Form: 8-K

Current report filing

November 3, 2016

Exhibit 99.1

1 Becton Drive

Franklin Lakes, NJ 07417

www.bd.com

LOGO    LOGO

Contact:

Monique N. Dolecki, Investor Relations – 201-847-5378

Kristen Cardillo, Corporate Communications – 201-847-5657

BD ANNOUNCES RESULTS FOR 2016 FOURTH FISCAL QUARTER AND FULL YEAR;

PROVIDES FISCAL 2017 GUIDANCE

 

  •   As reported, full fiscal year revenues of $12.483 billion increased 21.4 percent. On a comparable, currency-neutral basis, organic adjusted revenues grew 4.3 percent for the full year.

 

  •   As reported, full fiscal year diluted earnings per share of $4.49 increased 34.0 percent.

 

  •   As adjusted, full fiscal year diluted earnings per share of $8.59 increased 20.0 percent, or 29.1 percent on a currency-neutral basis.

 

  •   As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent.

 

  •   As adjusted, the Company expects full fiscal year 2017 diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent.

Franklin Lakes, NJ (November 3, 2016) – BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced quarterly revenues of $3.231 billion, as reported, for the fourth fiscal quarter ended September 30, 2016, an increase of 5.6 percent over the prior-year period revenues. On a comparable, currency-neutral basis, fourth quarter organic adjusted revenues grew 6.4 percent. For the full fiscal year ended September 30, 2016, as reported, revenues of $12.483 billion increased 21.4 percent over the prior-year as reported. On a comparable, currency-neutral basis, full fiscal year organic adjusted revenues grew 4.3 percent.


“We are extremely proud of our accomplishments during our first fiscal year as the ‘new’ BD,” said Vincent A. Forlenza, Chairman, CEO and President. “Our solid revenue growth and continued margin expansion allow us to invest in innovation while delivering double-digit increases in earnings. We look forward to fiscal 2017 with confidence as we continue to focus on improving outcomes, expanding access to care, lowering costs and optimizing safety, which will ultimately enrich our purpose of advancing the world of health.”

Fourth Quarter and Full Year Fiscal 2016 Operating Results

As reported, diluted earnings per share for the fourth quarter were $0.09, compared with $0.84 as reported in the prior-year period. This represents a decrease of 89.3 percent and is primarily due to charges related to the attainment of cost synergies. Adjusted diluted earnings per share were $2.12, compared with $1.94 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 9.3 percent, or 16.5 percent on a currency-neutral basis.

For the full fiscal year ended September 30, 2016, as reported, diluted earnings per share were $4.49, compared with $3.35 as reported in the prior-year period. This represents an increase of 34.0 percent. Adjusted diluted earnings per share were $8.59, compared with $7.16 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 20.0 percent, or 29.1 percent on a currency-neutral basis.

Segment Results

In the BD Medical segment, as reported, worldwide revenues for the quarter were $2.235 billion, an increase of 7.3 percent over the prior-year period revenues. As adjusted, BD Medical revenues of $2.237 billion grew 7.9 percent on a comparable, currency-neutral basis. The segment’s revenue growth reflects strong performance in the Medication Management Solutions and Medication and Procedural Solutions units, and solid results in the Pharmaceutical Systems and Diabetes Care units. Strong performance in the Respiratory Solutions unit was aided, in part, by a favorable comparison to the prior year, as expected.

For the twelve-month period ended September 30, 2016, BD Medical revenues were $8.654 billion as reported, an increase of 34.0 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $8.669 billion grew 4.7 percent on a comparable, currency-neutral basis.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $996 million, an increase of 2.1 percent over the prior-year period revenues, or an increase of 2.7 percent on a currency-neutral basis. The segment’s revenue growth reflects solid performance in the Preanalytical Systems and Biosciences units. Within the Biosciences unit, strong growth in the research platform in the U.S. was partially offset by continued declines in Africa, as previously communicated. Growth in the Diagnostic Systems unit was impacted, in part, by the timing of installations of the BD Kiestra™ lab automation system that benefited the third fiscal quarter of fiscal 2016, in conjunction with a tough comparison to the prior-year period.

For the twelve-month period ended September 30, 2016, BD Life Sciences revenues were $3.829 billion as reported, an increase of 0.2 percent over the prior-year period revenues as reported, and an increase of 3.4 percent on a currency-neutral basis.


