May 5, 2016 - EX-99.1 - 8-K: Current report filing | Becton, Dickinson and Company (BDX)

Exhibit 99.1

1 Becton Drive

Franklin Lakes, NJ 07417

www.bd.com

LOGO

Contact:

Monique N. Dolecki, Investor Relations 201-847-5453

Kristen Cardillo, Corporate Communications 201-847-5657

BD ANNOUNCES RESULTS FOR 2016 SECOND FISCAL QUARTER

Announces adjusted revenues of $3.071 billion, an increase of 49.7 percent, or 55.2 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 5.3 percent. As reported, revenues increased 49.6 percent to $3.067 billion.

Adjusted diluted earnings per share of $2.18 increased 35.4 percent, or 44.7 percent on a currency-neutral basis. As reported, diluted earnings per share were $1.56.

Raises fiscal year 2016 adjusted diluted earnings per share guidance to $8.50 to $8.57. On a currency-neutral basis, the Company continues to expect adjusted diluted earnings per share to be between $9.01 and $9.08. As reported, the Company expects full fiscal year diluted earnings per share to be between $6.14 and $6.21.

Franklin Lakes, NJ (May 5, 2016) BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly adjusted revenues of $3.071 billion for the second fiscal quarter ended March 31, 2016, an increase of 49.7 percent over the prior-year period reported revenues, or 55.2 percent on a currency-neutral basis. On a comparable, currency-neutral basis, second quarter adjusted revenues grew 5.3 percent. As reported, second quarter revenues were $3.067 billion, an increase of 49.6 percent over the prior-year period.

We are pleased with our second quarter revenue growth and strong operating performance, said Vincent A. Forlenza, Chairman, CEO and President. Our results this quarter continue to demonstrate the breadth and diversity of the growth drivers within our portfolio. This performance enables us to continue to create value for shareholders and provides us with the capacity to invest for the future.

Second Quarter and Six-Month Fiscal 2016 Operating Results

Adjusted diluted earnings per share were $2.18, compared with $1.61 in the prior-year period. This represents an increase of 35.4 percent, or 44.7 percent on a currency-neutral basis. On a reported basis, diluted earnings per share for the second quarter were $1.56 compared with $1.08 in the prior-year period.

For the six-month period ended March 31, 2016, adjusted diluted earnings per share were $4.13, compared with $3.14 in the prior-year period. This represents an increase of 31.5 percent, or 44.9 percent on a currency-neutral basis. On a reported basis, diluted earnings per share were $2.62 compared with $2.28 in the prior-year period.

Segment Results

In the BD Medical segment, worldwide adjusted revenues for the quarter were $2.135 billion, an increase of 93.1 percent over the prior-year period reported revenues, or 99.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted Medical revenues grew 6.1 percent. The segments revenue growth reflects solid performance across the Medication and Procedural Solutions, Medication Management Solutions, and Diabetes Care units. Strong performance in the Pharmaceutical Systems and Respiratory Solutions units was aided, in part, by volume increases driven by customer ordering patterns and capital placements, respectively. On a reported basis, Medical revenues were $2.131 billion, an increase of 92.8 percent over the prior-year period.

For the six-month period ended March 31, 2016, BD Medical adjusted revenues of $4.194 billion increased 92.6 percent over the prior-year period reported revenues, or 100.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 4.0 percent. On a reported basis, revenues were $4.185 billion, an increase of 92.2 percent over the prior-year period.

In the BD Life Sciences segment, reported worldwide revenues for the quarter were $936 million, a decrease of 1.0 percent from the prior-year period, or an increase of 3.4 percent on a currency-neutral basis. The segments results reflect solid growth in the Preanalytical Systems and Diagnostic Systems units, and Biosciences unit revenues that were about flat when compared with the prior-year period revenues. Growth in the Diagnostic Systems unit was driven by strong core microbiology sales, and was aided, in part, by a late flu season in comparison to the prior year which experienced a strong flu season in the first fiscal quarter. Within the Biosciences unit, strong growth in research instruments and reagents in the U.S. was offset by tender delays in Africa and a difficult comparison to the prior year in Europe.

For the six-month period ended March 31, 2016, BD Life Sciences revenues of $1.869 billion decreased 2.9 percent, and increased 2.5 percent on a currency-neutral basis.

