• | As reported, revenues of $4.278 billion increased 41.0 percent. |
• | On a comparable, currency-neutral basis, revenues increased 5.5 percent. |
• | As reported, diluted earnings per share of $2.03 increased 370.7 percent. |
• | As adjusted, diluted earnings per share of $2.91 increased 18.3 percent, or 11.0 percent on a currency-neutral basis. |
• | The company is raising full fiscal year 2018 revenue guidance, and narrowing its adjusted diluted earnings per share guidance |
• | The company reaffirms that the acquisition of C.R. Bard is expected to be accretive to adjusted dilutive earnings per share on a high-single digit basis in fiscal year 2019. |
Three Months Ended June 30, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 4,278 | $ | 3,035 | 41.0 | |||||||
Cost of products sold | 2,262 | 1,532 | 47.7 | |||||||||
Selling and administrative expense | 1,081 | 719 | 50.3 | |||||||||
Research and development expense | 277 | 186 | 49.1 | |||||||||
Acquisitions and other restructurings | 146 | 81 | 81.3 | |||||||||
Other operating expense, net | — | 741 | (100.0 | ) | ||||||||
TOTAL OPERATING COSTS AND EXPENSES | 3,766 | 3,258 | 15.6 | |||||||||
OPERATING INCOME (LOSS) | 513 | (223 | ) | 330.2 | ||||||||
Interest expense | (182 | ) | (184 | ) | (1.0 | ) | ||||||
Interest income | 8 | 19 | (59.4 | ) | ||||||||
Other income (expense), net | 308 | (16 | ) | 2,063.0 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 647 | (404 | ) | 260.4 | ||||||||
Income tax provision (benefit) | 53 | (271 | ) | 119.6 | ||||||||
NET INCOME (LOSS) | 594 | (132 | ) | 548.9 | ||||||||
Preferred stock dividends | (38 | ) | (32 | ) | 16.9 | |||||||
NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS | $ | 556 | $ | (165 | ) | 437.6 | ||||||
EARNINGS PER SHARE | ||||||||||||
Basic Earnings (Loss) per Share | $ | 2.08 | $ | (0.75 | ) | 377.3 | ||||||
Diluted Earnings (Loss) per Share | $ | 2.03 | $ | (0.75 | ) | 370.7 | ||||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 267,836 | 220,807 | ||||||||||
Diluted | 273,925 | 220,807 |
Nine Months Ended June 30, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 11,581 | $ | 8,927 | 29.7 | |||||||
Cost of products sold | 6,410 | 4,539 | 41.2 | |||||||||
Selling and administrative expense | 2,912 | 2,151 | 35.3 | |||||||||
Research and development expense | 728 | 554 | 31.6 | |||||||||
Acquisitions and other restructurings | 604 | 243 | 148.4 | |||||||||
Other operating expense, net | — | 405 | (100.0 | ) | ||||||||
TOTAL OPERATING COSTS AND EXPENSES | 10,655 | 7,892 | 35.0 | |||||||||
OPERATING INCOME | 926 | 1,035 | (10.5 | ) | ||||||||
Interest expense | (525 | ) | (364 | ) | 44.1 | |||||||
Interest income | 55 | 31 | 80.5 | |||||||||
Other income (expense), net | 302 | (51 | ) | 697.3 | ||||||||
INCOME BEFORE INCOME TAXES | 759 | 650 | 16.6 | |||||||||
Income tax provision (benefit) | 313 | (123 | ) | 354.9 | ||||||||
NET INCOME | 446 | 773 | (42.3 | ) | ||||||||
Preferred stock dividends | (114 | ) | (32 | ) | 250.6 | |||||||
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 332 | $ | 741 | (55.2 | ) | ||||||
EARNINGS PER SHARE | ||||||||||||
Basic Earnings per Share | $ | 1.30 | $ | 3.43 | (62.1 | ) | ||||||
Diluted Earnings per Share | $ | 1.27 | $ | 3.36 | (62.2 | ) | ||||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 254,934 | 215,817 | ||||||||||
