• | As reported, revenues of $4.253 billion increased 1.4 percent |
• | On a currency-neutral basis, revenues increased 2.4 percent |
• | As reported, diluted earnings per share of $0.53 increased 857.1 percent, primarily due to charges recorded in the prior year |
• | As adjusted, diluted earnings per share of $2.55 decreased 1.5 percent or 1.9 percent on a currency-neutral basis |
• | The company is withdrawing its previously issued fiscal year 2020 revenue and earnings per share guidance due to the COVID-19 pandemic |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | % Change | |||||||||
REVENUES | $ | 4,253 | $ | 4,195 | 1.4 | ||||||
Cost of products sold | 2,520 | 2,221 | 13.4 | ||||||||
Selling and administrative expense | 1,025 | 1,089 | (5.9 | ) | |||||||
Research and development expense | 264 | 252 | 4.9 | ||||||||
Acquisitions and other restructurings | 75 | 101 | (25.9 | ) | |||||||
Other operating expense, net | — | 396 | (100.0 | ) | |||||||
TOTAL OPERATING COSTS AND EXPENSES | 3,884 | 4,059 | (4.3 | ) | |||||||
OPERATING INCOME | 370 | 136 | 171.5 | ||||||||
Interest expense | (134 | ) | (171 | ) | (21.7 | ) | |||||
Interest income | 2 | 18 | (89.1 | ) | |||||||
Other (expense) income, net | (38 | ) | 20 | (288.2 | ) | ||||||
INCOME BEFORE INCOME TAXES | 200 | 3 | 6,287.4 | ||||||||
Income tax provision (benefit) | 17 | (17 | ) | 200.4 | |||||||
NET INCOME | 183 | 20 | 811.7 | ||||||||
Preferred stock dividends | (38 | ) | (38 | ) | — | ||||||
NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS | $ | 145 | $ | (18 | ) | 914.6 | |||||
EARNINGS PER SHARE | |||||||||||
Basic Earnings (Loss) per Share | $ | 0.53 | $ | (0.07 | ) | 857.1 | |||||
Diluted Earnings (Loss) per Share | $ | 0.53 | $ | (0.07 | ) | 857.1 | |||||
AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||
Basic | 272,014 | 269,882 | |||||||||
Diluted | 275,037 | 269,882 |
Six Months Ended March 31, | |||||||||||
2020 | 2019 | % Change | |||||||||
REVENUES | $ | 8,479 | $ | 8,355 | 1.5 | ||||||
Cost of products sold | 4,766 | 4,408 | 8.1 | ||||||||
Selling and administrative expense | 2,146 | 2,161 | (0.7 | ) | |||||||
Research and development expense | 535 | 510 | 4.9 | ||||||||
Acquisitions and other restructurings | 161 | 191 | (16.2 | ) | |||||||
Other operating expense, net | — | 61 | (99.9 | ) | |||||||
TOTAL OPERATING COSTS AND EXPENSES | 7,607 | 7,332 | 3.8 | ||||||||
OPERATING INCOME | 871 | 1,024 | (14.9 | ) | |||||||
Interest expense | (270 | ) | (342 | ) | (21.2 | ) | |||||
Interest income | 3 | 6 | (43.5 | ) | |||||||
Other (expense) income, net | (11 | ) | 30 | (135.1 | ) | ||||||
INCOME BEFORE INCOME TAXES | 594 | 718 | (17.2 | ) | |||||||
Income tax provision | 134 | 98 | 36.3 | ||||||||
NET INCOME | 461 | 619 | (25.7 | ) | |||||||
Preferred stock dividends | (76 | ) | (76 | ) | — | ||||||
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 385 | $ | 544 | (29.2 | ) | |||||
EARNINGS PER SHARE | |||||||||||
Basic Earnings per Share | $ | 1.42 | $ | 2.02 | (29.7 | ) | |||||
Diluted Earnings per Share | $ | 1.40 | $ | 1.98 | (29.3 | ) | |||||
AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||
Basic | 271,555 | 269,454 | |||||||||
Diluted | 275,173 | 274,429 |
March 31, 2020 | September 30, 2019 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and equivalents | $ | 2,351 | $ | 536 | ||||
