• | As reported, full fiscal year revenues of $15.983 billion increased 32.2 percent. |
• | On a comparable, currency-neutral basis, revenues increased 5.8 percent for the full fiscal year. |
• | As reported, full fiscal year diluted earnings per share of $0.60 decreased 87.0 percent. |
• | As adjusted, full fiscal year diluted earnings per share of $11.01 increased 16.1 percent, or 12.3 percent on a currency-neutral basis. |
• | The company expects full fiscal year 2019 revenues to increase 8.5 to 9.5 percent as reported, or 5.0 to 6.0 percent on a comparable, currency-neutral basis. |
• | As adjusted, the company expects full fiscal year 2019 diluted earnings per share to be between $12.05 and $12.15, resulting in growth of approximately 13.0 to 14.0 percent on a currency-neutral basis, which includes an adverse impact of approximately 600 basis points related to headwinds and divestitures. This represents growth of approximately 10.0 percent including the estimated unfavorable impact of foreign currency. |
• | Fiscal 2019 earnings per share expectations include high-single digit accretion from the C. R. Bard acquisition. |
Three Months Ended September 30, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 4,402 | $ | 3,166 | 39.0 | |||||||
Cost of products sold | 2,311 | 1,612 | 43.4 | |||||||||
Selling and administrative expense | 1,103 | 774 | 42.6 | |||||||||
Research and development expense | 278 | 221 | 25.7 | |||||||||
Acquisitions and other restructurings | 140 | 111 | 25.9 | |||||||||
Other operating expense, net | — | 5 | (100.0 | ) | ||||||||
TOTAL OPERATING COSTS AND EXPENSES | 3,832 | 2,723 | 40.7 | |||||||||
OPERATING INCOME | 570 | 443 | 28.7 | |||||||||
Interest expense | (181 | ) | (156 | ) | 15.6 | |||||||
Interest income | 9 | 45 | (79.8 | ) | ||||||||
Other income (expense), net | 16 | (7 | ) | 339.9 | ||||||||
INCOME BEFORE INCOME TAXES | 415 | 326 | 27.4 | |||||||||
Income tax provision (benefit) | 550 | (1 | ) | 44,493.5 | ||||||||
NET (LOSS) INCOME | (135 | ) | 327 | (141.3 | ) | |||||||
Preferred stock dividends | (38 | ) | (38 | ) | — | |||||||
NET (LOSS) INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | (173 | ) | $ | 289 | (159.8 | ) | |||||
EARNINGS PER SHARE | ||||||||||||
Basic (Loss) Earnings per Share | $ | (0.64 | ) | $ | 1.27 | (150.4 | ) | |||||
Diluted (Loss) Earnings per Share | $ | (0.64 | ) | $ | 1.24 | (151.6 | ) | |||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 268,500 | 228,218 | ||||||||||
Diluted | 268,500 | 232,657 |
Twelve Months Ended September 30, | ||||||||||||
2018 | 2017 | % Change | ||||||||||
REVENUES | $ | 15,983 | $ | 12,093 | 32.2 | |||||||
Cost of products sold | 8,721 | 6,151 | 41.8 | |||||||||
Selling and administrative expense | 4,015 | 2,925 | 37.3 | |||||||||
Research and development expense | 1,006 | 774 | 29.9 | |||||||||
Acquisitions and other restructurings | 744 | 354 | 110.1 | |||||||||
Other operating expense, net | — | 410 | (100.0 | ) | ||||||||
TOTAL OPERATING COSTS AND EXPENSES | 14,487 | 10,615 | 36.5 | |||||||||
OPERATING INCOME | 1,497 | 1,478 | 1.3 | |||||||||
Interest expense | (706 | ) | (521 | ) | 35.5 | |||||||
Interest income | 65 | 76 | (15.0 | ) | ||||||||
Other income (expense), net | 318 | (57 | ) | 655.9 | ||||||||
INCOME BEFORE INCOME TAXES | 1,173 | 976 | 20.2 | |||||||||
Income tax provision (benefit) | 862 | (124 | ) | 795.8 | ||||||||
NET INCOME | 311 | 1,100 | (71.7 | ) | ||||||||