Geographic Results

Second quarter adjusted revenues in the U.S. of $1.722 billion represent an increase of 99.6 percent over the prior-year period reported revenues. On a comparable basis, adjusted U.S. revenues increased 5.7 percent, with notable growth across both segments. Within the BD Medical segment, strong performance across the segment was aided, in part, by the aforementioned timing of customer orders and capital placements in the Pharmaceutical Systems and Respiratory Solutions units, respectively. Growth in the BD Life Sciences segment was driven by strong reagent sales and instrument placements in the Biosciences unit and solid growth in the Diagnostic Systems and Preanalytical Systems units. Growth in the Diagnostic Systems unit was aided by the late peak in the flu season. On a reported basis, U.S. revenues were $1.719 billion, an increase of 99.2 percent over the prior-year period.

Revenues outside of the U.S. were $1.349 billion, representing an increase of 13.5 percent over the prior-year period reported revenues, or an increase of 23.0 percent on a currency-neutral basis. On a comparable, currency-neutral basis, international revenues grew 4.8 percent. Within the BD Medical segment, growth was driven by continued strength in Europe and sales of safety-engineered products, particularly in China. Growth in the Medical Segment was aided, in part, by the aforementioned timing of customer orders and capital placements in the Pharmaceutical Systems and Respiratory Solutions units, respectively. Growth in the Life Sciences segment was driven by Preanalytical Systems and strong microbiology sales, partially offset by the aforementioned tender delays in Africa.

For the six-month period ended March 31, 2016, adjusted revenues in the U.S. were $3.419 billion, representing an increase of 96.1 percent compared with the prior-year period reported revenues. On a comparable basis, adjusted U.S. revenues grew 3.6 percent. On a reported basis, U.S. revenues were $3.410 billion, an increase of 95.5 percent over the prior-year period. Revenues outside of the U.S. were $2.644 billion, representing an increase of 12.1 percent over the prior-year period reported revenues, or an increase of 23.8 percent on a foreign currency-neutral basis. On a comparable, currency-neutral basis, revenues outside the U.S. grew 3.5 percent.

Fiscal 2016 Outlook for Full Year

The Company continues to estimate that currency-neutral adjusted revenues for the full fiscal year 2016, including the accretion from the acquisition of CareFusion, will increase 24.5 to 25.0 percent. Including the impact of foreign currency, as adjusted and as reported revenues are now expected to increase 21.5 to 22.0 percent. This is an increase from previously issued guidance of 20.0 to 20.5 percent growth. On a comparable, currency-neutral basis, the Company continues to estimate organic adjusted revenues will increase 4.5 to 5.0 percent when adjusting for the impact of closed acquisitions and divestitures.

The Company has raised its fiscal 2016 adjusted diluted earnings per share guidance to be between $8.50 and $8.57 which represents growth of approximately 19.0 to 20.0 percent. This is an increase from previously issued guidance of $8.37 to $8.44 which represented approximately 17.0 to 18.0 percent growth. On a currency-neutral basis, the Company continues to expect full-year fiscal 2016 adjusted diluted earnings per share to be between $9.01 and $9.08, which represents growth of approximately 26.0 to 27.0 percent over fiscal 2015 adjusted diluted earnings per share of $7.16. Adjusted diluted earnings per share exclude, among other specified items, the non-cash amortization of intangible assets, and include approximately 22.0 percentage points of accretion from the CareFusion acquisition. As reported, the Company expects full fiscal year diluted earnings per share to be between $6.14 and $6.21.

Conference Call Information

A conference call regarding BDs second quarter results will be broadcast live on BDs website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, May 5, 2016. The conference call will be available for replay on BDs website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, May 12, 2016, confirmation number 83710101.

Non-GAAP Financial Measures/Financial Tables

This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

All comparable basis revenue growth rates presented throughout this release include the results of

CareFusion Corporation (CareFusion) in the current and prior-year periods. Adjusted revenues for the current period for the Company and the Medical segment in the U.S. exclude the amortization of a write down of deferred revenue made in connection with our acquisition of CareFusion, which served to lower reported revenues for the period. Adjusted revenue growth rates presented on a comparable basis reflect the aforementioned adjustments and further exclude the impact of a distribution agreement change in the Respiratory Solutions unit. Current and prior-year adjusted diluted earnings per share results exclude the impact of purchase accounting adjustments, including the non-cash amortization of acquisition-related intangible assets; and integration and restructuring costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing and transaction costs; a litigation-related charge and the dilutive impact of shares issued in the CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD

BD is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. BD leads in patient and health care worker safety and the technologies that enable medical research and clinical laboratories. The company provides innovative solutions that help advance medical research and genomics, enhance the diagnosis of infectious disease and cancer, improve medication management, promote infection prevention, equip surgical and interventional procedures, optimize respiratory care and support the management of diabetes. The company partners with organizations around the world to address some of the most challenging global health issues. BD has more than 45,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit www.bd.com.

