BD Announces Results For 2019 Third Fiscal Quarter; Reaffirms Fiscal 2019 Guidance
- As reported, revenues of $4.350 billion increased 1.7 percent.
- On a comparable, currency-neutral basis, revenues increased 5.7 percent.
- As reported, diluted earnings per share of $1.51 decreased 25.6 percent.
- As adjusted, diluted earnings per share of $3.08 increased 5.8 percent, or 14.8 percent on a currency-neutral basis.
- The company reaffirms its full fiscal year 2019 revenue and adjusted diluted earnings per share guidance.

 

FRANKLIN LAKES, N.J., Aug. 6, 2019 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.350 billion for the third fiscal quarter ended June 30, 2019.  This represents an increase of 1.7 percent over the prior-year period.  On a comparable, currency-neutral basis, revenues increased 5.7 percent over the prior-year period.

"Third quarter performance was strong. Our revenues highlight the breadth and diversity of the growth drivers in our portfolio, and we are seeing strength across all three segments," said Vincent A. Forlenza, chairman and CEO. "As anticipated, our performance has accelerated and we expect this momentum to continue. We remain confident in our outlook for fiscal year 2019 and our ability to deliver value to customers and shareholders."

Third Quarter and Nine-Month Fiscal 2019 Operating Results
As reported, diluted earnings per share for the third quarter were $1.51, compared with $2.03 in the prior-year period.  This represents a decrease of 25.6 percent.  Adjusted diluted earnings per share were $3.08, compared with $2.91 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 5.8 percent, or 14.8 percent on a currency-neutral basis.

For the nine-month period ended June 30, 2019, as reported, diluted earnings per share were $3.49, compared with $1.27 in the prior-year period.  This represents an increase of 174.8 percent.  Adjusted diluted earnings per share were $8.37, compared with $8.08 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 3.6 percent, or 11.6 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.311 billion increased 2.9 percent over the prior-year period, or 6.0 percent on a currency-neutral basis.  The segment's results were driven by performance in the Medication Management Solutions, Medication Delivery Solutions and Pharmaceutical Systems units.

For the nine-month period ended June 30, 2019, BD Medical revenues were $6.626 billion as reported, which represents an increase of 5.7 percent over the prior-year period.  On a comparable, currency-neutral basis, BD Medical revenues increased 5.0 percent.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter of $1.058 billion decreased 2.0 percent from the prior-year period.  On a comparable, currency-neutral basis, revenues increased 5.4 percent.  Revenue growth was driven by performance across the Diagnostic Systems, Preanalytical Systems and Biosciences units.

For the nine-month period ended June 30, 2019, BD Life Sciences revenues were $3.166 billion as reported, which represents a decrease of 1.7 percent from the prior-year period.  On a comparable, currency-neutral basis, BD Life Sciences revenues of $3.157 billion increased 4.3 percent.

In the BD Interventional segment, as reported, worldwide revenues for the quarter of $0.981 billion increased 2.9 percent over the prior-year period, or 5.2 percent on a currency-neutral basis.  The segment's results were driven by performance in the Urology and Critical Care and Surgery units.

For the nine-month period ended June 30, 2019, BD Interventional revenues were $2.914 billion as reported, which represents an increase of 39.5 percent over the prior-year period.  On a comparable, currency-neutral basis, BD Interventional revenues increased 4.8 percent.

Geographic Results
As reported, third quarter revenues in the U.S. of $2.440 billion increased 4.4 percent over the prior-year period.  On a comparable basis, U.S. revenues increased 5.0 percent over the prior-year period.  Growth in the U.S. was driven by performance in the BD Medical and BD Interventional segments.

As reported, revenues outside of the U.S. of $1.910 billion decreased 1.6 percent from the prior-year period.  On a comparable, currency-neutral basis, revenues outside of the U.S. increased 6.5 percent over the prior-year period.  International revenue growth was driven by strong performance in China and EMA.

For the nine-month period ended June 30, 2019, U.S. revenues were $7.168 billion as reported, which represents an increase of 13.4 percent over the prior-year period.  On a comparable basis, U.S. revenues of $7.164 billion increased 4.4 percent over the prior-year period.  As reported, revenues outside of the U.S. of $5.538 billion increased 5.3 percent over the prior-year period.  On a comparable, currency-neutral basis, revenues outside the U.S. of $5.533 billion increased 5.2 percent over the prior-year period.

Fiscal 2019 Outlook for Full Year
The company reaffirms its full fiscal year 2019 revenue and adjusted diluted earnings per share guidance.

As reported, the company continues to expect full fiscal year 2019 revenues to increase 8.0 to 9.0 percent.  The company continues to estimate full fiscal year 2019 revenues will increase 5.0 to 6.0 percent on a comparable, currency-neutral basis.

The company continues to expect adjusted diluted earnings per share to be between $11.65 and $11.75.  This represents growth of approximately 12.0 percent on a currency-neutral basis over fiscal 2018 adjusted diluted earnings per share of $11.01, or growth of approximately 6.0 to 7.0 percent including the estimated unfavorable impact of foreign currency.

Adjusted diluted earnings per share for fiscal 2019 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax matters.  BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts.  In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  Such items could have a substantial impact on GAAP measures of BD's financial performance.

Conference Call Information
A conference call regarding BD's third quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Tuesday, August 6, 2019.  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 Tuesday, August 13, 2019, confirmation number 1475284.