Preferred stock dividends | (152 | ) | (70 | ) | 115.6 | |||||||
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 159 | $ | 1,030 | (84.5 | ) | ||||||
EARNINGS PER SHARE | ||||||||||||
Basic Earnings per Share | $ | 0.62 | $ | 4.70 | (86.8 | ) | ||||||
Diluted Earnings per Share | $ | 0.60 | $ | 4.60 | (87.0 | ) | ||||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
Basic | 258,354 | 218,943 | ||||||||||
Diluted | 264,621 | 223,588 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 512 | $ | 352 | 45.7 | ||||||
Medication Management Solutions | 542 | 440 | 23.2 | ||||||||
Diabetes Care | 149 | 147 | 1.7 | ||||||||
Pharmaceutical Systems | 118 | 96 | 22.1 | ||||||||
TOTAL | $ | 1,322 | $ | 1,035 | 27.7 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 196 | $ | 189 | 3.7 | ||||||
Diagnostic Systems | 159 | 151 | 5.9 | ||||||||
Biosciences | 125 | 123 | 1.6 | ||||||||
TOTAL | $ | 481 | $ | 463 | 3.8 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 259 | $ | 143 | NM | ||||||
Peripheral Intervention (a) | 201 | 3 | NM | ||||||||
Urology and Critical Care | 186 | — | NM | ||||||||
TOTAL | $ | 646 | $ | 146 | NM | ||||||
TOTAL UNITED STATES | $ | 2,448 | $ | 1,644 | 48.9 |
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 | $ | 369 | $ | (12 | ) | 23.0 | 26.4 | |||||||||
Medication Management Solutions | 149 | 131 | (1 | ) | 14.1 | 15.0 | ||||||||||||
Diabetes Care | 135 | 136 | (3 | ) | (0.8 | ) | 1.8 | |||||||||||
Pharmaceutical Systems | 285 | 271 | 1 | 5.4 | 4.9 | |||||||||||||
TOTAL | $ | 1,025 | $ | 908 | $ | (16 | ) | 12.9 | 14.6 | |||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 197 | $ | 189 | $ | (8 | ) | 4.4 | 8.6 | |||||||||
Diagnostic Systems | 224 | 208 | (5 | ) | 7.6 | 9.8 | ||||||||||||
Biosciences | 206 | 191 | (3 | ) | 8.2 | 9.6 | ||||||||||||
TOTAL | $ | 627 | $ | 588 | $ | (15 | ) | 6.7 | 9.3 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 69 | $ | 24 | $ | (1 | ) | NM | NM | |||||||||
Peripheral Intervention (a) | 148 | 2 | (1 | ) | NM | NM | ||||||||||||
Urology and Critical Care | 85 | — | — | NM | NM | |||||||||||||
TOTAL | $ | 302 | $ | 26 | $ | (2 | ) | NM | NM | |||||||||
TOTAL INTERNATIONAL | $ | 1,954 | $ | 1,522 | $ | (33 | ) | 28.4 | 30.6 |
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) | $ | 967 | $ | 721 | $ | (12 | ) | 34.1 | 35.8 | |||||||||
Medication Management Solutions | 692 | 571 | (1 | ) | 21.1 | 21.3 | ||||||||||||
Diabetes Care | 285 | 283 | (3 | ) | 0.5 | 1.7 | ||||||||||||
Pharmaceutical Systems | 403 | 367 | 1 | 9.8 | 9.4 | |||||||||||||
TOTAL | $ | 2,346 | $ | 1,943 | $ | (16 | ) | 20.8 | 21.6 | |||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 393 | $ | 378 | $ | (8 | ) | 4.0 | 6.1 | |||||||||
Diagnostic Systems | 384 | 359 | (5 | ) | 6.9 | 8.2 | ||||||||||||
Biosciences | 331 | 314 | (3 | ) | 5.6 | 6.4 | ||||||||||||
TOTAL | $ | 1,108 | $ | 1,051 | $ | (15 | ) | 5.5 | 6.9 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 328 | $ | 167 | $ | (1 | ) | NM | NM | |||||||||
Peripheral Intervention (a) | 348 | 5 | (1 | ) | NM | NM | ||||||||||||
Urology and Critical Care | 271 | — | — | NM | NM | |||||||||||||
TOTAL | $ | 948 | $ | 172 | $ | (2 | ) | NM | NM | |||||||||
TOTAL REVENUES | $ | 4,402 | $ | 3,166 | $ | (33 | ) | 39.0 | 40.1 |
A | B | C=(A-B)/B | |||||||||
2018 | 2017 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 1,892 | $ | 1,378 | 37.3 | ||||||