***

This press release, including the section entitled Fiscal 2016 Outlook for Full Year, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BDs performance, including future revenues and earnings per share. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to: risks relating to the integration of CareFusions operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BDs products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BDs ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BDs filings with the Securities and Exchange Commission); future healthcare reform, including changes in

government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed in BDs filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

(Unaudited; Amounts in millions, except share and per share data)


	Three Months Ended March 31,
	2016			2015			% Change
REVENUES	$	3,067		$	2,051			49.6

Cost of products sold		1,584			1,005			57.6
Selling and administrative expense		732			511			43.2
Research and development expense		182			129			40.4
Acquisitions and other restructurings		104			113			(7.9	)

TOTAL OPERATING COSTS AND EXPENSES		2,601			1,758			47.9

OPERATING INCOME		466			293			59.3

Interest expense		(99	)		(91	)		8.5
Interest income		3			8			(63.8	)
Other income, net		6			15			(62.7	)

INCOME BEFORE INCOME TAXES		376			225			67.1

Income tax provision		38			9			NM

NET INCOME	$	338		$	216			56.4

EARNINGS PER SHARE

Basic Earnings per Share	$	1.59		$	1.10			44.5
Diluted Earnings per Share	$	1.56		$	1.08			44.4

AVERAGE SHARES OUTSTANDING (in thousands)

Basic		212,469			196,085
Diluted		216,538			199,938

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

(Unaudited; Amounts in millions, except share and per share data)


	Six Months Ended March 31,
	2016			2015			% Change
REVENUES	$	6,054		$	4,102			47.6

Cost of products sold		3,162			2,011			57.2
Selling and administrative expense		1,480			1,055			40.3
Research and development expense		369			258			42.8
Acquisitions and other restructurings		225			136			65.2

TOTAL OPERATING COSTS AND EXPENSES		5,236			3,460			51.3

OPERATING INCOME		818			642			27.5

Interest expense		(196	)		(167	)		17.1
Interest income		9			19			(51.5	)
Other income, net		11			17			(35.5	)

INCOME BEFORE INCOME TAXES		642			510			25.8

Income tax provision		75			58			28.4

NET INCOME	$	567		$	452			25.5

EARNINGS PER SHARE

Basic Earnings per Share	$	2.67		$	2.32			15.1
Diluted Earnings per Share	$	2.62		$	2.28			14.9

AVERAGE SHARES OUTSTANDING (in thousands)

Basic		212,077			194,447
Diluted		216,695			198,493

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended March 31,

(Unaudited; Amounts in millions)


	A			B		C		D=(A-B)/B		E=(C-B)/B
	As Reported					Adjusted 2016		% Change
	2016			2015		Adjusted 2016		Reported		Adjusted
BD MEDICAL
Medication and Procedural Solutions	$	484		$	256	$	484		89.3		89.3
Medication Management Solutions		442					442		NM		NM
Diabetes Care		125			120		125		4.3		4.3
Pharmaceutical Systems		81			72		81		13.5		13.5
Respiratory Solutions		149					149		NM		NM
Deferred Revenue Adjustment *		(4	)						NM

TOTAL	$	1,278		$	447	$	1,281		185.8		186.6

BD LIFE SCIENCES
Preanalytical Systems	$	175		$	170	$	175		3.0		3.0
Diagnostic Systems		156			149		156		4.9		4.9
Biosciences		110			97		110		13.2		13.2

TOTAL	$	441		$	416	$	441		6.1		6.1

TOTAL UNITED STATES	$	1,719		$	863	$	1,722		99.2		99.6

In accordance with U.S. GAAP business combination accounting rules, CareFusions deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX Impact			% Change
	2016		2015		FX Impact			Reported			FXN
BD MEDICAL
Medication and Procedural Solutions	$	348	$	309	$	(34	)		12.5			23.4
Medication Management Solutions		94				(6	)		NM			NM
Diabetes Care		118		127		(12	)		(6.6	)		3.0
Pharmaceutical Systems		229		223		(16	)		3.1			10.2
Respiratory Solutions		64				(3	)		NM			NM

TOTAL	$	853	$	658	$	(71	)		29.6			40.4

BD LIFE SCIENCES
Preanalytical Systems	$	165	$	169	$	(18	)		(2.2	)		8.4
Diagnostic Systems		163		169		(13	)		(3.6	)		4.3
Biosciences		167		192		(10	)		(12.8	)		(7.5	)