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 2019 presented throughout this release include, where applicable, the results of C. R. Bard, Inc. ("Bard") in the prior-year period, and also include adjustments for certain items as detailed in the attached tables. Beginning in the second quarter of fiscal year 2018, the Company's organizational structure was based upon three principal business segments: BD Medical ("Medical"), BD Life Sciences ("Life Sciences") and BD Interventional ("Interventional").  The Interventional segment was added upon the Company's completion of its acquisition of Bard, and this new segment includes the majority of Bard's product offerings and certain product offerings that were previously reported in the Medical segment.  Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit.  Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; transactional and product related impacts; and the loss on debt extinguishment.  We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable.  We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results.  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 one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2019 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 the C.R. Bard 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; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services, or our suppliers' ability to provide products needed for our operations; 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; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators (including the potential impact of the recent FDA letter on the use of drug-coated balloons); our ability to successfully integrate any businesses we acquire; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; 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 June 30,

   

2019

 

2018

 

% Change

REVENUES

 

$

4,350

   

$

4,278

   

1.7

 
             

Cost of products sold

 

2,276

   

2,262

   

0.6

 

Selling and administrative expense

 

1,076

   

1,086

   

(0.9)

 

Research and development expense

 

282

   

277

   

2.1

 

Acquisitions and other restructurings

 

90

   

142

   

(37.1)

 

TOTAL OPERATING COSTS AND EXPENSES

 

3,725

   

3,767

   

(1.1)

 

OPERATING INCOME

 

626

   

512

   

22.2

 
             

Interest expense

 

(156)

   

(182)

   

(14.2)

 

Interest income

 

2

   

8

   

(73.8)

 

Other (expense) income, net

 

(11)

   

310

   

(103.7)

 

INCOME BEFORE INCOME TAXES

 

460

   

647

   

(28.9)

 

Income tax provision

 

9

   

53

   

(82.7)

 

NET INCOME

 

451

   

594

   

(24.1)

 

Preferred stock dividends

 

(38)

   

(38)

   

 

NET INCOME APPLICABLE TO COMMON SHAREHOLDERS

$

413

   

$

556

   

(25.7)

 
             

EARNINGS PER SHARE

           

Basic Earnings per Share

 

$

1.53

   

$

2.08

   

(26.4)

 

Diluted Earnings per Share

 

$

1.51

   

$

2.03

   

(25.6)

 
             

AVERAGE SHARES OUTSTANDING (in thousands)

           

Basic

 

270,249

 

267,836

   

Diluted

 

274,336

 

273,925

   

 

 

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

     
   

Nine Months Ended June 30,

   

2019

 

2018

 

% Change

REVENUES

 

$

12,706

   

$

11,581

   

9.7

 
             

Cost of products sold

 

6,684

   

6,405

   

4.4

 

Selling and administrative expense

 

3,238

   

2,915

   

11.1

 

Research and development expense

 

792

   

727

   

8.9

 

Acquisitions and other restructurings

 

281

   

600

   

(53.2)

 

Other operating expense, net

 

61

   

   

100.0

 

TOTAL OPERATING COSTS AND EXPENSES

 

11,056

   

10,647

   

3.8

 

OPERATING INCOME

 

1,649

   

933

   

76.7

 
             

Interest expense

 

(498)

   

(525)

   

(5.1)

 

Interest income

 

8

   

55

   

(86.0)

 

Other income, net

 

19

   

295

   

(93.7)

 

INCOME BEFORE INCOME TAXES

 

1,178

   

759

   

55.3

 

Income tax provision

 

107

   

313

   

(65.7)

 

NET INCOME

 

1,071

   

446

   

140.2

 

Preferred stock dividends

 

(114)

   

(114)

   

 

NET INCOME APPLICABLE TO COMMON SHAREHOLDERS

$

957

   

$

332

   

188.2

 
             

EARNINGS PER SHARE

           

Basic Earnings per Share

 

$

3.55

   

$

1.30

   

173.1

 

Diluted Earnings per Share

 

$

3.49

   

$

1.27

   

174.8

 
             

AVERAGE SHARES OUTSTANDING (in thousands)

           

Basic

 

269,719

 

254,934

   

Diluted

 

274,510

 

260,860

   

 

 

BECTON DICKINSON AND COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions)

   
         
   

June 30, 2019

 

September 30, 2018

   

(Unaudited)

   

ASSETS

       

Cash and equivalents

 

$

523

   

$

1,140

 

Restricted cash

 

71

   

96

 

Short-term investments

 

12

   

17

 

Trade receivables, net

 

2,220

   

2,319

 

Inventories

 

2,629

   

2,451

 

Assets held for sale

 

   

137

 

Prepaid expenses and other

 

1,326

   

1,251

 

TOTAL CURRENT ASSETS

 

6,781

   

7,411

 

Property, plant and equipment, net

 

5,550

   

5,375

 

Goodwill and other intangibles, net

 

38,840

   

40,041

 

Other Assets

 

1,063

   

1,078

 

TOTAL ASSETS

 

$

52,233

   

$

53,904

 

LIABILITIES AND SHAREHOLDERS' EQUITY

       

Short-term debt

 

$

2,168

   

$

2,601

 

Other current liabilities

 

4,069

   

4,615

 

Long-term debt

 

18,016

   

18,894

 

Long-term employee benefit obligations

 

862

   

1,056

 

Deferred income taxes and other

 

5,621

   

5,743

 

Shareholders' equity

 

21,497

   

20,994

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

52,233

   

$

53,904

 

 

 

BECTON DICKINSON AND COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Amounts in millions)

     
   

Nine Months Ended June 30,

   

2019

 

2018

OPERATING ACTIVITIES

       

Net income

 

$

1,071

   

$

446

 

Depreciation and amortization

 

1,700

   

1,412

 

Change in operating assets and liabilities and other, net

 

(812)

   

(299)

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

1,959

   

1,559

 

INVESTING ACTIVITIES

       

Capital expenditures

 

(599)

   

(588)

 

Acquisitions of businesses, net of cash acquired

 

   

(14,998)

 

Proceeds from divestitures, net

 

477

   

534

 

Other, net

 

(178)

   

(120)

 

NET CASH USED FOR INVESTING ACTIVITIES

 

(300)

   

(15,173)

 

FINANCING ACTIVITIES

       

Change in credit facility borrowings

 

300

   

200

 

Proceeds from long-term debt and term loans

 

2,224

   

4,335

 

Payments of debt and term loans

 

(3,882)

   

(2,723)

 

Dividends paid

 

(737)

   