Restricted cash | 88 | 54 | ||||||
Short-term investments | 6 | 30 | ||||||
Trade receivables, net | 2,160 | 2,345 | ||||||
Inventories | 2,793 | 2,579 | ||||||
Prepaid expenses and other | 1,156 | 1,119 | ||||||
TOTAL CURRENT ASSETS | 8,555 | 6,664 | ||||||
Property, plant and equipment, net | 5,664 | 5,659 | ||||||
Goodwill and other intangibles, net | 37,788 | 38,354 | ||||||
Other Assets | 1,509 | 1,088 | ||||||
TOTAL ASSETS | $ | 53,516 | $ | 51,765 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Short-term debt | $ | 4,357 | $ | 1,309 | ||||
Other current liabilities | 4,398 | 4,345 | ||||||
Long-term debt | 16,809 | 18,081 | ||||||
Long-term employee benefit obligations | 1,253 | 1,272 | ||||||
Deferred income taxes and other liabilities | 5,747 | 5,676 | ||||||
Shareholders’ equity | 20,951 | 21,081 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 53,516 | $ | 51,765 |
Six Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 461 | $ | 619 | ||||
Depreciation and amortization | 1,067 | 1,126 | ||||||
Change in operating assets and liabilities and other, net | (332 | ) | (718 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,196 | 1,027 | ||||||
INVESTING ACTIVITIES | ||||||||
Capital expenditures | (395 | ) | (362 | ) | ||||
Proceeds from divestitures, net | — | 477 | ||||||
Other, net | (147 | ) | (85 | ) | ||||
NET CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (542 | ) | 30 | |||||
FINANCING ACTIVITIES | ||||||||
Change in credit facility borrowings | 210 | — | ||||||
Proceeds from long-term debt and term loans | 1,900 | — | ||||||
Payments of debt and term loans | (305 | ) | (905 | ) | ||||
Dividends paid | (505 | ) | (491 | ) | ||||
Other, net | (90 | ) | (135 | ) | ||||
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 1,210 | (1,532 | ) | |||||
Effect of exchange rate changes on cash and equivalents and restricted cash | (15 | ) | 5 | |||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS AND RESTRICTED CASH | 1,849 | (469 | ) | |||||
OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH | 590 | 1,236 | ||||||
CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH | $ | 2,439 | $ | 767 |
A | B | C=(A-B)/B | |||||||||
2020 | 2019 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 518 | $ | 482 | 7.6 | ||||||
Medication Management Solutions (a) | 449 | 499 | (9.9 | ) | |||||||
Diabetes Care | 142 | 137 | 3.0 | ||||||||
Pharmaceutical Systems | 91 | 93 | (2.5 | ) | |||||||
TOTAL | $ | 1,200 | $ | 1,211 | (0.9 | ) | |||||
BD LIFE SCIENCES | |||||||||||
Integrated Diagnostic Solutions (b) | |||||||||||
Preanalytical Systems | $ | 208 | $ | 171 | 21.6 | ||||||
Diagnostic Systems | 206 | 180 | 14.5 | ||||||||
Total Integrated Diagnostic Solutions | 413 | 350 | 18.0 | ||||||||
Biosciences | 108 | 120 | (9.8 | ) | |||||||
TOTAL | $ | 522 | $ | 470 | 10.9 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (c) | $ | 249 | $ | 242 | 3.0 | ||||||
Peripheral Intervention (c) | 242 | 225 | 7.4 | ||||||||
Urology and Critical Care (c) | 202 | 193 | 5.1 | ||||||||
TOTAL | $ | 693 | $ | 659 | 5.1 | ||||||
TOTAL UNITED STATES | $ | 2,415 | $ | 2,341 | 3.2 |
(a) | The presentation of prior-period amounts reflects the reclassification of $2 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. |