TOTAL	$	495	$	530	$	(42	)		(6.5	)		1.4

TOTAL INTERNATIONAL	$	1,349	$	1,188	$	(113	)		13.5			23.0

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A			B		C		D			E=(A-B)/B			F=(A-B-D)/B			G=(C-B)/B			H=(C-B-D)/B
											% Change
	As Reported					Adjusted 2016		FX Impact												Adjusted FXN
	2016			2015		Adjusted 2016		FX Impact			Reported			FXN			Adjusted			Adjusted FXN
BD MEDICAL
Medication and Procedural Solutions	$	831		$	565	$	831	$	(34	)		47.2			53.2			47.2			53.2
Medication Management Solutions		536					536		(6	)		NM			NM			NM			NM
Diabetes Care		243			247		243		(12	)		(1.3	)		3.6			(1.3	)		3.6
Pharmaceutical Systems		311			294		311		(16	)		5.6			11.0			5.6			11.0
Respiratory Solutions		213					213		(3	)		NM			NM			NM			NM
Deferred Revenue Adjustment *		(4	)									NM			NM

TOTAL	$	2,131		$	1,106	$	2,135	$	(71	)		92.8			99.2			93.1			99.5

BD LIFE SCIENCES
Preanalytical Systems	$	340		$	339	$	340	$	(18	)		0.4			5.7			0.4			5.7
Diagnostic Systems		319			318		319		(13	)		0.4			4.6			0.4			4.6
Biosciences		277			289		277		(10	)		(4.1	)		(0.5	)		(4.1	)		(0.5	)

TOTAL	$	936		$	945	$	936	$	(42	)		(1.0	)		3.4			(1.0	)		3.4

TOTAL REVENUES	$	3,067		$	2,051	$	3,071	$	(113	)		49.6			55.1			49.7			55.2

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Six Months Ended March 31,

(Unaudited; Amounts in millions)


	A			B		C		D=(A-B)/B			E=(C-B)/B
	As Reported					Adjusted 2016		% Change
	2016			2015		Adjusted 2016		Reported			Adjusted
BD MEDICAL
Medication and Procedural Solutions	$	975		$	524	$	975		86.1			86.1
Medication Management Solutions		886					886		NM			NM
Diabetes Care		259			243		259		6.8			6.8
Pharmaceutical Systems		144			138		144		4.6			4.6
Respiratory Solutions		288					288		NM			NM
Deferred Revenue Adjustment *		(9	)						NM

TOTAL	$	2,544		$	904	$	2,553		181.2			182.3

BD LIFE SCIENCES
Preanalytical Systems	$	353		$	342	$	353		3.2			3.2
Diagnostic Systems		305			308		305		(0.9	)		(0.9	)
Biosciences		208			190		208		9.7			9.7

TOTAL	$	866		$	839	$	866		3.2			3.2

TOTAL UNITED STATES	$	3,410		$	1,744	$	3,419		95.5			96.1

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX Impact			% Change
	2016		2015		FX Impact			Reported			FXN
BD MEDICAL
Medication and Procedural Solutions	$	705	$	642	$	(80	)		9.9			22.3
Medication Management Solutions		200				(19	)		NM			NM
Diabetes Care		240		267		(31	)		(10.3	)		1.1
Pharmaceutical Systems		363		364		(33	)		(0.3	)		8.6
Respiratory Solutions		134				(9	)		NM			NM

TOTAL	$	1,641	$	1,273	$	(171	)		28.9			42.3

BD LIFE SCIENCES
Preanalytical Systems	$	331	$	351	$	(43	)		(5.5	)		6.8
Diagnostic Systems		327		347		(35	)		(5.8	)		4.3
Biosciences		344		387		(26	)		(11.1	)		(4.3	)

TOTAL	$	1,003	$	1,085	$	(105	)		(7.6	)		2.0

TOTAL INTERNATIONAL	$	2,644	$	2,358	$	(275	)		12.1			23.8

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A			B		C		D			E=(A-B)/B			F=(A-B-D)/B		G=(C-B)/B			H=(C-B-D)/B
											% Change
	As Reported					Adjusted 2016		FX Impact			Reported			FXN		Adjusted			Adjusted FXN
	2016			2015		Adjusted 2016		FX Impact			Reported			FXN		Adjusted			Adjusted FXN
BD MEDICAL
Medication and Procedural Solutions	$	1,680		$	1,165	$	1,680	$	(80	)		44.1			51.0		44.1			51.0
Medication Management Solutions		1,087					1,087		(19	)		NM			NM		NM			NM
Diabetes Care		499			510		499		(31	)		(2.2	)		3.8		(2.2	)		3.8
Pharmaceutical Systems		507			502		507		(33	)		1.0			7.5		1.0			7.5
Respiratory Solutions		422					422		(9	)		NM			NM		NM			NM
Deferred Revenue Adjustment *		(9	)									NM			NM

