New Jersey | 22-0760120 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1 Becton Drive Franklin Lakes, New Jersey (Address of principal executive offices) | 07417-1880 (Zip code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $1.00 | New York Stock Exchange | |
Depositary Shares, each representing a 1/20th interest in a share of 6.125% Cumulative Preferred Stock Series A | New York Stock Exchange | |
0.368% Notes due June 9, 2019 | New York Stock Exchange | |
1.000% Notes due December 15, 2022 | New York Stock Exchange | |
1.900% Notes due December 15, 2026 | New York Stock Exchange |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | ||||
Smaller reporting company | ¨ | |||||
Emerging growth company | ¨ | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Organizational Unit | Principal Product Lines |
Diabetes Care | Syringes, pen needles and other products related to the injection or infusion of insulin and other drugs used in the treatment of diabetes. |
Medication and Procedural Solutions | Needles, syringes and intravenous catheters for medication delivery (including safety-engineered and auto-disable devices); prefilled IV flush syringes; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; skin antiseptic products; and surgical and laproscopic instrumentation. |
Medication Management Solutions | Intravenous medication safety and infusion therapy delivery systems, including infusion pumps and dedicated disposables; medication compounding workflow systems; automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and analytics related to all the above products. . |
Pharmaceutical Systems | Prefillable drug delivery systems provided to pharmaceutical companies for use as containers for injectable pharmaceutical products, which are then placed on the market as drug/device combinations. |
Organizational Unit | Principal Product Lines |
Preanalytical Systems | Integrated systems for specimen collection; and safety-engineered blood collection products and systems. |
Diagnostic Systems | Automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; microbiology laboratory automation; and plated media. |
Biosciences | Fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; molecular indexing and next-generation sequencing sample preparation for genomics research; clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers; and cell culture media supplements for biopharmaceutical manufacturing. |
• | the market price of our common stock could decline; |
• | if the Merger Agreement is terminated and our board of directors seeks another business combination, our stockholders cannot be certain that we will be able to find a party willing to enter into a transaction on terms equivalent to or more attractive than the terms that Bard has agreed to in the Merger Agreement; |
• | time and resources, financial and other, committed by our management to matters relating to the Bard acquisition could otherwise have been devoted to pursuing other beneficial opportunities for our company; |
• | we may experience negative reactions from the financial markets or from our customers or employees; and |
• | we will be required to pay our respective costs relating to the Bard acquisition, including legal, accounting, financial advisory, financing and printing fees, whether or not the Bard acquisition is completed. |
• | the diversion of management’s attention from ongoing business concerns and performance shortfalls at one or both of the companies as a result of the devotion of management’s attention to the Bard acquisition; |
• | managing a larger combined company; |
• | maintaining employee morale and retaining key management and other employees; |
• | the possibility of faulty assumptions underlying expectations regarding the integration process; |
• | retaining existing business and operational relationships and attracting new business and operational relationships; |
• | consolidating corporate and administrative infrastructures and eliminating duplicative operations and inconsistencies in standards, controls, procedures and policies; |
• | coordinating geographically separate organizations; |
• | unanticipated issues in integrating information technology, communications and other systems; and |
• | unforeseen expenses or delays associated with the Bard acquisition. |
• | investors’ anticipation of the potential resale in the market of a substantial number of additional shares of BD common stock received upon conversion of the mandatory convertible preferred stock; |
• | possible sales of BD common stock by investors who view the mandatory convertible preferred stock as a more attractive means of equity participation in BD than owning shares of BD common stock; and |
• | hedging or arbitrage trading activity that may develop involving the mandatory convertible preferred stock and BD common stock. |
Sites | Corporate | BD Life Sciences | BD Medical | Mixed(A) | Total | |||||
Leased | 14 | 25 | 96 | 83 | 218 | |||||
Owned | 6 | 26 | 33 | 6 | 71 | |||||
Total | 20 | 51 | 129 | 89 | 289 | |||||
Square feet | 2,263,694 | 4,421,732 | 10,838,632 | 2,938,347 | 20,462,405 |
(A) | Facilities used by more than one business segment. |
Name | Age | Position |
Vincent A. Forlenza | 64 | Chairman since July 2012; Chief Executive Officer since October 2011; President from January 2009 to April 2017; and Chief Operating Officer from July 2010 to October 2011. |
Thomas E. Polen | 44 | President since April 2017; Executive Vice President and President - Medical Segment from October 2014 to April 2017; Group President from October 2013 to October 2014; and Worldwide President - BD Diagnostic Systems from October 2010 to October 2013. |
James W. Borzi | 55 | Executive Vice President, Global Operations and Chief Supply Chain Office since October 2017; Senior Vice President, Global Operations from 2015 to October 2017; Vice President, Global Manufacturing from 2013 to 2015; and Vice President and General Manager, Hydro Aluminum from 2012 to 2013. |
Alexandre Conroy | 54 | Worldwide President, Medication and Procedural Solutions since May 2017; and Executive Vice President and President, Europe, EMA and the Americas from June 2012 to May 2017. |
Roland Goette | 55 | Executive Vice President and President, EMEA since May 2017; President, Europe from October 2014 to May 2017; and prior thereto, Vice President and General Manager - Medical Surgical Systems, Western Europe. |
James Lim | 53 | Executive Vice President and President, Greater Asia since June 2012. |
Alberto Mas | 56 | Executive Vice President and President - Life Sciences Segment since October 2016; Worldwide President - Life Sciences, Diagnostic Systems from October 2013 to October 2016; and Worldwide President - BD Biosciences from October 2011 to October 2013. |
Christopher R. Reidy | 60 | Executive Vice President, Chief Financial Officer and Chief Administrative Officer since July 2013; and prior thereto, Vice President and Chief Financial Officer of ADP Corporation. |
Nabil Shabshab | 52 | Worldwide President, Diabetes Care and Digital Health since August 2017; Executive Vice President and President, Americas and Chief Customer Experience Officer from May 2017 to August 2017; Executive Vice President and Chief Marketing Officer from January 2015 to May 2017; Senior Vice President and Chief Marketing Officer from August 2011 to January 2015. |
Ellen R. Strahlman, M.D. | 60 | Executive Vice President, Research and Development since January 2015, Chief Medical Officer since April 2013; Senior Vice President, Research and Development from April 2013 to January 2015; and prior thereto, Senior Vice President, Office of the CEO and Global Head, Neglected Tropical Diseases of GlaxoSmithKline. |
Linda M. Tharby | 49 | Executive Vice President and Chief Human Resource Officer since October 2016; Executive Vice President and President - Life Sciences Segment from October 2014 to October 2016; Group President from October 2013 to October 2014; and prior thereto, Worldwide President - BD Medical, Diabetes Care. |
2016 | 2017 | |||||||
By Quarter | High | Low | High | Low | ||||
First | $156.53 | $132.19 | $179.17 | $162.80 | ||||
Second | 152.54 | 132.88 | 185.34 | 164.80 | ||||
Third | 172.19 | 152.86 | 195.15 | 177.07 | ||||
Fourth | 181.55 | 169.64 | 205.63 | 191.56 |
By Quarter | 2016 | 2017 | ||
First | $ 0.660 | $ 0.730 | ||
Second | 0.660 | 0.730 | ||
Third | 0.660 | 0.730 | ||
Fourth | 0.660 | 0.730 |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs(2) | |||||||
July 1-31, 2017 | 1,809 | $197.71 | — | 7,857,742 | |||||||
August 1-31, 2017 | 240 | $196.39 | — | 7,857,742 | |||||||
September 1-30, 2017 | — | — | — | 7,857,742 | |||||||
Total | 2,049 | $197.55 | — | 7,857,742 |
(1) | Includes 2,049 shares purchased during the quarter in open market transactions by the trust relating to BD’s Deferred Compensation and Retirement Benefit Restoration Plan and 1996 Directors’ Deferral Plan. |
(2) | Represents shares available under the repurchase program authorized by the Board of Directors on September 24, 2013 for 10 million shares, for which there is no expiration date. |
Years Ended September 30 | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Dollars in millions, except share and per share amounts | ||||||||||||||||||||
Operations | ||||||||||||||||||||
Revenues | $ | 12,093 | $ | 12,483 | $ | 10,282 | $ | 8,446 | $ | 8,054 | ||||||||||
Gross Margin | 5,942 | 5,991 | 4,695 | 4,301 | 4,171 | |||||||||||||||
Research and Development Expense | 774 | 828 | 632 | 550 | 494 | |||||||||||||||
Operating Income | 1,478 | 1,430 | 1,074 | 1,606 | 1,254 | |||||||||||||||
Interest Expense, Net | 445 | 367 | 356 | 89 | 98 | |||||||||||||||
Income From Continuing Operations Before Income Taxes | 976 | 1,074 | 739 | 1,522 | 1,165 | |||||||||||||||
Income Tax (Benefit) Provision | (124 | ) | 97 | 44 | 337 | 236 | ||||||||||||||
Income from Continuing Operations | 1,100 | 976 | 695 | 1,185 | 929 | |||||||||||||||
Net Income | 1,100 | 976 | 695 | 1,185 | 1,293 | |||||||||||||||
Basic Earnings Per Share from Continuing Operations | 4.70 | 4.59 | 3.43 | 6.13 | 4.76 | |||||||||||||||
Diluted Earnings Per Share from Continuing Operations | 4.60 | 4.49 | 3.35 | 5.99 | 4.67 | |||||||||||||||
Dividends Per Common Share | 2.92 | 2.64 | 2.40 | 2.18 | 1.98 | |||||||||||||||
Financial Position | ||||||||||||||||||||
Total Current Assets | $ | 18,633 | $ | 6,367 | $ | 5,659 | $ | 5,775 | $ | 5,530 | ||||||||||
Total Current Liabilities | 3,342 | 4,400 | 4,381 | 2,225 | 2,122 | |||||||||||||||
Total PPE, Net | 4,638 | 3,901 | 4,060 | 3,605 | 3,476 | |||||||||||||||
Total Assets | 37,734 | 25,586 | 26,478 | 12,384 | 12,029 | |||||||||||||||
Total Long-Term Debt | 18,667 | 10,550 | 11,370 | 3,768 | 3,763 | |||||||||||||||
Total Shareholders’ Equity | 12,948 | 7,633 | 7,164 | 5,053 | 5,043 | |||||||||||||||
Book Value Per Common Share | 56.80 | 35.79 | 34.00 | 26.33 | 25.99 | |||||||||||||||
Financial Relationships | ||||||||||||||||||||
Gross Profit Margin | 49.1 | % | 48.0 | % | 45.7 | % | 50.9 | % | 51.8 | % | ||||||||||
Return on Revenues | 9.1 | % | 7.8 | % | 6.8 | % | 14.0 | % | 11.5 | % | (A) | |||||||||
Return on Total Assets(B) | 4.7 | % | 5.6 | % | 5.7 | % | 13.6 | % | 11.1 | % | (A) | |||||||||
Return on Equity | 10.7 | % | 13.2 | % | 11.4 | % | 23.5 | % | 20.2 | % | (A) | |||||||||
Debt to Capitalization(C) | 57.5 | % | 57.2 | % | 59.4 | % | 43.6 | % | 43.6 | % | (A) | |||||||||
Additional Data | ||||||||||||||||||||
Number of Employees | 41,900 | 50,900 | 49,500 | 30,600 | 30,000 | |||||||||||||||
Number of Shareholders | 13,183 | 13,788 | 14,547 | 8,210 | 8,412 | |||||||||||||||
Average Common and Common Equivalent Shares Outstanding — Assuming Dilution (millions) | 223.6 | 217.5 | 207.5 | 197.7 | 199.2 | |||||||||||||||
Depreciation and Amortization | $ | 1,088 | $ | 1,114 | $ | 891 | $ | 562 | $ | 546 | ||||||||||
Capital Expenditures | 727 | 693 | 596 | 592 | 522 |
(A) | Excludes discontinued operations. |
(B) | Earnings before interest expense and taxes as a percent of average total assets. |
(C) | Total debt as a percent of the sum of total debt, shareholders’ equity and non-current deferred income tax liabilities. |
Years Ended September 30 | |||||||||||||||||||
Millions of dollars, except per share amounts | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Total specified items | $ | 1,466 | $ | 1,261 | $ | 1,186 | $ | 153 | $ | 442 | |||||||||
After-tax impact of specified items | $ | 971 | $ | 892 | $ | 786 | $ | 101 | $ | 279 | |||||||||
Impact of specified items on diluted earnings per share | $ | (4.34 | ) | $ | (4.10 | ) | $ | (3.79 | ) | $ | (0.51 | ) | $ | (1.40 | ) | ||||
Impact of dilution from share issuances | $ | (0.54 | ) | $ | — | $ | (0.02 | ) | $ | — | $ | — |
• | To increase revenue growth by focusing on our core products, services and solutions that deliver greater benefits to patients, healthcare workers and researchers; |
• | To continue investment in research and development for platform extensions and innovative new products; |
• | To make investments in growing our operations in emerging markets; |
• | To improve operating effectiveness and balance sheet productivity; |
• | To drive an efficient capital structure and strong shareholder returns. |
• | Enabling safer, simpler and more effective parenteral drug delivery; |
• | Improving clinical outcomes through new, more accurate and faster diagnostics; |
• | Providing tools and technologies to the research community that facilitate the understanding of the cell, cellular diagnostics and cell therapy; |
• | Enhancing disease management in diabetes, women’s health and cancer, infectious disease and other targeted conditions. |
• | To operate the Company consistent with an investment grade credit profile; |
• | To ensure access to the debt market for strategic opportunities; |
• | To optimize the cost of capital based on market conditions. |
• | Medical segment volume growth in 2017 was driven by sales growth in all of the segment's units, particularly by growth in the Medication and Procedural Solutions, Medication Management Solutions and Pharmaceutical Systems units. |
• | Life Sciences segment volume growth in 2017 was driven by growth in all three of its organizational units, particularly in its Preanalytical and Diagnostic Systems units. |
• | U.S. volume growth in 2017 primarily reflected growth in sales in the Medical segment's Medication Management Solutions and Diabetes Care units, as well as in all of the Life Sciences segment's units. |
• | International volume growth in 2017 was driven by sales in the Medical segment's Medication and Procedural Solutions, Medication Management Solutions and Pharmaceutical Systems units, as well as by sales in the Life Sciences segment's Preanalytical Systems and Diagnostic Systems units. |
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||
Medication and Procedural Solutions | $ | 3,497 | $ | 3,413 | $ | 2,850 | 2.5 | % | (0.7 | )% | 3.2 | % | 19.8 | % | (3.6 | )% | 23.4 | % | |||||||||||
Medication Management Solutions (A) | 2,295 | 2,197 | 1,015 | 4.4 | % | (0.5 | )% | 4.9 | % | 116.6 | % | (2.3 | )% | 118.9 | % | ||||||||||||||
Diabetes Care | 1,056 | 1,023 | 1,012 | 3.3 | % | (0.3 | )% | 3.6 | % | 1.1 | % | (3.3 | )% | 4.4 | % | ||||||||||||||
Pharmaceutical Systems | 1,256 | 1,199 | 1,167 | 4.8 | % | (0.5 | )% | 5.3 | % | 2.7 | % | (2.4 | )% | 5.1 | % | ||||||||||||||
Respiratory Solutions (A) | — | 822 | 417 | NM | — | % | NM | 97.2 | % | (2.3 | )% | 99.5 | % | ||||||||||||||||
Total Medical revenues | $ | 8,105 | $ | 8,654 | $ | 6,460 | (6.4 | )% | (0.6 | )% | (5.8 | )% | 34.0 | % | (3.0 | )% | 37.0 | % | |||||||||||
Medical segment safety-engineered products | $ | 1,960 | $ | 1,924 | $ | 1,499 | 1.9 | % | (0.3 | )% | 2.2 | % | 28.3 | % | (2.9 | )% | 31.2 | % |
(A) | The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition. |
(B) | "NM" denotes that the percentage is not meaningful. |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Medical segment operating income | $ | 2,155 | $ | 2,052 | $ | 1,530 | |||||
Segment operating income as % of Medical revenues | 26.6 | % | 23.7 | % | 23.7 | % |
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||
Preanalytical Systems | $ | 1,471 | $ | 1,409 | $ | 1,391 | 4.4 | % | (0.8 | )% | 5.2 | % | 1.3 | % | (3.9 | )% | 5.2 | % | |||||||||||
Diagnostic Systems | 1,378 | 1,301 | 1,299 | 5.9 | % | (0.5 | )% | 6.4 | % | 0.1 | % | (3.2 | )% | 3.3 | % | ||||||||||||||
Biosciences | 1,139 | 1,119 | 1,132 | 1.8 | % | (0.6 | )% | 2.4 | % | (1.2 | )% | (2.7 | )% | 1.5 | % | ||||||||||||||
Total Life Sciences revenues | $ | 3,988 | $ | 3,829 | $ | 3,822 | 4.2 | % | (0.6 | )% | 4.8 | % | 0.2 | % | (3.2 | )% | 3.4 | % | |||||||||||
Life Sciences segment safety-engineered products | $ | 1,167 | $ | 1,113 | $ | 1,097 | 4.9 | % | (0.8 | )% | 5.7 | % | 1.4 | % | (3.7 | )% | 5.1 | % |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Life Sciences segment operating income | $ | 772 | $ | 793 | $ | 839 | |||||
Segment operating income as % of Life Sciences revenues | 19.4 | % | 20.7 | % | 21.9 | % |
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||
United States | $ | 6,504 | $ | 6,893 | $ | 5,069 | (5.6 | )% | — | (5.6 | )% | 36.0 | % | — | 36.0 | % | |||||||||||||
International | 5,589 | 5,590 | 5,213 | — | % | (1.2 | )% | 1.2 | % | 7.2 | % | (6.2 | )% | 13.4 | % | ||||||||||||||
Total revenues | $ | 12,093 | $ | 12,483 | $ | 10,282 | (3.1 | )% | (0.5 | )% | (2.6 | )% | 21.4 | % | (3.1 | )% | 24.5 | % |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Integration costs (A) | $ | 237 | $ | 192 | $ | 95 | |||||
Restructuring costs (A) | 85 | 526 | 271 | ||||||||
Transaction costs (A) | 39 | 10 | 59 | ||||||||
Financing costs (B) | 131 | — | 107 | ||||||||
Purchase accounting adjustments (C) | 491 | 527 | 645 | ||||||||
Lease contract modification-related charge (D) | 748 | — | — | ||||||||
Litigation-related items (E) | (337 | ) | — | 12 | |||||||
Losses on debt extinguishment (F) | 73 | — | — | ||||||||
Pension settlement charges | — | 6 | — | ||||||||
Other, net | — | — | (5 | ) | |||||||
Total specified items | 1,466 | 1,261 | 1,186 | ||||||||
Tax impact of specified items | 495 | 369 | 400 | ||||||||
After-tax impact of specified items | $ | 971 | $ | 892 | $ | 786 |
(A) | Represents integration, restructuring and transaction costs, recorded in Acquisitions and other restructurings, which are further discussed below. |
(B) | The amount in 2017 represents financing costs incurred in connection with the agreement to acquire Bard, including bridge financing commitment fees of $79 million, which were recorded in Interest expense. The amount in 2015 represents financing costs incurred in connection with the CareFusion acquisition, including bridge financing commitment fees. |
(C) | Primarily represents non-cash amortization expense associated with acquisition-related identifiable intangible assets. BD’s amortization expense is primarily recorded in Cost of products sold. The adjustment in 2015 also included a fair value step-up adjustment of $293 million recorded relative to CareFusion’s inventory on the acquisition date. |
(D) | Represents a non-cash charge, which was recorded in Other operating expense, net resulting from a modification to our dispensing equipment lease contracts with customers, as further discussed below. |
(E) | The amount in 2017 largely represents the reversal of certain reserves related to an appellate court decision recorded in Other operating expense, net as further discussed below. |
(F) | Represents losses recognized in Other (expense) income, net upon our extinguishment of certain long-term senior notes in the first and third quarters, as further discussed below. |
2017 | 2016 | ||||
Gross profit margin % prior-year period | 48.0 | % | 45.7 | % | |
Operating performance | 0.7 | % | 2.5 | % | |
Impact of divestitures | 0.8 | % | — | % | |
CareFusion acquisition-related asset depreciation and amortization | — | % | 0.6 | % | |
Foreign currency translation | (0.4 | )% | (0.8 | )% | |
Gross profit margin % current-year period | 49.1 | % | 48.0 | % |
Increase (decrease) in basis points | |||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||
Selling and administrative expense | $ | 2,925 | $ | 3,005 | $ | 2,563 | |||||||||||
% of revenues | 24.2 | % | 24.1 | % | 24.9 | % | 10 | (80 | ) | ||||||||
Research and development expense | $ | 774 | $ | 828 | $ | 632 | |||||||||||
% of revenues | 6.4 | % | 6.6 | % | 6.1 | % | (20 | ) | 50 | ||||||||
Acquisitions and other restructurings | $ | 354 | $ | 728 | $ | 426 | |||||||||||
Other operating expense, net | $ | 410 | $ | — | $ | — |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Interest expense | $ | (521 | ) | $ | (388 | ) | $ | (371 | ) | ||
Interest income | 76 | 21 | 15 | ||||||||
Net interest expense | $ | (445 | ) | $ | (367 | ) | $ | (356 | ) |
2017 | 2016 | 2015 | ||||||
Effective income tax rate - (benefit) provision | (12.7 | )% | 9.1 | % | 5.9 | % | ||
Favorable impact, in basis points, from specified items | 2,790 | 1,090 | 1,720 |
2017 | 2016 | 2015 | |||||||||
Net income (Millions of dollars) | $ | 1,100 | $ | 976 | $ | 695 | |||||
Diluted Earnings per Share | $ | 4.60 | $ | 4.49 | $ | 3.35 | |||||
Unfavorable impact-specified items | $ | (4.34 | ) | $ | (4.10 | ) | $ | (3.79 | ) | ||
Unfavorable impact-foreign currency translation | $ | (0.23 | ) | $ | (0.64 | ) | $ | (0.69 | ) | ||
Dilutive impact from share issuances | $ | (0.54 | ) | $ | — | $ | (0.02 | ) |
Increase (decrease) | |||||||
(Millions of dollars) | 2017 | 2016 | |||||
10% appreciation in U.S. dollar | $ | (38 | ) | $ | (67 | ) | |
10% depreciation in U.S. dollar | $ | 38 | $ | 67 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Net cash provided by (used for) | |||||||||||
Operating activities | $ | 2,550 | $ | 2,559 | $ | 1,730 | |||||
Investing activities | $ | (883 | ) | $ | (669 | ) | $ | (8,318 | ) | ||
Financing activities | $ | 10,977 | $ | (1,761 | ) | $ | 6,190 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Cash inflow (outflow) | |||||||||||