Medication Management Solutions | 1,957 | 1,843 | 6.2 | ||||||||
Diabetes Care | 564 | 546 | 3.2 | ||||||||
Pharmaceutical Systems | 357 | 328 | 8.9 | ||||||||
TOTAL | $ | 4,770 | $ | 4,095 | 16.5 | ||||||
BD LIFE SCIENCES | |||||||||||
Preanalytical Systems | $ | 761 | $ | 741 | 2.6 | ||||||
Diagnostic Systems | 678 | 622 | 8.9 | ||||||||
Biosciences | 475 | 455 | 4.6 | ||||||||
TOTAL | $ | 1,914 | $ | 1,818 | 5.3 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (a) | $ | 946 | $ | 577 | NM | ||||||
Peripheral Intervention (a) | 594 | 14 | NM | ||||||||
Urology and Critical Care | 544 | — | NM | ||||||||
TOTAL | $ | 2,084 | $ | 591 | NM | ||||||
TOTAL UNITED STATES | $ | 8,768 | $ | 6,504 | 34.8 |
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) | $ | 1,752 | $ | 1,434 | $ | 52 | 22.2 | 18.5 | ||||||||||
Medication Management Solutions | 513 | 452 | 25 | 13.6 | 8.0 | |||||||||||||
Diabetes Care | 541 | 510 | 17 | 6.0 | 2.6 | |||||||||||||
Pharmaceutical Systems | 1,040 | 929 | 60 | 12.0 | 5.5 | |||||||||||||
TOTAL | $ | 3,846 | $ | 3,325 | $ | 155 | 15.7 | 11.0 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 792 | $ | 730 | $ | 21 | 8.5 | 5.7 | ||||||||||
Diagnostic Systems | 858 | 756 | 26 | 13.5 | 10.1 | |||||||||||||
Biosciences | 766 | 684 | 24 | 11.9 | 8.3 | |||||||||||||
TOTAL | $ | 2,416 | $ | 2,170 | $ | 71 | 11.3 | 8.1 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 245 | $ | 89 | $ | 11 | NM | NM | ||||||||||
Peripheral Intervention (a) | 451 | 6 | 20 | NM | NM | |||||||||||||
Urology and Critical Care | 256 | — | 11 | NM | NM | |||||||||||||
TOTAL | $ | 953 | $ | 95 | $ | 43 | NM | NM | ||||||||||
TOTAL INTERNATIONAL | $ | 7,215 | $ | 5,589 | $ | 269 | 29.1 | 24.3 |
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) | $ | 3,644 | $ | 2,812 | $ | 52 | 29.6 | 27.7 | ||||||||||
Medication Management Solutions | 2,470 | 2,295 | 25 | 7.7 | 6.6 | |||||||||||||
Diabetes Care | 1,105 | 1,056 | 17 | 4.6 | 2.9 | |||||||||||||
Pharmaceutical Systems | 1,397 | 1,256 | 60 | 11.2 | 6.4 | |||||||||||||
TOTAL | $ | 8,616 | $ | 7,419 | $ | 155 | 16.1 | 14.0 | ||||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Preanalytical Systems | $ | 1,553 | $ | 1,471 | $ | 21 | 5.5 | 4.1 | ||||||||||
Diagnostic Systems | 1,536 | 1,378 | 26 | 11.5 | 9.6 | |||||||||||||
Biosciences | 1,241 | 1,139 | 24 | 9.0 | 6.8 | |||||||||||||
TOTAL | $ | 4,330 | $ | 3,988 | $ | 71 | 8.6 | 6.8 | ||||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (a) | $ | 1,192 | $ | 666 | $ | 11 | NM | NM | ||||||||||
Peripheral Intervention (a) | 1,045 | 19 | 20 | NM | NM | |||||||||||||
Urology and Critical Care | 800 | — | 11 | NM | NM | |||||||||||||
TOTAL | $ | 3,037 | $ | 685 | $ | 43 | NM | NM | ||||||||||
TOTAL REVENUES | $ | 15,983 | $ | 12,093 | $ | 269 | 32.2 | 29.9 |
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) | $ | 512 | $ | 352 | $ | 143 | $ | (3 | ) | $ | — | $ | 491 | 4.4 | |||||||||||||||
Medication Management Solutions | 542 | 440 | — | — | — | 440 | 23.2 | ||||||||||||||||||||||
Diabetes Care | 149 | 147 | — | — | — | 147 | 1.7 | ||||||||||||||||||||||
Pharmaceutical Systems | 118 | 96 | — | — | — | 96 | 22.1 | ||||||||||||||||||||||
TOTAL | $ | 1,322 | $ | 1,035 | $ | 143 | $ | (3 | ) | $ | — | $ | 1,174 | 12.6 | |||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||
Preanalytical Systems | $ | 196 | $ | 189 | $ | — | $ | — | $ | — | $ | 189 | 3.7 | ||||||||||||||||