(687)

 

Other, net

 

(204)

   

(176)

 

NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES

 

(2,300)

   

949

 

Effect of exchange rate changes on cash and equivalents and restricted cash

 

(1)

   

(5)

 

NET DECREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH

 

(642)

   

(12,670)

 

OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH

 

1,236

   

14,179

 

CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH

 

$

594

   

$

1,509

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended June 30,

(Unaudited; Amounts in millions)

             
   

A

 

B

 

C=(A-B)/B

   

2019

 

2018

 

% Change

BD MEDICAL

           

Medication Delivery Solutions

 

$

524

   

$

505

   

3.7

 

Medication Management Solutions

 

528

   

483

   

9.3

 

Diabetes Care

 

139

   

138

   

0.7

 

Pharmaceutical Systems

 

108

   

103

   

4.6

 

TOTAL

 

$

1,299

   

$

1,230

   

5.7

 
             

BD LIFE SCIENCES

           

Preanalytical Systems

 

$

203

   

$

199

   

1.9

 

Diagnostic Systems

 

155

   

151

   

3.0

 

Biosciences

 

117

   

126

   

(7.2)

 

TOTAL

 

$

475

   

$

476

   

(0.2)

 
             

BD INTERVENTIONAL

           

Surgery

 

$

273

   

$

259

   

5.7

 

Peripheral Intervention

 

195

   

195

   

(0.2)

 

Urology and Critical Care

 

198

   

178

   

10.9

 

TOTAL

 

$

666

   

$

632

   

5.3

 
             

TOTAL UNITED STATES

 

$

2,440

   

$

2,338

   

4.4

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

       
                     
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2019

 

2018

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions

$

460

   

$

471

   

$

(33)

   

(2.4)

   

4.5

 

Medication Management Solutions

129

   

127

   

(9)

   

1.7

   

8.8

 

Diabetes Care

 

136

   

138

   

(9)

   

(1.5)

   

5.0

 

Pharmaceutical Systems

286

   

279

   

(18)

   

2.5

   

9.0

 

TOTAL

 

$

1,011

   

$

1,016

   

$

(69)

   

(0.4)

   

6.4

 
                     

BD LIFE SCIENCES

                 

Preanalytical Systems

$

204

   

$

205

   

$

(16)

   

(0.4)

   

7.5

 

Diagnostic Systems

212

   

211

   

(14)

   

0.7

   

7.5

 

Biosciences

 

167

   

188

   

(9)

   

(11.1)

   

(6.3)

 

TOTAL

 

$

583

   

$

603

   

$

(40)

   

(3.4)

   

3.2

 
                     

BD INTERVENTIONAL

                 

Surgery

 

$

76

   

$

77

   

$

(5)

   

(2.0)

   

4.7

 

Peripheral Intervention

155

   

157

   

(11)

   

(1.5)

   

5.5

 

Urology and Critical Care

85

   

87

   

(5)

   

(2.4)

   

3.6

 

TOTAL

 

$

316

   

$

322

   

$

(21)

   

(1.9)

   

4.8

 
                     

TOTAL INTERNATIONAL

$

1,910

   

$

1,941

   

$

(130)

   

(1.6)

   

5.1

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

       
                     
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2019

 

2018

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions

$

984

   

$

977

   

$

(33)

   

0.8

   

4.1

 

Medication Management Solutions

658

   

610

   

(9)

   

7.7

   

9.2

 

Diabetes Care

 

275

   

276

   

(9)

   

(0.4)

   

2.9

 

Pharmaceutical Systems

394

   

383

   

(18)

   

3.1

   

7.8

 

TOTAL

 

$

2,311

   

$

2,246

   

$

(69)

   

2.9

   

6.0

 
                     

BD LIFE SCIENCES

                 

Preanalytical Systems

$

407

   

$

404

   

$

(16)

   

0.7

   

4.7

 

Diagnostic Systems

368

   

362

   

(14)

   

1.7

   

5.6

 

Biosciences

 

284

   

314

   

(9)

   

(9.6)

   

(6.7)

 

TOTAL

 

$

1,058

   

$

1,079

   

$

(40)

   

(2.0)

   

1.7

 
                     

BD INTERVENTIONAL

                 

Surgery

 

$

349

   

$

336

   

$

(5)

   

3.9

   

5.4

 

Peripheral Intervention

350

   

353

   

(11)

   

(0.8)

   

2.3

 

Urology and Critical Care

283

   

265

   

(5)

   

6.5

   

8.5

 

TOTAL

 

$

981

   

$

954

   

$

(21)

   

2.9

   

5.2

 
                     

TOTAL REVENUES

$

4,350

   

$

4,278

   

$

(130)

   

1.7

   

4.7

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

   
             
   

A

 

B

 

C=(A-B)/B

   

2019

 

2018

 

% Change

BD MEDICAL

           

Medication Delivery Solutions

 

$

1,528

   

$

1,379

   

10.8

 

Medication Management Solutions

 

1,531

   

1,415

   

8.3

 

Diabetes Care

 

421

   

415

   

1.6

 

Pharmaceutical Systems

 

269

   

239

   

12.4

 

TOTAL

 

$

3,750

   

$

3,448

   

8.7

 
             

BD LIFE SCIENCES

           

Preanalytical Systems

 

$

574

   

$

565

   

1.7

 

Diagnostic Systems

 

510

   

518

   

(1.5)

 

Biosciences

 

345

   

350

   

(1.4)

 

TOTAL

 

$

1,430

   

$

1,433

   

(0.2)

 
             

BD INTERVENTIONAL

           

Surgery

 

$

819

   

$

687

   

19.2

 

Peripheral Intervention

 

580

   

393

   

47.5

 

Urology and Critical Care

 

590

   

358

   

65.0

 

TOTAL

 

$

1,989

   

$

1,438

   

38.3

 
             

TOTAL UNITED STATES

 

$

7,168

   

$

6,319

   

13.4

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

       
                     
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2019

 