Increase/(decrease) in borrowings under commercial paper program | $ | (200 | ) | $ | (500 | ) | $ | 500 | |||
Issuances of senior unsecured U.S. notes | $ | 9,616 | $ | — | $ | 6,164 | |||||
Issuances of euro-denominated notes | $ | 1,846 | $ | — | $ | — | |||||
Payments of debt | $ | (3,980 | ) | $ | (752 | ) | $ | (6 | ) | ||
Issuances of equity securities | $ | 4,827 | $ | — | $ | — | |||||
Share repurchases under accelerated share repurchase agreement | $ | (220 | ) | $ | — | $ | — | ||||
Dividends paid | $ | (677 | ) | $ | (562 | ) | $ | (485 | ) |
2017 | 2016 | 2015 | |||||||||
Total debt (Millions of dollars) | $ | 18,870 | $ | 11,551 | $ | 12,822 | |||||
Short-term debt as a percentage of total debt | 1.1 | % | 8.7 | % | 11.3 | % | |||||
Weighted average cost of total debt | 3.3 | % | 3.6 | % | 3.3 | % | |||||
Total debt as a percentage of total capital (A) | 57.5 | % | 57.2 | % | 59.4 | % |
(A) | Represents shareholders’ equity, net non-current deferred income tax liabilities, and debt. |
• | We are required to maintain an interest expense coverage ratio of not less than 4-to-1 as of the last day of each fiscal quarter. We were in compliance with this covenant relative to the term loan facility as of September 30, 2017. This covenant becomes effective for the revolving credit facility upon the effective date of the facility. |
• | We are required to have a leverage coverage ratio of no more than: |
◦ | 6-to-1 from the closing date of the Bard acquisition until and including the first fiscal quarter-end thereafter; |
◦ | 5.75-to-1 for the subsequent four fiscal quarters thereafter; |
◦ | 5.25-to-1 for the subsequent four fiscal quarters thereafter; |
◦ | 4.5-to-1 for the subsequent four fiscal quarters thereafter; |
◦ | 4-to-1 for the subsequent four fiscal quarters thereafter; |
◦ | 3.75-to-1 thereafter. |
S&P | Moody’s | Fitch | ||||
Ratings: | ||||||
Senior Unsecured Debt | BBB+ | Baa2 | BBB- | |||
Commercial Paper | A-2 | P-2 | ||||
Outlook | Negative | Negative | Stable |
Total | 2018 | 2019 to 2020 | 2021 to 2022 | 2023 and Thereafter | |||||||||||||||
(Millions of dollars) | |||||||||||||||||||
Short-term debt | $ | 208 | $ | 208 | $ | — | $ | — | $ | — | |||||||||
Long-term debt(A) | 26,897 | 615 | 4,986 | 5,001 | 16,295 | ||||||||||||||
Operating leases | 277 | 67 | 104 | 66 | 39 | ||||||||||||||
Purchase obligations(B) | 1,077 | 682 | 330 | 65 | — | ||||||||||||||
Unrecognized tax benefits(C) | — | — | — | — | — | ||||||||||||||
Total(D) | $ | 28,458 | $ | 1,572 | $ | 5,420 | $ | 5,132 | $ | 16,334 |
(A) | Long-term debt obligations include expected principal and interest obligations. |
(B) | Purchase obligations are for purchases made in the normal course of business to meet operational and capital requirements. |
(C) | Unrecognized tax benefits at September 30, 2017 of $349 million were all long-term in nature. Due to the uncertainty related to the timing of the reversal of these tax positions, the related liability has been excluded from the table. |
(D) | Required funding obligations for 2018 relating to pension and other postretirement benefit plans are not expected to be material. |
• | Infusion products (when sold with safety software, patient identification products and certain diagnostic equipment) within our Medication Management Solutions unit; |
• | Dispensing products within our Medication Management Solutions unit; |
• | Research and clinical instruments within our Biosciences unit. |
• | Discount rate — A change of plus (minus) 25 basis points, with other assumptions held constant, would have an estimated $5 million favorable (unfavorable) impact on the total U.S. net pension and other postretirement and postemployment benefit plan costs. This estimate assumes no change in the shape or steepness of the company-specific yield curve used to plot the individual spot rates that will be applied to the future cash outflows for future benefit payments in order to calculate interest and service cost. |
• | Expected return on plan assets — A change of plus (minus) 25 basis points, with other assumptions held constant, would have an estimated $3 million favorable (unfavorable) impact on U.S. pension plan costs. |
• | Weakness in the global economy and financial markets, which could increase the cost of operating our business, weaken demand for our products and services, negatively impact the prices we can charge for our products and services, or impair our ability to produce our products. |
• | Competitive factors that could adversely affect our operations, including new product introductions (for example, new forms of drug delivery) by our current or future competitors, increased pricing pressure due to the impact of low-cost manufacturers, patents attained by competitors (particularly as patents on our products expire), and new entrants into our markets. |
• | The adverse financial impact resulting from unfavorable changes in foreign currency exchange rates. |
• | Regional, national and foreign economic factors, including inflation, deflation, and fluctuations in interest rates, and their potential effect on our operating performance. |
• | Our ability to achieve our projected level or mix of product sales, as our earnings forecasts are based on projected sales volumes and pricing of many product types, some of which are more profitable than others. |
• | Changes in reimbursement practices of third-party payers or adverse decisions relating to our products by such payers, which could reduce demand for our products or the price we can charge for such products. |
• | The impact of the medical device excise tax under the Patient Protection and Affordable Care Act (the "PPACA") in the United States. This tax has been suspended through December 31, 2017, and it is uncertain whether the suspension will be extended beyond that date. |
• | Healthcare reform in the U.S. or in other countries in which we do business that may involve changes in government pricing and reimbursement policies or other cost containment reforms. |
• | Changes in domestic and foreign healthcare industry practices that result in a reduction in procedures using our products or increased pricing pressures, including the continued consolidation among healthcare providers and trends toward managed care and healthcare cost containment. |
• | The impact of changes in U.S. federal laws and policy that could affect fiscal and tax policies, healthcare, and international trade agreements. |
• | Fluctuations in the cost and availability of oil-based resins and other raw materials, as well as certain components, used in our products, the ability to maintain favorable supplier arrangements and relationships (particularly with respect to sole-source suppliers), and the potential adverse effects of any disruption in the availability of such items. |
• | Security breaches of our information technology systems or our products, which could impair our ability to conduct business, result in the loss of BD trade secrets or otherwise compromise sensitive information of BD or its customers, suppliers and other business partners, or of customers' patients, or result in product efficacy or safety concerns for certain of our products. |
• | Difficulties inherent in product development, including the potential inability to successfully continue technological innovation, successfully complete clinical trials, obtain regulatory approvals in the United States and abroad, obtain intellectual property protection for our products, obtain coverage and adequate reimbursement for new products, or gain and maintain market approval of products, as well as the possibility of infringement claims by competitors with respect to patents or other intellectual property rights, all of which can preclude or delay commercialization of a product. Delays in obtaining necessary approvals or clearances from the FDA or other regulatory agencies or changes in the |
• | The impact of business combinations, including any volatility in earnings relating to acquisition-related costs, and our ability to successfully integrate any business we may acquire. |
• | Our ability to penetrate or expand our operations in emerging markets, which depends on local economic and political conditions, and how well we are able to acquire or form strategic business alliances with local companies and make necessary infrastructure enhancements to production facilities and distribution networks. Our international operations also increase our compliance risks, including risks under the Foreign Corrupt Practices Act and other anti-corruption laws. |
• | Political conditions in international markets, including civil unrest, terrorist activity, governmental changes, trade barriers, restrictions on the ability to transfer capital across borders and governmental expropriation of assets. This includes the possible impact of the June 2016 advisory referendum by British voters to exit the European Union, which has created uncertainties affecting business operations in the United Kingdom and the EU. |
• | Deficit reduction efforts or other actions that reduce the availability of government funding for healthcare and research, which could weaken demand for our products and result in additional pricing pressures, as well as create potential collection risks associated with such sales. |
• | Fluctuations in university or U.S. and international governmental funding and policies for life sciences research. |
• | Fluctuations in the demand for products we sell to pharmaceutical companies that are used to manufacture, or are sold with, the products of such companies, as a result of funding constraints, consolidation or otherwise. |
• | The effects of events that adversely impact our ability to manufacture our products (particularly where production of a product line is concentrated in one or more plants) or our ability to source materials or components from suppliers (including sole-source suppliers) that are needed for such manufacturing. In particular, damage to our manufacturing facilities in Puerto Rico resulting from Hurricane Maria in September 2017 could adversely impact our revenue and earnings results for fiscal year 2018. |
• | Pending and potential future litigation or other proceedings adverse to BD, including antitrust, product liability, environmental and patent infringement, and the availability or collectability of insurance relating to any such claims. |
• | New or changing laws and regulations affecting our domestic and foreign operations, or changes in enforcement practices, including laws relating to trade, monetary and fiscal policies, taxation (including tax reforms that could adversely impact multinational corporations), sales practices, environmental protection, price controls, and licensing and regulatory requirements for new products and products in the postmarketing phase. In particular, the U.S. and other countries may impose new requirements regarding registration, labeling or prohibited materials that may require us to re-register products already on the market or otherwise impact our ability to market our products. Environmental laws, particularly with respect to the emission of greenhouse gases, are also becoming more stringent throughout the world, which may increase our costs of operations or necessitate changes in our manufacturing plants or processes or those of our suppliers, or result in liability to BD. |
• | Product efficacy or safety concerns regarding our products resulting in product recalls, regulatory action on the part of the U.S. Food and Drug Administration (FDA) or foreign counterparts, declining sales and product liability claims, and damage to our reputation. As a result of the CareFusion acquisition, we are operating under a consent decree with the FDA relating to our U.S. infusion pump business. The consent decree authorizes the FDA, in the event of any violations in the future, to order us to cease manufacturing and distributing products, recall products or take other actions, and we may be required to pay significant monetary damages if we fail to comply with any provision of the consent decree. |
• | Risks relating to our acquisition of CareFusion, including our ability to continue to successfully |
• | Risks related to our pending acquisition of Bard, including: |
◦ | The failure to satisfy the conditions to completing the transaction, including obtaining required regulatory approvals. |
◦ | Conditions to obtaining regulatory approval that may place restrictions on the business of the combined company. |
◦ | Our failure to obtain the anticipated benefits and costs savings from the acquisition. |
◦ | The impact of the additional debt we incurred and the equity and equity-linked securities that we issued to finance the acquisition, including on our credit ratings and costs of borrowing. |
• | The effect of adverse media exposure or other publicity regarding BD’s business or operations, including the effect on BD’s reputation or demand for its products. |
• | The effect of market fluctuations on the value of assets in BD’s pension plans and on actuarial interest rate and asset return assumptions, which could require BD to make additional contributions to the plans or increase our pension plan expense. |
• | Our ability to obtain the anticipated benefits of restructuring programs, if any, that we may undertake. |
• | Issuance of new or revised accounting standards by the Financial Accounting Standards Board or the Securities and Exchange Commission. |
/s/ Vincent A. Forlenza | /s/ Christopher Reidy | /s/ John Gallagher | ||
Vincent A. Forlenza | Christopher Reidy | John Gallagher | ||
Chairman and Chief Executive Officer | Executive Vice President, Chief Financial Officer and Chief Administrative Officer | Senior Vice President, Corporate Finance, Controller and Treasurer |
/s/ ERNST & YOUNG LLP | ||
New York, New York | ||
November 22, 2017 |
/s/ ERNST & YOUNG LLP | ||
New York, New York | ||
November 22, 2017 |
Millions of dollars, except per share amounts | 2017 | 2016 | 2015 | ||||||||
Revenues | $ | 12,093 | $ | 12,483 | $ | 10,282 | |||||
Cost of products sold | 6,151 | 6,492 | 5,587 | ||||||||
Selling and administrative expense | 2,925 | 3,005 | 2,563 | ||||||||
Research and development expense | 774 | 828 | 632 | ||||||||
Acquisitions and other restructurings | 354 | 728 | 426 | ||||||||
Other operating expense, net | 410 | — | — | ||||||||
Total Operating Costs and Expenses | 10,615 | 11,053 | 9,207 | ||||||||
Operating Income | 1,478 | 1,430 | 1,074 | ||||||||
Interest expense | (521 | ) | (388 | ) | (371 | ) | |||||
Interest income | 76 | 21 | 15 | ||||||||
Other (expense) income, net | (57 | ) | 11 | 21 | |||||||
Income Before Income Taxes | 976 | 1,074 | 739 | ||||||||
Income tax (benefit) provision | (124 | ) | 97 | 44 | |||||||
Net Income | 1,100 | 976 | 695 | ||||||||
Preferred stock dividends | (70 | ) | — | — | |||||||
Net income applicable to common shareholders | $ | 1,030 | $ | 976 | $ | 695 | |||||
Basic Earnings per Share | $ | 4.70 | $ | 4.59 | $ | 3.43 | |||||
Diluted Earnings per Share | $ | 4.60 | $ | 4.49 | $ | 3.35 |
Millions of dollars | 2017 | 2016 | 2015 | ||||||||
Net Income | $ | 1,100 | $ | 976 | $ | 695 | |||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Foreign currency translation adjustments | 11 | (50 | ) | (692 | ) | ||||||
Defined benefit pension and postretirement plans | 179 | (141 | ) | (36 | ) | ||||||
Cash flow hedges | 17 | 1 | (9 | ) | |||||||
Other Comprehensive Income (Loss), Net of Tax | 206 | (191 | ) | (737 | ) | ||||||
Comprehensive Income (Loss) | $ | 1,306 | $ | 786 | $ | (42 | ) |
Millions of dollars, except per share amounts and numbers of shares | 2017 | 2016 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and equivalents | $ | 14,179 | $ | 1,541 | |||
Short-term investments | 21 | 27 | |||||
Trade receivables, net | 1,744 | 1,618 | |||||
Current portion of net investment in sales-type leases | 16 | 339 | |||||
Inventories | 1,818 | 1,719 | |||||
Assets held for sale | — | 642 | |||||
Prepaid expenses and other | 856 | 480 | |||||
Total Current Assets | 18,633 | 6,367 | |||||
Property, Plant and Equipment, Net | 4,638 | 3,901 | |||||
Goodwill | 7,563 | 7,419 | |||||
Customer Relationships, Net | 2,830 | 3,022 | |||||
Developed Technology, Net | 2,478 | 2,655 | |||||
Other Intangibles, Net | 585 | 604 | |||||
Net Investment in Sales-Type Leases, Less Current Portion | 38 | 796 | |||||
Other Assets | 968 | 824 | |||||
Total Assets | $ | 37,734 | $ | 25,586 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities | |||||||
Short-term debt | $ | 203 | $ | 1,001 | |||
Accounts payable | 797 | 665 | |||||
Accrued expenses | 1,393 | 1,575 | |||||
Salaries, wages and related items | 773 | 696 | |||||
Income taxes | 176 | 274 | |||||
Liabilities held for sale | — | 189 | |||||
Total Current Liabilities | 3,342 | 4,400 | |||||
Long-Term Debt | 18,667 | 10,550 | |||||
Long-Term Employee Benefit Obligations | 1,168 | 1,319 | |||||
Deferred Income Taxes and Other | 1,609 | 1,684 | |||||
Commitments and Contingencies (See Note 5) | |||||||
Shareholders’ Equity | |||||||
Preferred stock | 2 | — | |||||
Common stock — $1 par value: authorized — 640,000,000 shares; issued — 346,687,160 shares in 2017 and 332,662,160 shares in 2016. | 347 | 333 | |||||
Capital in excess of par value | 9,619 | 4,693 | |||||
Retained earnings | 13,111 | 12,727 | |||||
Deferred compensation | 19 | 22 | |||||
Common stock in treasury — at cost — 118,744,758 shares in 2017 and 119,370,934 shares in 2016. | (8,427 | ) | (8,212 | ) | |||
Accumulated other comprehensive loss | (1,723 | ) | (1,929 | ) | |||
Total Shareholders’ Equity | 12,948 | 7,633 | |||||
Total Liabilities and Shareholders’ Equity | $ | 37,734 | $ | 25,586 |
Millions of dollars | 2017 | 2016 | 2015 | ||||||||
Operating Activities | |||||||||||
Net income | $ | 1,100 | $ | 976 | $ | 695 | |||||
Adjustments to net income to derive net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,088 | 1,114 | 891 | ||||||||
Share-based compensation | 174 | 196 | 166 | ||||||||
Deferred income taxes | (236 | ) | (426 | ) | (336 | ) | |||||
Change in operating assets and liabilities: | |||||||||||
Trade receivables, net | (93 | ) | (128 | ) | (2 | ) | |||||
Net investment in sales-type leases | 14 | 51 | 28 | ||||||||
Inventories | (46 | ) | 69 | 200 | |||||||
Prepaid expenses and other | (380 | ) | 39 | (97 | ) | ||||||
Accounts payable, income taxes and other liabilities | 134 | 368 | 145 | ||||||||
Pension obligation | 84 | (32 | ) | 28 | |||||||
Excess tax benefits from payments under share-based compensation plans | 77 | — | — | ||||||||
Lease contract modification-related charge | 748 | — | — | ||||||||
Other, net | (114 | ) | 332 | 11 | |||||||
Net Cash Provided by Operating Activities | 2,550 | 2,559 | 1,730 | ||||||||
Investing Activities | |||||||||||
Capital expenditures | (727 | ) | (693 | ) | (596 | ) | |||||
Proceeds from (purchases of) investments, net | 13 | (1 | ) | 840 | |||||||
Acquisitions of businesses, net of cash acquired | (174 | ) | — | (8,414 | ) | ||||||
Divestitures of businesses, net | 165 | 158 | — | ||||||||
Other, net | (161 | ) | (133 | ) | (147 | ) | |||||
Net Cash Used for Investing Activities | (883 | ) | (669 | ) | (8,318 | ) | |||||
Financing Activities | |||||||||||
Change in short-term debt | (200 | ) | (500 | ) | 497 | ||||||
Proceeds from long-term debt | 11,462 | — | 6,164 | ||||||||
Payments of debt | (3,980 | ) | (752 | ) | (6 | ) | |||||
Proceeds from issuance of equity securities | 4,827 | — | — | ||||||||
Repurchase of common stock | (220 | ) | — | — | |||||||
Excess tax benefit from payments under share-based compensation plans | — | 86 | 48 | ||||||||
Dividends paid | (677 | ) | (562 | ) | (485 | ) | |||||
Other, net | (234 | ) | (32 | ) | (27 | ) | |||||
Net Cash Provided by (Used for) Financing Activities | 10,977 | (1,761 | ) | 6,190 | |||||||
Effect of exchange rate changes on cash and equivalents | (6 | ) | (12 | ) | (38 | ) | |||||
Net Increase (Decrease) in Cash and Equivalents | 12,638 | 117 | (436 | ) | |||||||
Opening Cash and Equivalents | 1,541 | 1,424 | 1,861 | ||||||||
Closing Cash and Equivalents | $ | 14,179 | $ | 1,541 | $ | 1,424 |
Common Stock Issued at Par Value | Capital in Excess of Par Value | Retained Earnings | Deferred Compensation | Treasury Stock | ||||||||||||||||||
(Millions of dollars) | Shares (in thousands) | Amount | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 333 | $ | 2,198 | $ | 12,105 | $ | 19 | (140,770 | ) | $ | (8,601 | ) | |||||||||
Net income | — | — | 695 | — | — | — | ||||||||||||||||
Cash dividends: | ||||||||||||||||||||||
Common ($2.40 per share) | — | — | (485 | ) | — | — | — | |||||||||||||||
Common stock issued for: | ||||||||||||||||||||||
Share-based compensation and other plans, net | — | 30 | (2 | ) | 1 | 2,839 | (6 | ) | ||||||||||||||
Acquisitions | — | 2,083 | — | — | 15,959 | 368 | ||||||||||||||||
Share-based compensation | — | 164 | — | — | — | — | ||||||||||||||||
Common stock held in trusts, net | — | — | — | — | 5 | — | ||||||||||||||||
Balance at September 30, 2015 | $ | 333 | $ | 4,475 | $ | 12,314 | $ | 20 | (121,967 | ) | $ | (8,239 | ) | |||||||||
Net income | — | — | 976 | — | — | — | ||||||||||||||||
Cash dividends: | ||||||||||||||||||||||
Common ($2.64 per share) | — | — | (562 | ) | — | — | — | |||||||||||||||
Common stock issued for: | ||||||||||||||||||||||
Share-based compensation and other plans, net | — | 27 | (1 | ) | 2 | 2,607 | 26 | |||||||||||||||
Share-based compensation | — | 191 | — | — | — | — | ||||||||||||||||
Common stock held in trusts, net | — | — | — | — | (11 | ) | — | |||||||||||||||
Balance at September 30, 2016 | $ | 333 | $ | 4,693 | $ | 12,727 | $ | 22 | (119,371 | ) | $ | (8,212 | ) | |||||||||
Net income | — | — | 1,100 | — | — | — | ||||||||||||||||
Cash dividends: | ||||||||||||||||||||||
Common ($2.92 per share) | — | — | (645 | ) | — | — | — | |||||||||||||||
Preferred | — | — | (70 | ) | — | — | — | |||||||||||||||
Common stock issued for: | ||||||||||||||||||||||