TOTAL	$	4,185		$	2,177	$	4,194	$	(171	)		92.2			100.0		92.6			100.5

BD LIFE SCIENCES
Preanalytical Systems	$	684		$	692	$	684	$	(43	)		(1.2	)		5.0		(1.2	)		5.0
Diagnostic Systems		632			655		632		(35	)		(3.5	)		1.8		(3.5	)		1.8
Biosciences		552			577		552		(26	)		(4.2	)		0.3		(4.2	)		0.3

TOTAL	$	1,869		$	1,925	$	1,869	$	(105	)		(2.9	)		2.5		(2.9	)		2.5

TOTAL REVENUES	$	6,054		$	4,102	$	6,063	$	(275	)		47.6			54.3		47.8			54.5

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES

Three Months Ended March 31,

(Unaudited; Amounts in millions)


	A			B		C=A+B		D		E		F			G=D+E+F		H=(C-G)/G
	Reported 2016			Deferred Revenue Adjustment		Adjusted 2016		BD Reported 2015		CFN Reported 2015		Respiratory Adjustment ** 2015			Comparable Historical 2015		Comparable Adjusted % Change
BD MEDICAL
Medication and Procedural Solutions	$	484		$		$	484	$	256	$	212	$			$	467		3.5
Medication Management Solutions		442					442				418					418		5.9
Diabetes Care		125					125		120							120		4.3
Pharmaceutical Systems		81					81		72							72		13.5
Respiratory Solutions		149					149				161		(23	)		138		8.3
Deferred Revenue Adjustment *		(4	)		4

TOTAL	$	1,278		$	4	$	1,281	$	447	$	790	$	(23	)	$	1,214		5.5

BD LIFE SCIENCES
Preanalytical Systems	$	175		$		$	175	$	170	$		$			$	170		3.0
Diagnostic Systems		156					156		149							149		4.9
Biosciences		110					110		97							97		13.2

TOTAL	$	441		$		$	441	$	416	$		$			$	416		6.1

TOTAL UNITED STATES	$	1,719		$	4	$	1,722	$	863	$	790	$	(23	)	$	1,630		5.7

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A		B		C		D=B+C		E			F=(A-D-E)/D
	Reported 2016		BD Reported 2015		CFN Reported 2015		Comparable Historical 2015		Comparable FX Impact			Comparable FXN % Change
BD MEDICAL
Medication and Procedural Solutions	$	348	$	309	$	56	$	365	$	(34	)		4.6
Medication Management Solutions		94				94		94		(6	)		6.6
Diabetes Care		118		127				127		(12	)		3.0
Pharmaceutical Systems		229		223				223		(16	)		10.2
Respiratory Solutions		64				57		57		(3	)		17.1

TOTAL	$	853	$	658	$	207	$	865	$	(71	)		6.9

BD LIFE SCIENCES
Preanalytical Systems	$	165	$	169	$		$	169	$	(18	)		8.4
Diagnostic Systems		163		169				169		(13	)		4.3
Biosciences		167		192				192		(10	)		(7.5	)

TOTAL	$	495	$	530	$		$	530	$	(42	)		1.4

TOTAL INTERNATIONAL	$	1,349	$	1,188	$	207	$	1,395	$	(113	)		4.8

Page 10

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A			B		C=A+B		D		E		F			G=D+E+F		H			I=(C-G-H)/G
	Reported 2016			Deferred Revenue Adjustment		Adjusted 2016		BD Reported 2015		CFN Reported 2015		Respiratory Adjustment ** 2015			Comparable Historical 2015		Comparable FX Impact			Comparable Adjusted FXN % Change
BD MEDICAL
Medication and Procedural Solutions	$	831		$		$	831	$	565	$	267	$			$	832	$	(34	)		4.0
Medication Management Solutions		536					536				512					512		(6	)		6.0
Diabetes Care		243					243		247							247		(12	)		3.6
Pharmaceutical Systems		311					311		294							294		(16	)		11.0
Respiratory Solutions		213					213				218		(23	)		195		(3	)		10.9
Deferred Revenue Adjustment *		(4	)		4