2018

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions

$

1,344

   

$

1,298

   

$

(83)

   

3.5

   

10.0

 

Medication Management Solutions

365

   

364

   

(20)

   

0.3

   

5.9

 

Diabetes Care

 

397

   

405

   

(23)

   

(2.0)

   

3.7

 

Pharmaceutical Systems

771

   

755

   

(37)

   

2.1

   

7.0

 

TOTAL

 

$

2,877

   

$

2,822

   

$

(163)

   

2.0

   

7.7

 
                     

BD LIFE SCIENCES

                 

Preanalytical Systems

$

591

   

$

595

   

$

(40)

   

(0.7)

   

5.9

 

Diagnostic Systems

628

   

634

   

(34)

   

(0.9)

   

4.4

 

Biosciences

 

517

   

559

   

(23)

   

(7.6)

   

(3.4)

 

TOTAL

 

$

1,736

   

$

1,789

   

$

(97)

   

(2.9)

   

2.5

 
                     

BD INTERVENTIONAL

                 

Surgery

 

$

223

   

$

177

   

$

(11)

   

26.5

   

33.0

 

Peripheral Intervention

449

   

303

   

(25)

   

47.9

   

56.2

 

Urology and Critical Care

253

   

171

   

(11)

   

47.7

   

54.2

 

TOTAL

 

$

925

   

$

651

   

$

(47)

   

42.1

   

49.4

 
                     

TOTAL INTERNATIONAL

$

5,538

   

$

5,261

   

$

(307)

   

5.3

   

11.1

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

         
                     
               

D=(A-B)/B

 

E=(A-B-C)/B

   

A

 

B

 

C

 

% Change

   

2019

 

2018

 

FX Impact

 

Reported

 

FXN

BD MEDICAL

                   

Medication Delivery Solutions

 

$

2,871

   

$

2,677

   

$

(83)

   

7.3

   

10.4

 

Medication Management Solutions

 

1,896

   

1,778

   

(20)

   

6.6

   

7.8

 

Diabetes Care

 

819

   

820

   

(23)

   

(0.2)

   

2.6

 

Pharmaceutical Systems

 

1,040

   

994

   

(37)

   

4.6

   

8.3

 

TOTAL

 

$

6,626

   

$

6,270

   

$

(163)

   

5.7

   

8.3

 
                     

BD LIFE SCIENCES

                   

Preanalytical Systems

 

$

1,165

   

$

1,160

   

$

(40)

   

0.4

   

3.9

 

Diagnostic Systems

 

1,138

   

1,152

   

(34)

   

(1.2)

   

1.7

 

Biosciences

 

862

   

910

   

(23)

   

(5.2)

   

(2.7)

 

TOTAL

 

$

3,166

   

$

3,222

   

$

(97)

   

(1.7)

   

1.3

 
                     

BD INTERVENTIONAL

                   

Surgery

 

$

1,042

   

$

864

   

$

(11)

   

20.7

   

22.0

 

Peripheral Intervention

 

1,029

   

697

   

(25)

   

47.7

   

51.3

 

Urology and Critical Care

 

843

   

529

   

(11)

   

59.4

   

61.5

 

TOTAL

 

$

2,914

   

$

2,089

   

$

(47)

   

39.5

   

41.7

 
                     

TOTAL REVENUES

 

$

12,706

   

$

11,581

   

$

(307)

   

9.7

   

12.4

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended June 30,

(Unaudited; Amounts in millions)

 
 
 
   

A

   

B

 

C

 

D=B+C

   

E=(A-D)/D

   

BD
Reported

   

BD
Reported

 

Divestiture
and Other
Adjustments  (a)

 

Comparable

   

Comparable
% Change

   

2019

   

2018

   

2018

   

BD MEDICAL

                       

Medication Delivery Solutions

$

524

     

$

505

   

$

   

$

505

     

3.7

 

Medication Management Solutions

528

     

483

   

   

483

     

9.3

 

Diabetes Care

 

139

     

138

   

   

138

     

0.7

 

Pharmaceutical Systems

108

     

103

   

   

103

     

4.6

 

TOTAL

 

$

1,299

     

$

1,230

   

$

   

$

1,230

     

5.7

 
                         

BD LIFE SCIENCES

                     

Preanalytical Systems

$

203

     

$

199

   

$

   

$

199

     

1.9

 

Diagnostic Systems

155

     

151

   

   

151

     

3.0

 

Biosciences

 

117

     

126

   

(14)

   

112

     

4.7

 

TOTAL

 

$

475

     

$

476

   

$

(14)

   

$

462

     

2.9

 
                         

BD INTERVENTIONAL

                     

Surgery

 

$

273

     

$

259

   

$

   

$

259

     

5.7

 

Peripheral Intervention

195

     

195

   

   

195

     

(0.2)

 

Urology and Critical Care

198

     

178

   

   

178

     

10.9

 

TOTAL

 

$

666

     

$

632

   

$

   

$

632

     

5.3

 
                         

TOTAL UNITED STATES

$

2,440

     

$

2,338

   

$

(14)

   

$

2,323

     

5.0

 

 

(a)     

Amounts include adjustments for BD's divestiture of its Advanced Bioprocessing business.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

   
                             
                             
   

A

   

B

 

C

 

D=B+C

   

E

 

F=(A-D-E)/D

   

BD
Reported

   

BD
Reported

 

Divestiture
Adjustments (a)

 

Comparable

   

FX Impact
(b)

 

FXN
% Change

   

2019

   

2018

   

2018

     

BD MEDICAL

                           

Medication Delivery Solutions

$

460

     

$

471

   

$

   

$

471

     

$

(33)

   

4.7

 

Medication Management Solutions

129

     

127

   

   

127

     

(9)

   

8.8

 

Diabetes Care

 

136

     

138

   

   

138

     

(9)

   

5.3

 

Pharmaceutical Systems

286

     

279

   

   

279

     

(18)

   

9.0

 

TOTAL

 

$

1,011

     

$

1,016

   