Geographic Results

As reported, fourth quarter revenues in the U.S. were $1.748 billion, an increase of 7.1 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $1.751 billion increased 7.2 percent on a comparable basis. Within the BD Medical segment, growth was driven by strong performance across the Medication Management Solutions, Medication and Procedural Solutions, and Pharmaceutical Systems units. Growth in BD Life Sciences was driven by strong performance across the segment.

As reported, revenues outside of the U.S. were $1.483 billion, representing an increase of 3.9 percent over the prior-year period revenues as reported, or an increase of 5.2 percent on a currency-neutral basis. International revenue growth reflects strong growth in the BD Medical segment. Within the BD Medical segment, results were driven by double-digit growth in China, strength in dispensing and infusion, and sales of safety-engineered products. Growth in the BD Medical segment was aided, in part, by the aforementioned favorable comparison to the prior year period in the Respiratory Solutions unit. BD Life Sciences segment revenues were about flat when compared with the prior-year period revenues. Results in the BD Life Sciences segment were impacted by the aforementioned tough comparison to the prior-year period related to the timing of installations of the BD Kiestra™ lab automation system, and continued declines in Africa within the Biosciences unit.

For the twelve-month period ended September 30, 2016, U.S. revenues were $6.893 billion as reported, an increase of 36.0 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $6.907 billion grew 4.4 percent on a comparable basis. As reported, revenues outside of the U.S. were $5.590 billion, an increase of 7.2 percent over the prior-year period revenues as reported. On a comparable, currency-neutral basis, revenues outside the U.S. grew 4.2 percent.

Fiscal 2017 Outlook for Full Year

As reported, the Company expects full fiscal year 2017 revenues to decrease 3.0 to 3.5 percent, primarily due to the divestiture of the Respiratory Solutions business that was completed in October 2016. The Company estimates full fiscal year 2017 revenues will increase 4.5 to 5.0 percent on a comparable, currency-neutral basis that excludes Respiratory Solutions and other closed divestitures in fiscal years 2016 and 2017.

As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent. The Company expects adjusted diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent including an estimated 1.5 percentage points of dilution related to the Respiratory Solutions divestiture. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent over fiscal 2016 adjusted diluted earnings per share of $8.59. Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets.

Conference Call Information

A conference call regarding BD’s fourth quarter results will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, November 3, 2016. The conference call will be available for replay on BD’s 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, November 10, 2016, confirmation number 94169710.


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 relating to fiscal year 2016 presented throughout this release include the results of CareFusion Corporation (“CareFusion”) in the current and prior-year periods. Adjusted revenues for the current and prior-year periods 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 each 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. Adjusted revenue growth rates presented on an “organic” comparable basis reflect the aforementioned adjustments and are further adjusted for closed acquisitions and divestitures. 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, restructuring and transaction costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing 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, 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 40,000 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 bd.com.

***

This press release, including the section entitled “Fiscal 2017 Outlook for Full Year”, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s 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 CareFusion’s 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 BD’s products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD’s 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 BD’s 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 BD’s 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 September 30,  
     2016     2015     % Change  

REVENUES

   $ 3,231      $ 3,059        5.6   

Cost of products sold

     1,679        1,630        3.0   

Selling and administrative expense

     796        756        5.3   

Research and development expense

     253        196        29.3   

Acquisitions and other restructurings

     407        182        NM   
  

 

 

   

 

 

   

 

 

 

TOTAL OPERATING COSTS AND EXPENSES

     3,135        2,764        13.4   
  

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     96        296        (67.5

Interest expense

     (95     (99     (3.9

Interest income

     7        (5     NM   

Other income (expense), net

     1        (2     NM   
  

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     9        190        (95.2

Income tax (benefit) provision

     (10     9        NM   
  

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 19      $ 181        (89.6
  

 

 

   

 

 

   

 

 

 

EARNINGS PER SHARE

      

Basic Earnings per Share

   $ 0.09      $ 0.86        (89.5

Diluted Earnings per Share

   $ 0.09      $ 0.84        (89.3
  

 

 

   

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING (in thousands)

      

Basic

     213,571        210,985     

Diluted

     217,916        215,719     
  

 

 

   

 

 

   

NM - Not Meaningful

 

Page 1


BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

 

     Twelve Months Ended September 30,  
     2016     2015     % Change  

REVENUES

   $ 12,483      $ 10,282        21.4   

Cost of products sold

     6,492        5,587        16.2   

Selling and administrative expense

     3,005        2,563        17.3   

Research and development expense

     828        632        31.2   

Acquisitions and other restructurings

     728        426        70.8   
  

 