Diagnostic Systems | 159 | 151 | — | — | — | 151 | 5.9 | ||||||||||||||||||||||
Biosciences | 125 | 123 | — | — | — | 123 | 1.6 | ||||||||||||||||||||||
TOTAL | $ | 481 | $ | 463 | $ | — | $ | — | $ | — | $ | 463 | 3.8 | ||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||
Surgery (a) | $ | 259 | $ | 143 | $ | 122 | $ | — | $ | (10 | ) | $ | 256 | 1.5 | |||||||||||||||
Peripheral Intervention (a) | 201 | 3 | 184 | — | — | 187 | 7.2 | ||||||||||||||||||||||
Urology and Critical Care | 186 | — | 172 | — | — | 172 | 8.3 | ||||||||||||||||||||||
TOTAL | $ | 646 | $ | 146 | $ | 478 | $ | — | $ | (10 | ) | $ | 614 | 5.1 | |||||||||||||||
TOTAL UNITED STATES | $ | 2,448 | $ | 1,644 | $ | 621 | $ | (4 | ) | $ | (10 | ) | $ | 2,251 | 8.7 |
(a) | Reflects a reclassification of $146 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) | $ | 454 | $ | 369 | $ | 64 | $ | — | $ | 434 | $ | (12 | ) | 7.6 | |||||||||||||||
Medication Management Solutions | 149 | 131 | — | — | 131 | (1 | ) | 15.0 | |||||||||||||||||||||
Diabetes Care | 135 | 136 | — | — | 136 | (3 | ) | 1.8 | |||||||||||||||||||||
Pharmaceutical Systems | 285 | 271 | — | — | 271 | 1 | 4.9 | ||||||||||||||||||||||
TOTAL | $ | 1,025 | $ | 908 | $ | 64 | $ | — | $ | 972 | $ | (16 | ) | 7.0 | |||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||
Preanalytical Systems | $ | 197 | $ | 189 | $ | — | $ | — | $ | 189 | $ | (8 | ) | 8.6 | |||||||||||||||
Diagnostic Systems | 224 | 208 | — | — | 208 | (5 | ) | 9.8 | |||||||||||||||||||||
Biosciences | 206 | 191 | — | — | 191 | (3 | ) | 9.6 | |||||||||||||||||||||
TOTAL | $ | 627 | $ | 588 | $ | — | $ | — | $ | 588 | $ | (15 | ) | 9.3 | |||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||
Surgery (a) | $ | 69 | $ | 24 | $ | 41 | $ | (3 | ) | $ | 63 | $ | (1 | ) | 10.5 | ||||||||||||||
Peripheral Intervention (a) | 148 | 2 | 136 | — | 138 | (1 | ) | 8.1 | |||||||||||||||||||||
Urology and Critical Care | 85 | — | 81 | — | 81 | — | 5.5 | ||||||||||||||||||||||
TOTAL | $ | 302 | $ | 26 | $ | 258 | $ | (3 | ) | $ | 282 | $ | (2 | ) | 7.9 | ||||||||||||||
TOTAL INTERNATIONAL | $ | 1,954 | $ | 1,522 | $ | 323 | $ | (3 | ) | $ | 1,842 | $ | (33 | ) | 7.9 |
(a) | Reflects a reclassification of $26 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) | $ | 967 | $ | 721 | $ | 207 | $ | (3 | ) | $ | — | $ | 925 | $ | (12 | ) | 5.9 | ||||||||||||||||
Medication Management Solutions | 692 | 571 | — | — | — | 571 | (1 | ) | 21.3 | ||||||||||||||||||||||||
Diabetes Care | 285 | 283 | — | — | — | 283 | (3 | ) | 1.7 | ||||||||||||||||||||||||
Pharmaceutical Systems | 403 | 367 | — | — | — | 367 | 1 | 9.4 | |||||||||||||||||||||||||
TOTAL | $ | 2,346 | $ | 1,943 | $ | 207 | $ | (3 | ) | $ | — | $ | 2,146 | $ | (16 | ) | 10.1 | ||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 393 | $ | 378 | $ | — | $ | — | $ | — | $ | 378 | $ | (8 | ) | 6.1 | |||||||||||||||||
Diagnostic Systems | 384 | 359 | — | — | — | 359 | (5 | ) | 8.2 | ||||||||||||||||||||||||
Biosciences | 331 | 314 | — | — | — | 314 | (3 | ) | 6.4 | ||||||||||||||||||||||||
TOTAL | $ | 1,108 | $ | 1,051 | $ | — | $ | — | $ | — | $ | 1,051 | $ | (15 | ) | 6.9 | |||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||
Surgery (a) | $ | 328 | $ | 167 | $ | 163 | $ | — | $ | (13 | ) | $ | 318 | $ | (1 | ) | 3.3 | ||||||||||||||||
Peripheral Intervention (a) | 348 | 5 | 320 | — | — | 325 | (1 | ) | 7.6 | ||||||||||||||||||||||||