Public equity offerings | 14 | 4,810 | — | — | — | — | ||||||||||||||||
Share-based compensation and other plans, net | — | (65 | ) | (1 | ) | (3 | ) | 1,908 | 6 | |||||||||||||
Share-based compensation | — | 180 | — | — | — | — | ||||||||||||||||
Common stock held in trusts, net | — | — | — | — | 7 | — | ||||||||||||||||
Repurchase of common stock | — | — | — | — | (1,289 | ) | (220 | ) | ||||||||||||||
Balance at September 30, 2017 | $ | 347 | $ | 9,619 | $ | 13,111 | $ | 19 | (118,745 | ) | $ | (8,427 | ) |
• | 14.025 million shares of the Company's common stock for net proceeds of $2.4 billion (gross proceeds of $2.5 billion). |
• | 2.475 million shares of the Company's mandatory convertible preferred stock (ownership is held in the form of depositary shares, each representing a 1/20th interest in a share of preferred stock) for net proceeds of $2.4 billion (gross proceeds of $2.5 billion). If and when declared, dividends on the mandatory convertible preferred stock will be payable on a cumulative basis at an annual rate of 6.125% on the liquidation preference of $1,000 per preferred share ($50 per depositary share). The shares of preferred stock are convertible to a minimum of 11.7 million and up to a maximum of 14.0 million shares of Company common stock at an exchange ratio that is based on the market price of the Company’s common stock at the date of conversion, and no later than the mandatory conversion date of May 1, 2020. |
(Millions of dollars) | Total | Foreign Currency Translation | Benefit Plans | Cash Flow Hedges | |||||||||||
Balance at September 30, 2014 | $ | (1,001 | ) | $ | (270 | ) | $ | (705 | ) | $ | (26 | ) | |||
Other comprehensive loss before reclassifications, net of taxes | (787 | ) | (692 | ) | (80 | ) | (16 | ) | |||||||
Amounts reclassified into income, net of taxes | 50 | — | 44 | 6 | |||||||||||
Balance at September 30, 2015 | $ | (1,738 | ) | $ | (961 | ) | $ | (741 | ) | $ | (36 | ) | |||
Other comprehensive loss before reclassifications, net of taxes | (251 | ) | (50 | ) | (190 | ) | (11 | ) | |||||||
Amounts reclassified into income, net of taxes | 60 | — | 48 | 12 | |||||||||||
Balance at September 30, 2016 | $ | (1,929 | ) | $ | (1,011 | ) | $ | (883 | ) | $ | (35 | ) | |||
Other comprehensive income before reclassifications, net of taxes | 140 | 11 | 121 | 8 | |||||||||||
Amounts reclassified into income, net of taxes | 66 | — | 58 | 8 | |||||||||||
Balance at September 30, 2017 | $ | (1,723 | ) | $ | (1,001 | ) | $ | (703 | ) | $ | (18 | ) |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Benefit Plans | |||||||||||
Income tax (provision) benefit for net gains (losses) recorded in other comprehensive income | $ | (60 | ) | $ | 79 | $ | 47 | ||||
Cash Flow Hedges | |||||||||||
Income tax (provision) benefit for net gains (losses) recorded in other comprehensive income | $ | (5 | ) | $ | 7 | $ | 10 |
2017 | 2016 | 2015 | ||||||
Average common shares outstanding | 218,943 | 212,702 | 202,537 | |||||
Dilutive share equivalents from share-based plans (A) (B) | 4,645 | 4,834 | 4,972 | |||||
Average common and common equivalent shares outstanding — assuming dilution | 223,588 | 217,536 | 207,509 |
(A) | For the year ended September 30, 2017, 5 million dilutive share equivalents associated with mandatory convertible preferred stock issued during 2017, as further discussed in Note 3, were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. For the years ended September 30, 2017, 2016 and 2015 there were no options to purchase shares of common stock which were excluded from the diluted earnings per share calculation. |
(B) | The adjustments to calculate diluted share equivalents from share-based plans in 2016 and 2015 included excess tax benefits relating to share-based compensation awards. Upon the Company's adoption, as discussed in Note 2, of new accounting requirements relating to share-based compensation award-related income tax effects, the adjustment in 2017 excluded these excess tax benefits. |
Organizational Unit | Principal Product Lines | |
Diabetes Care | Syringes, pen needles and other products related to the injection or infusion of insulin and other drugs used in the treatment of diabetes. | |
Medication and Procedural Solutions | Needles, syringes and intravenous catheters for medication delivery (including safety-engineered and auto-disable devices); prefilled IV flush syringes; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; skin antiseptic products; and surgical and laproscopic instrumentation. | |
Medication Management Solutions | Intravenous medication safety and infusion therapy delivery systems, including infusion pumps and dedicated disposables; medication compounding workflow systems; and automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and analytics related to all the above products. | |
Pharmaceutical Systems | Prefillable drug delivery systems provided to pharmaceutical companies for use as containers for injectable pharmaceutical products, which are then placed on the market as drug/device combinations. |
Organizational Unit | Principal Product Lines | |
Preanalytical Systems | Integrated systems for specimen collection; safety-engineered blood collection products and systems. | |
Diagnostic Systems | Automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; microbiology laboratory automation; and plated media. | |
Biosciences | Fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; molecular indexing and next-generation sequencing sample preparation for genomics research; clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers; and cell culture media supplements for biopharmaceutical manufacturing. |
(Millions of dollars) | 2017 | 2016 | 2015 | |||||||||
Revenues (A) | ||||||||||||
Medical | $ | 8,105 | $ | 8,654 | $ | 6,460 | ||||||
Life Sciences | 3,988 | 3,829 | 3,822 | |||||||||
Total Revenues | $ | 12,093 | $ | 12,483 | $ | 10,282 | ||||||
Income Before Income Taxes | ||||||||||||
Medical | $ | 2,155 | $ | 2,052 | $ | 1,530 | ||||||
Life Sciences | 772 | 793 | 839 | |||||||||
Total Segment Operating Income | 2,927 | 2,845 | 2,368 | |||||||||
Acquisitions and other restructurings | (354 | ) | (728 | ) | (426 | ) | ||||||
Net interest expense | (445 | ) | (367 | ) | (356 | ) | ||||||
Other unallocated items (B) | (1,152 | ) | (676 | ) | (847 | ) | ||||||
Income Before Income Taxes | $ | 976 | $ | 1,074 | $ | 739 | ||||||
Segment Assets | ||||||||||||
Medical | $ | 18,332 | $ | 19,154 | $ | 20,055 | ||||||
Life Sciences | 4,056 | 3,848 | 3,932 | |||||||||
Total Segment Assets | 22,388 | 23,002 | 23,987 | |||||||||
Corporate and All Other (C) | 15,347 | 2,584 | 2,491 | |||||||||
Total Assets | $ | 37,734 | $ | 25,586 | $ | 26,478 | ||||||
Capital Expenditures | ||||||||||||
Medical | $ | 502 | $ | 482 | $ | 414 | ||||||
Life Sciences | 212 | 200 | 168 | |||||||||
Corporate and All Other | 13 | 12 | 14 | |||||||||
Total Capital Expenditures | $ | 727 | $ | 693 | $ | 596 | ||||||
Depreciation and Amortization | ||||||||||||
Medical | $ | 825 | $ | 857 | $ | 619 | ||||||
Life Sciences | 254 | 254 | 256 | |||||||||
Corporate and All Other | 10 | 3 | 17 | |||||||||
Total Depreciation and Amortization | $ | 1,088 | $ | 1,114 | $ | 891 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Revenues | |||||||||||
United States | $ | 6,504 | $ | 6,893 | $ | 5,069 | |||||
Europe | 2,588 | 2,674 | 2,434 | ||||||||
Greater Asia | 1,744 | 1,692 | 1,545 | ||||||||
Other | 1,257 | 1,225 | 1,234 | ||||||||
$ | 12,093 | $ | 12,483 | $ | 10,282 | ||||||
Long-Lived Assets | |||||||||||
United States | $ | 13,151 | $ | 14,075 | $ | 15,513 | |||||
Europe | 4,421 | 3,747 | 3,908 | ||||||||
Greater Asia | 578 | 586 | 573 | ||||||||
Other | 584 | 483 | 494 | ||||||||
Corporate | 366 | 329 | 332 | ||||||||
$ | 19,101 | $ | 19,220 | $ | 20,819 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Cost of products sold | $ | 30 | $ | 29 | $ | 23 | |||||
Selling and administrative expense | 113 | 106 | 82 | ||||||||
Research and development expense | 24 | 22 | 17 | ||||||||
Acquisitions and other restructurings | 10 | 39 | 44 | ||||||||
$ | 177 | $ | 196 | $ | 166 | ||||||
Tax benefit associated with share-based compensation costs recognized | $ | 61 | $ | 69 | $ | 59 |
2017 | 2016 | 2015 | |||
Risk-free interest rate | 2.33% | 2.17% | 2.20% | ||
Expected volatility | 20.0% | 19.0% | 19.0% | ||
Expected dividend yield | 1.71% | 1.76% | 1.78% | ||
Expected life | 7.5 years | 7.6 years | 7.6 years | ||
Fair value derived | $33.81 | $27.69 | $24.82 |
SARs (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (Millions of dollars) | |||||||||
Balance at October 1 | 7,027 | $ | 103.83 | |||||||||
Granted | 996 | 170.69 | ||||||||||
Exercised | (1,445 | ) | 83.81 | |||||||||
Forfeited, canceled or expired | (112 | ) | 142.04 | |||||||||
Balance at September 30 | 6,466 | $ | 117.94 | 6.24 | $ | 504 | ||||||
Vested and expected to vest at September 30 | 6,215 | $ | 116.54 | 6.16 | $ | 493 | ||||||
Exercisable at September 30 | 3,952 | $ | 96.00 | 4.98 | $ | 395 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Total intrinsic value of SARs exercised | $ | 148 | $ | 148 | $ | 96 | |||||
Tax benefit realized from SAR exercises | $ | 53 | $ | 52 | $ | 34 | |||||
Total fair value of SARs vested | $ | 30 | $ | 24 | $ | 22 |
Stock Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (Millions of dollars) | |||||||||
Balance at October 1 | 495 | $ | 79.99 | |||||||||
Exercised | (186 | ) | 77.66 | |||||||||
Forfeited, canceled or expired | (6 | ) | 81.30 | |||||||||
Balance at September 30 | 303 | $ | 81.40 | 2.56 | $ | 35 | ||||||
Vested at September 30 | 303 | $ | 81.40 | 2.56 | $ | 35 | ||||||
Exercisable at September 30 | 303 | $ | 81.40 | 2.56 | $ | 35 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Cash received from stock option exercises | $ | 14 | $ | 50 | $ | 75 | |||||
Tax benefit realized from stock option exercises | $ | 8 | $ | 17 | $ | 20 | |||||
Total intrinsic value of stock options exercised | $ | 20 | $ | 51 | $ | 52 | |||||
Total fair value of stock options vested | $ | 2 | $ | 11 | $ | 59 |
Performance-Based | Time-Vested | |||||||||||||
Stock Units (in thousands) | Weighted Average Grant Date Fair Value | Stock Units (in thousands) | Weighted Average Grant Date Fair Value | |||||||||||
Balance at October 1 | 1,112 | $ | 148.27 | 2,584 | $ | 123.16 | ||||||||
Granted | 381 | 174.92 | 845 | 165.96 | ||||||||||
Distributed | (145 | ) | 134.19 | (799 | ) | 117.06 | ||||||||
Forfeited or canceled | (268 | ) | 139.93 | (494 | ) | 124.52 | ||||||||
Balance at September 30 | 1,080 | (A) | $ | 161.64 | 2,136 | $ | 142.06 | |||||||
Expected to vest at September 30 | 428 | (B) | $ | 159.22 | 2,052 | $ | 141.36 |
(A) | Based on 200% of target payout. |
(B) | Net of expected forfeited units and units in excess of the expected performance payout of 79 thousand and 573 thousand shares, respectively. |
Performance-Based | Time-Vested | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Weighted average grant date fair value of units granted | $ | 174.92 | $ | 153.73 | $ | 156.65 | $ | 165.96 | $ | 145.57 | $ | 136.30 |
Performance-Based | Time-Vested | ||||||||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Total fair value of units vested | $ | 32 | $ | 22 | $ | 16 | $ | 139 | $ | 114 | $ | 181 |
Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 110 | $ | 81 | $ | 77 | $ | 3 | $ | 3 | $ | 3 | |||||||||||
Interest cost | 61 | 72 | 87 | 4 | 5 | 7 | |||||||||||||||||
Expected return on plan assets | (112 | ) | (109 | ) | (123 | ) | — | — | — | ||||||||||||||
Amortization of prior service credit | (14 | ) | (15 | ) | (15 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||||
Amortization of loss | 92 | 77 | 68 | 2 | 2 | 3 | |||||||||||||||||
Settlements | — | 7 | — | — | — | — | |||||||||||||||||
Net pension and postretirement cost | $ | 138 | $ | 113 | $ | 93 | $ | 4 | $ | 5 | $ | 9 | |||||||||||
Net pension cost attributable to international plans | $ | 43 | $ | 35 | $ | 32 |
Pension Plans | Other Postretirement Benefits | ||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Beginning obligation | $ | 2,719 | $ | 2,426 | $ | 184 | $ | 186 | |||||||
Service cost | 110 | 81 | 3 | 3 | |||||||||||
Interest cost | 61 | 72 | 4 | 5 | |||||||||||
Plan amendments | (1 | ) | — | — | (1 | ) | |||||||||
Benefits paid | (123 | ) | (116 | ) | (16 | ) | (17 | ) | |||||||
Impact of divestitures | (19 | ) | — | — | — | ||||||||||
Actuarial (gain) loss | (134 | ) | 302 | (15 | ) | 3 | |||||||||
Settlements | (1 | ) | (15 | ) | — | — | |||||||||
Other, includes translation | 36 | (30 | ) | 4 | 4 | ||||||||||
Benefit obligation at September 30 | $ | 2,647 | $ | 2,719 | $ | 165 | $ | 184 | |||||||
Change in fair value of plan assets: | |||||||||||||||
Beginning fair value | $ | 1,855 | $ | 1,732 | $ | — | $ | — | |||||||
Actual return on plan assets | 134 | 131 | — | — | |||||||||||
Employer contribution | 54 | 145 | — | — | |||||||||||
Benefits paid | (123 | ) | (116 | ) | — | — | |||||||||
Impact of divestitures | (13 | ) | — | — | — | ||||||||||
Settlements | (1 | ) | (15 | ) | — | — | |||||||||
Other, includes translation | 26 | (21 | ) | — | — | ||||||||||
Plan assets at September 30 | $ | 1,932 | $ | 1,855 | $ | — | $ | — | |||||||
Funded Status at September 30: | |||||||||||||||
Unfunded benefit obligation | $ | (715 | ) | $ | (864 | ) | $ | (165 | ) | $ | (184 | ) | |||
Amounts recognized in the Consolidated Balance Sheets at September 30: | |||||||||||||||
Other | $ | 9 | $ | 5 | $ | — | $ | — | |||||||
Salaries, wages and related items | (17 | ) | (12 | ) | (14 | ) | (15 | ) | |||||||
Long-term Employee Benefit Obligations | (707 | ) | (857 | ) | (150 | ) | (169 | ) | |||||||
Net amount recognized | $ | (715 | ) | $ | (864 | ) | $ | (165 | ) | $ | (184 | ) | |||
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30: | |||||||||||||||
Prior service credit | 74 | 87 | 28 | 33 | |||||||||||
Net actuarial loss | (1,065 | ) | (1,307 | ) | (15 | ) | (32 | ) | |||||||
Net amount recognized | $ | (991 | ) | $ | (1,221 | ) | $ | 14 | $ | 1 |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||||||||||||||
(Millions of dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Projected benefit obligation | $ | 2,551 | $ | 2,616 | $ | 2,613 | $ | 2,682 | |||||||
Accumulated benefit obligation | $ | 2,470 | $ | 2,529 | |||||||||||
Fair value of plan assets | $ | 1,833 | $ | 1,757 | $ | 1,889 | $ | 1,813 |
2017 | 2016 | 2015 | |||||||
Net Cost | |||||||||
Discount rate: | |||||||||
U.S. plans (A) | 3.42 | % | 4.15 | % | 4.15 | % | |||
International plans | 1.70 | 2.84 | 3.14 | ||||||
Expected return on plan assets: | |||||||||
U.S. plans | 7.25 | 7.50 | 7.50 | ||||||
International plans | 4.65 | 5.02 | 5.45 | ||||||
Rate of compensation increase: | |||||||||
U.S. plans | 4.25 | 4.25 | 4.25 | ||||||
International plans | 2.33 | 2.33 | 2.49 | ||||||
Benefit Obligation | |||||||||
Discount rate: | |||||||||
U.S. plans | 3.72 | 3.42 | 4.15 | ||||||
International plans | 2.25 | 1.70 | 2.84 | ||||||
Rate of compensation increase: | |||||||||
U.S. plans | 4.51 | 4.25 | 4.25 | ||||||
International plans | 2.30 | 2.33 | 2.33 |
(A) | In 2015 the Company calculated the service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Effective September 30, 2015, the Company elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The Company accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and as such, the change was accounted for prospectively. |
(Millions of dollars) | Pension Plans | Other Postretirement Benefits | |||||
2018 | $ | 173 | $ | 14 | |||
2019 | 158 | 14 | |||||
2020 | 159 | 14 | |||||
2021 | 163 | 13 | |||||
2022 | 165 | 13 | |||||
2023-2027 | 859 | 56 |
(Millions of dollars) | Total U.S. Plan Asset Balances | Investments Measured at Net Asset Value (A) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities | $ | 155 | $ | 169 | $ | — | $ | — | $ | — | $ | — | $ | 155 | $ | 169 | $ | — | $ | — | |||||||||||||||||||
Corporate bonds | 232 | 197 | — | — | 89 | 68 | 144 | 129 | — | — | |||||||||||||||||||||||||||||
Government and agency-U.S. | 107 | 103 | — | — | 83 | 67 | 25 | 36 | — | — | |||||||||||||||||||||||||||||
Government and agency-Foreign | 98 | 90 | 12 | 32 | 63 | 52 | 22 | 6 | — | — | |||||||||||||||||||||||||||||
Equity securities | 369 | 348 | 307 | 287 | 62 | 61 | — | — | — | — | |||||||||||||||||||||||||||||
Cash and cash equivalents | 40 | 89 | — | — | 40 | 89 | — | — | — | — | |||||||||||||||||||||||||||||
Other | 252 | 234 | 217 | 201 | 34 | 33 | — | — | — | — | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,254 | $ | 1,231 | $ | 537 | $ | 520 | $ | 371 | $ | 371 | $ | 346 | $ | 340 | $ | — | $ | — |
(A) | As per applicable disclosure requirements, certain investments that were measured at net asset value per share or its equivalent have not been categorized within the fair value hierarchy. Values of such assets are based on the corroborated net asset value provided by the fund administrator. |
(Millions of dollars) | Total International Plan Asset Balances | Investments Measured at Net Asset Value (A) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 14 | $ | 34 | $ | — | $ | — | $ | — | $ | — | $ | 13 | $ | 34 | $ | — | $ | — | |||||||||||||||||||
Government and agency-U.S. | 5 | 5 | — | — | 1 | 2 | 3 | 3 | — | — | |||||||||||||||||||||||||||||
Government and agency-Foreign | 127 | 119 | — | — | 83 | 73 | 45 | 46 | — | — | |||||||||||||||||||||||||||||
Other fixed income | 64 | 51 | — | — | 57 | 46 | 7 | 5 | — | — | |||||||||||||||||||||||||||||
Equity securities | 256 | 228 | 13 | 14 | 242 | 214 | — | — | — | — | |||||||||||||||||||||||||||||
Cash and cash equivalents | 28 | 13 | — | — | 28 | 13 | — | — | — | — | |||||||||||||||||||||||||||||
Real estate | 26 | 17 | — | — | — | — | 26 | 17 | — | — | |||||||||||||||||||||||||||||
Insurance contracts | 98 | 102 | — | — | — | — | — | — | 98 | 102 | |||||||||||||||||||||||||||||
Other | 62 | 57 | — | — | 47 | 43 | 15 | 14 | — | — | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 678 | $ | 624 | $ | 13 | $ | 14 | $ | 459 | $ | 391 | $ | 108 | $ | 119 | $ | 98 | $ | 102 |
(A) | As per applicable disclosure requirements, certain investments that were measured at net asset value per share or its equivalent have not been categorized within the fair value hierarchy. Values of such assets are based on the corroborated net asset value provided by the fund administrator. |
(Millions of dollars) | Insurance Contracts | ||
Balance at September 30, 2015 | $ | 90 | |
Actual return on plan assets: | |||
Relating to assets held at September 30, 2015 | 8 | ||
Purchases, sales and settlements, net | 2 | ||
Exchange rate changes | 1 | ||
Balance at September 30, 2016 | $ | 102 | |
Actual return on plan assets: | |||
Relating to assets held at September 30, 2016 | 1 | ||
Purchases, sales and settlements, net | (11 | ) | |
Transfers in from other categories | 1 | ||
Exchange rate changes | 4 | ||
Balance at September 30, 2017 | $ | 98 |
(Millions of dollars) | |||
Cash consideration | $ | 10,085 | |
Noncash consideration-fair value of shares issued | 2,269 | ||
Noncash consideration-fair value of stock options and other equity awards | 184 | ||
Total consideration transferred | $ | 12,538 |
(Millions of dollars, except per share data) | |||||||
2016 | 2015 | ||||||
Revenues | $ | 12,497 | $ | 12,368 | |||
Net Income | $ | 1,453 | $ | 1,276 | |||
Diluted Earnings per Share | $ | 6.68 | $ | 5.92 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Integration costs | $ | 237 | $ | 192 | $ | 95 | |||||
Restructuring costs | 85 | 526 | 271 | ||||||||
Transaction costs | 39 | 10 | 59 |
(Millions of dollars) | Employee Termination (A) | Other (B) | Total | |||||||||
Balance at September 30, 2014 | $ | — | $ | — | $ | — | ||||||
Assumed liability | 19 | — | 19 | |||||||||
Charged to expense | 126 | 146 | 271 | |||||||||
Cash payments | (74 | ) | (20 | ) | (94 | ) | ||||||
Non-cash settlements | — | (44 | ) | (44 | ) | |||||||
Other adjustments | (9 | ) | (81 | ) | (91 | ) | ||||||
Balance at September 30, 2015 | $ | 62 | $ | — | $ | 62 | ||||||
Charged to expense | 81 | 445 | 526 | |||||||||
Cash payments | (76 | ) | (72 | ) | (148 | ) | ||||||
Non-cash settlements | — | (39 | ) | (39 | ) | |||||||
Other adjustments | — | (332 | ) | (332 | ) | |||||||
Balance at September 30, 2016 | $ | 67 | $ | 2 | $ | 69 | ||||||
Charged to expense | 27 | 58 | 85 | |||||||||
Cash payments | (45 | ) | (12 | ) | (57 | ) | ||||||
Non-cash settlements | — | (9 | ) | (9 | ) | |||||||
Other adjustments | — | (33 | ) | (33 | ) | |||||||
Balance at September 30, 2017 | $ | 49 | $ | 6 | $ | 55 |
(A) | Expenses in fiscal year 2016 included $40 million relating to the CareFusion acquisition as well as $13 million for employee termination costs resulting from the Company's transition of certain elements of its information technology function to an outsourced model as further disclosed below. Expenses in fiscal year 2015 were primarily related to the CareFusion acquisition. |
(B) | In the fourth quarter of fiscal year 2015, the Company initiated a plan to transition certain elements of its global information technology function from Company-owned assets to an outsourced, cloud-based model. Restructuring expenses recorded in 2015 included non-cash asset impairment charges relating to assets held for sale as a result of this plan. In the fourth quarter of fiscal year 2016, the Company expanded the scope of this plan to include the transition of certain business information systems assets to a third-party and as a result, the Company recorded a $214 million non-cash charge to recognize the impairment of capitalized internal-use software assets held for sale. Expenses in 2016 also included non-cash impairment charges of $81 million, after-tax, relating to the Company's disposition of certain non-core businesses, including the Company's sale of a majority interest in its Respiratory Solutions business during the first quarter of fiscal year 2017, which is further discussed in Note 10. |