 

   

 

 

   

 

 

 

TOTAL OPERATING COSTS AND EXPENSES

     11,053        9,207        20.0   
  

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     1,430        1,074        33.1   

Interest expense

     (388     (371     4.5   

Interest income

     21        15        36.0   

Other income, net

     11        21        (44.5
  

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     1,074        739        45.3   

Income tax provision

     97        44        NM   
  

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 976      $ 695        40.5   
  

 

 

   

 

 

   

 

 

 

EARNINGS PER SHARE

      

Basic Earnings per Share

   $ 4.59      $ 3.43        33.8   

Diluted Earnings per Share

   $ 4.49      $ 3.35        34.0   
  

 

 

   

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING (in thousands)

      

Basic

     212,702        202,537     

Diluted

     217,536        207,509     
  

 

 

   

 

 

   

NM - Not Meaningful

 

Page 2


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended September 30,

(Unaudited; Amounts in millions)

 

     A     B     C      D      E=(A-B)/B     F=(C-D)/D  
     As Reported     Adjusted      % Change  
     2016     2015     2016      2015      Reported     Adjusted  

BD MEDICAL

              

Medication and Procedural Solutions

   $ 511      $ 481      $ 511       $ 481         6.2        6.2   

Medication Management Solutions

     430        390        430         390         10.3        10.3   

Diabetes Care

     135        130        135         130         3.8        3.8   

Pharmaceutical Systems

     85        78        85         78         10.1        10.1   

Respiratory Solutions

     136        133        136         133         2.1        2.1   

Deferred Revenue Adjustment *

     (3     (8     —           —           (64.1     —     
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 1,294      $ 1,203      $ 1,297       $ 1,211         7.6        7.1   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

BD LIFE SCIENCES

              

Preanalytical Systems

   $ 182      $ 173      $ 182       $ 173         5.0        5.0   

Diagnostic Systems

     153        146        153         146         5.1        5.1   

Biosciences

     119        110        119         110         8.0        8.0   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 454      $ 429      $ 454       $ 429         5.8        5.8   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL UNITED STATES

   $ 1,748      $ 1,632      $ 1,751       $ 1,640         7.1        6.7   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.

 

Page 3


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

     A      B      C     D=(A-B)/B     E=(A-B-C)/B  
     As Reported      FX     % Change  
     2016      2015      Impact     Reported     FXN  

BD MEDICAL

            

Medication and Procedural Solutions

   $ 372       $ 356       $ (9     4.5        7.1   

Medication Management Solutions

     107         89         (3     19.8        23.4   

Diabetes Care

     131         127         —          3.1        3.3   

Pharmaceutical Systems

     265         254         1        4.1        3.6   

Respiratory Solutions

     67         54         —          23.7        24.3   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL

   $ 941       $ 880       $ (12     6.9        8.2   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

            

Preanalytical Systems

   $ 177       $ 175       $ (4     0.7        2.9   

Diagnostic Systems

     189         196         (1     (3.8     (3.1

Biosciences

     177         176         (1     0.8        1.5   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL

   $ 542       $ 547       $ (6     (0.9     0.3   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL INTERNATIONAL

   $ 1,483       $ 1,427       $ (18     3.9        5.2   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

Page 4


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

    A     B     C     D     E     F=(A-B)/B     G=(A-B-E)/B     H=(C-D)/D     I=(C-D-E)/D  
                                  % Change  
    As Reported     Adjusted     FX                       Adjusted  
    2016     2015     2016     2015     Impact     Reported     FXN     Adjusted     FXN  

BD MEDICAL

                 

Medication and Procedural Solutions

  $ 882      $ 836      $ 882      $ 836      $ (9     5.5        6.6        5.5        6.6   

Medication Management Solutions

    537        479        537        479        (3     12.1        12.8        12.1        12.8   

Diabetes Care

    266        257        266        257        —          3.5        3.6        3.5        3.6   

Pharmaceutical Systems

    350        332        350        332        1        5.5        5.1        5.5        5.1   

Respiratory Solutions

    203        187        203        187        —          8.3        8.5        8.3        8.5   

Deferred Revenue Adjustment *

    (3     (8     —          —          —          (64.1     (64.1     —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 2,235      $ 2,083      $ 2,237      $ 2,091      $ (12     7.3        7.8        7.0        7.6   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                 

Preanalytical Systems

  $ 359      $ 349      $ 359      $ 349      $ (4     2.8        4.0        2.8        4.0   

Diagnostic Systems

    342        342        342        342        (1     —          0.4        —          0.4   

Biosciences

    296        286        296        286        (1     3.6        4.0        3.6        4.0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 996      $ 976      $ 996      $ 976      $ (6     2.1        2.7        2.1        2.7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL REVENUES

  $ 3,231      $ 3,059      $ 3,234      $ 3,067      $ (18     5.6        6.2        5.4        6.0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.