Diluted | 260,860 | 220,406 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 505 | $ | 335 | 50.8 | ||||||
Medication Management Solutions | 483 | 447 | 8.1 | ||||||||
Diabetes Care | 138 | 132 | 4.7 | ||||||||
Pharmaceutical Systems | 103 | 93 | 11.6 | ||||||||
TOTAL | $ | 1,230 | $ | 1,006 | 22.2 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 199 | $ | 191 | 4.2 | ||||||
Diagnostic Systems | 151 | 145 | 4.2 | ||||||||
Biosciences | 126 | 115 | 9.7 | ||||||||
TOTAL | $ | 476 | $ | 451 | 5.6 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 259 | $ | 142 | NM | ||||||
Peripheral Intervention (a) | 195 | 3 | NM | ||||||||
Urology and Critical Care | 178 | — | NM | ||||||||
TOTAL | $ | 632 | $ | 145 | NM | ||||||
TOTAL UNITED STATES | $ | 2,338 | $ | 1,603 | 45.9 |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2018 | 2017 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 471 | $ | 367 | $ | 23 | 28.3 | 22.1 | ||||||||||
Medication Management Solutions | 127 | 109 | 9 | 17.1 | 9.1 | |||||||||||||
Diabetes Care | 138 | 131 | 7 | 5.4 | 0.1 | |||||||||||||
Pharmaceutical Systems | 279 | 258 | 19 | 8.4 | 1.0 | |||||||||||||
TOTAL | $ | 1,016 | $ | 864 | $ | 58 | 17.5 | 10.8 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 205 | $ | 185 | $ | 8 | 10.7 | 6.2 | ||||||||||
Diagnostic Systems | 211 | 191 | 10 | 10.7 | 5.7 | |||||||||||||
Biosciences | 188 | 171 | 8 | 9.7 | 4.9 | |||||||||||||
TOTAL | $ | 603 | $ | 547 | $ | 26 | 10.4 | 5.6 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 77 | $ | 20 | $ | 5 | NM | NM | ||||||||||
Peripheral Intervention (a) | 157 | 1 | 10 | NM | NM | |||||||||||||
Urology and Critical Care | 87 | — | 5 | NM | NM | |||||||||||||
TOTAL | $ | 322 | $ | 22 | $ | 19 | NM | NM | ||||||||||
TOTAL INTERNATIONAL | $ | 1,941 | $ | 1,433 | $ | 103 | 35.4 | 28.2 |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2018 | 2017 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 977 | $ | 702 | $ | 23 | 39.0 | 35.8 | ||||||||||
Medication Management Solutions | 610 | 556 | 9 | 9.8 | 8.3 | |||||||||||||
Diabetes Care | 276 | 263 | 7 | 5.1 | 2.4 | |||||||||||||
Pharmaceutical Systems | 383 | 350 | 19 | 9.3 | 3.8 | |||||||||||||
TOTAL | $ | 2,246 | $ | 1,871 | $ | 58 | 20.0 | 16.9 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 404 | $ | 376 | $ | 8 | 7.4 | 5.2 | ||||||||||
Diagnostic Systems | 362 | 335 | 10 | 7.9 | 5.0 | |||||||||||||
Biosciences | 314 | 286 | 8 | 9.7 | 6.8 | |||||||||||||
TOTAL | $ | 1,079 | $ | 997 | $ | 26 | 8.2 | 5.6 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 336 | $ | 163 | $ | 5 | NM | NM | ||||||||||
Peripheral Intervention (a) | 353 | 5 | 10 | NM | NM | |||||||||||||
Urology and Critical Care | 265 | — | 5 | NM | NM | |||||||||||||
TOTAL | $ | 954 | $ | 167 | $ | 19 | NM | NM | ||||||||||
TOTAL REVENUES | $ | 4,278 | $ | 3,035 | $ | 103 | 41.0 | 37.6 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 1,379 | $ | 1,026 | 34.4 | ||||||
Medication Management Solutions | 1,415 | 1,403 | 0.9 | ||||||||
Diabetes Care | 415 | 400 | 3.8 | ||||||||
Pharmaceutical Systems | 239 | 231 | 3.5 | ||||||||
TOTAL | $ | 3,448 | $ | 3,060 | 12.7 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 565 | $ | 552 | 2.2 | ||||||
Diagnostic Systems | 518 | 471 | 9.9 | ||||||||
Biosciences | 350 | 331 | 5.7 | ||||||||