$

   

$

1,016

     

$

(70)

   

6.5

 
                             

BD LIFE SCIENCES

                         

Preanalytical Systems

$

204

     

$

205

   

$

   

$

205

     

$

(18)

   

8.1

 

Diagnostic Systems

212

     

211

   

   

211

     

(16)

   

8.2

 

Biosciences

 

167

     

188

   

(20)

   

167

     

(10)

   

5.3

 

TOTAL

 

$

583

     

$

603

   

$

(20)

   

$

583

     

$

(43)

   

7.4

 
                             

BD INTERVENTIONAL

                         

Surgery

 

$

76

     

$

77

   

$

   

$

77

     

$

(5)

   

4.7

 

Peripheral Intervention

155

     

157

   

   

157

     

(11)

   

5.5

 

Urology and Critical Care

85

     

87

   

   

87

     

(5)

   

3.6

 

TOTAL

 

$

316

     

$

322

   

$

   

$

322

     

$

(21)

   

4.8

 
                             

TOTAL INTERNATIONAL

$

1,910

     

$

1,941

   

$

(20)

   

$

1,920

     

$

(135)

   

6.5

 

 

(a)     

Amounts include adjustments for BD's divestiture of its Advanced Bioprocessing business.

(b)    

Under U.S. generally accepted accounting principles and as a result of Argentina's highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the quarter ended June 30, 2019.  The total foreign currency translation impact above includes $5 million that was calculated by comparing local currency revenues in Argentina for the quarter ended June 30, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

         
                             
   

A

   

B

 

C

 

D=B+C

   

E

 

F=(A-D-E)/D

   

BD
Reported

   

BD
Reported

 

Divestiture
and Other
Adjustments  (a)

 

Comparable

   

FX Impact
(b)

 

FXN
% Change

   

2019

   

2018

   

2018

     

BD MEDICAL

                           

Medication Delivery Solutions

$

984

     

$

977

   

$

   

$

977

     

$

(33)

   

4.2

 

Medication Management Solutions

658

     

610

   

   

610

     

(9)

   

9.2

 

Diabetes Care

 

275

     

276

   

   

276

     

(9)

   

3.0

 

Pharmaceutical Systems

394

     

383

   

   

383

     

(18)

   

7.8

 

TOTAL

 

$

2,311

     

$

2,246

   

$

   

$

2,246

     

$

(70)

   

6.0

 
                             

BD LIFE SCIENCES

                         

Preanalytical Systems

$

407

     

$

404

   

$

   

$

404

     

$

(18)

   

5.0

 

Diagnostic Systems

368

     

362

   

   

362

     

(16)

   

6.0

 

Biosciences

 

284

     

314

   

(35)

   

279

     

(10)

   

5.1

 

TOTAL

 

$

1,058

     

$

1,079

   

$

(35)

   

$

1,045

     

$

(43)

   

5.4

 
                             

BD INTERVENTIONAL

                         

Surgery

 

$

349

     

$

336

   

$

   

$

336

     

$

(5)

   

5.4

 

Peripheral Intervention

350

     

353

   

   

353

     

(11)

   

2.3

 

Urology and Critical Care

283

     

265

   

   

265

     

(5)

   

8.5

 

TOTAL

 

$

981

     

$

954

   

$

   

$

954

     

$

(21)

   

5.2

 
                             

TOTAL REVENUES

$

4,350

     

$

4,278

   

$

(35)

   

$

4,244

     

$

(135)

   

5.7

 

 

(a)     

Amounts include adjustments for BD's divestiture of its Advanced Bioprocessing business.

(b)    

Under U.S. generally accepted accounting principles and as a result of Argentina's highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the quarter ended June 30, 2019.  The total foreign currency translation impact above includes $5 million that was calculated by comparing local currency revenues in Argentina for the quarter ended June 30, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

             
                                         
   

A

 

B

 

C=A+B

   

D

 

E

 

F

 

G

 

H=D+E+F+G

   

I=(C-H)/H

   

BD
Reported

 

Divestiture
Adjustments
(a)

 

Comparable

   

BD
Reported

 

Bard Q1 (b)

 

Intercompany
Adjustment
(c)

 

Divestiture
and Other 
Adjustments
(a)

 

Comparable

   

Comparable
% Change

   

2019

   

2019

   

2018

 

2018

     

2018

   

BD MEDICAL

                                       

Medication Delivery Solutions

$

1,528

   

$

   

$

1,528

     

$

1,379

   

$

145

   

$

(3)

   

$

(9)

   

$

1,512

     

1.0

 

Medication Management Solutions

1,531

   

   

1,531

     

1,415

   

   

   

   

1,415

     

8.3

 

Diabetes Care

 

421

   

   

421

     

415

   

   

   

   

415

     

1.6

 

Pharmaceutical Systems

269

   

   

269

     

239

   

   

   

   

239

     

12.4

 

TOTAL

 

$

3,750

   

$

   

$

3,750

     

$

3,448

   

$

145

   

$

(3)

   

$

(9)

   

$

3,581

     

4.7

 
                                         

BD LIFE SCIENCES

                                     

Preanalytical Systems

$

574

   

$

   

$

574

     

$

565

   

$

   

$

   

$

(12)

   

$

553

     

3.9

 

Diagnostic Systems

510

   

   

510

     

518

   

   

   

   

518

     

(1.5)

 

Biosciences

 

345

   

(4)

   

342

     

350

   

   

   

(34)

   

317

     

7.9

 

TOTAL

 

$

1,430

   

$

(4)

   

$

1,426

     

$

1,433

   

$

   

$

   

$

(46)

   

$

1,388

     

2.8

 
                                         

BD INTERVENTIONAL

                                     

Surgery

 

$

819

   

$

   

$

819

     

$

687

   

$

105

   

$

   

$

(15)

   

$

777

     

5.4

 

Peripheral Intervention

580

   

   

580

     

393

   

188

   

   

   

581

     

(0.3)

 

Urology and Critical Care

590

   

   

590

     

358

   

177

   

   

   

535

     

10.4

 

TOTAL

 

$

1,989

   

$

   

$

1,989

     

$

1,438

   

$

470

   

$

   

$

(15)

   

$

1,893

     

5.0

 
                                         

TOTAL UNITED STATES

$

7,168

   

$

(4)

   

$

7,164

     

$

6,319

   

$

614

   

$

(3)

   

$

(69)

   

$

6,862

     

4.4

 

 

(a)     

The amounts for the nine months ended June 30, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business.  The amounts for the nine months ended June 30, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.  Additionally, Medication Delivery Solutions and Preanalytical Systems results for the nine months ended June 30, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018.  Accordingly, to ensure comparability of revenue growth, the results for the nine months ended June 30, 2018 have been adjusted to reflect these cumulative fees.  The Company records rebate and customer incentive fees as a reduction to revenue.