Urology and Critical Care | 271 | — | 253 | — | — | 253 | — | 7.4 | |||||||||||||||||||||||||
TOTAL | $ | 948 | $ | 172 | $ | 736 | $ | — | $ | (13 | ) | $ | 896 | $ | (2 | ) | 6.0 | ||||||||||||||||
TOTAL REVENUES | $ | 4,402 | $ | 3,166 | $ | 943 | $ | (4 | ) | $ | (13 | ) | $ | 4,093 | $ | (33 | ) | 8.4 |
(a) | Reflects a reclassification of $172 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) | $ | 1,892 | $ | 145 | $ | (3 | ) | $ | — | $ | 2,033 | $ | 1,378 | $ | 572 | $ | (14 | ) | $ | — | $ | 1,935 | 5.1 | ||||||||||||||||||||||
Medication Management Solutions | 1,957 | — | — | — | 1,957 | 1,843 | — | — | — | 1,843 | 6.2 | ||||||||||||||||||||||||||||||||||
Diabetes Care | 564 | — | — | — | 564 | 546 | — | — | — | 546 | 3.2 | ||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 357 | — | — | — | 357 | 328 | — | — | — | 328 | 8.9 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 4,770 | $ | 145 | $ | (3 | ) | $ | — | $ | 4,912 | $ | 4,095 | $ | 572 | $ | (14 | ) | $ | — | $ | 4,652 | 5.6 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 761 | $ | — | $ | — | $ | — | $ | 761 | $ | 741 | $ | — | $ | — | $ | — | $ | 741 | 2.6 | ||||||||||||||||||||||||
Diagnostic Systems | 678 | — | — | — | 678 | 622 | — | — | — | 622 | 8.9 | ||||||||||||||||||||||||||||||||||
Biosciences | 475 | — | — | — | 475 | 455 | — | — | — | 455 | 4.6 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,914 | $ | — | $ | — | $ | — | $ | 1,914 | $ | 1,818 | $ | — | $ | — | $ | — | $ | 1,818 | 5.3 | ||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 946 | $ | 105 | $ | — | $ | (15 | ) | $ | 1,036 | $ | 577 | $ | 513 | $ | — | $ | (39 | ) | $ | 1,051 | (1.4 | ) | |||||||||||||||||||||
Peripheral Intervention (a) | 594 | 188 | — | — | 782 | 14 | 705 | — | — | 718 | 8.8 | ||||||||||||||||||||||||||||||||||
Urology and Critical Care | 544 | 177 | — | — | 721 | — | 681 | — | — | 681 | 5.8 | ||||||||||||||||||||||||||||||||||
TOTAL | $ | 2,084 | $ | 470 | $ | — | $ | (15 | ) | $ | 2,539 | $ | 591 | $ | 1,899 | $ | — | $ | (39 | ) | $ | 2,451 | 3.6 | ||||||||||||||||||||||
TOTAL UNITED STATES | $ | 8,768 | $ | 614 | $ | (3 | ) | $ | (15 | ) | $ | 9,364 | $ | 6,504 | $ | 2,471 | $ | (14 | ) | $ | (39 | ) | $ | 8,921 | 5.0 |
(a) | Reflects a reclassification of $591 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 quarterly periods included in BD's fiscal year 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) | $ | 1,752 | $ | 68 | $ | — | $ | 1,821 | $ | 1,434 | $ | 228 | $ | — | $ | 1,663 | $ | 55 | 6.2 | ||||||||||||||||||||||
Medication Management Solutions | 513 | — | — | 513 | 452 | — | — | 452 | 25 | 8.0 | |||||||||||||||||||||||||||||||
Diabetes Care | 541 | — | — | 541 | 510 | — | — | 510 | 17 | 2.6 | |||||||||||||||||||||||||||||||
Pharmaceutical Systems | 1,040 | — | — | 1,040 | 929 | — | — | 929 | 60 | 5.5 | |||||||||||||||||||||||||||||||
TOTAL | $ | 3,846 | $ | 68 | $ | — | $ | 3,915 | $ | 3,325 | $ | 228 | $ | — | $ | 3,553 | $ | 157 | 5.7 | ||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 792 | $ | — | $ | — | $ | 792 | $ | 730 | $ | — | $ | — | $ | 730 | $ | 21 | 5.7 | ||||||||||||||||||||||
Diagnostic Systems | 858 | — | — | 858 | 756 | — | — | 756 | 26 | 10.1 | |||||||||||||||||||||||||||||||
Biosciences | 766 | — | — | 766 | 684 | — | — | 684 | 24 | 8.3 | |||||||||||||||||||||||||||||||