TOTAL | $ | 1,433 | $ | 1,355 | 5.8 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 687 | $ | 434 | NM | ||||||
Peripheral Intervention (a) | 393 | 10 | NM | ||||||||
Urology and Critical Care | 358 | — | NM | ||||||||
TOTAL | $ | 1,438 | $ | 444 | NM | ||||||
TOTAL UNITED STATES | $ | 6,319 | $ | 4,859 | 30.0 |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2018 | 2017 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 1,298 | $ | 1,065 | $ | 65 | 21.9 | 15.8 | ||||||||||
Medication Management Solutions | 364 | 321 | 26 | 13.4 | 5.2 | |||||||||||||
Diabetes Care | 405 | 374 | 21 | 8.5 | 2.9 | |||||||||||||
Pharmaceutical Systems | 755 | 658 | 59 | 14.7 | 5.8 | |||||||||||||
TOTAL | $ | 2,822 | $ | 2,417 | $ | 171 | 16.7 | 9.7 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 595 | $ | 541 | $ | 29 | 10.0 | 4.7 | ||||||||||
Diagnostic Systems | 634 | 548 | 31 | 15.8 | 10.2 | |||||||||||||
Biosciences | 559 | 494 | 27 | 13.4 | 7.9 | |||||||||||||
TOTAL | $ | 1,789 | $ | 1,582 | $ | 87 | 13.1 | 7.6 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 177 | $ | 65 | $ | 12 | NM | NM | ||||||||||
Peripheral Intervention (a) | 303 | 4 | 22 | NM | NM | |||||||||||||
Urology and Critical Care | 171 | — | 11 | NM | NM | |||||||||||||
TOTAL | $ | 651 | $ | 68 | $ | 45 | NM | NM | ||||||||||
TOTAL INTERNATIONAL | $ | 5,261 | $ | 4,068 | $ | 302 | 29.3 | 21.9 |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2018 | 2017 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 2,677 | $ | 2,091 | $ | 65 | 28.0 | 24.9 | ||||||||||
Medication Management Solutions | 1,778 | 1,723 | 26 | 3.2 | 1.7 | |||||||||||||
Diabetes Care | 820 | 773 | 21 | 6.1 | 3.4 | |||||||||||||
Pharmaceutical Systems | 994 | 889 | 59 | 11.8 | 5.2 | |||||||||||||
TOTAL | $ | 6,270 | $ | 5,477 | $ | 171 | 14.5 | 11.4 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 1,160 | $ | 1,094 | $ | 29 | 6.1 | 3.4 | ||||||||||
Diagnostic Systems | 1,152 | 1,019 | 31 | 13.1 | 10.1 | |||||||||||||
Biosciences | 910 | 825 | 27 | 10.3 | 7.0 | |||||||||||||
TOTAL | $ | 3,222 | $ | 2,937 | $ | 87 | 9.7 | 6.7 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 864 | $ | 499 | $ | 12 | NM | NM | ||||||||||
Peripheral Intervention (a) | 697 | 14 | 22 | NM | NM | |||||||||||||
Urology and Critical Care | 529 | — | 11 | NM | NM | |||||||||||||
TOTAL | $ | 2,089 | $ | 513 | $ | 45 | NM | NM | ||||||||||
TOTAL REVENUES | $ | 11,581 | $ | 8,927 | $ | 302 | 29.7 | 26.3 |
A | B | C | D | E | F=B+C+D+E | G=(A-F)/F | |||||||||||||||||||||||
BD Reported | BD Reported (a) | Bard (b) | Intercompany Adjustment (c) | Divestiture Adjustments (d) | Comparable | Comparable % Change | |||||||||||||||||||||||
2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 505 | $ | 335 | $ | 144 | $ | (3 | ) | $ | — | $ | 476 | 6.2 | |||||||||||||||
Medication Management Solutions | 483 | 447 | — | — | — | 447 | 8.1 | ||||||||||||||||||||||
Diabetes Care | 138 | 132 | — | — | — | 132 | 4.7 | ||||||||||||||||||||||
Pharmaceutical Systems | 103 | 93 | — | — | — | 93 | 11.6 | ||||||||||||||||||||||
TOTAL | $ | 1,230 | $ | 1,006 | $ | 144 | $ | (3 | ) | $ | — | $ | 1,147 | 7.2 | |||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||
Preanalytical Systems | $ | 199 | $ | 191 | $ | — | $ | — | $ | — | $ | 191 | 4.2 | ||||||||||||||||
Diagnostic Systems | 151 | 145 | — | — | — | 145 | 4.2 | ||||||||||||||||||||||