(b) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(c) | The presentation of prior-period amounts reflects the total reclassifications of $31 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2020 | 2019 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions | $ | 386 | $ | 446 | $ | (11 | ) | (13.4 | ) | (11.0 | ) | |||||||
Medication Management Solutions | 119 | 118 | (3 | ) | 0.4 | 2.6 | ||||||||||||
Diabetes Care | 137 | 133 | (4 | ) | 2.8 | 5.5 | ||||||||||||
Pharmaceutical Systems | 309 | 273 | (7 | ) | 13.4 | 16.2 | ||||||||||||
TOTAL | $ | 951 | $ | 969 | $ | (24 | ) | (1.9 | ) | 0.6 | ||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Integrated Diagnostic Solutions (a) | ||||||||||||||||||
Preanalytical Systems | $ | 192 | $ | 195 | $ | (6 | ) | (1.6 | ) | 1.4 | ||||||||
Diagnostic Systems | 228 | 209 | (5 | ) | 9.0 | 11.5 | ||||||||||||
Total Integrated Diagnostic Solutions | 420 | 404 | (11 | ) | 3.9 | 6.6 | ||||||||||||
Biosciences | 172 | 177 | (3 | ) | (3.3 | ) | (1.8 | ) | ||||||||||
TOTAL | $ | 591 | $ | 582 | $ | (14 | ) | 1.7 | 4.0 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (b) | $ | 63 | $ | 66 | $ | (1 | ) | (4.8 | ) | (3.1 | ) | |||||||
Peripheral Intervention (b) | 157 | 162 | (3 | ) | (2.8 | ) | (0.8 | ) | ||||||||||
Urology and Critical Care (b) | 76 | 75 | — | 1.3 | 1.9 | |||||||||||||
TOTAL | $ | 297 | $ | 303 | $ | (5 | ) | (2.2 | ) | (0.6 | ) | |||||||
TOTAL INTERNATIONAL | $ | 1,839 | $ | 1,854 | $ | (43 | ) | (0.8 | ) | 1.5 |
(a) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(b) | The presentation of prior-period amounts reflects the total reclassifications of $13 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2020 | 2019 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 904 | $ | 928 | $ | (11 | ) | (2.5 | ) | (1.3 | ) | |||||||
Medication Management Solutions (a) | 568 | 617 | (3 | ) | (7.9 | ) | (7.5 | ) | ||||||||||
Diabetes Care | 278 | 270 | (4 | ) | 2.9 | 4.2 | ||||||||||||
Pharmaceutical Systems | 400 | 366 | (7 | ) | 9.4 | 11.4 | ||||||||||||
TOTAL | $ | 2,151 | $ | 2,180 | $ | (24 | ) | (1.4 | ) | (0.3 | ) | |||||||
BD LIFE SCIENCES | ||||||||||||||||||
Integrated Diagnostic Solutions (b) | ||||||||||||||||||
Preanalytical Systems | $ | 400 | $ | 366 | $ | (6 | ) | 9.3 | 10.8 | |||||||||
Diagnostic Systems | 434 | 389 | (5 | ) | 11.5 | 12.9 | ||||||||||||
Total Integrated Diagnostic Solutions | 833 | 755 | (11 | ) | 10.4 | 11.9 | ||||||||||||
Biosciences | 280 | 297 | (3 | ) | (5.9 | ) | (5.0 | ) | ||||||||||
TOTAL | $ | 1,113 | $ | 1,052 | $ | (14 | ) | 5.8 | 7.1 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (c) | $ | 312 | $ | 308 | $ | (1 | ) | 1.4 | 1.7 | |||||||||
Peripheral Intervention (c) | 399 | 387 | (3 | ) | 3.1 | 4.0 | ||||||||||||
Urology and Critical Care (c) | 279 | 268 | — | 4.1 | 4.2 | |||||||||||||
TOTAL | $ | 990 | $ | 963 | $ | (5 | ) | 2.8 | 3.3 | |||||||||
TOTAL REVENUES | $ | 4,253 | $ | 4,195 | $ | (43 | ) | 1.4 | 2.4 |
(a) | The presentation of prior-period amounts reflects the reclassification of $2 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. |
(b) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(c) | The presentation of prior-period amounts reflects the total reclassifications of $45 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