TOTAL | $ | 2,416 | $ | — | $ | — | $ | 2,416 | $ | 2,170 | $ | — | $ | — | $ | 2,170 | $ | 71 | 8.1 | ||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 245 | $ | 49 | $ | (3 | ) | $ | 291 | $ | 89 | $ | 167 | $ | (10 | ) | $ | 247 | $ | 13 | 12.9 | ||||||||||||||||||||
Peripheral Intervention (a) | 451 | 146 | — | 597 | 6 | 515 | — | 521 | 25 | 9.9 | |||||||||||||||||||||||||||||||
Urology and Critical Care | 256 | 90 | — | 347 | — | 320 | — | 320 | 13 | 4.2 | |||||||||||||||||||||||||||||||
TOTAL | $ | 953 | $ | 285 | $ | (3 | ) | $ | 1,235 | $ | 95 | $ | 1,003 | $ | (10 | ) | $ | 1,088 | $ | 51 | 8.9 | ||||||||||||||||||||
TOTAL INTERNATIONAL | $ | 7,215 | $ | 353 | $ | (3 | ) | $ | 7,566 | $ | 5,589 | $ | 1,231 | $ | (10 | ) | $ | 6,811 | $ | 279 | 7.0 |
(a) | Reflects a reclassification of $95 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 quarterly periods included in BD's fiscal year 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) | $ | 3,644 | $ | 213 | $ | (3 | ) | $ | — | $ | 3,854 | $ | 2,812 | $ | 800 | $ | (14 | ) | $ | — | $ | 3,598 | $ | 55 | 5.6 | ||||||||||||||||||||||||
Medication Management Solutions | 2,470 | — | — | — | 2,470 | 2,295 | — | — | — | 2,295 | 25 | 6.6 | |||||||||||||||||||||||||||||||||||||
Diabetes Care | 1,105 | — | — | — | 1,105 | 1,056 | — | — | — | 1,056 | 17 | 2.9 | |||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 1,397 | — | — | — | 1,397 | 1,256 | — | — | — | 1,256 | 60 | 6.4 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 8,616 | $ | 213 | $ | (3 | ) | $ | — | $ | 8,826 | $ | 7,419 | $ | 800 | $ | (14 | ) | $ | — | $ | 8,205 | $ | 157 | 5.6 | ||||||||||||||||||||||||
BD LIFE SCIENCES | |||||||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 1,553 | $ | — | $ | — | $ | — | $ | 1,553 | $ | 1,471 | $ | — | $ | — | $ | — | $ | 1,471 | $ | 21 | 4.1 | ||||||||||||||||||||||||||
Diagnostic Systems | 1,536 | — | — | — | 1,536 | 1,378 | — | — | — | 1,378 | 26 | 9.6 | |||||||||||||||||||||||||||||||||||||
Biosciences | 1,241 | — | — | — | 1,241 | 1,139 | — | — | — | 1,139 | 24 | 6.8 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 4,330 | $ | — | $ | — | $ | — | $ | 4,330 | $ | 3,988 | $ | — | $ | — | $ | — | $ | 3,988 | $ | 71 | 6.8 | ||||||||||||||||||||||||||
BD INTERVENTIONAL | |||||||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 1,192 | $ | 153 | $ | — | $ | (18 | ) | $ | 1,327 | $ | 666 | $ | 680 | $ | — | $ | (48 | ) | $ | 1,298 | $ | 13 | 1.3 | ||||||||||||||||||||||||
Peripheral Intervention (a) | 1,045 | 334 | — | — | 1,379 | 19 | 1,220 | — | — | 1,239 | 25 | 9.3 | |||||||||||||||||||||||||||||||||||||
Urology and Critical Care | 800 | 267 | — | — | 1,068 | — | 1,002 | — | — | 1,002 | 13 | 5.3 | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,037 | $ | 755 | $ | — | $ | (18 | ) | $ | 3,774 | $ | 685 | $ | 2,902 | $ | — | $ | (48 | ) | $ | 3,539 | $ | 51 | 5.2 | ||||||||||||||||||||||||
TOTAL REVENUES | $ | 15,983 | $ | 968 | $ | (3 | ) | $ | (18 | ) | $ | 16,930 | $ | 12,093 | $ | 3,702 | $ | (14 | ) | $ | (48 | ) | $ | 15,732 | $ | 279 | 5.8 |
(a) | Reflects a reclassification of $685 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 quarterly periods included in BD's fiscal year 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 September 30, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted (Loss) Earnings per Share | $ | (0.64 | ) | $ | 1.24 | $ | (1.88 | ) | $ | (0.06 | ) | $ | (1.82 | ) | (151.6 | )% | (146.8 | )% | ||||||||