TOTAL	$	2,131		$	4	$	2,135	$	1,106	$	997	$	(23	)	$	2,079	$	(71	)		6.1

BD LIFE SCIENCES
Preanalytical Systems	$	340		$		$	340	$	339	$		$			$	339	$	(18	)		5.7
Diagnostic Systems		319					319		318							318		(13	)		4.6
Biosciences		277					277		289							289		(10	)		(0.5	)

TOTAL	$	936		$		$	936	$	945	$		$			$	945	$	(42	)		3.4

TOTAL REVENUES	$	3,067		$	4	$	3,071	$	2,051	$	997	$	(23	)	$	3,025	$	(113	)		5.3

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 11

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES

Six Months Ended March 31,

(Unaudited; Amounts in millions)


	A			B		C=A+B		D		E		F			G=D+E+F		H=(C-G)/G
	Reported 2016			Deferred Revenue Adjustment		Adjusted 2016		BD Reported 2015		CFN Reported 2015		Respiratory Adjustment ** 2015			Comparable Historical 2015		Comparable Adjusted % Change
BD MEDICAL
Medication and Procedural Solutions	$	975		$		$	975	$	524	$	427	$			$	951		2.5
Medication Management Solutions		886					886				843					843		5.1
Diabetes Care		259					259		243							243		6.8
Pharmaceutical Systems		144					144		138							138		4.6
Respiratory Solutions		288					288				333		(46	)		287		0.6
Deferred Revenue Adjustment *		(9	)		9

TOTAL	$	2,544		$	9	$	2,553	$	904	$	1,603	$	(46	)	$	2,462		3.7

BD LIFE SCIENCES
Preanalytical Systems	$	353		$		$	353	$	342	$		$			$	342		3.2
Diagnostic Systems		305					305		308							308		(0.9	)
Biosciences		208					208		190							190		9.7

TOTAL	$	866		$		$	866	$	839	$		$			$	839		3.2

TOTAL UNITED STATES	$	3,410		$	9	$	3,419	$	1,744	$	1,603	$	(46	)	$	3,301		3.6

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 12

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A		B		C		D=B+C		E			F=(A-D-E)/D
	Reported 2016		BD Reported 2015		CFN Reported 2015		Comparable Historical 2015		Comparable FX Impact			Comparable FXN % Change
BD MEDICAL
Medication and Procedural Solutions	$	705	$	642	$	117	$	758	$	(80	)		3.5
Medication Management Solutions		200				208		208		(19	)		5.2
Diabetes Care		240		267				267		(31	)		1.1
Pharmaceutical Systems		363		364				364		(33	)		8.6
Respiratory Solutions		134				138		138		(9	)		2.8

TOTAL	$	1,641	$	1,273	$	463	$	1,736	$	(171	)		4.4

BD LIFE SCIENCES
Preanalytical Systems	$	331	$	351	$		$	351	$	(43	)		6.8
Diagnostic Systems		327		347				347		(35	)		4.3
Biosciences		344		387				387		(26	)		(4.3	)

TOTAL	$	1,003	$	1,085	$		$	1,085	$	(105	)		2.0

TOTAL INTERNATIONAL	$	2,644	$	2,358	$	463	$	2,821	$	(275	)		3.5

Page 13

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)


	A			B		C=A+B		D		E		F			G=D+E+F		H			I=(C-G-H)/G
	Reported 2016			Deferred Revenue Adjustment		Adjusted 2016		BD Reported 2015		CFN Reported 2015		Respiratory Adjustment ** 2015			Comparable Historical 2015		Comparable FX Impact			Comparable Adjusted FXN % Change
BD MEDICAL
Medication and Procedural Solutions	$	1,680		$		$	1,680	$	1,165	$	544	$			$	1,709	$	(80	)		3.0
Medication Management Solutions		1,087					1,087				1,051					1,051		(19	)		5.1
Diabetes Care		499					499		510							510		(31	)		3.8
Pharmaceutical Systems		507					507		502							502		(33	)		7.5
Respiratory Solutions		422					422				471		(46	)		425		(9	)		1.3
Deferred Revenue Adjustment *		(9	)		9

TOTAL	$	4,185		$	9	$	4,194	$	2,177	$	2,066	$	(46	)	$	4,198	$	(171	)		4.0

BD LIFE SCIENCES
Preanalytical Systems	$	684		$		$	684	$	692	$		$			$	692	$	(43	)		5.0
Diagnostic Systems		632					632		655							655		(35	)		1.8
Biosciences		552					552		577							577		(26	)		0.3