Biosciences | 126 | 115 | — | — | — | 115 | 9.7 | ||||||||||||||||||||||
TOTAL | $ | 476 | $ | 451 | $ | — | $ | — | $ | — | $ | 451 | 5.6 | ||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||
Surgery (a) | $ | 259 | $ | 142 | $ | 129 | $ | — | $ | (9 | ) | $ | 262 | (1.4 | ) | ||||||||||||||
Peripheral Intervention (a) | 195 | 3 | 178 | — | — | 181 | 7.6 | ||||||||||||||||||||||
Urology and Critical Care | 178 | — | 167 | — | — | 167 | 6.9 | ||||||||||||||||||||||
TOTAL | $ | 632 | $ | 145 | $ | 474 | $ | — | $ | (9 | ) | $ | 610 | 3.5 | |||||||||||||||
TOTAL UNITED STATES | $ | 2,338 | $ | 1,603 | $ | 618 | $ | (3 | ) | $ | (9 | ) | $ | 2,208 | 5.9 |
(a) | Reflects a reclassification of $145 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure. Also reflects the elimination of revenues from the Peripheral Intervention unit related to a royalty income stream, reported as revenues by Bard, which BD reports as non-operating income in the current-year period. |
(c) | Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period. |
(d) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
A | B | C | D | E=B+C+D | F | G=(A-E-F)/E | |||||||||||||||||||||||
BD Reported | BD Reported (a) | Bard (b) | Divestiture Adjustments (c) | Comparable | FX Impact | FXN % Change | |||||||||||||||||||||||
2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 471 | $ | 367 | $ | 59 | $ | — | $ | 426 | $ | 23 | 5.3 | ||||||||||||||||
Medication Management Solutions | 127 | 109 | — | — | 109 | 9 | 9.1 | ||||||||||||||||||||||
Diabetes Care | 138 | 131 | — | — | 131 | 7 | 0.1 | ||||||||||||||||||||||
Pharmaceutical Systems | 279 | 258 | — | — | 258 | 19 | 1.0 | ||||||||||||||||||||||
TOTAL | $ | 1,016 | $ | 864 | $ | 59 | $ | — | $ | 923 | $ | 58 | 3.8 | ||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||
Preanalytical Systems | $ | 205 | $ | 185 | $ | — | $ | — | $ | 185 | $ | 8 | 6.2 | ||||||||||||||||
Diagnostic Systems | 211 | 191 | — | — | 191 | 10 | 5.7 | ||||||||||||||||||||||
Biosciences | 188 | 171 | — | — | 171 | 8 | 4.9 | ||||||||||||||||||||||
TOTAL | $ | 603 | $ | 547 | $ | — | $ | — | $ | 547 | $ | 26 | 5.6 | ||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||
Surgery (a) | $ | 77 | $ | 20 | $ | 45 | $ | (2 | ) | $ | 64 | $ | 5 | 14.4 | |||||||||||||||
Peripheral Intervention (a) | 157 | 1 | 134 | — | 136 | 10 | 8.7 | ||||||||||||||||||||||
Urology and Critical Care | 87 | — | 80 | — | 80 | 5 | 3.0 | ||||||||||||||||||||||
TOTAL | $ | 322 | $ | 22 | $ | 259 | $ | (2 | ) | $ | 279 | $ | 19 | 8.4 | |||||||||||||||
TOTAL INTERNATIONAL | $ | 1,941 | $ | 1,433 | $ | 318 | $ | (2 | ) | $ | 1,749 | $ | 103 | 5.1 |
(a) | Reflects a reclassification of $22 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure. |
(c) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
A | B | C | D | E | F=B+C+D+E | G | H=(A-F-G)/F | ||||||||||||||||||||||||||
BD Reported | BD Reported (a) | Bard (b) | Intercompany Adjustment (c) | Divestiture Adjustments (d) | Comparable | FX Impact | FXN % Change | ||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 977 | $ | 702 | $ | 203 | $ | (3 | ) | $ | — | $ | 902 | $ | 23 | 5.8 | |||||||||||||||||
Medication Management Solutions | 610 | 556 | — | — | — | 556 | 9 | 8.3 | |||||||||||||||||||||||||
Diabetes Care | 276 | 263 | — | — | — | 263 | 7 | 2.4 | |||||||||||||||||||||||||