Purchase accounting adjustments ($374 million and $130 million pre-tax, respectively) (1) | 1.39 | 0.56 | — | |||||||||||||||||||||||
Restructuring costs ($57 million and $30 million pre-tax, respectively) (2) | 0.21 | 0.13 | — | |||||||||||||||||||||||
Integration costs ($88 million and $78 million pre-tax, respectively) (2) | 0.33 | 0.34 | — | |||||||||||||||||||||||
Transaction costs ($(5) million and $2 million pre-tax, respectively) (3) | (0.02 | ) | 0.01 | — | ||||||||||||||||||||||
Financing impacts ($44 million pre-tax) (4) | — | 0.19 | — | |||||||||||||||||||||||
Hurricane recovery costs ($2 million pre-tax) | 0.01 | — | — | |||||||||||||||||||||||
Net impact of gain on sale of investment and asset impairments ($63 million pre-tax) (5) | 0.23 | — | — | |||||||||||||||||||||||
Lease contract modification-related charge ($6 million pre-tax) (6) | — | 0.03 | — | |||||||||||||||||||||||
Litigation-related item ($(1) million pre-tax) (7) | — | (0.01 | ) | — | ||||||||||||||||||||||
Dilutive impact (8) | (0.07 | ) | 0.31 | — | ||||||||||||||||||||||
Impact of tax reform and income tax benefit of special items ($398 million and $(91) million, respectively) (9) | 1.48 | (0.39 | ) | — | ||||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 2.93 | $ | 2.40 | $ | 0.53 | $ | (0.06 | ) | $ | 0.59 | 22.1 | % | 24.6 | % |
(1) | Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
(2) | Represents restructuring and integration costs associated with the Bard and CareFusion acquisitions, as well as restructuring costs associated with other portfolio rationalization initiatives. |
(3) | Represents transaction costs primarily associated with the Bard acquisition. |
(4) | Represents financing impacts associated with the Bard acquisition. |
(5) | Includes $58 million of charges to write down the value of fixed assets primarily in the Diabetes Care unit. |
(6) | Represents an adjustment to a non-cash charge resulting from a modification to our dispensing equipment lease contracts with customers. |
(7) | Represents an adjustment to litigation-related reserves. |
(8) | The amount in 2018 represents the exclusion of share equivalents associated with share-based plans from the reported diluted shares outstanding calculation because such equivalents would have been antidilutive due to the net loss incurred during the period. The adjusted diluted average shares outstanding (in thousands) were 274,693. The amount in 2017 represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition. |
(9) | Includes additional tax expense, net, of $365 million relating to new U.S. tax legislation. |
Twelve Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted Earnings per Share | $ | 0.60 | $ | 4.60 | $ | (4.00 | ) | $ | 0.32 | $ | (4.32 | ) | (87.0 | )% | (93.9 | )% | ||||||||||
Purchase accounting adjustments ($1.733 billion and $491 million pre-tax, respectively) (1) | 6.55 | 2.20 | 0.01 | |||||||||||||||||||||||
Restructuring costs ($344 million and $85 million pre-tax, respectively) (2) | 1.30 | 0.38 | 0.01 | |||||||||||||||||||||||
Integration costs ($344 million and $237 million pre-tax, respectively) (2) | 1.30 | 1.06 | 0.01 | |||||||||||||||||||||||
Transaction costs ($56 million and $39 million pre-tax, respectively) (3) | 0.21 | 0.17 | — | |||||||||||||||||||||||
Financing impacts ($49 million and $131 million pre-tax, respectively) (4) | 0.19 | 0.58 | — | |||||||||||||||||||||||
Hurricane recovery costs ($17 million pre-tax) | 0.07 | — | — | |||||||||||||||||||||||