A | B | C=(A-B)/B | |||||||||
2020 | 2019 | % Change | |||||||||
BD MEDICAL | |||||||||||
Medication Delivery Solutions (a) | $ | 1,038 | $ | 1,000 | 3.7 | ||||||
Medication Management Solutions (a) | 912 | 1,007 | (9.4 | ) | |||||||
Diabetes Care | 281 | 282 | (0.7 | ) | |||||||
Pharmaceutical Systems | 174 | 161 | 8.3 | ||||||||
TOTAL | $ | 2,404 | $ | 2,450 | (1.9 | ) | |||||
BD LIFE SCIENCES | |||||||||||
Integrated Diagnostic Solutions (b) | |||||||||||
Preanalytical Systems | $ | 410 | $ | 371 | 10.3 | ||||||
Diagnostic Systems | 390 | 355 | 9.9 | ||||||||
Total Integrated Diagnostic Solutions | 799 | 726 | 10.1 | ||||||||
Biosciences | 260 | 228 | 14.0 | ||||||||
TOTAL | $ | 1,060 | $ | 954 | 11.0 | ||||||
BD INTERVENTIONAL | |||||||||||
Surgery (c) | $ | 505 | $ | 488 | 3.6 | ||||||
Peripheral Intervention (c) | 467 | 448 | 4.3 | ||||||||
Urology and Critical Care (c) | 409 | 388 | 5.5 | ||||||||
TOTAL | $ | 1,381 | $ | 1,323 | 4.4 | ||||||
TOTAL UNITED STATES | $ | 4,845 | $ | 4,728 | 2.5 |
(a) | The presentation of prior-period amounts reflects the reclassification of $3 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. |
(b) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(c) | The presentation of prior-period amounts reflects the total reclassifications of $63 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2020 | 2019 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions | $ | 814 | $ | 883 | $ | (21 | ) | (7.8 | ) | (5.4 | ) | |||||||
Medication Management Solutions | 231 | 236 | (6 | ) | (1.8 | ) | 0.7 | |||||||||||
Diabetes Care | 266 | 261 | (6 | ) | 1.7 | 4.0 | ||||||||||||
Pharmaceutical Systems | 525 | 485 | (14 | ) | 8.2 | 11.1 | ||||||||||||
TOTAL | $ | 1,836 | $ | 1,865 | $ | (47 | ) | (1.6 | ) | 1.0 | ||||||||
BD LIFE SCIENCES | ||||||||||||||||||
Integrated Diagnostic Solutions (a) | ||||||||||||||||||
Preanalytical Systems | $ | 388 | $ | 387 | $ | (10 | ) | 0.3 | 2.9 | |||||||||
Diagnostic Systems | 446 | 416 | (9 | ) | 7.2 | 9.3 | ||||||||||||
Total Integrated Diagnostic Solutions | 834 | 803 | (19 | ) | 3.9 | 6.2 | ||||||||||||
Biosciences | 342 | 350 | (6 | ) | (2.3 | ) | (0.6 | ) | ||||||||||
TOTAL | $ | 1,176 | $ | 1,153 | $ | (25 | ) | 2.0 | 4.1 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (b) | $ | 133 | $ | 130 | $ | (2 | ) | 2.2 | 4.0 | |||||||||
Peripheral Intervention (b) | 327 | 321 | (7 | ) | 1.8 | 4.0 | ||||||||||||
Urology and Critical Care (b) | 161 | 158 | (1 | ) | 2.1 | 2.4 | ||||||||||||
TOTAL | $ | 621 | $ | 609 | $ | (10 | ) | 2.0 | 3.6 | |||||||||
TOTAL INTERNATIONAL | $ | 3,634 | $ | 3,628 | $ | (82 | ) | 0.2 | 2.4 |
(a) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(b) | The presentation of prior-period amounts reflects the total reclassifications of $28 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
A | B | C | % Change | |||||||||||||||
2020 | 2019 | FX Impact | Reported | FXN | ||||||||||||||
BD MEDICAL | ||||||||||||||||||
Medication Delivery Solutions (a) | $ | 1,852 | $ | 1,884 | $ | (21 | ) | (1.7 | ) | (0.6 | ) | |||||||
Medication Management Solutions (a) | 1,143 | 1,242 | (6 | ) | (8.0 | ) | (7.5 | ) | ||||||||||
Diabetes Care | 547 | 544 | (6 | ) | 0.5 | 1.6 | ||||||||||||