(b)    

Amounts represent revenues for the quarter ended December 31, 2017.  BD reported a Gore royalty amount, which was previously reported as revenues by Bard, as non-operating income in the current-year period.

(c)     

Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

             
                                         
   

A

 

B

 

C=A+B

   

D

 

E

 

F

 

G=D+E+F

   

H

 

I=(C-G-H)/G

   

BD
Reported

 

Divestiture
Adjustments
(a)

 

Comparable

   

BD
Reported

 

Bard Q1 (b)

 

Divestiture
Adjustments 
(a)

 

Comparable

   

FX Impact
(c)

 

FXN
% Change

   

2019

   

2019

   

2018

 

2018

   

2018

     

BD MEDICAL

                                       

Medication Delivery Solutions

$

1,344

   

$

   

$

1,344

     

$

1,298

   

$

68

   

$

   

$

1,366

     

$

(87)

   

4.7

 

Medication Management Solutions

365

   

   

365

     

364

   

   

   

364

     

(20)

   

5.9

 

Diabetes Care

 

397

   

   

397

     

405

   

   

   

405

     

(24)

   

4.0

 

Pharmaceutical Systems

771

   

   

771

     

755

   

   

   

755

     

(37)

   

7.0

 

TOTAL

 

$

2,877

   

$

   

$

2,877

     

$

2,822

   

$

68

   

$

   

$

2,890

     

$

(168)

   

5.4

 
                                         

BD LIFE SCIENCES

                                     

Preanalytical Systems

$

591

   

$

   

$

591

     

$

595

   

$

   

$

   

$

595

     

$

(45)

   

6.8

 

Diagnostic Systems

628

   

   

628

     

634

   

   

   

634

     

(39)

   

5.3

 

Biosciences

 

517

   

(5)

   

512

     

559

   

   

(43)

   

516

     

(26)

   

4.2

 

TOTAL

 

$

1,736

   

$

(5)

   

$

1,731

     

$

1,789

   

$

   

$

(43)

   

$

1,746

     

$

(110)

   

5.5

 
                                         

BD INTERVENTIONAL

                                     

Surgery

 

$

223

   

$

   

$

223

     

$

177

   

$

49

   

$

(3)

   

$

222

     

$

(11)

   

5.7

 

Peripheral Intervention

449

   

   

449

     

303

   

146

   

   

449

     

(25)

   

5.5

 

Urology and Critical Care

253

   

   

253

     

171

   

90

   

   

261

     

(11)

   

0.9

 

TOTAL

 

$

925

   

$

   

$

925

     

$

651

   

$

285

   

$

(3)

   

$

933

     

$

(47)

   

4.2

 
                                         

TOTAL INTERNATIONAL

$

5,538

   

$

(5)

   

$

5,533

     

$

5,261

   

$

353

   

$

(46)

   

$

5,568

     

$

(325)

   

5.2

 

 

(a)     

The amounts for the nine months ended June 30, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business.  The amounts for the nine months ended June 30, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.

(b)    

Amounts represent revenues for the quarter ended December 31, 2017.

(c)     

Under U.S. generally accepted accounting principles and as a result of Argentina's highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the nine months ended June 30, 2019.  The total foreign currency translation impact above includes $18 million that was calculated by comparing local currency revenues in Argentina for the nine months ended June 30, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

                     
                                             
   

A

 

B

 

C=A+B

   

D

 

E

 

F

 

G

 

H=D+E+F+G

   

I

 

J=(C-H-I)/H

   

BD
Reported

 

Divestiture
Adjustments
(a)

 

Comparable

   

BD
Reported

 

Bard Q1 (b)

 

Intercompany
Adjustment
(c)

 

Divestiture
and Other
Adjustments 
(a)

 

Comparable

   

FX Impact
(d)

 

FXN
% Change

   

2019

   

2019

   

2018

 

2018

     

2018

     

BD MEDICAL

                                           

Medication Delivery Solutions

$

2,871

   

$

   

$

2,871

     

$

2,677

   

$

213

   

$

(3)

   

$

(9)

   

$

2,878

     

$

(87)

   

2.8

 

Medication Management Solutions

1,896

   

   

1,896

     

1,778

   

   

   

   

1,778

     

(20)

   

7.8

 

Diabetes Care

 

819

   

   

819

     

820

   

   

   

   

820

     

(24)

   

2.8

 

Pharmaceutical Systems

1,040

   

   

1,040

     

994

   

   

   

   

994

     

(37)

   

8.3

 

TOTAL

 

$

6,626

   

$

   

$

6,626

     

$

6,270

   

$

213

   

$

(3)

   

$

(9)

   

$

6,471

     

$

(168)

   

5.0

 
                                             

BD LIFE SCIENCES

                                         

Preanalytical Systems

$

1,165

   

$

   

$

1,165

     

$

1,160

   

$

   

$

   

$

(12)

   

$

1,148

     

$

(45)

   

5.4

 

Diagnostic Systems

1,138

   

   

1,138

     

1,152

   

   

   

   

1,152

     

(39)

   

2.2

 

Biosciences

 

862

   

(9)

   

854

     

910

   

   