TOTAL	$	1,869		$		$	1,869	$	1,925	$		$			$	1,925	$	(105	)		2.5

TOTAL REVENUES	$	6,054		$	9	$	6,063	$	4,102	$	2,066	$	(46	)	$	6,122	$	(275	)		3.5

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 14

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

SAFETY REVENUES

(Unaudited; Amounts in millions)


	Three Months Ended March 31,
	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX Impact			% Change
	2016		2015		FX Impact			Reported			FXN
TOTAL SAFETY REVENUES
United States	$	443	$	294	$				50.7			50.7
International		290		256		(31	)		13.1			25.1

TOTAL	$	733	$	550	$	(31	)		33.2			38.8

BY SEGMENT
BD Medical	$	465	$	281	$	(17	)		65.5			71.6
BD Life Sciences		268		269		(14	)		(0.5	)		4.6

TOTAL	$	733	$	550	$	(31	)		33.2			38.8


	Six Months Ended March 31,
	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX Impact			% Change
	2016		2015		FX Impact			Reported			FXN
TOTAL SAFETY REVENUES
United States	$	890	$	602	$				47.7			47.7
International		580		521		(69	)		11.3			24.6

TOTAL	$	1,470	$	1,123	$	(69	)		30.8			37.0

BY SEGMENT
BD Medical	$	932	$	577	$	(37	)		61.6			68.0
BD Life Sciences		538		547		(33	)		(1.6	)		4.3

TOTAL	$	1,470	$	1,123	$	(69	)		30.8			37.0

Page 15

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF SAFETY REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE

(Unaudited; Amounts in millions)


	Three Months Ended March 31,
	A		B		C		D=B+C		E			F=(A-D-E)/D
	BD Reported 2016		BD Reported 2015		CFN Reported 2015		Comparable Historical 2015		Comparable FX Impact			Comparable FXN % Change
TOTAL SAFETY REVENUES
United States	$	443	$	294	$	130	$	424	$				4.5
International		290		256		36		292		(31	)		9.9

TOTAL	$	733	$	550	$	165	$	715	$	(31	)		6.7

BY SEGMENT
BD Medical	$	465	$	281	$	165	$	446	$	(17	)		8.0
BD Life Sciences		268		269				269		(14	)		4.6

TOTAL	$	733	$	550	$	165	$	715	$	(31	)		6.7


	Six Months Ended March 31,
	A		B		C		D=B+C		E			F=(A-D-E)/D
	BD Reported 2016		BD Reported 2015		CFN Reported 2015		Comparable Historical 2015		Comparable FX Impact			Comparable FXN % Change
TOTAL SAFETY REVENUES
United States	$	890	$	602	$	252	$	854	$				4.2
International		580		521		79		600		(69	)		8.1

TOTAL	$	1,470	$	1,123	$	331	$	1,454	$	(69	)		5.8

BY SEGMENT
BD Medical	$	932	$	577	$	331	$	908	$	(37	)		6.7
BD Life Sciences		538		547				547		(33	)		4.3

TOTAL	$	1,470	$	1,123	$	331	$	1,454	$	(69	)		5.8

Page 16

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)


	Three Months Ended March 31,
	2016			2015			Growth		Foreign Currency Translation			Foreign Currency Neutral Growth		Growth %			Foreign Currency Neutral Growth %
Reported Diluted Earnings per Share	$	1.56		$	1.08		$	0.48	$	(0.14	)	$	0.62		44.4	%		57.4	%

Purchase Accounting Adjustments ($115 million or $73 million after-tax and $9 million or $3 million after-tax, respectively)		0.34	⁽¹⁾		0.01	⁽²⁾
Restructuring Costs ($64 million or $35 million after-tax and $62 million or $36 million after-tax, respectively) ⁽³⁾		0.16			0.18
Integration Costs ($40 million or $25 million after-tax and $18 million or $10 million after-tax, respectively) ⁽³⁾		0.12			0.05
Transaction Costs ($33 million or $19 million after-tax) ⁽³⁾					0.10
Financing Costs ($58 million or $34 million after-tax) ⁽³⁾					0.17
Dilutive Share Impact ⁽⁴⁾					0.02

Adjusted Diluted Earnings per Share	$	2.18		$	1.61		$	0.57	$	(0.15	)	$	0.72		35.4	%		44.7	%

⁽¹⁾

Includes non-cash amortization expense of $136 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $1 million pre-tax to reflect CareFusions fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $22 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

⁽²⁾	Represents non-cash amortization expense associated with acquisition related identifiable intangible assets of $18 million pre-tax, partially offset by an acquisition-date accounting gain of $9 million pre-tax related to a previously held equity investment.