2017 | 2016 | ||||||||||||||
(Millions of dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Amortized intangible assets | |||||||||||||||
Customer relationships | $ | 3,393 | $ | 564 | $ | 3,360 | $ | 339 | |||||||
Developed technology | 3,508 | 1,029 | 3,409 | 754 | |||||||||||
Product rights | 131 | 54 | 125 | 43 | |||||||||||
Trademarks | 408 | 65 | 405 | 45 | |||||||||||
Patents and other | 370 | 274 | 349 | 254 | |||||||||||
Amortized intangible assets | $ | 7,811 | $ | 1,986 | $ | 7,648 | $ | 1,435 | |||||||
Unamortized intangible assets | |||||||||||||||
Acquired in-process research and development | $ | 67 | $ | 66 | |||||||||||
Trademarks | 2 | 2 | |||||||||||||
Unamortized intangible assets | $ | 69 | $ | 68 |
(Millions of dollars) | Medical | Life Sciences | Total | ||||||||
Goodwill as of September 30, 2015 | $ | 6,807 | $ | 730 | $ | 7,537 | |||||
Divestiture (A) | (32 | ) | — | (32 | ) | ||||||
Purchase accounting adjustments (B) | (79 | ) | 1 | (78 | ) | ||||||
Currency translation | (8 | ) | — | (8 | ) | ||||||
Goodwill as of September 30, 2016 | $ | 6,688 | $ | 731 | $ | 7,419 | |||||
Acquisitions (C) | 119 | 24 | 143 | ||||||||
Divestiture (A) | (25 | ) | — | (25 | ) | ||||||
Purchase accounting adjustments | 4 | — | 4 | ||||||||
Currency translation | 16 | 6 | 22 | ||||||||
Goodwill as of September 30, 2017 | $ | 6,802 | $ | 761 | $ | 7,563 |
(A) | Represents goodwill derecognized upon the Company's sale of a 50.1% controlling financial interest in the Respiratory Solutions business, as further discussed in Note 10. |
(B) | Primarily represents $94 million resulting from adjustments to the deferred tax liability accounts recorded upon the Company's acquisition of CareFusion. |
(C) | Represents goodwill recognized upon the Company's acquisitions during the current year. Such acquisitions were not material individually or in the aggregate. |
(Millions of dollars) | September 30, 2017 | September 30, 2016 | |||||
Asset derivatives-designated for hedge accounting | |||||||
Interest rate swaps | $ | 7 | $ | 23 | |||
Asset derivatives-undesignated for hedge accounting | |||||||
Forward exchange contracts | 8 | 3 | |||||
Total asset derivatives (A) | $ | 15 | $ | 25 | |||
Liability derivatives-designated for hedge accounting | |||||||
Interest rate swaps | — | 18 | |||||
Liability derivatives-undesignated for hedge accounting | |||||||
Forward exchange contracts | 7 | 13 | |||||
Total liability derivatives (B) | $ | 7 | $ | 31 |
(A) | All asset derivatives are included in Prepaid expenses and other. |
(B) | All liability derivatives are included in Accrued expenses. |
Basis of Fair Value Measurement | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Institutional money market investments | $ | 2,026 | $ | 224 | $ | 2,026 | $ | 224 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Interest rate swaps | 7 | 23 | — | — | 7 | 23 | — | — | ||||||||||||||||||||||||
Forward exchange contracts | 8 | 3 | — | — | 8 | 3 | — | — | ||||||||||||||||||||||||
Total Assets | $ | 2,042 | $ | 249 | $ | 2,026 | $ | 224 | $ | 15 | $ | 25 | $ | — | $ | — | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 18 | $ | — | $ | — | $ | — | $ | 18 | $ | — | $ | — | ||||||||||||||||
Forward exchange contracts | 7 | 13 | — | — | 7 | 13 | — | — | ||||||||||||||||||||||||
Contingent consideration liabilities | 13 | 54 | — | — | — | — | 13 | 54 | ||||||||||||||||||||||||
Total Liabilities | $ | 20 | $ | 86 | $ | — | $ | — | $ | 7 | $ | 31 | $ | 13 | $ | 54 |
(Millions of dollars) | 2017 | 2016 | |||||||
Commercial paper borrowings | $ | — | $ | 200 | |||||
Current portion of long-term debt | |||||||||
4.900% Notes due April 15, 2018 | 200 | — | |||||||
1.450% Notes due May 15, 2017 | (A) | — | 300 | ||||||
1.750% Notes due November 8, 2016 | — | 500 | |||||||
Other | 3 | 1 | |||||||
Total short-term debt | $ | 203 | $ | 1,001 |
(A) | All or a portion of the aggregate principal amount outstanding was repurchased during the first quarter of 2017, as further discussed below. |
(Millions of dollars) | 2017 | 2016 | |||||||
1.800% Notes due December 15, 2017 | (A) (C) | — | 1,248 | ||||||
4.900% Notes due April 15, 2018 | — | 201 | |||||||
5.000% Notes due May 15, 2019 | (A) (C) | — | 498 | ||||||
2.133% Notes due June 6, 2019 | (B) | 723 | — | ||||||
0.368% Notes due June 6, 2019 | (B) | 823 | — | ||||||
6.375% Notes due August 1, 2019 | (A) (C) | — | 776 | ||||||
2.675% Notes due December 15, 2019 | (A) | 1,121 | 1,245 | ||||||
2.404% Notes due June 5, 2020 | (B) | 996 | — | ||||||
3.250% Notes due November 12, 2020 | 698 | 698 | |||||||
3.125% Notes due November 8, 2021 | 1,003 | 1,018 | |||||||
2.894% Notes due June 6, 2022 | (B) | 1,791 | — | ||||||
Floating Rate Notes due June 6, 2022 | (B) | 497 | — | ||||||
1.000% Notes due December 15, 2022 | (D) | 586 | — | ||||||
3.300% Notes due March 1, 2023 | (C) | 296 | 304 | ||||||
3.875% Notes due May 15, 2024 | (A) (C) | 182 | 417 | ||||||
3.363% Notes due June 6, 2024 | (B) | 1,736 | — | ||||||
3.734% Notes due December 15, 2024 | (A) | 1,367 | 1,740 | ||||||
1.900% Notes due December 15, 2026 | (D) | 585 | — | ||||||
3.700% Notes due June 6, 2027 | (B) | 2,381 | — | ||||||
7.000% Debentures due August 1, 2027 | 166 | 168 | |||||||
6.700% Debentures due August 1, 2028 | 164 | 167 | |||||||
6.000% Notes due May 15, 2039 | 246 | 246 | |||||||
5.000% Notes due November 12, 2040 | 296 | 297 | |||||||
4.875% Notes due May 15, 2044 | (C) | 331 | 333 | ||||||
4.685% Notes due December 15, 2044 | 1,189 | 1,190 | |||||||
4.669% Notes due June 6, 2047 | (B) | 1,484 | — | ||||||
Other long-term debt | 3 | 4 | |||||||
Total Long-Term Debt | $ | 18,667 | $ | 10,550 |
(A) | All or a portion of the aggregate principal amount outstanding was repurchased during the first quarter of 2017, as further discussed below. |
(B) | Notes issued during the third quarter of fiscal year 2017, as further discussed below. |
(C) | All or a portion of the aggregate principal amount outstanding was redeemed during the third quarter of 2017, as further discussed below. |
(D) | Notes issued during the first quarter of fiscal year 2017, as further discussed below. |
• | The Company entered into a three-year senior unsecured term loan facility of $2.25 billion. The proceeds from this facility may only be used to fund a portion of the cash consideration for the Bard acquisition, as well as the fees and expenses incurred in connection with this acquisition, which is expected to close in the fourth calendar quarter of 2017. |
• | The Company also entered into a five-year senior unsecured revolving credit facility that will provide borrowing of up to $2.25 billion when the facility becomes effective upon the closing of the Bard acquisition. The facility, which will expire in May 2022, will replace the syndicated credit facility the Company currently has in place, as discussed above. The Company intends to use the new revolving facility to fund general corporate needs and to redeem, repurchase or defease certain of Bard's outstanding senior unsecured notes that will be assumed upon the closing of the acquisition. |
• | The Company issued senior unsecured U.S. notes with an aggregate principal amount of $9.675 billion. If the Company's acquisition of Bard does not close by April 23, 2018, or if the agreement to acquire Bard is terminated prior to this date, the Company will be required to redeem all of the senior unsecured U.S. notes issued as detailed above, except for the notes which are due in 2019. The notes would be redeemed at a special mandatory redemption price equal to 101% of their aggregate principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. |
• | The Company issued Euro-denominated debt consisting of 700 million euros of 0.368% Notes due June 6, 2019. |
• | The Company redeemed all or a portion of the aggregate principal amounts of certain of its long-term senior notes outstanding, totaling $1.717 billion, at an aggregate market price of $1.776 billion. The carrying value of these long-term notes was $1.745 billion and the Company recognized a loss on this debt extinguishment of $31 million, which was recorded in June 2017 as Other income (expense), net, on the Company’s consolidated statements of income. |
• | Upon securing the permanent financing arrangements discussed above, an agreement for $15.7 billion of fully committed bridge financing that was entered into concurrently with the execution of the agreement to acquire Bard was terminated. |
(Millions of dollars) | Aggregate Principal Amount | Principal Amount Accepted for Exchange | |||||
4.400% Notes due January 15, 2021 | $ | 500 | $ | 428 | |||
3.000% Notes due May 15, 2026 | 500 | 470 | |||||
6.700% Notes due December 1, 2026 | 150 | 137 | |||||
Total | $ | 1,150 | $ | 1,035 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Charged to operations | $ | 521 | $ | 388 | $ | 371 | |||||
Capitalized | 32 | 30 | 30 | ||||||||
Total interest costs | $ | 553 | $ | 418 | $ | 401 | |||||
Interest paid, net of amounts capitalized | $ | 435 | $ | 392 | $ | 313 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | (230 | ) | $ | 312 | $ | 50 | ||||
State and local, including Puerto Rico | (20 | ) | 17 | 15 | |||||||
Foreign | 200 | 286 | 252 | ||||||||
$ | (50 | ) | $ | 616 | $ | 318 | |||||
Deferred: | |||||||||||
Domestic | $ | (64 | ) | $ | (441 | ) | $ | (238 | ) | ||
Foreign | (10 | ) | (78 | ) | (37 | ) | |||||
(74 | ) | (519 | ) | (274 | ) | ||||||
Income tax provision | $ | (124 | ) | $ | 97 | $ | 44 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Domestic, including Puerto Rico | $ | (386 | ) | $ | (232 | ) | $ | (408 | ) | ||
Foreign | 1,362 | 1,306 | 1,147 | ||||||||
Income Before Income Taxes | $ | 976 | $ | 1,074 | $ | 739 |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Balance at October 1 | $ | 469 | $ | 593 | $ | 206 | |||||
Increase due to acquisitions | — | — | 326 | ||||||||
Increase due to current year tax positions | 41 | 81 | 62 | ||||||||
Increase due to prior year tax positions | 19 | 10 | 14 | ||||||||
Decreases due to prior year tax positions | (30 | ) | (3 | ) | (2 | ) | |||||
Decrease due to settlements with tax authorities | (145 | ) | (147 | ) | (10 | ) | |||||
Decrease due to lapse of statute of limitations | (5 | ) | (65 | ) | (3 | ) | |||||
Balance at September 30 | $ | 349 | $ | 469 | $ | 593 |
2017 | 2016 | ||||||||||||||
(Millions of dollars) | Assets | Liabilities | Assets | Liabilities | |||||||||||
Compensation and benefits | $ | 618 | $ | — | $ | 720 | $ | — | |||||||
Property and equipment | — | 244 | — | 164 | |||||||||||
Intangibles | — | 1,584 | — | 1,571 | |||||||||||
Loss and credit carryforwards | 1,098 | — | 1,101 | — | |||||||||||
Other | 531 | 164 | 783 | 664 | |||||||||||
2,247 | 1,992 | 2,604 | 2,399 | ||||||||||||
Valuation allowance | (1,032 | ) | — | (997 | ) | — | |||||||||
Net (A) | $ | 1,216 | $ | 1,992 | $ | 1,606 | $ | 2,399 |
2017 | 2016 | 2015 | ||||||
Federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal tax benefit | (2.6 | ) | 1.5 | (3.6 | ) | |||
Effect of foreign and Puerto Rico earnings and foreign tax credits | (40.8 | ) | (23.7 | ) | (24.5 | ) | ||
Effect of Research Credits and Domestic Production Activities | (2.7 | ) | (4.4 | ) | (1.6 | ) | ||
Effect of change in accounting for excess tax benefit relating to share-based compensation (see Note 2) | (7.9 | ) | — | — | ||||
Other, net | 6.3 | 0.7 | 0.6 | |||||
Effective income tax rate | (12.7 | )% | 9.1 | % | 5.9 | % |
(Millions of dollars) | 2017 | 2016 | 2015 | ||||||||
Losses on debt extinguishment | $ | (73 | ) | $ | — | $ | — | ||||
Share of Vyaire Medical venture results, net of income from transition services agreements | (3 | ) | — | — | |||||||
Other equity investment income | 3 | 8 | 9 | ||||||||
Losses on undesignated foreign exchange derivatives, net | (11 | ) | (3 | ) | — | ||||||
Gains on previously held investments | 24 | — | 9 | ||||||||
Other | 3 | 7 | 3 | ||||||||
Other (expense) income, net | $ | (57 | ) | $ | 11 | $ | 21 |
(Millions of dollars) | Allowance for Doubtful Accounts | Allowance for Cash Discounts | Total | ||||||||
Balance at September 30, 2014 | $ | 30 | $ | 12 | $ | 42 | |||||
Additions charged to costs and expenses | 33 | 47 | 80 | ||||||||
Deductions and other | (11 | ) | (A) | (50 | ) | (61 | ) | ||||
Balance at September 30, 2015 | $ | 53 | $ | 9 | $ | 62 | |||||
Additions charged to costs and expenses | 23 | 37 | 60 | ||||||||
Deductions and other | (14 | ) | (A) | (40 | ) | (55 | ) | ||||
Balance at September 30, 2016 | $ | 61 | $ | 6 | $ | 67 | |||||
Additions charged to costs and expenses | 25 | 43 | 68 | ||||||||
Deductions and other | (32 | ) | (A) | (45 | ) | (76 | ) | ||||
Balance at September 30, 2017 | $ | 54 | $ | 4 | $ | 58 |
(A) | Accounts written off. |
(Millions of dollars) | 2017 | 2016 | |||||
Materials | $ | 313 | $ | 316 | |||
Work in process | 271 | 274 | |||||
Finished products | 1,234 | 1,129 | |||||
$ | 1,818 | $ | 1,719 |
(Millions of dollars) | 2017 | 2016 | |||||
Land | $ | 146 | $ | 151 | |||
Buildings | 2,496 | 2,397 | |||||
Machinery, equipment and fixtures | 6,584 | 5,749 | |||||
Leasehold improvements | 163 | 121 | |||||
9,389 | 8,419 | ||||||
Less accumulated depreciation and amortization | 4,752 | 4,518 | |||||
$ | 4,638 | $ | 3,901 |
Millions of dollars, except per share amounts | 2017 | |||||||||||||||||||
1st | 2nd | 3rd | 4th | Year | ||||||||||||||||
Revenues | $ | 2,922 | $ | 2,969 | $ | 3,035 | $ | 3,166 | $ | 12,093 | ||||||||||
Gross Profit | 1,452 | 1,432 | 1,504 | 1,554 | 5,942 | |||||||||||||||
Net Income (Loss) | 562 | 344 | (132 | ) | 327 | 1,100 | ||||||||||||||
Earnings per Share: | ||||||||||||||||||||
Basic | 2.64 | 1.61 | (0.75 | ) | 1.27 | 4.70 | ||||||||||||||
Diluted | 2.58 | 1.58 | (0.75 | ) | 1.24 | 4.60 |
2016 | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Year | ||||||||||||||||
Revenues | $ | 2,986 | $ | 3,067 | $ | 3,198 | $ | 3,231 | $ | 12,483 | ||||||||||
Gross Profit | 1,408 | 1,484 | 1,547 | 1,552 | 5,991 | |||||||||||||||
Net Income | 229 | 338 | 390 | 19 | 976 | |||||||||||||||
Earnings per Share: | ||||||||||||||||||||
Basic | 1.08 | 1.59 | 1.83 | 0.09 | 4.59 | |||||||||||||||
Diluted | 1.06 | 1.56 | 1.80 | 0.09 | 4.49 |
(a)(1) | Financial Statements |
• | Reports of Independent Registered Public Accounting Firm |
• | Consolidated Statements of Income — Years ended September 30, 2017, 2016 and 2015 |
• | Consolidated Statements of Comprehensive Income — Years ended September 30, 2017, 2016 and 2015 |
• | Consolidated Balance Sheets — September 30, 2017 and 2016 |
• | Consolidated Statements of Cash Flows — Years ended September 30, 2017, 2016 and 2015 |
• | Notes to Consolidated Financial Statements |
(2) | Financial Statement Schedules |
(3) | Exhibits |
By: | /s/ GARY DEFAZIO | ||
Gary DeFazio | |||
Senior Vice President and Corporate Secretary |
Name | Capacity | |
/S/ VINCENT A. FORLENZA | Chairman and Chief Executive Officer | |
Vincent A. Forlenza | (Principal Executive Officer) | |
/S/ CHRISTOPHER R. REIDY | Executive Vice President, Chief Financial Officer | |
Christopher R. Reidy | and Chief Administrative Officer | |
(Principal Financial Officer) | ||
/S/ JOHN GALLAGHER | Senior Vice President, Corporate Finance, | |
John Gallagher | Controller and Treasurer | |
(Principal Accounting Officer) | ||
Basil L. Anderson* | Director | |
Catherine M. Burzik* | Director | |
R. Andrew Eckert* | Director | |
Claire M. Fraser* | Director | |
Christopher Jones* | Director | |
Marshall O. Larsen* | Director | |
Gary A. Mecklenburg* | Director |
Name | Capacity | |
James F. Orr* | Director | |
Willard J. Overlock, Jr.* | Director | |
Claire Pomeroy* | Director | |
Rebecca W. Rimel* | Director | |
Bertram L. Scott* | Director | |
*By: | /s/ GARY DEFAZIO | |
Gary DeFazio | ||
Attorney-in-fact |
Exhibit Number | Description | Method of Filing | ||
Agreement and Plan of Merger, dated as of April 23, 2017, among C.R. Bard, Inc., Becton, Dickinson and Company and Lambda Corp. | Incorporated by reference to Exhibit 2.1 to the registrant’s Current Report on Form 8-K dated April 24, 2017. | |||
Amendment No. 1, dated July 28, 2017, to the Agreement and Plan of Merger, dated as of April 23, 2017, among C.R. Bard, Inc., Becton, Dickinson and Company and Lambda Corp. | Incorporated by reference to Exhibit 2.1 to the registrant’s Current Report on Form 8-K dated July 28, 2017. | |||
Restated Certificate of Incorporation, dated as of January 29, 2013. | Incorporated by reference to Exhibit 3(a) to the registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2013. | |||
Certificate of Amendment of the Restated Certificate of Incorporation, filed with the State of New Jersey Department of Treasury and effective May 15, 2017. | Incorporated by reference to Exhibit 4.1 to the registrant’s registration statement on Form 8-A filed on May 16, 2017. | |||
By-Laws, as amended and restated as of April 23, 2017. | Incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K dated April 24, 2017. | |||
Indenture, dated as of March 1, 1997, between the registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank) | Incorporated by reference to Exhibit 4(a) to Form 8-K filed by the registrant on July 31, 1997 | |||
Form of 7% Debentures due August 1, 2027. | Incorporated by reference to Exhibit 4(d) of the registrant’s Current Report on Form 8-K filed on July 31, 1997. | |||
Form of 6.70% Debentures due August 1, 2028. | Incorporated by reference to Exhibit 4(d) of the registrant’s Current Report on Form 8-K filed on July 29, 1999. | |||
Form of 4.90% Notes due April 15, 2018. | Incorporated by reference to Exhibit 4(i) of the registrant's Annual Report on form 10-K for the fiscal year ended September 30, 2016. | |||
Form of 2.133% Notes due June 6, 2019. | Incorporated by reference to Exhibit 4.1 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of 2.675% Notes due December 15, 2019. | Incorporated by reference to Exhibit 4.3 of the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||
Form of 2.404% Notes due June 5, 2020. | Incorporated by reference to Exhibit 4.2 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of 3.25% Notes due November 12, 2020. | Incorporated by reference to Exhibit 4.1 of the registrant’s Current Report on Form 8-K filed on November 12, 2010. | |||
Form of 3.125% Notes due November 8, 2021. | Incorporated by reference to Exhibit 4.2 of the registrant’s Current Report on Form 8-K filed on November 8, 2011. | |||
Form of 2.894% Notes due June 6, 2022. | Incorporated by reference to Exhibit 4.3 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. |
Exhibit Number | Description | Method of Filing | ||
Form of 3.363% Notes due June 6, 2024. | Incorporated by reference to Exhibit 4.5 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of 3.734% Notes due December 15, 2024. | Incorporated by reference to Exhibit 4.4 of the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||
Form of 3.700% Notes due June 6, 2027. | Incorporated by reference to Exhibit 4.6 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of 6.00% Notes due May 15, 2039. | Incorporated by reference to Exhibit 4.2 of the registrant’s Current Report on Form 8-K filed on May 13, 2009. | |||
Form of 5.00% Notes due November 12, 2040. | Incorporated by reference to Exhibit 4.2 of the registrant’s Current Report on Form 8-K filed on November 12, 2010. | |||
Form of 4.685% Notes due December 15, 2044. | Incorporated by reference to Exhibit 4.5 of the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||
Form of 4.669% Notes due June 6, 2047. | Incorporated by reference to Exhibit 4.7 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of Floating Rate Notes due June 6, 2022. | Incorporated by reference to Exhibit 4.4 of the registrant’s Current Report on Form 8-K filed on June 5, 2017. | |||
Form of 3.300% Senior Notes due March 1, 2023. | Incorporated by reference to Exhibit 4.4 of the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||
Form of 3.875% Senior Notes due May 15, 2024. | Incorporated by reference to Exhibit 4.5 of the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||
Form of 4.875% Senior Notes due May 15, 2044. | Incorporated by reference to Exhibit 4.6 of the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||
Form of Certificate for the 6.125% Mandatory Convertible Preferred Stock, Series A. | Incorporated by reference to Exhibit 4.2 to the registrant’s registration statement on Form 8-A filed on May 16, 2017. | |||
Deposit Agreement, dated as of May 16, 2017, among Becton, Dickinson and Company and Computershare Inc. and Computershare Trust Company, N.A., acting jointly as depositary and Computershare Trust company, N.A., acting as Registrar and Transfer Agent, on behalf of the holders from time to time of the depositary receipts described therein. | Incorporated by reference to Exhibit 4.3 to the registrant’s registration statement on Form 8-A filed on May 16, 2017. | |||
Form of Depositary Receipt for the Depositary Shares. | Incorporated by reference to Exhibit 4.4 to the registrant’s registration statement on Form 8-A filed on May 16, 2017. | |||
Form of Employment Agreement with executive officers relating to employment following a change of control of the registrant (with tax reimbursement provisions).* | Incorporated by reference to Exhibit 10(a) to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2008. |
Exhibit Number | Description | Method of Filing | ||
Form of Employment Agreement with executive officers relating to employment following a change of control of the registrant (without tax reimbursement provisions).* | Incorporated by reference to Exhibit 10(a)(ii) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. | |||
Stock Award Plan, as amended and restated as of January 31, 2006.* | Incorporated by reference to Exhibit 10(a) to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2005. | |||
Performance Incentive Plan, as amended and restated January 24, 2017.* | Incorporated by reference to Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2017. | |||