Pharmaceutical Systems | 383 | 350 | — | — | — | 350 | 19 | 3.8 | |||||||||||||||||||||||||
TOTAL | $ | 2,246 | $ | 1,871 | $ | 203 | $ | (3 | ) | $ | — | $ | 2,070 | $ | 58 | 5.7 | |||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 404 | $ | 376 | $ | — | $ | — | $ | — | $ | 376 | $ | 8 | 5.2 | ||||||||||||||||||
Diagnostic Systems | 362 | 335 | — | — | — | 335 | 10 | 5.0 | |||||||||||||||||||||||||
Biosciences | 314 | 286 | — | — | — | 286 | 8 | 6.8 | |||||||||||||||||||||||||
TOTAL | $ | 1,079 | $ | 997 | $ | — | $ | — | $ | — | $ | 997 | $ | 26 | 5.6 | ||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||
Surgery (a) | $ | 336 | $ | 163 | $ | 175 | $ | — | $ | (11 | ) | $ | 326 | $ | 5 | 1.7 | |||||||||||||||||
Peripheral Intervention (a) | 353 | 5 | 312 | — | — | 317 | 10 | 8.1 | |||||||||||||||||||||||||
Urology and Critical Care | 265 | — | 246 | — | — | 246 | 5 | 5.6 | |||||||||||||||||||||||||
TOTAL | $ | 954 | $ | 167 | $ | 733 | $ | — | $ | (11 | ) | $ | 889 | $ | 19 | 5.1 | |||||||||||||||||
TOTAL REVENUES | $ | 4,278 | $ | 3,035 | $ | 936 | $ | (3 | ) | $ | (11 | ) | $ | 3,957 | $ | 103 | 5.5 |
(a) | Reflects a reclassification of $167 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(b) | Amounts presented in alignment with BD's current-period segment, organizational unit and regional reporting structure. Also reflects the elimination of revenues from the Peripheral Intervention unit related to a royalty income stream, reported as revenues by Bard, which BD reports as non-operating income in the current-year period. |
(c) | Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period. |
(d) | Represents adjustments for BD's divestiture of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. |
A | B | C | D | E=A+B+C+D | F | G | H | I | J=F+G+H+I | K=(E-J)/J | |||||||||||||||||||||||||||||||||||
BD Reported | Bard Q1 (b) | Intercompany Adjustment (c) | Divestiture Adjustments (d) | Comparable | BD Reported (a) | Bard (b) | Intercompany Adjustment (c) | Divestiture Adjustments (d) | Comparable | Comparable % Change | |||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||||||||||||||||
BD MEDICAL | |||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 1,379 | $ | 145 | $ | (3 | ) | $ | — | $ | 1,521 | $ | 1,026 | $ | 429 | $ | (11 | ) | $ | — | $ | 1,444 | 5.3 | ||||||||||||||||||||||
Medication Management Solutions | 1,415 | — | — | — | 1,415 | 1,403 | — | — | — | 1,403 | 0.9 | ||||||||||||||||||||||||||||||||||
Diabetes Care | 415 | — | — | — | 415 | 400 | — | — | — | 400 | 3.8 | ||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 239 | — | — | — | 239 | 231 | — | — | — | 231 | 3.5 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,448 | $ | 145 | $ | (3 | ) | $ | — | $ | 3,590 | $ | 3,060 | $ | 429 | $ | (11 | ) | $ | — | $ | 3,478 | 3.2 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 565 | $ | — | $ | — | $ | — | $ | 565 | $ | 552 | $ | — | $ | — | $ | — | $ | 552 | 2.2 | ||||||||||||||||||||||||
Diagnostic Systems | 518 | — | — | — | 518 | 471 | — | — | — | 471 | 9.9 | ||||||||||||||||||||||||||||||||||
Biosciences | 350 | — | — | — | 350 | 331 | — | — | — | 331 | 5.7 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,433 | $ | — | $ | — | $ | — | $ | 1,433 | $ | 1,355 | $ | — | $ | — | $ | — | $ | 1,355 | 5.8 | ||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 687 | $ | 105 | $ | — | $ | (15 | ) | $ | 777 | $ | 434 | $ | 391 | $ | — | $ | (29 | ) | $ | 796 | (2.4 | ) | |||||||||||||||||||||
