EX-99.1
Published on May 31, 2022
Exhibit 99.1
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
| Three Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| REVENUES | $ | 4,750 | $ | 4,634 | ||||||||||
| Cost of products sold | 2,637 | 2,584 | ||||||||||||
| Selling and administrative expense | 1,192 | 1,115 | ||||||||||||
| Research and development expense | 327 | 304 | ||||||||||||
| Acquisition-related integration and restructuring expense | 28 | 47 | ||||||||||||
| Other operating expense, net | — | 296 | ||||||||||||
| TOTAL OPERATING COSTS AND EXPENSES | 4,185 | 4,345 | ||||||||||||
| OPERATING INCOME | 564 | 289 | ||||||||||||
| Interest expense | (97) | (124) | ||||||||||||
| Interest income | 2 | 2 | ||||||||||||
| Other expense, net | (27) | (10) | ||||||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 442 | 158 | ||||||||||||
| Income tax provision (benefit) | 52 | (15) | ||||||||||||
| NET INCOME FROM CONTINUING OPERATIONS | 390 | 173 | ||||||||||||
| Income from discontinued operations, net of tax | 64 | 127 | ||||||||||||
| NET INCOME | 454 | 299 | ||||||||||||
| Preferred stock dividends | (23) | (23) | ||||||||||||
| NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 431 | $ | 277 | ||||||||||
| BASIC EARNINGS PER SHARE | ||||||||||||||
| Income from Continuing Operations | $ | 1.29 | $ | 0.52 | ||||||||||
| Income from Discontinued Operations | 0.22 | 0.43 | ||||||||||||
| Basic Earnings per Share | $ | 1.51 | $ | 0.95 | ||||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||
| Income from Continuing Operations | $ | 1.28 | $ | 0.51 | ||||||||||
| Income from Discontinued Operations | 0.22 | 0.43 | ||||||||||||
| Diluted Earnings per Share | $ | 1.50 | $ | 0.94 | ||||||||||
| AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||||
| Basic | 285,243 | 291,095 | ||||||||||||
| Diluted | 287,299 | 293,547 | ||||||||||||
Columns may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS
(Unaudited; Amounts in millions, except per share data)
| Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
| Reported (GAAP) | Purchase accounting adjustments (A) | Integration costs (B) | Restructuring costs (B) | Transaction gain/loss, product and other litigation-related matters (C) | European regulatory initiative-related costs (D) | Investment gains/losses and asset impairments (E) | Income tax benefit of special items | Adjusted (Non-GAAP) | |||||||||||||||||||||
| See Footnotes on Page 4 | |||||||||||||||||||||||||||||
| REVENUES | $ | 4,750 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4,750 | |||||||||||
| Gross margin | 2,112 | 355 | — | — | 36 | 11 | 54 | — | 2,568 | ||||||||||||||||||||
| Selling and administrative expense | 1,192 | (3) | — | — | — | — | — | — | 1,189 | ||||||||||||||||||||
| Research and development expense | 327 | — | — | — | — | (23) | — | — | 304 | ||||||||||||||||||||
| OPERATING INCOME | 564 | 357 | 11 | 17 | 36 | 35 | 54 | — | 1,075 | ||||||||||||||||||||
| Net interest expense | (95) | (1) | — | — | — | — | — | — | (97) | ||||||||||||||||||||
| Other (expense) income, net | (27) | — | — | — | — | — | 19 | — | (8) | ||||||||||||||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 442 | 356 | 11 | 17 | 36 | 35 | 73 | — | 970 | ||||||||||||||||||||
| Income tax provision | 52 | — | — | — | — | — | — | 96 | 148 | ||||||||||||||||||||
| NET INCOME FROM CONTINUING OPERATIONS | $ | 390 | $ | 356 | $ | 11 | $ | 17 | $ | 36 | $ | 35 | $ | 73 | $ | (96) | $ | 822 | |||||||||||
| DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 1.28 | $ | 1.24 | $ | 0.04 | $ | 0.06 | $ | 0.13 | $ | 0.12 | $ | 0.25 | $ | (0.34) | $ | 2.78 | |||||||||||
Rows may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS
(Unaudited; Amounts in millions, except per share data)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
| Reported (GAAP) | Purchase accounting adjustments (A) | Integration costs (B) | Restructuring costs (B) | Transaction gain/loss, product and other litigation-related matters (C) | European regulatory initiative-related costs (D) | Impacts of debt extinguishment (F) | Income tax benefit of special items | Adjusted (Non-GAAP) |
|||||||||||||||||||||
| See Footnotes on Page 4 | |||||||||||||||||||||||||||||
| REVENUES | $ | 4,634 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4,634 | |||||||||||
| Gross margin | 2,050 | 348 | — | — | 37 | 11 | — | — | 2,446 | ||||||||||||||||||||
| Selling and administrative expense | 1,115 | (1) | — | — | — | — | — | — | 1,113 | ||||||||||||||||||||
| Research and development expense | 304 | — | — | — | — | (21) | — | — | 282 | ||||||||||||||||||||
| OPERATING INCOME | 289 | 349 | 33 | 14 | 333 | 32 | — | — | 1,050 | ||||||||||||||||||||
| Net interest expense | (122) | (1) | — | — | — | — | 4 | — | (119) | ||||||||||||||||||||
| Other (expense) income, net | (10) | — | — | — | — | — | 15 | — | 6 | ||||||||||||||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 158 | 348 | 33 | 14 | 333 | 32 | 20 | — | 937 | ||||||||||||||||||||
| Income tax provision | (15) | — | — | — | — | — | — | 124 | 110 | ||||||||||||||||||||
| NET INCOME FROM CONTINUING OPERATIONS | $ | 173 | $ | 348 | $ | 33 | $ | 14 | $ | 333 | $ | 32 | $ | 20 | $ | (124) | $ | 827 | |||||||||||
| DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 0.51 | $ | 1.18 | $ | 0.11 | $ | 0.05 | $ | 1.13 | $ | 0.11 | $ | 0.07 | $ | (0.42) | $ | 2.74 | |||||||||||
Rows may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
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The reconciliations of reported results to adjusted results on the previous pages reflect the following adjustments that are considered by management to be outside of BD’s underlying operational results or that affect period to period comparability:
(A)Purchase accounting adjustments-Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and the valuation of fixed assets and debt. BD’s amortization expense is primarily recorded in Cost of products sold.
(B)Integration and restructuring costs-Includes amounts associated with integration and restructuring activities resulting from acquisitions, as well as simplification and other cost saving initiatives. These costs are recorded to Acquisition-related integration and restructuring expense.
(C)Transaction gain/loss, product and other litigation-related matters-The amounts in 2022 and 2021 include charges of $35 million and $37 million, respectively, recorded to Cost of products sold to adjust the estimate of future product remediation costs. The amount in 2021 also includes charges recorded to Other operating expense, net to record product liability reserves, including related legal defense costs, of $296 million.
(D)European regulatory initiative-related costs-Represents costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation, which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. These expenses, which are recorded in Cost of products sold and Research and development expense, include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs.
(E)Investment gains/losses and asset impairments-Includes a noncash asset impairment charge recorded in Cost of products sold of $54 million in the Medical segment. Also includes losses recorded within Other expense, net relating to certain investments.
(F)Impacts of debt extinguishment-Represents the impacts, which are recorded in Other expense, net and Interest expense, of our extinguishment of certain long-term senior notes.
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