Deferred Compensation and Retirement Benefit Restoration Plan, as amended and restated as of September 27, 2016.* | Incorporated by reference to Exhibit 10(d) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. | |||
1996 Directors’ Deferral Plan, as amended and restated as of November 25, 2014.* | Incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K dated December 2, 2014. | |||
Amended and Restated Aircraft Time Sharing Agreement between Becton, Dickinson and Company and Vincent A. Forlenza dated as of March 21, 2012.* | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K dated March 27, 2012. | |||
2004 Employee and Director Equity-Based Compensation Plan, as amended and restated as of January 26, 2016.* | Incorporated by reference to Exhibit 10 to the registrant’s Current Report on Form 8-K dated January 29, 2016. | |||
Terms of Awards under 2004 Employee and Director Equity-Based Compensation Plan and Stock Award Plan.* | Incorporated by reference to Exhibit 10(g)(ii) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. | |||
Five-Year Credit Agreement, dated January 29, 2016 among the registrant and the banks named therein (term has been extended to January 24, 2022). | Incorporated by reference to Exhibit 10 to the registrant’s Current Report on Form 8-K dated February 4, 2016. | |||
364-Day Term Loan Agreement, dated December 19, 2014, by and among Becton, Dickinson and Company, as borrower, Goldman Sachs Bank USA, as administrative agent, and the lenders party thereto. | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed December 14, 2014. | |||
Form of Commercial Paper Dealer Agreement. | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on January 6, 2015. | |||
Tax Matters Agreement, dated August 31, 2009, by and between Cardinal Health, Inc. and CareFusion Corporation. | Incorporated by reference to Exhibit 10.3 to Cardinal Health, Inc.’s Current Report on Form 8-K filed on September 4, 2009. | |||
Letter of Understanding dated March 28, 2016 between Becton, Dickinson and Company and Alexandre Conroy.* | Incorporated by reference to Exhibit 10 to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2016. | |||
Three-Year Term Loan Agreement, dated as of May 12, 2017, by and among Becton, Dickinson and Company, the lenders party thereto, and Citibank, N.A., as administrative agent. | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed May 10, 2017. |
Exhibit Number | Description | Method of Filing | ||
Credit Agreement, dated as of May 12, 2017, by and among Becton, Dickinson and Company, the banks and issuers of letters of credit party thereto and Citibank, N.A., as administrative agent. | Incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed May 10, 2017. | |||
Subsidiaries of the registrant. | Filed with this report | |||
Consent of independent registered public accounting firm. | Filed with this report | |||
Power of Attorney. | Filed with this report | |||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to SEC Rule 13(a)-14(a). | Filed with this report | |||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to Section 1350 of Chapter 63 of Title 18 of the U.S. Code. | Filed with this report | |||
101 | The following materials from this report, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. | Filed with this report |
* | Denotes a management contract or compensatory plan or arrangement. |
Exhibit 21 to Form 10-K | State of Jurisdiction of Incorporation | Percentage of Voting Securities Owned |
Abastecedora de Dispositivos Medicos JL S.A. de C.V. | Mexico | 100% (1) |
Accuri Cytometers, Inc. | Delaware | 100% |
Alverix, Inc. | Delaware | 100% |
Alverix (M) Sdn. Bhd. | Malaysia | 100% (1) |
ARX SA | Switzerland | 100% (1) |
B-D U.K. Holdings Limited | United Kingdom | 100% (1) |
BD Holding S. de R.L. de C.V. | Mexico | 100% (1) |
BD Kiestra BV | Netherlands | 100% (1) |
BD Norge AS | Norway | 100% (1) |
BD Rapid Diagnostic (Suzhou) Co., Ltd. | China | 100% (1) |
BD Switzerland Sarl | Switzerland | 100% (1) |
BD West Africa Limited | Ghana | 100% (1) |
BD Ventures LLC | New Jersey | 100% |
BDIT Singapore Pte. Ltd. | Singapore | 100% (1) |
BDX INO LLC | Delaware | 100% |
Becton Dickinson A/S | Denmark | 100% (1) |
Becton Dickinson A.G. | Switzerland | 100% (1) |
Becton Dickinson Advanced Pen Injection Systems GmbH | Switzerland | 100% (1) |
Becton, Dickinson Aktiebolag | Sweden | 100% (1) |
Becton, Dickinson and Company, Ltd. | Ireland | 100% (1) |
Becton Dickinson Argentina S.R.L. | Argentina | 100% (1) |
Becton Dickinson Asia Holdings Ltd. | Gibraltar | 100% (1) |
Becton Dickinson Asia Limited | Hong Kong | 100% (1) |
Becton Dickinson Asia Pacific Limited | British Virgin Islands | 100% |
Becton Dickinson Austria Holdings GmbH | Austria | 100% (1) |
Becton Dickinson Austria GmbH | Austria | 100% (1) |
Becton Dickinson Benelux N.V. | Belgium | 100% (1) |
Becton Dickinson Bermuda L.P. | Bermuda | 100% (1) |
Becton, Dickinson B.V. | Netherlands | 100% (1) |
Becton Dickinson Biosciences, Systems and Reagents Inc. | California | 100% |
Becton Dickinson Canada Inc. | Canada | 100% (1) |
Becton Dickinson Caribe Ltd. | Cayman Islands | 100% (1) |
Becton Dickinson Croatia d.o.o. | Croatia | 100% (1) |
Becton Dickinson Czechia s.r.o. | Czech Republic | 100% (1) |
Becton Dickinson de Colombia Ltda. | Colombia | 100% (1) |
Becton, Dickinson de Mexico, S.A. de C.V. | Mexico | 100% (1) |
Becton Dickinson del Uruguay S.A. | Uruguay | 100% (1) |
Becton Dickinson Dispensing Belgium BVBA | Belgium | 100% (1) |
Becton Dickinson Dispensing Spain S.L.U. | Spain | 100% (1) |
Becton Dickinson Dispensing UK Ltd. | United Kingdom | 100% (1) |
Becton Dickinson Dispensing France SAS | France | 100% (1) |
Becton Dickinson Dispensing Ireland Limited | Ireland | 100% (1) |
Becton Dickinson Dispensing Norge AS | Norway | 100% (1) |
Becton Dickinson Distribution Center N.V. | Belgium | 100% (1) |
Becton Dickinson Dublin Designated Activity Company | Ireland | 100% (1) |
Becton Dickinson East Africa Ltd. | Kenya | 100% (1) |
Becton Dickinson Europe Holdings S.A.S. | France | 100% (1) |
Becton Dickinson France S.A.S. | France | 100% (1) |
Becton Dickinson (Gibraltar) Holdings Ltd. | Gibraltar | 100% (1) |
Becton Dickinson (Gibraltar) Limited | Gibraltar | 100% (1) |
Becton Dickinson (Gibraltar) Management Limited | Gibraltar | 100% (1) |
Becton Dickinson Global Holdings I LLC | Delaware | 100% (1) |
Becton Dickinson Global Holdings II LLC | Delaware | 100% (1) |
Becton Dickinson Global Holdings III LLC | Delaware | 100% (1) |
Becton Dickinson Global Holdings Sarl | Luxembourg | 100% |
Becton Dickinson GmbH | Germany | 100% (1) |
Becton Dickinson GSA Beteilgungs GmbH | Germany | 100% (1) |
Becton Dickinson Guatemala S.A. | Guatemala | 100% (1) |
Becton Dickinson Hellas S.A. | Greece | 100% (1) |
Becton Dickinson Holdings Pte Ltd. | Singapore | 100% (1) |
Becton Dickinson Hungary Kft. | Hungary | 100% (1) |
Becton Dickinson India Private Limited | India | 100% (1) |
Becton, Dickinson Industrias Cirurgicas, Ltda. | Brazil | 100% (1) |
Becton Dickinson Infusion Therapy AB | Sweden | 100% (1) |
Becton Dickinson Infusion Therapy B.V. | Netherlands | 100% (1) |
Becton Dickinson Infusion Therapy Holdings AB | Sweden | 100% (1) |
Becton Dickinson Infusion Therapy Holdings UK Limited | United Kingdom | 100% (1) |
Becton Dickinson Infusion Therapy Systems Inc., S.A. de C.V. | Mexico | 100% (1) |
Becton Dickinson Infusion Therapy Systems Inc. | Delaware | 100% |
Becton Dickinson Infusion Therapy UK | United Kingdom | 100% (1) |
Becton Dickinson Ireland Holding Limited | Ireland | 100% (1) |
Becton Dickinson Insulin Syringe, Ltd. | Cayman Islands | 100% (1) |
Becton Dickinson Israel Ltd. | Israel | 100% |
Becton, Dickinson Italia S.p.A. | Italy | 100% (1) |
Becton Dickinson Ithalat Ihracat Limited Sirketi | Turkey | 100% (1) |
Becton Dickinson Korea Holding, Inc. | Delaware | 100% |
Becton Dickinson Korea Ltd. | Korea | 100% (1) |
Becton Dickinson Ltd. | New Zealand | 100% (1) |
Becton Dickinson Luxembourg Finance S.a.r.L. | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg Finco S.a.r.L. | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg Holdings S.a.r.L | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg Holdings II S.a.r.L | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg LLC | Delaware | 100% (1) |
Becton Dickinson Luxembourg II LLC | Delaware | 100% |
Becton Dickinson Luxembourg III LLC | Delaware | 100% (1) |
Becton Dickinson Luxembourg LLC S.C.S. | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg II S.C.S. | Luxembourg | 95%/5% (1) |
Becton Dickinson Luxembourg III LLC S.C.S. | Luxembourg | 100% (1) |
Becton Dickinson Luxembourg S.a.r.L. | Luxembourg | 100% (1) |
Becton Dickinson Malaysia, Inc. | Oregon | 100% |
Becton Dickinson Management GmbH & Co. KG | Germany | 100% (1) |
Becton Dickinson Management S.a.r.L | Luxembourg | 100% (1) |
Becton Dickinson Matrex Holdings, Inc. | Delaware | 100% |
Becton Dickinson (Mauritius) Limited | Mauritius | 100% |
Becton Dickinson Medical (S) Pte Ltd. | Singapore | 100% (1) |
Becton Dickinson Medical Devices (Shanghai) Co., Ltd. | P.R.C. | 100% (1) |
Becton Dickinson Medical Devices (Suzhou) Co., Ltd. | P.R.C. | 100% (1) |
Becton Dickinson Medical Products Pte. Ltd. | Singapore | 100% |
Becton Dickinson Netherlands Global Holdings I C.V. | Netherlands | 100% (1) |
Becton Dickinson Netherlands Global Holdings II C.V. | Netherlands | 100% (1) |
Becton Dickinson Netherlands Global Holdings III C.V. | Netherlands | 100% (1) |
Becton Dickinson Netherlands Holdings B.V. | Netherlands | 100% (1) |
Becton Dickinson Netherlands Holdings II B.V. | Netherlands | 100% (1) |
Becton Dickinson O.Y. | Finland | 100% (1) |
Becton Dickinson Overseas Services Ltd. | Nevada | 100% |
Becton Dickinson Pakistan (Pvt) Ltd. | Pakistan | 100% (1) |
Becton Dickinson Penel Limited | Cayman Islands | 100% (1) |
Becton Dickinson Philippines, Inc. | Philippines | 100% (1) |
Becton Dickinson Polska Sp.z.o.o. | Poland | 100% (1) |
Becton Dickinson Portugal, Unipessoal, Lda. | Portugal | 100% (1) |
Becton Dickinson Pty. Ltd. | Australia | 100% (1) |
Becton Dickinson (Pty) Ltd. | South Africa | 100% (1) |
Becton Dickinson Research Centre Ireland Limited | Ireland | 100% (1) |
Becton Dickinson Rowa Germany GmbH | Germany | 100% (1) |
Becton Dickinson Rowa Italy Srl | Italy | 100% (1) |
Becton Dickinson S.A. | Spain | 100% (1) |
Becton Dickinson Sample Collection GmbH | Switzerland | 100% (1) |
Becton Dickinson Sdn. Bhd. | Malaysia | 100% (1) |
Becton Dickinson Slovakia s.r.o. | Slovakia | 100% (1) |
Becton Dickinson Sweden Holdings AB | Sweden | 100% (1) |
Becton Dickinson Switzerland Global Holdings SarL | Switzerland | 100% (1) |
Becton Dickinson (Thailand) Limited | Thailand | 100% (1) |
Becton Dickinson U.K. Limited | United Kingdom | 100% (1) |
Becton Dickinson Venezuela, C.A. | Venezuela | 100% (1) |
Becton Dickinson Venture LLC | Delaware | 100% |
Becton Dickinson Verwaltungs GmbH | Germany | 100% (1) |
Becton Dickinson Vostok LLC | Russia | 100% (1) |
Becton Dickinson Worldwide Investments Sa.r.L. | Luxembourg | 100% (1) |
Becton Dickinson Zambia Limited | Zambia | 100% (1) |
Benex Ltd. | Ireland | 100% (1) |
Cardal II, LLC | Delaware | 100% (1) |
CareFusion 213, LLC | Delaware | 100% (1) |
CareFusion 2200, Inc. | Delaware | 100% (1) |
CareFusion 2201, Inc. | Delaware | 100% (1) |
CareFusion 302, LLC | Delaware | 100% (1) |
CareFusion 303, Inc. | Delaware | 100% (1) |
CareFusion 304, LLC | Delaware | 100% (1) |
CareFusion Asia (HK) Limited | Hong Kong | 100% (1) |
CareFusion Australia 316 Pty Limited | Australia | 100% (1) |
CareFusion (Barbados) SrL | Barbados | 100% (1) |
CareFusion BH 335 d.o.o. Cazin | Bosnia | 100% (1) |
CareFusion Corporation | Delaware | 100% |
CareFusion Denmark 329 A/S | Denmark | 100% (1) |
CareFusion D.R. 203 Ltd. | Bermuda | 100% (1) |
Care Fusion Development Private Limited | India | 100% (1) |
CareFusion Finland 320 Oy | Finland | 100% (1) |
CareFusion France 309 S.A.S. | France | 100% (1) |
CareFusion Germany 277 GmbH | Germany | 100% (1) |
CareFusion Germany 318 GmbH | Germany | 100% (1) |
CareFusion Iberia 308 S.L. | Spain | 100% (1) |
CareFusion Israel 330 Ltd. | Israel | 100% (1) |
CareFusion Italy 311 S.r.l. | Italy | 100% (1) |
CareFusion Italy 312 S.p.A. | Italy | 100% (1) |
CareFusion Japan 324 GK | Japan | 100% (1) |
CareFusion Malaysia 325 Sdn Bhd | Malaysia | 100% (1) |
CareFusion Manufacturing, LLC | Delaware | 100% (1) |
CareFusion Mexico 215 SA de CV | Mexico | 100% (1) |
CareFusion Netherlands 310 B.V. | Netherlands | 100% (1) |
CareFusion Netherlands 328 B.V. | Netherlands | 100% (1) |
CareFusion Netherlands 503 B.V. | Netherlands | 100% (1) |
CareFusion Netherlands 504 B.V. | Netherlands | 100% (1) |
CareFusion Netherlands Financing 283 C.V. | Netherlands | 100% (1) |
CareFusion New Zealand 313 Limited | New Zealand | 100% (1) |
CareFusion Norway 315 A/S | Norway | 100% (1) |
CareFusion Portugal 332 - Produtos Médicos, LDA | Portugal | 100% (1) |
CareFusion Resources, LLC | Delaware | 100% (1) |
CareFusion S.A. 319 (Proprietary) Limited | South Africa | 100% (1) |
CareFusion (Shanghai) Commercial and Trading Co. Limited | China | 100% (1) |
CareFusion Singapore 243 Pte. Ltd. | Singapore | 100% (1) |
CareFusion Solutions, LLC | Delaware | 100% (1) |
CareFusion Sweden 314 AB | Sweden | 100% (1) |
CareFusion U.K. 244 Limited | United Kingdom | 100% (1) |
CareFusion U.K. 305 Limited | United Kingdom | 100% (1) |
CareFusion U.K. 306 Limited | United Kingdom | 100% (1) |
Carmel Pharma AB | Sweden | 100% (1) |
Cell Analysis Systems, Inc. | Illinois | 100% (1) |
Cellular Research, Inc. | Delaware | 100% |
Chemocato LLC | Delaware | 100% (1) |
CME Ltd. | Israel | 100% |
CME UK (Holdings) Limited | United Kingdom | 100% (1) |
CME Medical (UK) Limited | United Kingdom | 100% (1) |
Corporativo BD de Mexico, S. de R.L. de C.V. | Mexico | 100% (1) |
CRISI Medical Systems, Inc. | Delaware | 100% |
Dantor S.A. | Uruguay | 100% (1) |
Difco Laboratories Incorporated | Michigan | 100% |
Distribuidora BD Mexico, S.A. de C.V. | Mexico | 100% (1) |
D.L.D., Ltd. | Bermuda | 100% (1) |
Dutch American Manufacturers (D.A.M.) B.V. | Netherlands | 100% (1) |
Enturia de México S. de R.L. de C.V. | Mexico | 100% (1) |
Enturican, Inc. | Kansas | 100% (1) |
Franklin Lakes Enterprises, L.L.C. | New Jersey | 100% |
GenCell Biosystems Ltd. | Ireland | 100% |
GenCell USA, LLC | Wisconsin | 100% |
GeneOhm Sciences Canada Inc. | Canada | 100% (1) |
Health Care Holdings in Sweden AB | Sweden | 100% (1) |
HandyLab, Inc. | Delaware | 100% |
IBD Holdings LLC | Delaware | 50%(1) |
IVAC Overseas Holding L.P. | Delaware | 100% (1) |
Matrex Salud, de R.L. de C.V. | Mexico | 50% (1) |
Med-Safe Systems, Inc. | California | 100% |
Medegen, LLC | California | 100% (1) |
Nippon Becton Dickinson Company, Ltd. | Japan | 100% (1) |
Omega Biosystems Incorporated | Delaware | 100% |
PharMingen | California | 100% |
PreAnalytiX GmbH | Switzerland | 50% (1) |
Procesos para Esterilizacion, S.A. de C.V. | Mexico | 100% (1) |
PT Becton Dickinson Indonesia | Indonesia | 100% (1) |
RPM Home Health Care Limited | United Kingdom | 100% (1) |
Safety Syringes, Inc. | California | 100% |
Sendal, S.L.U. | Spain | 100% (1) |
Sirigen, Inc. | California | 100% |
Sirigen II Limited | United Kingdom | 100% (1) |
Sistemas Médicos ALARIS, S.A. de C.V. | Mexico | 100% (1) |
Staged Diabetes Management LLC | New Jersey | 50% (1) |
Surgical Site Solutions, Inc. | Wisconsin | 100% (1) |
STAR - Servicos de Assistencia Tecnica A Equipamento Medico Hospitalar Ltda. | Brazil | 100% (1) |
Touchstone Medical Limited | United Kingdom | 100% (1) |
TriPath Imaging, Inc. | Delaware | 100% |
(1) | Registration Statements on Form S-8 Nos. 33-23055, 33-33791, 33-64115, 333-11885, 333-16091, 333-118235, 333-147594, 333-161129, 333-161215, 333-170821, 333-199830 and 333-214780 of Becton, Dickinson and Company; |
(2) | Registration Statements on Form S-3 Nos. 333-23559, 333-38193, 333-104019, 333-134143, 333-159102, 333-183059, 333-206020, 333-195887 and 333-195921 of Becton, Dickinson and Company; and |
(3) | Registration Statements on Form S-4 Nos. 333-203013 and 333-218179 of Becton, Dickinson and Company; |
/s/ Basil L. Anderson | /s/ Gary A. Mecklenburg | |
Basil L. Anderson | Gary A. Mecklenburg | |
/s/ Catherine M. Burzik | /s/ James F. Orr | |
Catherine M. Burzik | James F. Orr | |
/s/ R. Andrew Eckert | /s/ Willard J. Overlock, Jr. | |
R. Andrew Eckert | Willard J. Overlock, Jr. | |
/s/ Vincent A. Forlenza | /s/ Claire Pomeroy | |
Vincent A. Forlenza | Claire Pomeroy | |
/s/ Claire M. Fraser | /s/ Rebecca W. Rimel | |
Claire M. Fraser | Rebecca W. Rimel | |
/s/ Christopher Jones | /s/ Bertram L. Scott | |
Christopher Jones | Bertram L. Scott | |
/s/ Marshall O. Larsen | ||
Marshall O. Larsen |
Date: November 22, 2017 |
/s/ Vincent A. Forlenza |
Vincent A. Forlenza |
Chairman and Chief Executive Officer |
Date: November 22, 2017 |
/s/ Christopher R. Reidy |
Christopher R. Reidy |
Executive Vice President, Chief Financial Officer and Chief Administrative Officer |
Date: November 22, 2017 |
/s/ Vincent A. Forlenza |
Vincent A. Forlenza |
Chief Executive Officer |
Date: November 22, 2017 |
/s/ Christopher R. Reidy |
Christopher R. Reidy |
Chief Financial Officer |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Oct. 31, 2017 |
Mar. 31, 2017 |
|
Document And Entity Information [Abstract] | |||
Entity registrant name | BECTON DICKINSON & CO | ||
Entity central index key | 0000010795 | ||
Current fiscal year end date | --09-30 | ||
Entity filer category | Large Accelerated Filer | ||
Document type | 10-K | ||
Document period end date | Sep. 30, 2017 | ||
Document fiscal year focus | 2017 | ||
Document fiscal period focus | FY | ||
Amendment flag | false | ||
Entity common stock, shares outstanding (shares) | 227,978,328 | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity public float | $ 39,070,060,303 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 1,100 | $ 976 | $ 695 |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustments | 11 | (50) | (692) |
Defined benefit pension and postretirement plans | 179 | (141) | (36) |
Cash flow hedges | 17 | 1 | (9) |
Other Comprehensive Income (Loss), Net of Tax | 206 | (191) | (737) |
Comprehensive Income (Loss) | $ 1,306 | $ 786 | $ (42) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 640,000,000 | 640,000,000 |
Common stock, shares issued (shares) | 346,687,160 | 332,662,160 |
Common stock in treasury, shares (shares) | 118,744,758 | 119,370,934 |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Consolidated Financial Statements and Notes to Consolidated Financial Statements of Becton, Dickinson and Company (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. Our fiscal year ends on September 30. Principles of Consolidation The consolidated financial statements include the Company’s accounts and those of its majority-owned subsidiaries after the elimination of intercompany transactions. The Company has no material interests in variable interest entities. Cash Equivalents Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Short-Term Investments Short-term investments consist of time deposits with maturities greater than three months and less than one year when purchased. Trade and Financing Receivables The Company grants credit to customers in the normal course of business and the resulting trade receivables are stated at their net realizable value. The allowance for doubtful accounts represents the Company’s estimate of probable credit losses relating to trade receivables and is determined based on historical experience and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectible. Inventories Inventories are stated at the lower of first-in, first-out cost or market. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are principally provided on the straight-line basis over estimated useful lives, which range from 20 to 45 years for buildings, four to 13 years for machinery and equipment and one to 12 years for leasehold improvements. Depreciation and amortization expense was $406 million, $452 million and $417 million in fiscal years 2017, 2016 and 2015, respectively. Goodwill and Other Intangible Assets The Company’s unamortized intangible assets include goodwill and in-process research and development assets which arise from acquisitions. The Company currently reviews all indefinite-lived assets, including goodwill, for impairment using quantitative models. Goodwill is reviewed at least annually for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. The Company’s reporting units generally represent one level below reporting segments, and components within an operating segment that have similar economic characteristics are aggregated. Potential impairment of goodwill is identified by comparing the fair value of a reporting unit, estimated using an income approach, with its carrying value. The annual impairment review performed on July 1, 2017 indicated that all identified reporting units’ fair values exceeded their respective carrying values. The review for impairment of in-process research and development assets is performed by comparing the fair value of the technology or project assets, estimated using an income approach, with their carrying value. In-process research and development assets are considered indefinite-lived assets and are reviewed at least annually for impairment until projects are completed or abandoned. Certain trademarks that are considered to generate cash flows indefinitely are also considered to be indefinite-lived intangible assets and these assets are also reviewed at least annually for impairment. Amortized intangible assets include developed technology assets which arise from acquisitions. These assets represent acquired intellectual property that is already technologically feasible upon the acquisition date or acquired in-process research and development assets that are completed subsequent to acquisition. Developed technology assets are generally amortized over periods ranging from 15 to 20 years, using the straight-line method. Other intangibles with finite useful lives, which include patents, are amortized over periods principally ranging from one to 40 years, using the straight-line method. Finite-lived intangible assets, including developed technology assets, are periodically reviewed when impairment indicators are present to assess recoverability from future operations using undiscounted cash flows. The carrying values of these finite-lived assets are compared to the undiscounted cash flows they are expected to generate and an impairment loss is recognized in operating results to the extent any finite-lived intangible asset’s carrying value exceeds its calculated fair value. Foreign Currency Translation Generally, foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. The U.S. dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the foreign currency translation adjustments in Accumulated other comprehensive income (loss). Revenue Recognition Revenue from product sales is typically recognized when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; product price is fixed or determinable; collection of the resulting receivable is reasonably assured. Certain sales arrangements contain multiple deliverables, including equipment and service deliverables, which requires the Company to determine the separate units of account. If the deliverable meets the criteria of a separate unit of accounting, the arrangement consideration is allocated to each element based upon its relative selling price. In determining the best evidence of selling price of a unit of account the Company utilizes vendor-specific objective evidence (“VSOE”), which is the price the Company charges when the deliverable is sold separately. When VSOE is not available, management uses relevant third-party evidence (“TPE”) of selling price, if available. When neither VSOE nor TPE of selling price exists, management uses its best estimate of selling price. Revenue allocated to equipment deliverables is recognized upon customer acceptance, which occurs after the transfer of title and risk of loss to the customer and the completion of installation or training services. When related training services are considered inconsequential, delivery is deemed to occur upon the transfer of title and risk of loss, at which time revenue and the costs associated with installation and training are recognized. For equipment lease revenue, transactions are evaluated and classified as either operating leases or sales-type leases. Lease income for products sold under sales-type leases is recognized as revenue upon the completion of installation activities in the amount of the present value of the minimum lease payments. The financing component of sales-type leases is recorded as revenue over the lease term. For products sold under operating leases, revenue is recognized at the contracted rate over the rental period, as defined within the customer agreement. For products sold and leased with embedded software, if software is considered not essential to the non-software elements of a product but is considered more than incidental to a product as a whole, the product’s software elements must be separated from its non-software elements under the requirements relating to multiple-element arrangements and accounted for under software industry-specific revenue recognition requirements. However, if it is determined that the embedded software is more than incidental to the product as a whole but the non-software elements and software elements work together to deliver the essential functionality of the products as a whole, then the accounting for such product does not fall within the scope of software industry-specific accounting requirements. The Company’s domestic businesses sell products primarily to distributors that resell the products to end-user customers. Rebates are provided to distributors that sell to end-user customers at prices determined under a contract between the Company and the end-user customer. Provisions for rebates, as well as sales discounts and returns, are based upon estimates and are accounted for as a reduction of revenues when revenue is recognized. Shipping and Handling Costs Shipping and handling costs are included in Selling and administrative expense. Shipping expense was $365 million, $401 million and $351 million in 2017, 2016 and 2015, respectively. Derivative Financial Instruments All derivatives are recorded in the balance sheet at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. Any deferred gains or losses associated with derivative instruments are recognized in income in the period in which the underlying hedged transaction is recognized. Additional disclosures regarding the Company's accounting for derivative instruments are provided in Note 13. Income Taxes United States income taxes are not provided on undistributed earnings of foreign subsidiaries where such undistributed earnings are indefinitely reinvested outside the United States. Deferred taxes are provided for earnings of foreign subsidiaries when those earnings are not considered indefinitely reinvested. Income taxes are provided and tax credits are recognized based on tax laws enacted at the dates of the financial statements. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. In evaluating the exposure associated with various tax filing positions, the Company records accruals for uncertain tax positions, based on the technical support for the positions, past audit experience with similar situations, and the potential interest and penalties related to the matters. The Company maintains valuation allowances where it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances are included in the tax provision in the period of change. In determining whether a valuation allowance is warranted, management evaluates factors such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. Additional disclosures regarding the Company's accounting for income taxes are provided in Note 16. Earnings per Share Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In computing diluted earnings per share, only potential common shares that are dilutive (i.e., those that reduce earnings per share or increase loss per share) are included in the calculation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates or assumptions affect reported assets, liabilities, revenues and expenses as reflected in the consolidated financial statements. Actual results could differ from these estimates. |
Accounting Changes |
12 Months Ended |
---|---|
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting Changes New Accounting Principle Adopted On October 1, 2016, the Company prospectively adopted amended requirements issued by the Financial Accounting Standards Board ("FASB") relating to the timing of recognition and classification of share-based compensation award-related income tax effects. Upon the settlement of awards during fiscal year 2017, the Company recorded tax benefits for the year ended of $77 million to Income tax provision (benefit) within its consolidated statement of income. These tax benefits were recorded within Capital in excess of par value on the Company's consolidated balance sheet in the prior-year period. Because these excess tax benefits are no longer recorded in Capital in excess of par value, the current period adjustment for the dilutive impact of share equivalents from share-based plans, which is used in the Company's computation of diluted earnings per share, increased by approximately 1 million shares. Also per the amended guidance, the Company classified the $77 million of excess tax benefits for the year ended September 30, 2017 on its consolidated statement of cash flows within Net Cash Provided by Operating Activities, rather than Net Cash Provided by (Used for) Financing Activities, which included the excess tax benefits for the years ended September 30, 2016 and 2015. The amended guidance allows entities to account for award forfeitures as they occur; however, the Company has elected to continue its determination of compensation cost recognized in each period based upon an estimate of expected future forfeitures. New Accounting Principles Not Yet Adopted In February 2016, the FASB issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet. The new standard also requires expanded disclosures regarding leasing arrangements. The Company is currently evaluating the impact that this new lease accounting standard will have on its consolidated financial statements upon its adoption of the standard on October 1, 2019. In May 2014, the FASB issued a new revenue recognition standard. Under this standard, revenue will be recognized upon the transfer of goods or services to customers and the amount of revenue recognized will reflect the consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company intends to adopt the standard, as required, on October 1, 2018 and recently completed an initial assessment to identify the potential areas of impact that this new revenue recognition standard will have on its consolidated financial statements. As part of the initial assessment, the Company reviewed a representative sample of its contracts across its various businesses and geographies to identify potential differences that could result from applying the requirements of the new standard. The analysis included identifying whether there may be differences in timing of revenue recognition under the new standard as well as assessing performance obligations, variable consideration, and contract costs. The Company has not yet estimated the impact of the new standard on the timing and pattern of its revenue recognition. The Company continues to evaluate the available adoption methods, and apprises its audit committee of the project status regularly. |
Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Changes in certain components of shareholders’ equity were as follows:
Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. Accelerated Share Repurchase Agreement Using proceeds received from the divestiture of the Respiratory Solutions business in the first quarter of fiscal year 2017, the Company repurchased approximately 1.3 million shares of its common stock under an accelerated share repurchase agreement. The repurchased shares were recorded as a $220 million increase to Common stock in treasury. Common and Preferred Stock Offerings In May 2017 and in connection with the Company's pending agreement to acquire C.R. Bard, Inc. ("Bard"), which is further discussed in Note 9, the Company completed registered public offerings of equity securities including:
The Company will use the net proceeds from these offerings to finance a portion of the cash consideration payable upon the closing of the Bard acquisition, which the Company expects to occur in the fourth calendar quarter of 2017. The components and changes of Accumulated other comprehensive income (loss) were as follows:
The amount of foreign currency translation recognized in other comprehensive income during the year ended September 30, 2017 included net losses relating to net investment hedges, as further discussed in Note 13. The amount recognized in other comprehensive income during the year ended September 30, 2017 relating to cash flow hedges represented a net gain on forward starting interest rate swaps, which is further discussed in Note 13. The tax impacts for amounts recognized in other comprehensive income before reclassifications were as follows:
Reclassifications out of Accumulated other comprehensive income (loss) relating to benefit plans and cash flow hedges in 2017, 2016 and 2015 were immaterial to the Company's consolidated financial results |
Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) for the years ended September 30 were as follows:
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Commitments and Contingencies |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Rental expense for all operating leases amounted to $110 million in 2017, $112 million in 2016 and $89 million in 2015. Future minimum rental commitments on non-cancelable leases are as follows: 2018 — $67 million; 2019 — $57 million; 2020 — $47 million; 2021 — $35 million; 2022 — $31 million and an aggregate of $39 million thereafter. As of September 30, 2017, the Company has certain future purchase commitments aggregating to approximately $1.077 billion, which will be expended over the next several years. Contingencies Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. generally accepted accounting principles, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. In June 2007, Retractable Technologies, Inc. (“RTI”) filed a complaint against the Company under the caption Retractable Technologies, Inc. vs. Becton Dickinson and Company (Civil Action No. 2:07-cv-250, U.S. District Court, Eastern District of Texas) alleging that the BD Integra™ syringes infringe patents licensed exclusively to RTI. In its complaint, RTI also alleged that the Company engaged in false advertising with respect to certain of the Company’s safety-engineered products in violation of the Lanham Act; acted to exclude RTI from various product markets and to maintain its market share through, among other things, exclusionary contracts in violation of state and federal antitrust laws; and engaged in unfair competition. In January 2008, the Court severed the patent and non-patent claims into separate cases, and stayed the non-patent claims during the pendency of the patent claims at the trial court level. On April 1, 2008, RTI filed a complaint against BD under the caption Retractable Technologies, Inc. and Thomas J. Shaw v. Becton Dickinson and Company (Civil Action No. 2:08-cv-141, U.S. District Court, Eastern District of Texas) alleging that the BD Integra™ syringes infringe another patent licensed exclusively to RTI. On August 29, 2008, the Court ordered the consolidation of the patent cases. RTI was subsequently awarded $5 million in damages at a jury trial with respect to the patent claims, which has been paid, and the patent cases are now concluded. On September 19, 2013, a jury returned a verdict against BD with respect to RTI’s Lanham Act claim and claim for attempted monopolization based on deception in the safety syringe market. The jury awarded RTI $113.5 million for its attempted monopolization claim (which would be trebled under the antitrust statute). The jury’s verdict rejected RTI’s monopolization claims in the markets for safety syringes, conventional syringes and safety IV catheters; its attempted monopolization claims in the markets for conventional syringes and safety IV catheters; and its claims for contractual restraint of trade and exclusive dealing in the markets for safety syringes, conventional syringes and safety IV catheters. In connection with the verdict, the Company recorded a pre-tax charge of approximately $341 million in the fourth quarter of fiscal year 2013. With respect to RTI's requested injunction relief, in November 2014, the Court granted RTI’s request that BD be ordered to issue certain corrective statements regarding its advertising and enjoined from making certain advertising claims. The Court denied RTI’s request for injunctive relief relating to BD’s contracting practices and BD’s safety syringe advertising, finding that RTI failed to prove that BD’s contracting practices violated the antitrust laws or that BD’s safety syringe advertising is false. On January 14, 2015, the Court granted in part and denied in part BD’s motion for a stay of the injunction. The Court held that, pending appeal, BD would not be required to send the corrective advertising notices to end-user customers, but only to employees, distributors and Group Purchasing Organizations. On January 15, 2015, the Court entered its Final Judgment in the case ordering that RTI recover $341 million for its attempted monopolization claim and $12 million for attorneys’ fees, and awarded pre and post-judgment interest and costs. On February 3, 2015, the Court of Appeals for the Fifth Circuit denied BD’s motion for a stay of the injunction pending the final appeal, and BD thereafter complied with the Court’s order. On April 23, 2015, the Court granted BD’s motion to eliminate the award of pre-judgment interest, and entered a new Final Judgment. BD thereafter appealed to the Court of Appeals challenging the entirety of the Final Judgment. On December 2, 2016, the Court of Appeals issued an opinion reversing the judgment as to RTI’s attempted monopolization claim and rendered judgment on that claim in favor of BD. As a result, the Company reversed $336 million of reserves associated with this judgment, which was recorded in Other operating (income) expense, net. The Court of Appeals affirmed the judgment for Lanham Act liability, and remanded the case to the district court to consider whether and if so how much profit should be disgorged by BD on that claim. The Court of Appeals vacated and remanded the injunction ordered by the Court. On January 31, 2017, RTI filed a petition for a writ of certiorari with the U.S. Supreme Court. On March 20, 2017, the U.S. Supreme Court denied certiorari, and the district court thereafter heard RTI’s request for disgorgement. On August 17, 2017, the district court entered judgment in favor of BD and ruled that RTI is not entitled to any award of money damages. RTI has appealed this ruling to the Fifth Circuit Court of Appeals. On July 17, 2015, a class action complaint was filed against the Company in the U.S. District Court for the Southern District of Georgia. The plaintiffs, Glynn-Brunswick Hospital Authority, trading as Southeast Georgia Health System, and Southeast Georgia Health System, Inc., seek to represent a class of acute care purchasers of BD syringes and IV catheters. The complaint alleges that BD monopolized the markets for syringes and IV catheters through contracts, theft of technology, false advertising, acquisitions, and other conduct. The complaint seeks treble damages but does not specify the amount of alleged damages. The Company filed a motion to dismiss the complaint which was granted on January 29, 2016. On September 23, 2016, the court denied plaintiffs’ motion to alter or amend the judgment to allow plaintiffs to file an amended complaint, and plaintiffs appealed that decision to the Eleventh Circuit Court of Appeals. The plaintiffs thereafter voluntarily dismissed their appeal, and the Court of Appeals dismissed the case on November 21, 2016. The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to the suits pending against the Company and is engaged in a vigorous defense of each of these matters. The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. |
Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data The Company’s organizational structure is based upon two principal business segments: BD Medical (“Medical”) and BD Life Sciences (“Life Sciences”). The Company’s two principal business segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. BD Medical BD Medical produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The primary customers served by BD Medical are hospitals and clinics; physicians’ office practices; consumers and retail pharmacies; governmental and nonprofit public health agencies; pharmaceutical companies; and healthcare workers. BD Medical consists of the following organizational units:
BD Life Sciences BD Life Sciences provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections (“HAIs”) and cancers. In addition, BD Life Sciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. That information is used to aid the discovery and development of new drugs and vaccines, and to improve the diagnosis and management of diseases. The primary customers served by BD Life Sciences are hospitals, laboratories and clinics; blood banks; healthcare workers; public health agencies; physicians’ office practices; academic and government institutions; and pharmaceutical and biotechnology companies. BD Life Sciences consists of the following organizational units:
Distribution of products is primarily through independent distribution channels, and directly to end-users by BD and independent sales representatives. No customer accounted for 10% or more of revenues in any of the three years presented. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses. As more fully discussed in Note 10, the Company sold a 50.1% controlling financial interest in its Respiratory Solutions business, a component of the Medical segment, in October 2016. This transaction did not meet the criteria established for reporting discontinued operations and as such, results for the years ended September 30, 2016 and 2015 included $822 million and $417 million, respectively, of revenues which did not occur in the current year.
(A)Intersegment revenues are not material. (B)Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. Results in 2017 included a $748 million non-cash charge resulting from a modification to the Company's dispensing equipment lease contracts with customers, as well as a $336 million reversal of certain reserves related to an appellate court decision which, among other things, reversed an unfavorable antitrust judgment in the RTI case. Additional disclosures regarding the legal matter and the lease contract modification are provided in Notes 5 and 17, respectively. Results in 2015 reflected $293 million in recognition of the fair value step-up adjustment recorded relative to CareFusion’s inventory on the acquisition date. (C)Includes cash and investments and corporate assets. Geographic Information The countries in which the Company has local revenue-generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe; Greater Asia (which includes Japan and Asia Pacific); and Other, which is comprised of Latin America, Canada, and EMA (which includes the Commonwealth of Independent States, Middle East and Africa). Revenues to unaffiliated customers are generally based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.