 

Page 5


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Twelve Months Ended September 30,

(Unaudited; Amounts in millions)

 

     A     B     C      D      E=(A-B)/B     F=(C-D)/D  
     As Reported     Adjusted      % Change  
     2016     2015     2016      2015      Reported     Adjusted  

BD MEDICAL

              

Medication and Procedural Solutions

   $ 1,959      $ 1,483      $ 1,959       $ 1,483         32.1        32.1   

Medication Management Solutions

     1,791        832        1,791         832         NM        NM   

Diabetes Care

     521        491        521         491         6.0        6.0   

Pharmaceutical Systems

     328        304        328         304         7.8        7.8   

Respiratory Solutions

     560        297        560         297         88.6        88.6   

Deferred Revenue Adjustment *

     (14     (20     —           —           (29.3     —     
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 5,144      $ 3,386      $ 5,159       $ 3,407         51.9        51.4   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

BD LIFE SCIENCES

              

Preanalytical Systems

   $ 715      $ 689      $ 715       $ 689         3.7        3.7   

Diagnostic Systems

     600        592        600         592         1.4        1.4   

Biosciences

     433        402        433         402         7.9        7.9   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 1,748      $ 1,683      $ 1,748       $ 1,683         3.9        3.9   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL UNITED STATES

   $ 6,893      $ 5,069      $ 6,907       $ 5,090         36.0        35.7   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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    

 

Page 6


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

     A      B      C     D=(A-B)/B     E=(A-B-C)/B  
     As Reported      FX     % Change  
     2016      2015      Impact     Reported     FXN  

BD MEDICAL

            

Medication and Procedural Solutions

   $ 1,454       $ 1,367       $ (104     6.4        14.0   

Medication Management Solutions

     419         201         (24     NM        NM   

Diabetes Care

     502         521         (34     (3.6     2.9   

Pharmaceutical Systems

     872         863         (28     0.9        4.2   

Respiratory Solutions

     263         122         (10     NM        NM   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL

   $ 3,510       $ 3,074       $ (199     14.2        20.7   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

            

Preanalytical Systems

   $ 694       $ 701       $ (53     (1.0     6.6   

Diagnostic Systems

     701         708         (41     (1.0     4.8   

Biosciences

     685         730         (30     (6.1     (2.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL

   $ 2,080       $ 2,139       $ (123     (2.7     3.0   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL INTERNATIONAL

   $ 5,590       $ 5,213       $ (322     7.2        13.4   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

NM - Not Meaningful

 

Page 7


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

    A     B     C     D     E     F=(A-B)/B     G=(A-B-E)/B     H=(C-D)/D     I=(C-D-E)/D  
                                  % Change  
    As Reported     Adjusted     FX                       Adjusted  
    2016     2015     2016     2015     Impact     Reported     FXN     Adjusted     FXN  

BD MEDICAL

                 

Medication and Procedural Solutions

  $ 3,413      $ 2,850      $ 3,413      $ 2,850      $ (104     19.8        23.4        19.8        23.4   

Medication Management Solutions

    2,210        1,033        2,210        1,033        (24     NM        NM        NM        NM   

Diabetes Care

    1,023        1,012        1,023        1,012        (34     1.1        4.4        1.1        4.4   

Pharmaceutical Systems

    1,199        1,167        1,199        1,167        (28     2.7        5.1        2.7        5.1   

Respiratory Solutions

    824        419        824        419        (10     96.8        99.1        96.8        99.1   

Deferred Revenue Adjustment *

    (14     (20     —          —          —          (29.3     (29.3     —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 8,654      $ 6,460      $ 8,669      $ 6,480      $ (199     34.0        37.0        33.8        36.8   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                 

Preanalytical Systems

  $ 1,409      $ 1,391      $ 1,409      $ 1,391      $ (53     1.3        5.2        1.3        5.2   

Diagnostic Systems

    1,301        1,299        1,301        1,299        (41     0.1        3.3        0.1        3.3   