Peripheral Intervention (a) | 393 | 188 | — | — | 581 | 10 | 521 | — | — | 531 | 9.4 | ||||||||||||||||||||||||||||||||||
Urology and Critical Care | 358 | 177 | — | — | 535 | — | 510 | — | — | 510 | 4.9 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,438 | $ | 470 | $ | — | $ | (15 | ) | $ | 1,893 | $ | 444 | $ | 1,421 | $ | — | $ | (29 | ) | $ | 1,837 | 3.1 | ||||||||||||||||||||||
TOTAL UNITED STATES | $ | 6,319 | $ | 614 | $ | (3 | ) | $ | (15 | ) | $ | 6,916 | $ | 4,859 | $ | 1,850 | $ | (11 | ) | $ | (29 | ) | $ | 6,670 | 3.7 |
(a) | Reflects a reclassification of $444 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(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, March 31, 2017 and June 30, 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) | $ | 1,298 | $ | 68 | $ | — | $ | 1,366 | $ | 1,065 | $ | 164 | $ | — | $ | 1,229 | $ | 67 | 5.7 | ||||||||||||||||||||||
Medication Management Solutions | 364 | — | — | 364 | 321 | — | — | 321 | 26 | 5.2 | |||||||||||||||||||||||||||||||
Diabetes Care | 405 | — | — | 405 | 374 | — | — | 374 | 21 | 2.9 | |||||||||||||||||||||||||||||||
Pharmaceutical Systems | 755 | — | — | 755 | 658 | — | — | 658 | 59 | 5.8 | |||||||||||||||||||||||||||||||
TOTAL | $ | 2,822 | $ | 68 | $ | — | $ | 2,890 | $ | 2,417 | $ | 164 | $ | — | $ | 2,581 | $ | 173 | 5.3 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 595 | $ | — | $ | — | $ | 595 | $ | 541 | $ | — | $ | — | $ | 541 | $ | 29 | 4.7 | ||||||||||||||||||||||
Diagnostic Systems | 634 | — | — | 634 | 548 | — | — | 548 | 31 | 10.2 | |||||||||||||||||||||||||||||||
Biosciences | 559 | — | — | 559 | 494 | — | — | 494 | 27 | 7.9 | |||||||||||||||||||||||||||||||
TOTAL | $ | 1,789 | $ | — | $ | — | $ | 1,789 | $ | 1,582 | $ | — | $ | — | $ | 1,582 | $ | 87 | 7.6 | ||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 177 | $ | 49 | $ | (3 | ) | $ | 222 | $ | 65 | $ | 126 | $ | (7 | ) | $ | 184 | $ | 13 | 13.7 | ||||||||||||||||||||
Peripheral Intervention (a) | 303 | 146 | — | 449 | 4 | 379 | — | 382 | 27 | 10.5 | |||||||||||||||||||||||||||||||
Urology and Critical Care | 171 | 90 | — | 261 | — | 239 | — | 239 | 13 | 3.8 | |||||||||||||||||||||||||||||||
TOTAL | $ | 651 | $ | 285 | $ | (3 | ) | $ | 933 | $ | 68 | $ | 744 | $ | (7 | ) | $ | 806 | $ | 53 | 9.2 | ||||||||||||||||||||
TOTAL INTERNATIONAL | $ | 5,261 | $ | 353 | $ | (3 | ) | $ | 5,611 | $ | 4,068 | $ | 908 | $ | (7 | ) | $ | 4,969 | $ | 312 | 6.6 |
(a) | Reflects a reclassification of $68 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(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, March 31, 2017 and June 30, 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) | Intercompany Adjustment (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) | $ | 2,677 | $ | 213 | $ | (3 | ) | $ | — | $ | 2,887 | $ | 2,091 | $ | 593 | $ | (11 | ) | $ | — | $ | 2,673 | $ | 67 | 5.5 | ||||||||||||||||||||||||
Medication Management Solutions | 1,778 | — | — | — | 1,778 | 1,723 | — | — | — | 1,723 | 26 | 1.7 | |||||||||||||||||||||||||||||||||||||