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Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company grants share-based awards under the 2004 Employee and Director Equity-Based Compensation Plan (“2004 Plan”), which provides long-term incentive compensation to employees and directors consisting of: stock appreciation rights (“SARs”), stock options, performance-based restricted stock units, time-vested restricted stock units and other stock awards. The fair value of share-based payments is recognized as compensation expense in net income. The amounts and location of compensation cost relating to share-based payments included in the consolidated statements of income is as follows:
In 2015, certain pre-acquisition equity awards of CareFusion were converted into BD restricted stock awards or BD stock options with accelerated vesting terms at the acquisition date. In addition, as an incentive to encourage post-acquisition employee retention, certain pre-acquisition equity awards of CareFusion were converted into either BD restricted stock awards or BD stock options, as applicable, as of the acquisition date, with substantially the same terms and conditions as were applicable under such CareFusion awards immediately prior to the acquisition date. The compensation expense associated with these replacement awards was recorded in Acquisitions and other restructurings. Stock Appreciation Rights SARs represent the right to receive, upon exercise, shares of common stock having a value equal to the difference between the market price of common stock on the date of exercise and the exercise price on the date of grant. SARs vest over a four-year period and have a ten-year term. The fair value was estimated on the date of grant using a lattice-based binomial option valuation model that uses the following weighted-average assumptions:
Expected volatility is based upon historical volatility for the Company’s common stock and other factors. The expected life of SARs granted is derived from the output of the lattice-based model, using assumed exercise rates based on historical exercise and termination patterns, and represents the period of time that SARs granted are expected to be outstanding. The risk-free interest rate used is based upon the published U.S. Treasury yield curve in effect at the time of grant for instruments with a similar life. The dividend yield is based upon the most recently declared quarterly dividend as of the grant date. The Company issued 793 thousand shares during 2017 to satisfy the SARs exercised. A summary of SARs outstanding as of September 30, 2017 and changes during the year then ended is as follows:
A summary of SARs exercised 2017, 2016 and 2015 is as follows:
Stock Options The Company has not granted stock options since 2005. As previously discussed, certain pre-acquisition equity awards of CareFusion were converted on March 17, 2015 into BD stock options with accelerated vesting terms. A summary of these stock options outstanding as of September 30, 2017 and changes during the year then ended is as follows:
A summary of options exercised 2017, 2016 and 2015 is as follows:
Performance-Based and Time-Vested Restricted Stock Units Performance-based restricted stock units cliff vest three years after the date of grant. These units are tied to the Company’s performance against pre-established targets over a three-year performance period. The performance measures for fiscal years 2017, 2016 and 2015 were relative total shareholder return (measures the Company’s stock performance during the performance period against that of peer companies) and average annual return on invested capital. Under the Company’s long-term incentive program, the actual payout under these awards may vary from zero to 200% of an employee’s target payout, based on the Company’s actual performance over the three-year performance period. The fair value is based on the market price of the Company’s stock on the date of grant. Compensation cost initially recognized assumes that the target payout level will be achieved and is adjusted for subsequent changes in the expected outcome of performance-related conditions. For units for which the performance conditions are modified after the date of grant, any incremental increase in the fair value of the modified units, over the original units, is recorded as compensation expense on the date of the modification for vested units, or over the remaining performance period for units not yet vested. Time-vested restricted stock unit awards granted after January 2015 vest on a graded basis over a three-year period. Time-vested restricted stock units granted before January 2015 cliff vest three years after the date of grant, except for certain key executives of the Company, including the executive officers, for which such units generally vest one year following the employee’s retirement. The related share-based compensation expense is recorded over the requisite service period, which is the vesting period or is based on retirement eligibility. The fair value of all time-vested restricted stock units is based on the market value of the Company’s stock on the date of grant. A summary of restricted stock units outstanding as of September 30, 2017 and changes during the year then ended is as follows:
The weighted average grant date fair value of restricted stock units granted during the years 2017, 2016 and 2015 are as follows:
The total fair value of stock units vested during 2017, 2016 and 2015 was as follows:
At September 30, 2017, the weighted average remaining vesting term of performance-based and time vested restricted stock units is 1.22 and 1 year, respectively. Unrecognized Compensation Expense and Other Stock Plans The amount of unrecognized compensation expense for all non-vested share-based awards as of September 30, 2017, is approximately $182 million, which is expected to be recognized over a weighted-average remaining life of approximately 1.93 years. At September 30, 2017, 8.8 million shares were authorized for future grants under the 2004 Plan. The Company has a policy of satisfying share-based payments through either open market purchases or shares held in treasury. At September 30, 2017, the Company has sufficient shares held in treasury to satisfy these payments. At September 30, 2017 and 2016, awards for 29 thousand and 43 thousand shares, respectively, were outstanding under a plan, that was terminated in 2004, which allowed for grants of common shares to certain key employees. The Company has a Directors’ Deferral Plan, which provides a means to defer director compensation, from time to time, on a deferred stock or cash basis. As of September 30, 2017, 130 thousand shares were held in trust, of which one thousand shares represented Directors’ compensation in 2017, in accordance with the provisions of the plan. Under this plan, which is unfunded, directors have an unsecured contractual commitment from the Company. The Company also has a Deferred Compensation Plan that allows certain highly-compensated employees, including executive officers, to defer salary, annual incentive awards and certain equity-based compensation. As of September 30, 2017, 338 thousand shares were issuable under this plan. |
Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and certain international locations. The Company also provides certain postretirement healthcare and life insurance benefits to qualifying domestic retirees. Other postretirement benefit plans in international countries are not material. The measurement date used for the Company’s employee benefit plans is September 30. Net pension and other postretirement cost for the years ended September 30 included the following components:
The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods. The settlement loss recorded in 2016 primarily included lump sum benefit payments associated with the Company’s U.S. supplemental pension plan. The Company recognizes pension settlements when payments from the supplemental plan exceed the sum of service and interest cost components of net periodic pension cost associated with this plan for the fiscal year. The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:
International pension plan assets at fair value included in the preceding table were $678 million and $624 million at September 30, 2017 and 2016, respectively. The international pension plan projected benefit obligations were $917 million and $951 million at September 30, 2017 and 2016, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:
The estimated net actuarial loss and prior service credit for pension benefits that will be amortized from Accumulated other comprehensive income (loss) into net pension costs over the next fiscal year are expected to be $76 million and $13 million, respectively. The net actuarial loss for other postretirement benefits that will be amortized from Accumulated other comprehensive income (loss) into net other postretirement costs over the next fiscal year is immaterial. The estimated prior service credit that will be amortized from Accumulated other comprehensive income (loss) into net other postretirement costs over the next fiscal year is expected to be $5 million. The weighted average assumptions used in determining pension plan information were as follows:
At September 30, 2017 the assumed healthcare trend rates were 7.0%, gradually decreasing to an ultimate rate of 5.0% beginning in 2027. At September 30, 2016 the assumed healthcare trend rates were 6.6% pre and post age 65, gradually decreasing to an ultimate rate of 5.0% beginning in 2024. A one percentage point increase or decrease in assumed healthcare cost trend rates in each year would not materially impact the accumulated postretirement benefit obligation as of September 30, 2017 or the aggregate of the service cost and interest cost components of 2017 annual expense. Expected Rate of Return on Plan Assets The expected rate of return on plan assets is based upon expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, the Company considers many factors, including historical assumptions compared with actual results; benchmark data; expected returns on various plan asset classes, as well as current and expected asset allocations. Expected Funding The Company’s funding policy for its defined benefit pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that may be appropriate considering the funded status of the plans, tax consequences, the cash flow generated by the Company and other factors. The Company made a discretionary contribution of $112 million to its U.S. pension plan in October 2017. The Company does not anticipate any significant required contributions to its pension plans in 2018. Expected benefit payments are as follows:
Investments The Company’s primary objective is to achieve returns sufficient to meet future benefit obligations. It seeks to generate above market returns by investing in more volatile asset classes such as equities while at the same time controlling risk through diversification in non-correlated asset classes and through allocations to more stable asset classes like fixed income. U.S. Plans The Company’s U.S. pension plans comprise 65% of total benefit plan investments, based on September 30, 2017 market values and have a target asset mix of 40% fixed income, 28% diversifying investments and 32% equities. This mix was established based on an analysis of projected benefit payments and estimates of long-term returns, volatilities and correlations for various asset classes. The asset allocations to diversifying investments include high-yield bonds, hedge funds, real estate, infrastructure, commodities, leveraged loans and emerging markets bonds. The actual portfolio investment mix may, from time to time, deviate from the established target mix due to various factors such as normal market fluctuations, the reliance on estimates in connection with the determination of allocations and normal portfolio activity such as additions and withdrawals. Rebalancing of the asset portfolio on a quarterly basis is required to address any allocations that deviate from the established target allocations in excess of defined allowable ranges. The target allocations are subject to periodic review, including a review of the asset portfolio’s performance, by the named fiduciary of the plans. Any tactical deviations from the established asset mix require the approval of the named fiduciary. The U.S. plans may enter into both exchange traded and non-exchange traded derivative transactions in order to manage interest rate exposure, volatility, term structure of interest rates, and sector and currency exposures within the fixed income portfolios. The Company has established minimum credit quality standards for counterparties in such transactions. The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2017 and 2016. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.
Fixed Income Securities U.S. pension plan assets categorized above as fixed income securities include fund investments comprised of mortgage-backed, corporate, government and agency and asset-backed instruments. Mortgage-backed securities consist of residential mortgage pass-through certificates. Investments in corporate bonds are diversified across industry and sector and consist of investment-grade, as well as high-yield debt instruments. U.S. government investments consist of obligations of the U.S. Treasury, other U.S. government agencies, state governments and local municipalities. Assets categorized as foreign government and agency debt securities included investments in developed and emerging markets. The values of fixed income investments classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. A portion of the fixed income instruments classified within Level 2 are valued based upon estimated prices from independent vendors’ pricing models and these prices are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Equity Securities U.S. pension plan assets categorized as equity securities consist of fund investments in publicly-traded U.S. and non-U.S. equity securities. In order to achieve appropriate diversification, these portfolios are invested across market sectors, investment styles, capitalization weights and geographic regions. The values of equity securities classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. Cash and Cash Equivalents A portion of the U.S. plans’ assets consists of investments in cash and cash equivalents, primarily to accommodate liquidity requirements relating to trade settlement and benefit payment activity, and the values of these assets are based upon quoted market prices. Other Securities Other U.S. pension plan assets include fund investments comprised of underlying assets of real estate, infrastructure, commodities and hedge funds. The values of such instruments classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. International Plans International plan assets comprise 35% of the Company’s total benefit plan assets, based on market value at September 30, 2017. Such plans have local independent fiduciary committees, with responsibility for development and oversight of investment policy, including asset allocation decisions. In making such decisions, consideration is given to local regulations, investment practices and funding rules. The following table provides the fair value measurements of international plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2017 and 2016.
Fixed Income Securities Fixed income investments held by international pension plans include corporate, U.S. government and non-U.S. government securities. The values of fixed income securities classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of investments classified within Level 2 are based upon estimated prices from independent vendors’ pricing models and these prices are derived from market observable sources. Equity Securities Equity securities included in the international plan assets consist of publicly-traded U.S. and non-U.S. equity securities. The values of equity securities classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. Other Securities The international plans hold a portion of assets in cash and cash equivalents, in order to accommodate liquidity requirements and the values are based upon quoted market prices. Real estate investments consist of investments in funds holding an interest in real properties and the corresponding values represent the estimated fair value based on the fair value of the underlying investment value or cost, adjusted for any accumulated earnings or losses. The values of insurance contracts approximately represent cash surrender value. Other investments include fund investments for which values are based upon either quoted market prices or market observable sources. The following table summarizes the changes, for the years ended September 30, 2017 and 2016, in the fair value of international pension assets measured using Level 3 inputs:
Savings Incentive Plan The Company has voluntary defined contribution plans covering eligible employees in the United States which provide for a Company match. The cost of these plans was $67 million in 2017, $61 million in 2016 and $54 million in 2015. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Definitive Agreement to Acquire Bard On April 23, 2017, the Company announced that it had entered into a definitive agreement under which BD will acquire Bard for an implied value of $317.00 per Bard common share in cash and stock, for estimated total consideration of approximately $24 billion. The combination will create a highly differentiated medical technology company uniquely positioned to improve both the process of care and the treatment of disease for patients and healthcare providers. Under the terms of the transaction, Bard common shareholders will be entitled to receive approximately $222.93 in cash and 0.5077 shares of BD common stock per Bard share, or an implied value of $317.00 per Bard common share based on BD's closing price on April 21, 2017. At closing, Bard shareholders will own approximately 15 percent of the combined company. The Company will finance the cash portion of total consideration transferred with available cash, which will include $4.8 billion of net proceeds raised in the third quarter of fiscal year 2017 through registered public offerings of equity securities and approximately $9.6 billion of net proceeds also raised in the third quarter through debt transactions. The total consideration transferred will also include an estimated $8 billion of BD common stock. The transaction is subject to regulatory approval and customary closing conditions, and is expected to close in the fourth calendar quarter of 2017. CareFusion Corporation Overview of Transaction and Consideration Transferred On March 17, 2015, the Company acquired a 100% interest in CareFusion, a global medical technology company with a comprehensive portfolio of products in the areas of medication management, infection prevention, operating room and procedural effectiveness, and respiratory care, to create a global leader in medication management and patient safety solutions. The fair value of consideration transferred consisted of the components below.
Additional disclosures regarding the financing arrangements the Company entered into to fund the cash portion of the consideration transferred relative to this acquisition are provided in Note 15. Unaudited Pro Forma Information The acquisition was accounted for under the acquisition method of accounting for business combinations. The operating activities from the acquisition date through March 31, 2015 were not material to the Company’s consolidated results of operations. As such, CareFusion’s operating results were included in the Company’s consolidated results of operations beginning on April 1, 2015. Revenues and Operating Income are no longer specifically identifiable due to the progression of the Company's integration activities. Revenues and Operating Income for the year ended September 30, 2015 included revenues and operating loss attributable to CareFusion of $2 billion and $242 million, respectively. The following table provides the pro forma results for the years ended September 30, 2016 and 2015 as if CareFusion had been acquired as of October 1, 2013.
The pro forma net income amounts above reflect adjustments, which were adjusted for the applicable tax impact, including the following: additional amortization and depreciation expense relating to assets acquired; interest and other financing costs relating to the acquisition transaction; and the elimination of one-time or nonrecurring items. The pro forma results do not include any anticipated cost savings or other effects of the integration of CareFusion. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been if the acquisition had occurred on the dates indicated. Other Transactions Fiscal year 2017 acquisition of remaining interest in Caesarea Medical Electronics Upon the Company's acquisition of CareFusion, it acquired a 40% ownership interest in Caesarea Medical Electronics ("CME"), an Israeli-based global infusion pump systems manufacturer. The Company previously accounted for this interest as an equity investment. On April 3, 2017, the Company acquired the remaining 60% ownership interest in CME. This acquisition did not materially impact the Company's consolidated financial results. Transaction and other Acquisition-Related Costs The Company incurred integration, restructuring and transaction costs relating to acquisitions in 2017, 2016 and 2015:
The Company's integration costs incurred in 2017, 2016 and 2015 were substantially associated with the CareFusion acquisition and a small portion of costs incurred in 2017 related to the pending Bard acquisition. The restructuring costs incurred in 2017, 2016 and 2015, which related to CareFusion and other portfolio rationalization initiatives, are further discussed in Note 11. Transaction costs, which primarily consisted of legal, advisory and other costs, were largely incurred in 2017 in connection with the pending agreement to acquire Bard and other portfolio rationalization initiatives. Transaction costs were also incurred in 2015 in connection with the CareFusion acquisition. The Company's integration, restructuring and transaction costs were primarily recorded as Acquisitions and other restructurings. Discussion regarding the financing costs relating to the pending Bard acquisition and the CareFusion acquisition, which were recorded as Interest expense, are provided in Note 15. |
Divestiture |
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Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture Respiratory Solutions On October 3, 2016, the Company sold a 50.1% controlling financial interest in its Respiratory Solutions business, a component of the Medical segment, to form a venture, Vyaire Medical. The Company retained a 49.9% non-controlling interest in the new standalone entity. The buyer controls the operations and governance of the new entity. The Company accounts for its remaining interest in the new entity as an equity method investment and, beginning on January 1, 2017, records its share of the new entity's earnings or losses on a one-quarter lag to Other income (expense), net. The Company has agreed to various contract manufacturing and certain logistical and transition services agreements with the new entity for a period of up to two years after the sale. Assets and liabilities held for sale on the consolidated balance sheet at September 30, 2016 included assets and liabilities subject to this agreement of approximately $578 million and $189 million, respectively. The historical financial results for the Respiratory Solutions business, which included approximately $822 million and $417 million of revenues for years ended September 30, 2016 and 2015, respectively, have not been classified as a discontinued operation. |
Business Restructuring Charges |
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Business Restructuring Charges | Business Restructuring Charges In connection with the CareFusion acquisition and portfolio rationalization initiatives, the Company incurred restructuring costs which were recorded as Acquisitions and other restructurings. Additional disclosures regarding these restructuring activities and the related costs are provided in Notes 7, 9 and 10. Restructuring liability activity in 2017, 2016 and 2015 was as follows:
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets at September 30 consisted of:
Intangible amortization expense was $533 million, $552 million and $346 million in 2017, 2016 and 2015, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2018 to 2022 are as follows: 2018 — $526 million; 2019 — $519 million; 2020 — $518 million; 2021 — $514 million; 2022 — $503 million. The following is a reconciliation of goodwill by business segment:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below. Foreign Currency Risks and Related Strategies The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts and currency options. Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. As such, the gains or losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. The net amounts in 2017, 2016 and 2015, which are recognized in Other income (expense), net, were immaterial to the Company's consolidated financial results. The total notional amounts of the Company’s outstanding foreign exchange contracts as of September 30, 2017 and 2016 were $2.5 billion and $2.3 billion, respectively. In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has designated $2 billion of euro-denominated debt, issued during the first and third quarters of fiscal year 2017, as net investment hedges. Accordingly, net gains or losses relating to this debt, which are attributable to changes in the euro to U.S. dollar spot exchange rate, are recorded as accumulated foreign currency translation in Other comprehensive income (loss). Recognition of hedge ineffectiveness into earnings will occur if the notional amount of the euro-denominated debt no longer matches the portion of the net investments in foreign subsidiaries which underlie the hedges. The Company's balance of Accumulated other comprehensive income (loss) as of September 30, 2017 included net losses relating to these net investment hedges of $159 million. Additional disclosures regarding the Company's issuances of the euro-denominated debt in fiscal year 2017 are provided in Note 15. Interest Rate Risks and Related Strategies The Company’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Company’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are offset by amounts recorded in Other comprehensive income (loss). If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings over the remaining life of the hedged debt. The net realized loss related to terminated interest rate swaps expected to be reclassified and recorded in Interest expense within the next 12 months is $4 million, net of tax. At September 30, 2016, the total notional value of the Company's outstanding forward starting interest rate swaps, which were entered into to mitigate the Company's exposure to interest rate risk and were designated as cash flow hedges, was $500 million. In the third quarter of 2017, prior to its issuance of senior unsecured U.S. notes during same quarter, the Company entered into additional forward starting interest rate swaps, which were also designated as cash flow hedges, with a notional amount of $1.75 billion. The Company's recognition of unrealized and realized amounts, including net realized losses recognized upon the termination of all of the Company's outstanding interest rate hedges in the third quarter of 2017 concurrently with its issuance of the senior unsecured notes noted above, resulted in the Company's recognition of a net gain in other comprehensive income relating to interest rate hedges during the year ended September 30, 2017. Additional disclosures regarding the Company's issuance of notes are provided in Note 15 and additional disclosures regarding the net gain recognized on terminated cash flow hedges during 2017 are provided in Note 3. The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $375 million at September 30, 2017 and 2016. The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on $375 million of the Company’s 3.125% notes due 2021 from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The (losses) gains recorded on these fair value hedges, which were offset by (gains) losses recorded to the underlying debt instruments, were immaterial to the Company's consolidated financial results. Other Risk Exposures The Company purchases resins, which are oil-based components used in the manufacture of certain products. Significant increases in world oil prices that lead to increases in resin purchase costs could impact future operating results. From time to time, the Company has managed price risks associated with these commodity purchases through commodity derivative forward contracts. The Company had no outstanding commodity derivative forward contracts at September 30, 2017 and 2016. Effects on Consolidated Balance Sheets The location and amounts of derivative instrument fair values in the consolidated balance sheet are segregated below between designated, qualifying hedging instruments and ones that are not designated for hedge accounting.
Effects on Consolidated Statements of Income The amounts recognized in other comprehensive income during 2017, 2016 and 2015 relating to cash flow hedges were not material to the Company's consolidated financial results. The Company’s designated derivative instruments are highly effective. As such, there were no gains or losses, related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing, recognized immediately in income relative to derivative contracts outstanding in the periods presented. |
Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Recurring Fair Value Measurements The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at September 30, 2017 and 2016 are classified in accordance with the fair value hierarchy in the following table:
The Company’s institutional money market accounts permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. The Company’s remaining cash equivalents were $12.153 billion and $1.317 billion at September 30, 2017 and 2016, respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The cash equivalents consist of liquid investments with a maturity of three months or less and the short-term investments consist of instruments with maturities greater than three months and less than one year. The Company measures the fair value of forward exchange contracts and interest rate swaps based upon the present value of expected future cash flows using market-based observable inputs including credit risk, interest rate yield curves, foreign currency spot prices and forward prices. Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $19.2 billion and $11.3 billion at September 30, 2017 and 2016, respectively. The fair value of the current portion of long-term debt was $206 million and $798 million at September 30, 2017 and 2016, respectively. The contingent consideration liabilities were recognized as part of the consideration transferred by the Company for certain acquisitions. The fair values of the contingent consideration liabilities were estimated using probability-weighted discounted cash flow models that were based upon the probabilities assigned with regard to achievement of the contingent events. The estimated fair values of the contingent consideration liabilities are remeasured each reporting period based upon increases or decreases in the probability of the contingent payments. The decrease to the total contingent consideration liability in fiscal year 2017 is primarily attributable to a $40 million payment of a contingent consideration liability recorded in connection with a previously closed acquisition. The Company’s policy is to recognize any transfers into fair value measurement hierarchy levels and transfers out of levels at the beginning of each reporting period. There were no transfers in and out of Level 1, Level 2 or Level 3 measurements for the years ending September 30, 2017 and 2016. Nonrecurring Fair Value Measurements In fiscal year 2016, the Company recorded a charge of $214 million to impair capitalized internal-use software assets held for sale as a result of the Company's transition of certain elements of its information technology infrastructure to an outsourced model. Impairment charges recorded in 2015 of $72 million primarily related to information technology assets held for sale as a result of these same transition efforts. Also in fiscal year 2016, the Company recorded losses of $81 million on the held for sale assets of certain non-core businesses. The amounts recognized in 2016 and 2015 were recorded to Acquisitions and other restructurings to adjust the carrying amount of assets held for sale to an estimate of the assets' fair values, less the estimated costs to sell these assets. The fair values of the assets adjusted in 2016 and 2015 were estimated, based upon a market participant's perspective, using a market approach and Level 2 inputs, including quoted prices for similar assets. Concentration of Credit Risk The Company maintains cash deposits in excess of government-provided insurance limits. Such cash deposits are exposed to loss in the event of nonperformance by financial institutions. Substantially all of the Company’s trade receivables are due from public and private entities involved in the healthcare industry. Due to the large size and diversity of the Company’s customer base, concentrations of credit risk with respect to trade receivables are limited. The Company does not normally require collateral. The Company is exposed to credit loss in the event of nonperformance by financial institutions with which it conducts business. However, this loss is limited to the amounts, if any, by which the obligations of the counterparty to the financial instrument contract exceed the obligations of the Company. The Company also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions. The Company continually evaluates its accounts receivables for potential collection risks particularly those resulting from sales to government-owned or government-supported healthcare facilities in certain countries as payment may be dependent upon the financial stability and creditworthiness of those countries’ national economies. The Company continually evaluates all governmental receivables for potential collection risks associated with the availability of government funding and reimbursement practices. The Company believes the current reserves related to all governmental receivables are adequate and that this concentration of credit risk will not have a material adverse impact on its financial position or liquidity. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term debt Short-term debt at September 30 consisted of:
The weighted average interest rates for short-term debt were 4.90% and 1.49% at September 30, 2017 and 2016, respectively. Long-term debt Long-Term Debt at September 30 consisted of:
The aggregate annual maturities of long-term debt including interest during the fiscal years ending September 30, 2018 to 2022 are as follows: 2018 — $823 million; 2019 — $2.2 billion; 2020 — $2.8 billion; 2021 — $1.2 billion; 2022 — $3.8 billion. Other current credit facilities In January 2016, the Company replaced an existing $1 billion syndicated credit facility with a $1.5 billion syndicated credit facility. During the first quarter of fiscal year 2017, the Company extended the expiration date of this credit facility to January 2022 from the original expiration date of January 2021. There were no borrowings outstanding under this credit facility at September 30, 2017. The credit facility, under which the Company may issue up to $100 million in letters of credit, can be used for general corporate purposes. It includes a provision that enables BD, subject to additional commitments made by the lenders, to access up to an additional $500 million in financing through the facility for a maximum aggregate commitment of $2 billion. The credit facility includes a single financial covenant that requires BD to maintain an interest expense coverage ratio of not less than 4-to-1 for the most recent four consecutive fiscal quarters. The Company was in compliance with this covenant as of September 30, 2017. The Company will replace this existing syndicated credit facility with a five-year senior unsecured revolving credit facility upon the closing of the Bard acquisition, as further discussed below. In addition, the Company has informal lines of credit outside of the United States. First Quarter Fiscal Year 2017 Debt-Related Transactions In December 2016, the Company issued euro-denominated debt consisting of 500 million euros of 1.000% notes and 500 million euros of 1.900% notes. The Company used the net proceeds from this long-term debt offering, together with other sources of liquidity, to fund the Company's repurchase of certain of its senior notes outstanding. Under this cash tender offer, the Company repurchased all or a portion of the aggregate principal amounts of certain of its long-term notes outstanding, totaling $1.689 billion, at an aggregate market price of $1.764 billion. The carrying value of these long-term notes was $1.727 billion, and the Company recognized a loss on this debt extinguishment of $42 million, which was recorded in December 2016 as Other income (expense), net, on the Company’s consolidated statements of income. Third Quarter Fiscal Year 2017 Debt-Related Transactions In connection with the Company's agreement to acquire Bard, as previously discussed in Note 9, the Company's capital structure was impacted in the third quarter by the debt-related transactions discussed below.