Biosciences

    1,119        1,132        1,119        1,132        (30     (1.2     1.5        (1.2     1.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 3,829      $ 3,822      $ 3,829      $ 3,822      $ (123     0.2        3.4        0.2        3.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL REVENUES

  $ 12,483      $ 10,282      $ 12,497      $ 10,302      $ (322     21.4        24.5        21.3        24.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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

 

Page 8


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended September 30,

(Unaudited; Amounts in millions)

 

    A     B     C=A+B     D     E     F=D+E     G     H=F+G     I=(C-H)/H  
          Deferred                 Deferred                 Comparable     Comparable  
    Reported     Revenue     Adjusted     Reported     Revenue     Adjusted     Respiratory     Historical     Adjusted  
    2016     Adjustment     2016     2015     Adjustment     2015     Adjustment **     2015     % Change  

BD MEDICAL

                     

Medication and Procedural Solutions

  $ 511      $ —        $ 511      $ 481      $ —        $ 481      $ —        $ 481        6.2   

Medication Management Solutions

    430        —          430        390        —          390        —          390        10.3   

Diabetes Care

    135        —          135        130        —          130        —          130        3.8   

Pharmaceutical Systems

    85        —          85        78        —          78        —          78        10.1   

Respiratory Solutions

    136        —          136        133        —          133        (7     126        7.7   

Deferred Revenue Adjustment *

    (3     3        —          (8     8        —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 1,294      $ 3      $ 1,297      $ 1,203      $ 8      $ 1,211      $ (7   $ 1,204        7.7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                     

Preanalytical Systems

  $ 182      $ —        $ 182      $ 173      $ —        $ 173      $ —        $ 173        5.0   

Diagnostic Systems

    153        —          153        146        —          146        —          146        5.1   

Biosciences

    119        —          119        110        —          110        —          110        8.0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 454      $ —        $ 454      $ 429      $ —        $ 429      $ —        $ 429        5.8   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL UNITED STATES

  $ 1,748      $ 3      $ 1,751      $ 1,632      $ 8      $ 1,640      $ (7   $ 1,633        7.2   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** 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 9


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO FXN REVENUE CHANGE - INTERNATIONAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

     A      B      C     D=(A-B-C)/B  
     Reported      Reported      FX     FXN  
     2016      2015      Impact     % Change  

BD MEDICAL

          

Medication and Procedural Solutions

   $ 372       $ 356       $ (9     7.1   

Medication Management Solutions

     107         89         (3     23.4   

Diabetes Care

     131         127         —          3.3   

Pharmaceutical Systems

     265         254         1        3.6   

Respiratory Solutions

     67         54         —          24.3   
  

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 941       $ 880       $ (12     8.2   
  

 

 

    

 

 

    

 

 

   

 

 

 

BD LIFE SCIENCES

          

Preanalytical Systems

   $ 177       $ 175       $ (4     2.9   

Diagnostic Systems

     189         196         (1     (3.1

Biosciences

     177         176         (1     1.5   
  

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 542       $ 547       $ (6     0.3   
  

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL INTERNATIONAL

   $ 1,483       $ 1,427       $ (18     5.2   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

Page 10


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

    A     B     C=A+B     D     E     F=D+E     G     H=F+G     I     J=(C-H-I)/H  
                                                          Comparable  
          Deferred                 Deferred                 Comparable     Comparable     Adjusted  
    Reported     Revenue     Adjusted     Reported     Revenue     Adjusted     Respiratory     Historical     FX     FXN  
    2016     Adjustment     2016     2015     Adjustment     2015     Adjustment **     2015     Impact     % Change  

BD MEDICAL

                       

Medication and Procedural Solutions

  $ 882      $ —        $ 882      $ 836      $ —        $ 836      $ —        $ 836      $ (9     6.6   

Medication Management Solutions

    537        —          537        479        —          479        —          479        (3     12.8   

Diabetes Care

    266        —          266        257        —          257        —          257        —          3.6   

Pharmaceutical Systems

    350        —          350        332        —          332        —          332        1        5.1   

Respiratory Solutions

    203        —          203        187        —          187        (7     180        —          12.7   

Deferred Revenue Adjustment *

    (3     3        —          (8     8        —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 2,235      $ 3      $ 2,237      $ 2,083      $ 8      $ 2,091      $ (7   $ 2,084      $ (12     7.9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                       

Preanalytical Systems

  $ 359      $ —        $ 359      $ 349      $ —        $ 349      $ —        $ 349      $ (4     4.0   

Diagnostic Systems

    342        —          342        342        —          342        —          342        (1     0.4   