Losses on debt extinguishment ($16 million and $73 million pre-tax, respectively) (5) | 0.06 | 0.33 | — | |||||||||||||||||||||||
Net impact of gain on sale of investment and asset impairments ($(151) million pre-tax) (6) | (0.57 | ) | — | 0.01 | ||||||||||||||||||||||
Lease contract modification-related charge ($748 million pre-tax) (7) | — | 3.34 | — | |||||||||||||||||||||||
Litigation-related item ($(337) million pre-tax) (8) | — | (1.51 | ) | — | ||||||||||||||||||||||
Dilutive Impact (9) | 0.30 | 0.54 | — | |||||||||||||||||||||||
Impact of tax reform and income tax benefit of special items ($265 million and $(495) million, respectively) (10) | 1.00 | (2.21 | ) | (0.01 | ) | |||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 11.01 | $ | 9.48 | $ | 1.53 | $ | 0.36 | $ | 1.17 | 16.1 | % | 12.3 | % |
(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 and integration costs associated with the Bard and CareFusion acquisitions, as well as restructuring costs associated with other portfolio rationalization initiatives. |
(3) | Represents transaction costs primarily associated with the Bard acquisition. |
(4) | Represents financing impacts associated with the Bard acquisition. |
(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 as well as $58 million of charges to write down the value of fixed assets primarily in the Diabetes Care unit. |
(7) | Represents a non-cash charge resulting from a modification to our dispensing equipment lease contracts with customers. |
(8) | 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. |
(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 260,758. |
(10) | Includes additional tax expense, net, of $640 million relating to new U.S. tax legislation. |
BD Including Bard | ||||||||||||
FY2018 | FY2019 Outlook | |||||||||||
Revenues | % Change | FX Impact | % Change FXN | |||||||||
BDX Revenue | $ | 15,983 | 8.5% to 9.5% | ~2.0% | 10.5% to 11.5% | |||||||
Comparable Revenue Growth | ||||||||||||
FY2018 | FY2019 Outlook | |||||||||||
Revenues | % Change FXN Comparable | |||||||||||
BDX As Reported Revenue | $ | 15,983 | ||||||||||
Bard Q1 | 968 | |||||||||||
Intercompany Adjustment | (3 | ) | ||||||||||
Divestiture Adjustment (1)(2) | (124 | ) | ||||||||||
BDX NewCo Comparable Revenue | $ | 16,824 | 5.0% to 6.0% | |||||||||
BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2019 OUTLOOK RECONCILIATION (continued) | ||||||||||||
FY2018 | FY2019 Outlook | |||||||||||
Revenues | % Change FXN Comparable | |||||||||||
BD Medical As Reported Revenue | $ | 8,616 | ||||||||||
Bard Q1 | 213 | |||||||||||
Intercompany Adjustment | (3 | ) | ||||||||||
BD Medical Comparable Revenue | $ | 8,826 | 5.0% to 6.0% | |||||||||
BD Life Sciences As Reported Revenue | $ | 4,330 | ||||||||||
Divestiture Adjustment (1) | (106 | ) | ||||||||||
BD Life Sciences Comparable Revenue | $ | 4,224 | 4.0% to 5.0% | |||||||||
BD Interventional as Reported Revenue | $ | 3,037 | ||||||||||
Bard Q1 | 755 | |||||||||||
Divestiture Adjustment (2) | (18 | ) | ||||||||||
BD Interventional Comparable Revenue | $ | 3,774 | 6.0% to 7.0% | |||||||||
BD Including Bard | ||||||||||||
FY2019 Outlook | ||||||||||||
Full Year FY2019 Outlook | Full Year FY2018 | % Increase | ||||||||||
Adjusted Fully Diluted Earnings per Share | $12.05 to 12.15 | $ | 11.01 | ~10% | ||||||||
Estimated FX Impact | ~3.5% | |||||||||||
Adjusted FXN Growth | 13% - 14% |