 | ) | (0.12 | ) | ||||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 5.15 | $ | 4.63 | $ | 0.52 | $ | 0.24 | $ | 0.28 | 11.2 | % | 6.0 | % |
(1) | Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. The amount in 2018 also included a fair value step-up adjustment of $422 million recorded relative to Bard's inventory on the acquisition date. |
(2) | Represents integration, restructuring and transaction costs which are associated with the Bard and CareFusion acquisitions, as well as restructuring and transaction costs associated with other portfolio rationalization initiatives. |
(3) | Represents financing impacts associated with the Bard acquisition. |
(4) | Represents costs incurred as a result of hurricane-related damage to production facilities in Puerto Rico. |
(5) | Represents losses recognized upon the extinguishment of certain long-term senior notes. |
(6) | Represents the reversal of certain reserves related to an appellate court decision which, among other things, reversed an unfavorable antitrust judgment in the RTI case. |
(7) | Represents the dilutive impact of the following: BD shares issued in May 2017, in anticipation of the Bard acquisition; BD shares issued as consideration transferred to acquire Bard; and share equivalents associated with share-based plans that were excluded from the reported diluted shares outstanding calculation because the result would have been antidilutive. The adjusted diluted average shares outstanding (in thousands) was 246,179. |
(8) | Includes additional tax expense, net, of $275 million relating to new U.S. tax legislation. An estimated one-time transition tax payable of $561 million, payable over an eight year period with 8% due in each of the first five years, was offset by a tax benefit of $285 million related to the remeasurement of deferred tax balances due to the lower corporate tax rate at which they are expected to reverse in the future. |
BD Including Bard | ||||||||||
FY2017 | FY2018 Outlook | |||||||||
Revenues | % Change | FX Impact | % Change FXN | |||||||
BDX Revenue | $ | 12,093 | 31.0% - 31.5% | ~2.5% | 28.5% - 29.0% | |||||
Comparable Revenue Growth | ||||||||||
FY2017 | FY2018 Outlook | |||||||||
Revenues | % Change FXN Comparable | |||||||||
BDX As Reported Revenue | $ | 12,093 | ||||||||
Divestitures Revenue (1) | (48 | ) | ||||||||
Bard As Reported | 3,875 | |||||||||
Gore Royalty Classification | (173 | ) | ||||||||
Intercompany Adjustment | (14 | ) | ||||||||
BDX NewCo Comparable Revenue | $ | 15,732 | 5.0% - 5.5% | |||||||
U.S. Dispensing Change & Bard Hurricane Impact | ~0.5% | |||||||||
NewCo Revenue Underlying | 5.5% - 6.0% | |||||||||
BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2018 OUTLOOK RECONCILIATION (continued) | ||||||||||
FY2017 | FY2018 Outlook | |||||||||
Revenues | % Change FXN Comparable | |||||||||
BD Medical As Reported Revenue | $ | 8,105 | ||||||||
BD BU Re-alignment | (685 | ) | ||||||||
Bard BU Re-alignment | 800 | |||||||||
Intercompany Adjustment | (14 | ) | ||||||||
BD Medical Comparable Revenue | $ | 8,205 | 4.0% - 5.0% | |||||||
BD Life Sciences As Reported Revenue | $ | 3,988 | 5.0% - 6.0% | |||||||
Bard Interventional as Reported | $ | — | ||||||||
BD BU Re-alignment | 685 | |||||||||
Bard As Reported | 3,875 | |||||||||
Bard BU Re-alignment | (800 | ) | ||||||||
Divestitures Revenue (1) | (48 | ) | ||||||||
Gore Royalty Classification | (173 | ) | ||||||||
Bard Interventional Comparable Revenue | $ | 3,539 | 4.5% - 5.5% | |||||||
Hurricane Impact | ~1% | |||||||||
NewCo Interventional Revenue Underlying | 5.5% - 6.5% | |||||||||
BD Including Bard | ||||||||||
FY2018 Outlook | ||||||||||
Full Year FY2018 Outlook | % Increase | |||||||||
Adjusted Fully Diluted Earnings per Share | $10.90 - 11.05 | 15% - 16.5% | ||||||||
Estimated FX Impact | ~4% | |||||||||
Adjusted FXN Growth | ~12.0% |