Biosciences

    296        —          296        286        —          286        —          286        (1     4.0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 996      $ —        $ 996      $ 976      $ —        $ 976      $ —        $ 976      $ (6     2.7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL REVENUES

  $ 3,231      $ 3      $ 3,234      $ 3,059      $ 8      $ 3,067      $ (7   $ 3,060      $ (18     6.3   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** 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 ORGANIC FXN REVENUE CHANGE - TOTAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

     A     B     C=(A-B)/B  
     2016     2015     % Change  

Reported

   $ 3,231      $ 3,059        5.6   

Deferred Revenue Adjustment *

     3        8     

Acquisitions & Divestitures Impact **

     (3     (7  

Respiratory Adjustment ***

     —          (7  
  

 

 

   

 

 

   

Comparable Adjusted Organic

   $ 3,231      $ 3,053     

FX Impact

     (18    
  

 

 

   

 

 

   

 

 

 

Comparable Adjusted Organic FXN

   $ 3,249      $ 3,053        6.4   
  

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** Excludes the impact from non-annualized acquisitions and the following closed divestitures: Simplist and Spine.
*** 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 ADJUSTED REVENUE CHANGE - UNITED STATES

Twelve Months Ended September 30,

(Unaudited; Amounts in millions)

 

    A     B     C=A+B     D     E     F=D+E     G     H     I=F+G+H     J=(C-I)/I  
          Deferred           BD     Deferred           CFN           Comparable     Comparable  
    Reported     Revenue     Adjusted     Reported     Revenue           Reported     Respiratory     Historical     Adjusted  
    2016     Adjustment     2016     2015     Adjustment     Adjusted     1st Half 2015***     Adjustment **     2015     % Change  

BD MEDICAL

                       

Medication and Procedural Solutions

  $ 1,959      $ —        $ 1,959      $ 1,483      $ —        $ 1,483      $ 427      $ —        $ 1,910        2.5   

Medication Management Solutions

    1,791        —          1,791        832        —          832        843        —          1,675        6.9   

Diabetes Care

    521        —          521        491        —          491        —          —          491        6.0   

Pharmaceutical Systems

    328        —          328        304        —          304        —          —          304        7.8   

Respiratory Solutions

    560        —          560        297        —          297        333        (78     552        1.6   

Deferred Revenue Adjustment *

    (14     14        —          (20     20        —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 5,144      $ 14      $ 5,159      $ 3,386      $ 20      $ 3,407      $ 1,603      $ (78   $ 4,932        4.6   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                       

Preanalytical Systems

  $ 715      $ —        $ 715      $ 689      $ —        $ 689      $ —        $ —        $ 689        3.7   

Diagnostic Systems

    600        —          600        592        —          592        —          —          592        1.4   

Biosciences

    433        —          433        402        —          402        —          —          402        7.9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 1,748      $ —        $ 1,748      $ 1,683      $ —        $ 1,683      $ —        $ —        $ 1,683        3.9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL UNITED STATES

  $ 6,893      $ 14      $ 6,907      $ 5,069      $ 20      $ 5,090      $ 1,603      $ (78   $ 6,615        4.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** 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.
*** For the quarters ended December 31, 2014 and March 31, 2015.

 

Page 13


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

     A      B      C      D=B+C      E     F=(A-D-E)/D  
            BD      CFN      Comparable      Comparable     Comparable  
     Reported      Reported      Reported      Historical      FX     FXN  
     2016      2015      1st Half 2015*      2015      Impact     % Change  

BD MEDICAL

                    

Medication and Procedural Solutions

   $ 1,454       $ 1,367       $ 117       $ 1,483       $ (104     5.0   

Medication Management Solutions

     419         201         208         409         (24     8.2   

Diabetes Care

     502         521         —           521         (34     2.9   

Pharmaceutical Systems

     872         863         —           863         (28     4.2   

Respiratory Solutions

     263         122         138         260         (10     5.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 3,510       $ 3,074       $ 463       $ 3,536       $ (199     4.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

BD LIFE SCIENCES

                    

Preanalytical Systems

   $ 694       $ 701       $ —         $ 701       $ (53     6.6   

Diagnostic Systems

     701         708         —           708         (41     4.8   

Biosciences

     685         730         —           730         (30     (2.1
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL

   $ 2,080       $ 2,139       $ —         $ 2,139       $ (123     3.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

TOTAL INTERNATIONAL

   $ 5,590       $ 5,213       $ 463       $ 5,675       $ (322     4.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

* For the quarters ended December 31, 2014 and March 31, 2015.