Pharmaceutical Systems | 699 | 646 | (14 | ) | 8.3 | 10.4 | ||||||||||||
TOTAL | $ | 4,241 | $ | 4,316 | $ | (47 | ) | (1.7 | ) | (0.6 | ) | |||||||
BD LIFE SCIENCES | ||||||||||||||||||
Integrated Diagnostic Solutions (b) | ||||||||||||||||||
Preanalytical Systems | $ | 798 | $ | 758 | $ | (10 | ) | 5.2 | 6.5 | |||||||||
Diagnostic Systems | 835 | 771 | (9 | ) | 8.4 | 9.6 | ||||||||||||
Total Integrated Diagnostic Solutions | 1,633 | 1,529 | (19 | ) | 6.8 | 8.1 | ||||||||||||
Biosciences | 603 | 579 | (6 | ) | 4.1 | 5.2 | ||||||||||||
TOTAL | $ | 2,236 | $ | 2,108 | $ | (25 | ) | 6.1 | 7.3 | |||||||||
BD INTERVENTIONAL | ||||||||||||||||||
Surgery (c) | $ | 638 | $ | 618 | $ | (2 | ) | 3.3 | 3.7 | |||||||||
Peripheral Intervention (c) | 794 | 769 | (7 | ) | 3.3 | 4.2 | ||||||||||||
Urology and Critical Care (c) | 570 | 545 | (1 | ) | 4.5 | 4.6 | ||||||||||||
TOTAL | $ | 2,002 | $ | 1,932 | $ | (10 | ) | 3.6 | 4.1 | |||||||||
TOTAL REVENUES | $ | 8,479 | $ | 8,355 | $ | (82 | ) | 1.5 | 2.5 |
(a) | The presentation of prior-period amounts reflects the reclassification of $3 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. |
(b) | Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units were joined to create the new Integrated Diagnostic Solutions unit. |
(c) | The presentation of prior-period amounts reflects the total reclassifications of $90 million associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2020 | 2019 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted Earnings (Loss) per Share | $ | 0.53 | $ | (0.07 | ) | $ | 0.60 | $ | 0.01 | $ | 0.59 | 857.1 | % | 842.9 | % | |||||||||||
Purchase accounting adjustments ($340 million and $379 million pre-tax, respectively) (1) | 1.24 | 1.40 | — | |||||||||||||||||||||||
Integration costs ($57 million and $70 million pre-tax, respectively) (2) | 0.21 | 0.26 | — | |||||||||||||||||||||||
Restructuring costs ($18 million and $31 million pre-tax, respectively) (2) | 0.07 | 0.12 | — | |||||||||||||||||||||||
European regulatory initiative-related costs ($27 million and $10 million pre-tax, respectively) (3) | 0.10 | 0.04 | — | |||||||||||||||||||||||
Transaction gain/loss and product-related matters ($199 million and $396 million pre-tax, respectively) (4) | 0.72 | 1.47 | — | |||||||||||||||||||||||
Investment gains/losses and asset impairments ($40 million pre-tax) (5) | 0.14 | — | — | |||||||||||||||||||||||
Transaction costs ($1 million pre-tax) (2) | — | — | — | |||||||||||||||||||||||
Impacts of debt extinguishment ($1 million pre-tax) | — | — | — | |||||||||||||||||||||||
Dilutive Impact (6) | — | (0.04 | ) | — | ||||||||||||||||||||||
Income tax benefit of special items and impact of tax reform ($(124) million and $(160) million, respectively) | (0.45 | ) | (0.59 | ) | — | |||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 2.55 | $ | 2.59 | $ | (0.04 | ) | $ | 0.01 | $ | (0.05 | ) | (1.5 | )% | (1.9 | )% |
(1) | Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
(2) | Represents integration, restructuring and transaction costs associated with acquisitions. |
(3) | Represents initial costs required to develop processes and systems to comply with emerging regulations such as the European Union Medical Device Regulation ("EUMDR") and General Data Protection Regulation ("GDPR"). |