Diabetes Care | 820 | — | — | — | 820 | 773 | — | — | — | 773 | 21 | 3.4 | |||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 994 | — | — | — | 994 | 889 | — | — | — | 889 | 59 | 5.2 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 6,270 | $ | 213 | $ | (3 | ) | $ | — | $ | 6,480 | $ | 5,477 | $ | 593 | $ | (11 | ) | $ | — | $ | 6,059 | $ | 173 | 4.1 | ||||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 1,160 | $ | — | $ | — | $ | — | $ | 1,160 | $ | 1,094 | $ | — | $ | — | $ | — | $ | 1,094 | $ | 29 | 3.4 | ||||||||||||||||||||||||||
Diagnostic Systems | 1,152 | — | — | — | 1,152 | 1,019 | — | — | — | 1,019 | 31 | 10.1 | |||||||||||||||||||||||||||||||||||||
Biosciences | 910 | — | — | — | 910 | 825 | — | — | — | 825 | 27 | 7.0 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,222 | $ | — | $ | — | $ | — | $ | 3,222 | $ | 2,937 | $ | — | $ | — | $ | — | $ | 2,937 | $ | 87 | 6.7 | ||||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 864 | $ | 153 | $ | — | $ | (18 | ) | $ | 999 | $ | 499 | $ | 517 | $ | — | $ | (36 | ) | $ | 980 | $ | 13 | 0.6 | ||||||||||||||||||||||||
Peripheral Intervention (a) | 697 | 334 | — | — | 1,030 | 14 | 900 | — | — | 914 | 27 | 9.9 | |||||||||||||||||||||||||||||||||||||
Urology and Critical Care | 529 | 267 | — | — | 796 | — | 749 | — | — | 749 | 13 | 4.6 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 2,089 | $ | 755 | $ | — | $ | (18 | ) | $ | 2,826 | $ | 513 | $ | 2,166 | $ | — | $ | (36 | ) | $ | 2,643 | $ | 53 | 4.9 | ||||||||||||||||||||||||
TOTAL REVENUES | $ | 11,581 | $ | 968 | $ | (3 | ) | $ | (18 | ) | $ | 12,528 | $ | 8,927 | $ | 2,759 | $ | (11 | ) | $ | (36 | ) | $ | 11,639 | $ | 312 | 5.0 |
(a) | Reflects a reclassification of $513 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment. |
(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, March 31, 2017 and June 30, 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 June 30, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted Earnings (Loss) per Share | $ | 2.03 | $ | (0.75 | ) | $ | 2.78 | $ | 0.16 | $ | 2.62 | 370.7 | % | 349.3 | % | |||||||||||
Purchase accounting adjustments ($433 million and $106 million pre-tax, respectively) (1) | 1.58 | 0.48 | — | |||||||||||||||||||||||
Restructuring costs ($33 million and $8 million pre-tax, respectively) (2) | 0.12 | 0.04 | — | |||||||||||||||||||||||
Integration costs ($103 million and $50 million pre-tax, respectively) (2) | 0.37 | 0.23 | — | |||||||||||||||||||||||
Transaction costs ($11 million and $23 million pre-tax, respectively) (2) | 0.04 | 0.10 | — | |||||||||||||||||||||||
Financing impacts ($87 million pre-tax) (3) | — | 0.39 | — | |||||||||||||||||||||||
Hurricane recovery costs ($3 million pre-tax) (4) | 0.01 | — | — | |||||||||||||||||||||||
Losses on debt extinguishment ($3 million and $31 million pre-tax, respectively) (5) | 0.01 | 0.14 | — | |||||||||||||||||||||||
Net impact of gain on sale of investment and asset impairments ($(214) million pre-tax) (6) | (0.78 | ) | — | 0.01 | ||||||||||||||||||||||
Lease contract modification-related charge ($741 million pre-tax) (7) | — | 3.36 | — | |||||||||||||||||||||||
Dilutive impact (8) | — | 0.18 | — | |||||||||||||||||||||||
Income tax benefit of special items ($(130) million and $(377) million, respectively) | (0.48 | ) | (1.71 | ) | — | |||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 2.91 | $ | 2.46 | $ | 0.45 | $ | 0.18 | $ | 0.27 | 18.3 | % | 11.0 | % |