   

(77)

   

833

     

(26)

   

5.6

 

TOTAL

 

$

3,166

   

$

(9)

   

$

3,157

     

$

3,222

   

$

   

$

   

$

(89)

   

$

3,133

     

$

(110)

   

4.3

 
                                             

BD INTERVENTIONAL

                                         

Surgery

 

$

1,042

   

$

   

$

1,042

     

$

864

   

$

153

   

$

   

$

(18)

   

$

999

     

$

(11)

   

5.4

 

Peripheral Intervention

1,029

   

   

1,029

     

697

   

334

   

   

   

1,030

     

(25)

   

2.2

 

Urology and Critical Care

843

   

   

843

     

529

   

267

   

   

   

796

     

(11)

   

7.3

 

TOTAL

 

$

2,914

   

$

   

$

2,914

     

$

2,089

   

$

755

   

$

   

$

(18)

   

$

2,826

     

$

(47)

   

4.8

 
                                             

TOTAL REVENUES

 

$

12,706

   

$

(9)

   

$

12,697

     

$

11,581

   

$

968

   

$

(3)

   

$

(115)

   

$

12,430

     

$

(325)

   

4.8

 

 

(a)     

The amounts for the nine months ended June 30, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business.  The amounts for the nine months ended June 30, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.  Additionally, Medication Delivery Solutions and Preanalytical Systems results for the nine months ended June 30, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018.  Accordingly, to ensure comparability of revenue growth, the results for the nine months ended June 30, 2018 have been adjusted to reflect these cumulative fees.  The Company records rebate and customer incentive fees as a reduction to revenue.

(b)    

Amounts represent revenues for the quarter ended December 31, 2017.  BD reported a Gore royalty amount, which was previously reported as revenues by Bard, as non-operating income in the current-year period.

(c)     

Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.

(d)    

Under U.S. generally accepted accounting principles and as a result of Argentina's highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the nine months ended June 30, 2019.  The total foreign currency translation impact above includes $18 million that was calculated by comparing local currency revenues in Argentina for the nine months ended June 30, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

                                                   
   

Three Months Ended June 30,

 

2019

 

2018

 

Growth

 

Foreign

Currency

Translation

 

Foreign

Currency

Neutral

Growth

 

Growth %

 

Foreign

Currency

Neutral

Growth %

Reported Diluted Earnings per Share

$

1.51

 

$

2.03

 

$

(0.52)

 

$

(0.25)

 

$

(0.27)

 

(25.6)

%

 

(13.3)

%

Purchase accounting adjustments ($378 million and $433 million pre-tax, respectively) (1)

1.38

 

1.58

     

(0.01)

           

Restructuring costs ($27 million and $33 million pre-tax, respectively) (2)

0.10

 

0.12

     

           

Integration costs ($63 million and $103 million pre-tax, respectively) (2)

0.23

 

0.37

     

           

Impacts of debt extinguishment ($52 million and $3 million pre-tax, respectively) (3)

0.19

 

0.01

     

           

Net impact of gain on sale of investment and asset impairments ($30 million and $(214) million pre-tax, respectively) (4)

0.11

 

(0.78)

     

           

European regulatory initiative-related costs ($14 million pre-tax) (5)

0.05

 

     

           

Hurricane-related (insurance proceeds) recovery costs ($(10) million and $3 million pre-tax, respectively)

(0.04)

 

0.01

     

           

Transaction costs ($11 million pre-tax) (2)

 

0.04

     

           

Income tax benefit of special items and impact of tax reform ($120 million and $130 million, respectively)

(0.44)

 

(0.48)

     

           

Adjusted Diluted Earnings per Share

$

3.08

 

$

2.91

 

$

0.17

 

$

(0.26)

 

$

0.43

 

5.8

%

 

14.8

%

 

(1)

Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt.  The amount in 2018 also included a fair value step-up adjustment of $56 million recorded relative to Bard's inventory on the acquisition date.

(2)

Represents restructuring, integration and transaction costs associated with acquisitions.

(3)

Represents the impacts recognized upon the extinguishment of certain long-term senior notes.

(4)

The amount in 2019 represented a charge recorded to write down the carrying value of certain intangible assets in the Surgery unit.  The amount in 2018 included the net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit.

(5)

Represents initial costs required to develop processes and systems to comply with emerging regulations such as the European Union Medical Device Regulation ("EUMDR") and General Data Protection Regulation ("GDPR").

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

     
   

Nine Months Ended June 30,

   

2019

 

2018

 

Growth

 

Foreign

Currency

Translation

 

Foreign

Currency

Neutral

Growth

 

Growth %

 

Foreign

Currency

Neutral

Growth %

Reported Diluted Earnings per Share

$

3.49

   

$

1.27

   

$

2.22

   

$

(0.64)

   

$

2.86

   

174.8

%

 

225.2

%

Purchase accounting adjustments ($1.135 billion and $1.358 billion pre-tax, respectively) (1)

4.14

   

5.21

       

(0.01)

             

Restructuring costs ($99 million and $288 million pre-tax, respectively) (2)

0.36

   

1.10

       

             

Integration costs ($206 million and $255 million pre-tax, respectively) (2)

0.75

   

0.98

       

             

Transaction gain/loss and product-related matters ($61 million pre-tax) (3)

0.22

   

       

             

Impacts of debt extinguishment ($53 million and $16 million pre-tax, respectively) (4)

0.19

   

0.06

       

             

Net impact of gain on sale of investment and asset impairments ($30 million and $(214) million pre-tax, respectively) (5)

0.11

   

(0.82)

       

             

European regulatory initiative-related costs ($29 million pre-tax) (6)

0.11

   

       

             

Hurricane-related (insurance proceeds) recovery costs ($(10) million and $15 million pre-tax, respectively)

(0.04)

   

0.06

       

             

Transaction costs ($1 million and $61 million pre-tax, respectively) (2)

   

0.23

       

             

Financing impacts ($49 million pre-tax) (7)

   

0.19

       

             

Dilutive Impact (8)

   

0.31

       

             

Income tax benefit of special items and impact of tax reform ($263 million and $133 million, respectively) (9)

(0.96)

   

(0.51)

       

             

Adjusted Diluted Earnings per Share

$

8.37

   

$

8.08

   

$

0.29

   

$

(0.65)

   

$

0.94

   

3.6

%

 

11.6

%

 

(1)

Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt.  The amount in 2018 also included a fair value step-up adjustment of $478 million recorded relative to Bard's inventory on the acquisition date.