(4) | The current-period amount represents a probable estimate of future costs associated with incremental product remediation efforts which was recorded in Cost of products sold. The prior-period amount includes amounts recorded to Other operating expense, net to record product liability reserves of $331 million and the estimated cumulative costs of a product recall of $65 million. |
(5) | Primarily represents a charge recorded to write down the carrying value of certain intangible assets in the Biosciences unit. |
(6) | 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 applicable to common shareholders incurred during the period. The adjusted diluted average shares outstanding (in thousands) were 274,287. |
Six Months Ended March 31, | ||||||||||||||||||||||||||
2020 | 2019 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
Reported Diluted Earnings per Share | $ | 1.40 | $ | 1.98 | $ | (0.58 | ) | $ | (0.03 | ) | $ | (0.55 | ) | (29.3 | )% | (27.8 | )% | |||||||||
Purchase accounting adjustments ($688 million and $757 million pre-tax, respectively) (1) | 2.50 | 2.76 | — | |||||||||||||||||||||||
Integration costs ($119 million and $143 million pre-tax, respectively) (2) | 0.43 | 0.52 | — | |||||||||||||||||||||||
Restructuring costs ($41 million and $72 million pre-tax, respectively) (2) | 0.15 | 0.26 | — | |||||||||||||||||||||||
European regulatory initiative-related costs ($44 million and $15 million pre-tax, respectively) (3) | 0.16 | 0.05 | — | |||||||||||||||||||||||
Transaction gain/loss and product-related matters ($258 million and $61 million pre-tax, respectively) (4) | 0.94 | 0.22 | — | |||||||||||||||||||||||
Investment gains/losses and asset impairments ($41 million pre-tax) (5) | 0.15 | — | — | |||||||||||||||||||||||
Transaction costs ($2 million pre-tax) (2) | — | 0.01 | — | |||||||||||||||||||||||
Impacts of debt extinguishment ($1 million pre-tax) | — | — | — | |||||||||||||||||||||||
Income tax benefit of special items and impact of tax reform ($(146) million and $(143) million, respectively) (6) | (0.53 | ) | (0.52 | ) | — | |||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 5.20 | $ | 5.29 | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.06 | ) | (1.7 | )% | (1.1 | )% |
(1) | Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
(2) | Represents integration, restructuring and transaction costs associated with acquisitions. |
(3) | Represents initial costs required to develop processes and systems to comply with emerging regulations such as the EUMDR and GDPR. |
(4) | The current-period amount represents a probable estimate of future costs associated with product remediation efforts which was recorded in Cost of products sold. The prior-period amount includes amounts recorded to Other operating expense, net to record product liability reserves of $331 million and the estimated cumulative costs of a product recall of $65 million, as well as the pre-tax gain of $335 million related to BD's sale of its Advanced Bioprocessing business. |
(5) | Primarily represents a charge recorded to write down the carrying value of certain intangible assets in the Biosciences unit. |
(6) | The amount for the six months ended March 31, 2019 included additional tax expense, net, of $20 million relating to new U.S. tax legislation. |