(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 $56 million recorded relative to Bard's inventory on the acquisition date. |
(2) | Represents restructuring, integration 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 net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit. |
(7) | Represents a non-cash charge resulting from a modification to our dispensing equipment lease contracts with customers. |
(8) | Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition. |
Nine Months Ended June 30, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted Earnings per Share | $ | 1.27 | $ | 3.36 | $ | (2.09 | ) | $ | 0.38 | $ | (2.47 | ) | (62.2 | )% | (73.5 | )% | ||||||||||
Purchase accounting adjustments ($1.4 billion and $361 million pre-tax, respectively) (1) | 5.21 | 1.64 | 0.01 | |||||||||||||||||||||||
Restructuring costs ($288 million and $54 million pre-tax, respectively) (2) | 1.10 | 0.25 | 0.01 | |||||||||||||||||||||||
Integration costs ($255 million and $159 million pre-tax, respectively) (2) | 0.98 | 0.72 | 0.01 | |||||||||||||||||||||||
Transaction costs ($61 million and $37 million pre-tax, respectively) (2) | 0.23 | 0.17 | — | |||||||||||||||||||||||
Financing impacts ($49 million and $87 million pre-tax, respectively) (3) | 0.19 | 0.40 | — | |||||||||||||||||||||||
Hurricane recovery costs ($15 million pre-tax) (4) | 0.06 | — | — | |||||||||||||||||||||||
Losses on debt extinguishment ($16 million and $73 million pre-tax, respectively) (5) | 0.06 | 0.33 | — | |||||||||||||||||||||||
Net impact of gain on sale of investment and asset impairments ($(214) million pre-tax) (6) | (0.82 | ) | — | 0.01 | ||||||||||||||||||||||
Litigation-related item ($(336) million pre-tax) (7) | — | (1.52 | ) | — | ||||||||||||||||||||||
Lease contract modification-related charge ($741 million pre-tax) (8) | — | 3.36 | — | |||||||||||||||||||||||
Dilutive Impact (9) | 0.31 | 0.22 | — | |||||||||||||||||||||||
Income tax benefit of special items and impact of tax reform ($(133) million and $(404) million, respectively) (10) | (0.51 | ) | (1.83 | ) | (0.01 | ) | ||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 8.08 | $ | 7.09 | $ | 0.99 | $ | 0.42 | $ | 0.57 | 14.0 | % | 8.0 | % |
(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 $478 million recorded relative to Bard's inventory on the acquisition date. |
(2) | Represents restructuring, integration 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 net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit. |
(7) | 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. |
(8) | Represents a non-cash charge resulting from a modification to our dispensing equipment lease contracts with customers. |
(9) | Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard. The adjusted diluted average shares outstanding (in thousands) was 255,697. |
(10) | 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 | 31.5%+ | ~2.5% | 29%+ | |||||
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 | 5.5%+ | |||||||
U.S. Dispensing Change & Bard Hurricane Impact | ~0.5% | |||||||||
NewCo Revenue Underlying | 6%+ | |||||||||
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 | 5%+ | |||||||
BD Life Sciences As Reported Revenue | $ | 3,988 | 6%+ | |||||||
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 | $10.95 - 11.05 | 15.5% - 16.5% | ||||||||
Estimated FX Impact | ~4% | |||||||||
Adjusted FXN Growth | ~12% |