 

Page 14


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

 

    A     B     C=A+B     D     E     F=D+E     G     H     I=F+G+H     J     K=(C-I-J)/I  
                                                                Comparable  
          Deferred           BD     Deferred           CFN           Comparable     Comparable     Adjusted  
    Reported     Revenue     Adjusted     Reported     Revenue     Adjusted     Reported     Respiratory     Historical     FX     FXN  
    2016     Adjustment     2016     2015     Adjustment     2015     1st Half 2015***     Adjustment **     2015     Impact     % Change  

BD MEDICAL

                         

Medication and Procedural Solutions

  $ 3,413      $ —        $ 3,413      $ 2,850      $ —        $ 2,850      $ 544      $ —        $ 3,394      $ (104     3.6   

Medication Management Solutions

    2,210        —          2,210        1,033        —          1,033        1,051        —          2,084        (24     7.2   

Diabetes Care

    1,023        —          1,023        1,012        —          1,012        —          —          1,012        (34     4.4   

Pharmaceutical Systems

    1,199        —          1,199        1,167        —          1,167        —          —          1,167        (28     5.1   

Respiratory Solutions

    824        —          824        419        —          419        471        (78     812        (10     2.7   

Deferred Revenue Adjustment *

    (14     14        —          (20     20        —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 8,654      $ 14      $ 8,669      $ 6,460      $ 20      $ 6,480      $ 2,066      $ (78   $ 8,469      $ (199     4.7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BD LIFE SCIENCES

                         

Preanalytical Systems

  $ 1,409      $ —        $ 1,409      $ 1,391      $ —        $ 1,391      $ —        $ —        $ 1,391      $ (53     5.2   

Diagnostic Systems

    1,301        —          1,301        1,299        —          1,299        —          —          1,299        (41     3.2   

Biosciences

    1,119        —          1,119        1,132        —          1,132        —          —          1,132        (30     1.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  $ 3,829      $ —        $ 3,829      $ 3,822      $ —        $ 3,822      $ —        $ —        $ 3,822      $ (123     3.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL REVENUES

  $ 12,483      $ 14      $ 12,497      $ 10,282      $ 20      $ 10,302      $ 2,066      $ (78   $ 12,290      $ (322     4.3   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** 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.
*** For the quarters ended December 31, 2014 and March 31, 2015.

 

Page 15


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Twelve Months Ended September 30,

(Unaudited; Amounts in millions)

 

     A     B     C=(A-B)/B  
     2016     2015     % Change  

Reported

   $ 12,483      $ 10,282        21.4   

Deferred Revenue Adjustment *

     14        20     

CareFusion Reported First Half FY2015 Revenue **

     —          2,066     

Acquisitions & Divestitures Impact ***

     (34     (27  

Respiratory Adjustment ****

     —          (78  
  

 

 

   

 

 

   

Comparable Adjusted Organic

   $ 12,463      $ 12,263     

FX Impact

     (322    
  

 

 

   

 

 

   

 

 

 

Comparable Adjusted Organic FXN

   $ 12,786      $ 12,263        4.3   
  

 

 

   

 

 

   

 

 

 

 

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s 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.
** For the quarters ended December 31, 2014 and March 31, 2015.
*** Excludes the impact from non-annualized acquisitions and the following closed divestitures: Simplist and Spine.
**** 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 16


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

 

    Three Months Ended September 30,  
                            Foreign           Foreign  
                      Foreign     Currency           Currency  
                      Currency     Neutral           Neutral  
    2016     2015     Growth     Translation     Growth     Growth %     Growth %  

Reported Diluted Earnings per Share

  $ 0.09      $ 0.84      $ (0.75   $ (0.14   $ (0.61     (89.3 %)      (72.6 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Purchase Accounting Adjustments ($132 million and $179 million pre-tax,respectively)

    0.61 (1)      0.83 (2)           

Restructuring Costs ($328 million and $135 million pre-tax, respectively) (3)

    1.50        0.63             

Integration Costs ($77 million and $40 million pre-tax, respectively) (3)

    0.35        0.19             

Transaction Costs ($2 million and $7 million pre-tax, respectively) (3)

    0.01        0.03             

Pension Settlement Charges ($3 million pre-tax) (4)

    0.01        —               

Income Tax Benefit of Special Items ($(99) million and $(123) million, respectively)

    (0.46     (0.57          
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Diluted Earnings per Share

  $ 2.12      $ 1.94      $ 0.18      $ (0.14   $ 0.32        9.3     16.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes adjustments for non-cash amortization expense of $128 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $3 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $2 million of pre-tax expense related to a net unfavorable change in the fair value of contingent consideration payments associated with certain acquisitions.
(2)  Includes adjustments for non-cash amortization expense of $152 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $27 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations.
(3) Represents restructuring, integration, and transaction costs associated with the CareFusion acquisition and portfolio rationalization.
(4) Represents pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.