(2)

Represents restructuring, integration and transaction costs associated with acquisitions.

(3)

Includes amounts recorded to Other operating expense, net to record product liability reserves of $331 million and the estimated cumulative costs of a product recall of $65 million.  Also includes the pre-tax gain of $336 million recognized in Other operating expense, net related to BD's sale of its Advanced Bioprocessing business.

(4)

Represents the impacts recognized upon the extinguishment of certain long-term senior notes.

(5)

The amount in 2019 represented a charge recorded to write down the carrying value of certain intangible assets in the Surgery unit.  The amount in 2018 included the net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit.

(6)

Represents initial costs required to develop processes and systems to comply with emerging regulations such as the EUMDR and GDPR.

(7)

Represents financing impacts associated with the Bard acquisition.

(8)

Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard.  The adjusted diluted average shares outstanding (in thousands) was 255,697.

(9)

The amounts for the nine months ended June 30, 2019 and 2018 included additional tax (benefit) expense, net, of $(54) million and $275 million, respectively, relating to new U.S. tax legislation.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY 2019 OUTLOOK RECONCILIATION

 
                 
   

FY2018

 

FY2019 Outlook

   

Revenues

 

% Change

 

FX Impact

 

% Change FXN

                 

BDX Revenue

 

$

15,983

   

8.0% to 9.0%

 

~2.5%

 

10.5% to 11.5%

                 

Comparable Revenue Growth

             
   

BD Including Bard

           
   

FY2018

 

FY2019 Outlook

       
   

Revenues

 

% Change FXN
Comparable

       
                 

BDX As Reported Revenue

 

$

15,983

             

Bard Q1

 

968

             

Intercompany Adjustment

 

(3)

             

Rebate Adjustment

 

(21)

             

Divestiture Adjustment (1)(2)

(124)

             

BDX NewCo Comparable Revenue

$

16,803

   

5.0% to 6.0%

       
                 

FXN - Foreign Currency Neutral

             
                 
                 
                 
                 
                 
                 
                 
                 
                 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY 2019 OUTLOOK RECONCILIATION (continued)

       
   

FY2018

 

FY2019 Outlook

       
   

Revenues

 

% Change FXN
Comparable

       

BD Medical As Reported Revenue

$

8,616

             

Bard Q1

 

213

             

Intercompany Adjustment

 

(3)

             

Rebate Adjustment

 

(9)

             

BD Medical Comparable Revenue

8,817

   

5.0% to 6.0%

       
                 
                 

BD Life Sciences As Reported Revenue

 

$

4,330

             

Rebate Adjustment

 

(12)

             

Divestiture Adjustment (1)

 

(106)

             

BD Life Sciences Comparable Revenue

$

4,212

   

4.0% to 5.0%

       
                 

BD Interventional as Reported Revenue

$

3,037

             

Bard Q1

 

755

             

Divestiture Adjustment (2)

 

(18)

             

BD Interventional Comparable Revenue

$

3,774

   

4.5% to 5.5%

       
                 

FXN - Foreign Currency Neutral

             

(1)   Excludes the impact from the divestiture of BD's Advanced Bioprocessing business.

(2)   Excludes the impact from the divestitures of BD's soft tissue core needle biopsy product line and Bard's Aspira product line of tunneled home drainage catheters and accessories.

                 
                 
                 
                 
                 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)

       
       

FY2019 Outlook

   
   

Full Year
FY2018

 

Full Year
FY2019 Outlook

 

% Increase

   

Reported Fully Diluted Earnings per Share

$

0.60

             

Purchase accounting adjustments ($1.733 billion pre-tax) (1)

6.55

             

Restructuring costs ($344 million pre-tax) (2)

1.30

             

Integration costs ($344 million pre-tax) (2)

1.30

             

Transaction costs ($56 million pre-tax) (3)

0.21

             

Financing impacts ($49 million pre-tax) (4)

0.19

             

Hurricane recovery costs ($17 million pre-tax)

0.07

             

Losses on debt extinguishment ($16 million pre-tax) (5)

0.06

             

Net impact of gain on sale of investment and asset impairments ($(151) million pre-tax) (6)

(0.57)

             

Dilutive Impact (7)

 

0.30

             

Impact of tax reform and income tax benefit of special items ($265 million) (8)

1.00

             

Adjusted Fully Diluted Earnings per Share

$

11.01

   

$11.65 to 11.75

 

6.0% to 7.0%

   
                 

Estimated FX Impact

         

~5.5%

   
                 

Adjusted FXN Growth

         

~12.0%

   

 

FXN - Foreign Currency Neutral

   

(1)

Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt.  The amount in 2018 also included a fair value step-up adjustment of $478 million recorded relative to Bard's inventory on the acquisition date.

(2)

Represents restructuring and integration costs associated with the Bard and CareFusion acquisitions, as well as restructuring costs associated with other portfolio rationalization initiatives.

(3)

Represents transaction costs primarily associated with the Bard acquisition.

(4)

Represents financing impacts associated with the Bard acquisition.

(5)

Represents losses recognized upon the extinguishment of certain long-term senior notes.

(6)

Represents the net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit as well as $58 million of charges to write down the value of fixed assets primarily in the Diabetes Care unit.

(7)

Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard.  The adjusted diluted average shares outstanding (in thousands) was 260,758.

(8)

Includes additional tax expense, net, of $640 million relating to new U.S. tax legislation.

 

 

Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657

 

SOURCE BD (Becton, Dickinson and Company)