⁽³⁾	Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

⁽⁴⁾	Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The quarter-to-date adjusted diluted average shares outstanding (in thousands) is 197,436.

Page 17

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)


	Six Months Ended March 31,
	2016			2015			Growth		Foreign Currency Translation			Foreign Currency Neutral Growth		Growth %			Foreign Currency Neutral Growth %
Reported Diluted Earnings per Share	$	2.62		$	2.28		$	0.34	$	(0.40	)	$	0.74		14.9	%		32.5	%

Purchase Accounting Adjustments ($268 million or $193 million after-tax and $27 million or $15 million after-tax, respectively)		0.89	⁽¹⁾		0.08	⁽²⁾
Restructuring Costs ($149 million or $89 million after-tax and $62 million or $36 million after-tax, respectively) ⁽³⁾		0.41			0.18					(0.01	)
Integration Costs ($75 million or $47 million after-tax and $31 million or $19 million after-tax, respectively) ⁽³⁾		0.22			0.10
Transaction Costs ($43 million or $29 million after-tax) ⁽³⁾					0.15
Financing Costs ($102 million or $62 million after-tax) ⁽³⁾					0.31
Litigation-related Charge ($12 million or $7 million after-tax) ⁽⁴⁾					0.04
Dilutive Share Impact ⁽⁵⁾					0.02

Adjusted Diluted Earnings per Share	$	4.13		$	3.14		$	0.99	$	(0.42	)	$	1.41		31.5	%		44.9	%

⁽¹⁾

Includes non-cash amortization expense of $285 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $5 million pre-tax to reflect CareFusions fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $22 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

⁽²⁾	Represents non-cash amortization expense associated with acquisition related identifiable intangible assets of $35 million pre-tax, partially offset by an acquisition-date accounting gain of $9 million pre-tax related to a previously held equity investment.

⁽³⁾	Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

⁽⁴⁾	Represents a charge for plaintiffs attorneys fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI.

⁽⁵⁾	Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The year-to-date adjusted diluted average shares outstanding (in thousands) is 197,390.

Page 18

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY2016 OUTLOOK RECONCILIATION

(Amounts in millions, except per share data)


	FY2015			FY2016 Outlook
	Revenues			% Increase		FX Impact		% Increase FXN
BDX As Reported Revenue	$	10,282			21.5% - 22.0%		~(3.0%)		24.5% - 25.0%
Deferred Revenue Adjustment		20			NM		NM		NM

BDX As Adjusted Revenue		10,302			21.5% - 22.0%		~(3.0%)		24.5% - 25.0%
CareFusion First Half Revenue		2,066
Respiratory Solution Adjustment ⁽¹⁾		(78	)

					% Increase FXN

					Comparable

BDX Comparable Revenue		12,290			4.5% - 5.0%
Inorganic Revenue ⁽²⁾		(27	)		Comparable Organic

BDX Comparable Organic Revenue	$	12,263			4.5% - 5.0%

BD Medical Revenue	$	6,460
Deferred Revenue Adjustment		20

BD Medical As Adjusted Revenue		6,480
CareFusion First Half Revenue		2,066
Respiratory Solution Adjustment ⁽¹⁾		(78	)

					% Increase FXN

					Comparable

BD Medical Comparable Revenue	$	8,469			4.5% - 5.0%


	FY2016 Outlook
	Full Year FY2016			Full Year FY2015			% Increase
	(estimated)
Reported Fully Diluted Earnings per Share	$	6.14 - 6.21		$	3.35			NM
Purchase Accounting Adjustments		1.73			2.17
Restructuring Costs		0.41	⁽³⁾		0.80
Integration Costs		0.22	⁽³⁾		0.29
Transaction Costs					0.19
Financing Costs					0.31
Litigation-related Charge					0.04
Employee Termination Cost-related Amounts					(0.01	)
Dilutive Share Impact					0.02

Adjusted Fully Diluted Earnings per Share	$	8.50 - 8.57		$	7.16			19.0% - 20.0%

FX Impact	$	(0.51	)					~(7.0%	)

Adjusted FXN Growth	$	9.01 - 9.08						26.0% - 27.0%

⁽¹⁾	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

⁽²⁾	Adjusts FY2015 revenues for the following closed divestitures: Simplist and Spine.

⁽³⁾	FY2016 restructuring and integration cost reflect year-to-date realized costs.

NM - Not Meaningful

FXN - Foreign Currency Neutral

Page 19

Form: 8-K

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