 

Page 17


BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

 

    Twelve Months Ended September 30,  
                            Foreign           Foreign  
                      Foreign     Currency           Currency  
                      Currency     Neutral           Neutral  
    2016     2015     Growth     Translation     Growth     Growth %     Growth %  

Reported Diluted Earnings per Share

  $ 4.49      $ 3.35      $ 1.14      $ (0.64   $ 1.78        34.0     53.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Purchase Accounting Adjustments ($527 million and $645 million pre-tax,respectively)

    2.42  (1)      3.11  (2)           

Restructuring Costs ($526 million and $271 million pre-tax, respectively) (3)

    2.42        1.31             

Integration Costs ($192 million and $95 million pre-tax, respectively) (3)

    0.88        0.46             

Transaction Costs ($10 million and $59 million pre-tax, respectively) (3)

    0.04        0.29             

Pension Settlement Charges ($6 million pre-tax) (4)

    0.03        —               

Financing Costs ($107 million pre-tax) (3)

    —          0.52             

Employee Termination Cost-related Amounts ($(5) million pre-tax) (5)

    —          (0.02          

Litigation-related Charge ($12 million pre-tax) (6)

    —          0.06             

Income Tax Benefit of Special Items ($(369) million and $(400) million, respectively)

    (1.70     (1.93          

Dilutive Share Impact (7)

    —          0.02             
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Diluted Earnings per Share

  $ 8.59      $ 7.16      $ 1.43      $ (0.65   $ 2.08        20.0     29.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes adjustments for non-cash amortization expense of $545 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $7 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $25 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.
(2)  Includes adjustments for non-cash amortization expense of $336 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $318 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes 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 pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.
(5) Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.
(6) Represents a charge for plaintiff’s attorneys’ fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI.
(7) 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

FY2017 OUTLOOK RECONCILIATION

 

     FY2016     FY2017 Outlook  
     Revenues     % Change     FX Impact      % Change FXN  

BDX As Reported Revenue

   $ 12,483        (3.0% - 3.5%)        ~(1.0%)         (2.0% - 2.5%)   
           % Increase FXN               
           Comparable               

BDX As Reported Revenue

   $ 12,483          

Closed Divestitures Revenue (1)

     (843       
  

 

 

   

 

 

      

BDX Comparable Revenue

   $ 11,639        4.5% - 5.0%        
  

 

 

   

 

 

      

BD Medical Revenue

   $ 8,654          

Closed Divestitures Revenue (1)

     (843       
  

 

 

   

 

 

      

BD Medical Comparable Revenue

   $ 7,811        4.5% - 5.0%        
  

 

 

   

 

 

      
     FY2017 Outlook         
         
     Full Year
FY2017
Outlook
    Full Year
FY2016
    % Increase         
     (estimated)                     

Reported Fully Diluted Earnings per Share

   $ 7.23 - 7.33      $ 4.49        NM      

Purchase Accounting Adjustments

     2.22        2.42        

Restructuring Costs

     —   (2)      2.42        

Integration Costs

     —   (2)      0.88        

Transaction Costs

     —   (2)      0.04        

Pension Settlement Charges

     —   (2)      0.03        

Income Tax Benefit of Special Items

     —   (2)      (1.70     
  

 

 

   

 

 

      

Adjusted Fully Diluted Earnings per Share

   $ 9.45 - 9.55      $ 8.59        10% - 11%      
  

 

 

   

 

 

      

FX Impact

   $ (0.17       ~(2.0%)      
  

 

 

     

 

 

    

Adjusted FXN Growth

   $ 9.62 - 9.72          12% - 13%      
  

 

 

        

 

(1) Excludes the impact from the following closed divestitures: Respiratory, Simplist and Spine.
(2) FY2017 restructuring, integration and transaction costs, pension settlement charges, and income tax benefit of special items reflect year-to-date realized costs.

NM - Not Meaningful

FXN -  Foreign Currency Neutral

 

Page 19