Also in connection with the Company's agreement to acquire Bard, the Company commenced offers to exchange certain outstanding notes issued by Bard for a like-amount of new notes to be issued by the Company. The offers are conditioned upon the closing of the Bard acquisition and the expiration of these offers will be extended until the acquisition closes. The aggregate principal amounts of Bard notes which have been validly tendered for notes issued by the Company since the offers were commenced in May are provided below.
Capitalized interest The Company capitalizes interest costs as a component of the cost of construction in progress. A summary of interest costs and payments for the years ended September 30 is as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision for income taxes the years ended September 30 consisted of:
The components of Income Before Income Taxes for the years ended September 30 consisted of:
The table below summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled. The Company believes it is reasonably possible that certain audits will close within the next twelve months but no significant increases or decreases in the amount of the unrecognized tax benefits are expected to result.
Upon the Company's acquisition of CareFusion, the Company became a party to a tax matters agreement with Cardinal Health resulting from Cardinal Health's spin-off of CareFusion in fiscal year 2010. Under the tax matters agreement, the Company is obligated to indemnify Cardinal Health for certain tax exposures and transaction taxes prior to CareFusion’s spin-off from Cardinal Health. The indemnification payable is approximately $134 million at September 30, 2017 and is included in Deferred Income Taxes and Other on the consolidated balance sheet. At September 30, 2017, 2016 and 2015, there are $415 million, $478 million and $620 million of unrecognized tax benefits that if recognized, would affect the effective tax rate. During the fiscal years ended September 30, 2017, 2016 and 2015, the Company reported interest and penalties associated with unrecognized tax benefits of $57 million, $(38) million and $5 million on the consolidated statements of income as a component of Income tax provision. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. While the IRS has completed its audit for the BD legacy fiscal year 2014 and combined company fiscal year 2016, the IRS has recently commenced the audit for the CareFusion legacy fiscal year 2014 and short period 2015. For the BD legacy business, all years are effectively settled with the exception of 2015 for which the Company believes it is adequately reserved for any potential exposures. With the exception of the CareFusion legacy fiscal year 2010 audit, all other periods are at various stages of appeals or protests. For the Company’s other major tax jurisdictions where it conducts business, the Company’s tax years are generally open after 2011. Deferred income taxes at September 30 consisted of:
(A)Net deferred tax assets are included in Other Assets and net deferred tax liabilities are included in Deferred Income Taxes and Other. Deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. Deferred taxes are not provided on undistributed earnings of foreign subsidiaries that are indefinitely reinvested. At September 30, 2017, the cumulative amount of such undistributed earnings indefinitely reinvested outside the United States was $9.6 billion. Determining the tax liability that would arise if these earnings were remitted is not practicable. Deferred taxes are provided for earnings outside the United States when those earnings are not considered indefinitely reinvested. Generally, deferred tax assets have been established as a result of net operating losses and credit carryforwards with expiration dates from 2018 to an unlimited expiration date. Valuation allowances have been established as a result of an evaluation of the uncertainty associated with the realization of certain deferred tax assets on these losses and credit carryforwards. The valuation allowance for 2017 is primarily the result of foreign losses due to the Company’s global re-organization of its foreign entities and these generally have no expiration date. Valuation allowances are also maintained with respect to deferred tax assets for certain federal and state carryforwards that may not be realized and that principally expire in 2021. A reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows:
The approximate amounts of tax reductions related to tax holidays in various countries in which the Company does business were $144 million, $121 million and $103 million, in 2017, 2016 and 2015, respectively. The benefit of the tax holiday on diluted earnings per share was approximately $0.64, $0.56, and $0.48 for fiscal years 2017, 2016 and 2015, respectively. The tax holidays expire at various dates through 2026. The Company made income tax payments, net of refunds, of $265 million in 2017, $218 million in 2016 and $240 million in 2015. |
Sale-Type Leases and Financing Receivables |
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Receivables [Abstract] | |
Sale-Type Leases and Financing Receivable | Sales-Type Leases and Financing Receivables In April 2017, in conjunction with the implementation of a new “go-to-market” business model for the Company's U.S. dispensing business within the Medication Management Solutions (“MMS”) unit of the Medical segment, the Company amended the terms of certain customer leases for dispensing equipment within the MMS unit. The modification provided customers the ability to reduce its dispensing asset base via a return provision, resulting in a more flexible lease term. Prior to the modification, these leases were accounted for as sales-type leases in accordance with Accounting Standards Codification Topic 840, "Leases", as the non-cancellable lease term of 5 years exceeded 75% of the equipment’s estimated useful life and the present value of the minimum lease payments exceeded 90% of the equipment’s fair value. As a result of the lease modification, the Company was required to reassess the classification of the leases due to the amended lease term. Accordingly, most amended lease contracts were classified as operating leases beginning in April 2017. The change in lease classification resulted in a pre-tax charge to earnings in fiscal year 2017 of $748 million, which was recorded in Other operating (income) expense, net, relating to the derecognition of the net investment in sales-type leases of $1.065 billion, partially offset by the recognition of the underlying leased assets, as Property, Plant and Equipment, Net on the Company’s balance sheet, as of the effective date of $317 million. Beginning April 1, 2017, revenue associated with these modified contracts is recognized on a straight-line basis over the remaining lease term, along with depreciation on the reinstated leased assets. The Company's consolidated financial results in 2017 were not materially impacted by the financing receivables remaining subsequent to the lease modification discussed above. |
Supplemental Financial Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information Other Income (Expense), Net
Additional disclosures regarding the losses recognized on the extinguishment of debt are provided in Note 15. Additional disclosures regarding the Company's divestiture of the Respiratory Solutions business and the Vyaire Medical venture formed with this business are provided in Note 10. The Company recognized an acquisition-date accounting gain related to a previously-held equity method investment in an entity that the Company acquired during the third quarter of fiscal year 2017. The Company also recognized such a gain in 2015, when it acquired another entity in which an equity method investment was held prior to the acquisition date. Trade Receivables, Net The amounts recognized in 2017, 2016 and 2015 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:
Inventories Inventories at September 30 consisted of:
Property, Plant and Equipment, Net Property, Plant and Equipment, Net at September 30 consisted of:
The increase in Machinery, equipment and fixtures included $317 million of assets recognized as Property, Plant and Equipment, Net on the Company’s balance sheet, resulting from a modification to the Company's dispensing equipment lease contracts with customers. Additional disclosures regarding this modification are provided in Note 17. |
Supplementary Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Data (Unaudited) | SUPPLEMENTARY QUARTERLY DATA (UNAUDITED)
Certain quarterly amounts may not add to the year-to-date totals due to rounding. Earnings per share amounts are calculated from the underlying whole-dollar amounts. As of May 2017, the weighted average common shares used in the computations of basic and diluted earnings per share reflect shares issued in anticipation of the pending acquisition of Bard. Additional disclosures regarding this issuance of shares and the pending acquisition are provided in Notes 3 and 9. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and Notes to Consolidated Financial Statements of Becton, Dickinson and Company (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. Our fiscal year ends on September 30. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company’s accounts and those of its majority-owned subsidiaries after the elimination of intercompany transactions. The Company has no material interests in variable interest entities. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. |
Short-Term Investments | Short-Term Investments Short-term investments consist of time deposits with maturities greater than three months and less than one year when purchased. |
Trade and Financing Receivables | Trade and Financing Receivables The Company grants credit to customers in the normal course of business and the resulting trade receivables are stated at their net realizable value. The allowance for doubtful accounts represents the Company’s estimate of probable credit losses relating to trade receivables and is determined based on historical experience and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectible. |
Inventories | Inventories Inventories are stated at the lower of first-in, first-out cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are principally provided on the straight-line basis over estimated useful lives, which range from 20 to 45 years for buildings, four to 13 years for machinery and equipment and one to 12 years for leasehold improvements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s unamortized intangible assets include goodwill and in-process research and development assets which arise from acquisitions. The Company currently reviews all indefinite-lived assets, including goodwill, for impairment using quantitative models. Goodwill is reviewed at least annually for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. The Company’s reporting units generally represent one level below reporting segments, and components within an operating segment that have similar economic characteristics are aggregated. Potential impairment of goodwill is identified by comparing the fair value of a reporting unit, estimated using an income approach, with its carrying value. The annual impairment review performed on July 1, 2017 indicated that all identified reporting units’ fair values exceeded their respective carrying values. The review for impairment of in-process research and development assets is performed by comparing the fair value of the technology or project assets, estimated using an income approach, with their carrying value. In-process research and development assets are considered indefinite-lived assets and are reviewed at least annually for impairment until projects are completed or abandoned. Certain trademarks that are considered to generate cash flows indefinitely are also considered to be indefinite-lived intangible assets and these assets are also reviewed at least annually for impairment. Amortized intangible assets include developed technology assets which arise from acquisitions. These assets represent acquired intellectual property that is already technologically feasible upon the acquisition date or acquired in-process research and development assets that are completed subsequent to acquisition. Developed technology assets are generally amortized over periods ranging from 15 to 20 years, using the straight-line method. Other intangibles with finite useful lives, which include patents, are amortized over periods principally ranging from one to 40 years, using the straight-line method. Finite-lived intangible assets, including developed technology assets, are periodically reviewed when impairment indicators are present to assess recoverability from future operations using undiscounted cash flows. The carrying values of these finite-lived assets are compared to the undiscounted cash flows they are expected to generate and an impairment loss is recognized in operating results to the extent any finite-lived intangible asset’s carrying value exceeds its calculated fair value. |
Foreign Currency Translation | Foreign Currency Translation Generally, foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. The U.S. dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the foreign currency translation adjustments in Accumulated other comprehensive income (loss). |
Revenue Recognition | Revenue Recognition Revenue from product sales is typically recognized when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; product price is fixed or determinable; collection of the resulting receivable is reasonably assured. Certain sales arrangements contain multiple deliverables, including equipment and service deliverables, which requires the Company to determine the separate units of account. If the deliverable meets the criteria of a separate unit of accounting, the arrangement consideration is allocated to each element based upon its relative selling price. In determining the best evidence of selling price of a unit of account the Company utilizes vendor-specific objective evidence (“VSOE”), which is the price the Company charges when the deliverable is sold separately. When VSOE is not available, management uses relevant third-party evidence (“TPE”) of selling price, if available. When neither VSOE nor TPE of selling price exists, management uses its best estimate of selling price. Revenue allocated to equipment deliverables is recognized upon customer acceptance, which occurs after the transfer of title and risk of loss to the customer and the completion of installation or training services. When related training services are considered inconsequential, delivery is deemed to occur upon the transfer of title and risk of loss, at which time revenue and the costs associated with installation and training are recognized. For equipment lease revenue, transactions are evaluated and classified as either operating leases or sales-type leases. Lease income for products sold under sales-type leases is recognized as revenue upon the completion of installation activities in the amount of the present value of the minimum lease payments. The financing component of sales-type leases is recorded as revenue over the lease term. For products sold under operating leases, revenue is recognized at the contracted rate over the rental period, as defined within the customer agreement. For products sold and leased with embedded software, if software is considered not essential to the non-software elements of a product but is considered more than incidental to a product as a whole, the product’s software elements must be separated from its non-software elements under the requirements relating to multiple-element arrangements and accounted for under software industry-specific revenue recognition requirements. However, if it is determined that the embedded software is more than incidental to the product as a whole but the non-software elements and software elements work together to deliver the essential functionality of the products as a whole, then the accounting for such product does not fall within the scope of software industry-specific accounting requirements. The Company’s domestic businesses sell products primarily to distributors that resell the products to end-user customers. Rebates are provided to distributors that sell to end-user customers at prices determined under a contract between the Company and the end-user customer. Provisions for rebates, as well as sales discounts and returns, are based upon estimates and are accounted for as a reduction of revenues when revenue is recognized. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in Selling and administrative expense. |
Derivative Financial Instruments | Derivative Financial Instruments All derivatives are recorded in the balance sheet at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. Any deferred gains or losses associated with derivative instruments are recognized in income in the period in which the underlying hedged transaction is recognized. |
Income Taxes | Income Taxes United States income taxes are not provided on undistributed earnings of foreign subsidiaries where such undistributed earnings are indefinitely reinvested outside the United States. Deferred taxes are provided for earnings of foreign subsidiaries when those earnings are not considered indefinitely reinvested. Income taxes are provided and tax credits are recognized based on tax laws enacted at the dates of the financial statements. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. In evaluating the exposure associated with various tax filing positions, the Company records accruals for uncertain tax positions, based on the technical support for the positions, past audit experience with similar situations, and the potential interest and penalties related to the matters. The Company maintains valuation allowances where it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances are included in the tax provision in the period of change. In determining whether a valuation allowance is warranted, management evaluates factors such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. |
Earnings per Share | Earnings per Share Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In computing diluted earnings per share, only potential common shares that are dilutive (i.e., those that reduce earnings per share or increase loss per share) are included in the calculation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates or assumptions affect reported assets, liabilities, revenues and expenses as reflected in the consolidated financial statements. Actual results could differ from these estimates. |
New Accounting Principle Adopted and New Accounting Principles Not Yet Adopted | New Accounting Principle Adopted On October 1, 2016, the Company prospectively adopted amended requirements issued by the Financial Accounting Standards Board ("FASB") relating to the timing of recognition and classification of share-based compensation award-related income tax effects. Upon the settlement of awards during fiscal year 2017, the Company recorded tax benefits for the year ended of $77 million to Income tax provision (benefit) within its consolidated statement of income. These tax benefits were recorded within Capital in excess of par value on the Company's consolidated balance sheet in the prior-year period. Because these excess tax benefits are no longer recorded in Capital in excess of par value, the current period adjustment for the dilutive impact of share equivalents from share-based plans, which is used in the Company's computation of diluted earnings per share, increased by approximately 1 million shares. Also per the amended guidance, the Company classified the $77 million of excess tax benefits for the year ended September 30, 2017 on its consolidated statement of cash flows within Net Cash Provided by Operating Activities, rather than Net Cash Provided by (Used for) Financing Activities, which included the excess tax benefits for the years ended September 30, 2016 and 2015. The amended guidance allows entities to account for award forfeitures as they occur; however, the Company has elected to continue its determination of compensation cost recognized in each period based upon an estimate of expected future forfeitures. New Accounting Principles Not Yet Adopted In February 2016, the FASB issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet. The new standard also requires expanded disclosures regarding leasing arrangements. The Company is currently evaluating the impact that this new lease accounting standard will have on its consolidated financial statements upon its adoption of the standard on October 1, 2019. In May 2014, the FASB issued a new revenue recognition standard. Under this standard, revenue will be recognized upon the transfer of goods or services to customers and the amount of revenue recognized will reflect the consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company intends to adopt the standard, as required, on October 1, 2018 and recently completed an initial assessment to identify the potential areas of impact that this new revenue recognition standard will have on its consolidated financial statements. As part of the initial assessment, the Company reviewed a representative sample of its contracts across its various businesses and geographies to identify potential differences that could result from applying the requirements of the new standard. The analysis included identifying whether there may be differences in timing of revenue recognition under the new standard as well as assessing performance obligations, variable consideration, and contract costs. The Company has not yet estimated the impact of the new standard on the timing and pattern of its revenue recognition. The Company continues to evaluate the available adoption methods, and apprises its audit committee of the project status regularly. |
Contingencies | Contingencies Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. generally accepted accounting principles, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. In June 2007, Retractable Technologies, Inc. (“RTI”) filed a complaint against the Company under the caption Retractable Technologies, Inc. vs. Becton Dickinson and Company (Civil Action No. 2:07-cv-250, U.S. District Court, Eastern District of Texas) alleging that the BD Integra™ syringes infringe patents licensed exclusively to RTI. In its complaint, RTI also alleged that the Company engaged in false advertising with respect to certain of the Company’s safety-engineered products in violation of the Lanham Act; acted to exclude RTI from various product markets and to maintain its market share through, among other things, exclusionary contracts in violation of state and federal antitrust laws; and engaged in unfair competition. In January 2008, the Court severed the patent and non-patent claims into separate cases, and stayed the non-patent claims during the pendency of the patent claims at the trial court level. On April 1, 2008, RTI filed a complaint against BD under the caption Retractable Technologies, Inc. and Thomas J. Shaw v. Becton Dickinson and Company (Civil Action No. 2:08-cv-141, U.S. District Court, Eastern District of Texas) alleging that the BD Integra™ syringes infringe another patent licensed exclusively to RTI. On August 29, 2008, the Court ordered the consolidation of the patent cases. RTI was subsequently awarded $5 million in damages at a jury trial with respect to the patent claims, which has been paid, and the patent cases are now concluded. On September 19, 2013, a jury returned a verdict against BD with respect to RTI’s Lanham Act claim and claim for attempted monopolization based on deception in the safety syringe market. The jury awarded RTI $113.5 million for its attempted monopolization claim (which would be trebled under the antitrust statute). The jury’s verdict rejected RTI’s monopolization claims in the markets for safety syringes, conventional syringes and safety IV catheters; its attempted monopolization claims in the markets for conventional syringes and safety IV catheters; and its claims for contractual restraint of trade and exclusive dealing in the markets for safety syringes, conventional syringes and safety IV catheters. In connection with the verdict, the Company recorded a pre-tax charge of approximately $341 million in the fourth quarter of fiscal year 2013. With respect to RTI's requested injunction relief, in November 2014, the Court granted RTI’s request that BD be ordered to issue certain corrective statements regarding its advertising and enjoined from making certain advertising claims. The Court denied RTI’s request for injunctive relief relating to BD’s contracting practices and BD’s safety syringe advertising, finding that RTI failed to prove that BD’s contracting practices violated the antitrust laws or that BD’s safety syringe advertising is false. On January 14, 2015, the Court granted in part and denied in part BD’s motion for a stay of the injunction. The Court held that, pending appeal, BD would not be required to send the corrective advertising notices to end-user customers, but only to employees, distributors and Group Purchasing Organizations. On January 15, 2015, the Court entered its Final Judgment in the case ordering that RTI recover $341 million for its attempted monopolization claim and $12 million for attorneys’ fees, and awarded pre and post-judgment interest and costs. On February 3, 2015, the Court of Appeals for the Fifth Circuit denied BD’s motion for a stay of the injunction pending the final appeal, and BD thereafter complied with the Court’s order. On April 23, 2015, the Court granted BD’s motion to eliminate the award of pre-judgment interest, and entered a new Final Judgment. BD thereafter appealed to the Court of Appeals challenging the entirety of the Final Judgment. On December 2, 2016, the Court of Appeals issued an opinion reversing the judgment as to RTI’s attempted monopolization claim and rendered judgment on that claim in favor of BD. As a result, the Company reversed $336 million of reserves associated with this judgment, which was recorded in Other operating (income) expense, net. The Court of Appeals affirmed the judgment for Lanham Act liability, and remanded the case to the district court to consider whether and if so how much profit should be disgorged by BD on that claim. The Court of Appeals vacated and remanded the injunction ordered by the Court. On January 31, 2017, RTI filed a petition for a writ of certiorari with the U.S. Supreme Court. On March 20, 2017, the U.S. Supreme Court denied certiorari, and the district court thereafter heard RTI’s request for disgorgement. On August 17, 2017, the district court entered judgment in favor of BD and ruled that RTI is not entitled to any award of money damages. RTI has appealed this ruling to the Fifth Circuit Court of Appeals. On July 17, 2015, a class action complaint was filed against the Company in the U.S. District Court for the Southern District of Georgia. The plaintiffs, Glynn-Brunswick Hospital Authority, trading as Southeast Georgia Health System, and Southeast Georgia Health System, Inc., seek to represent a class of acute care purchasers of BD syringes and IV catheters. The complaint alleges that BD monopolized the markets for syringes and IV catheters through contracts, theft of technology, false advertising, acquisitions, and other conduct. The complaint seeks treble damages but does not specify the amount of alleged damages. The Company filed a motion to dismiss the complaint which was granted on January 29, 2016. On September 23, 2016, the court denied plaintiffs’ motion to alter or amend the judgment to allow plaintiffs to file an amended complaint, and plaintiffs appealed that decision to the Eleventh Circuit Court of Appeals. The plaintiffs thereafter voluntarily dismissed their appeal, and the Court of Appeals dismissed the case on November 21, 2016. The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to the suits pending against the Company and is engaged in a vigorous defense of each of these matters. The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. |
Fair Value of Financial Instruments | The Company measures the fair value of forward exchange contracts and interest rate swaps based upon the present value of expected future cash flows using market-based observable inputs including credit risk, interest rate yield curves, foreign currency spot prices and forward prices. Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $19.2 billion and $11.3 billion at September 30, 2017 and 2016, respectively. The fair value of the current portion of long-term debt was $206 million and $798 million at September 30, 2017 and 2016, respectively. The contingent consideration liabilities were recognized as part of the consideration transferred by the Company for certain acquisitions. The fair values of the contingent consideration liabilities were estimated using probability-weighted discounted cash flow models that were based upon the probabilities assigned with regard to achievement of the contingent events. The estimated fair values of the contingent consideration liabilities are remeasured each reporting period based upon increases or decreases in the probability of the contingent payments. The decrease to the total contingent consideration liability in fiscal year 2017 is primarily attributable to a $40 million payment of a contingent consideration liability recorded in connection with a previously closed acquisition. The Company’s policy is to recognize any transfers into fair value measurement hierarchy levels and transfers out of levels at the beginning of each reporting period. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash deposits in excess of government-provided insurance limits. Such cash deposits are exposed to loss in the event of nonperformance by financial institutions. Substantially all of the Company’s trade receivables are due from public and private entities involved in the healthcare industry. Due to the large size and diversity of the Company’s customer base, concentrations of credit risk with respect to trade receivables are limited. The Company does not normally require collateral. The Company is exposed to credit loss in the event of nonperformance by financial institutions with which it conducts business. However, this loss is limited to the amounts, if any, by which the obligations of the counterparty to the financial instrument contract exceed the obligations of the Company. The Company also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions. The Company continually evaluates its accounts receivables for potential collection risks particularly those resulting from sales to government-owned or government-supported healthcare facilities in certain countries as payment may be dependent upon the financial stability and creditworthiness of those countries’ national economies. The Company continually evaluates all governmental receivables for potential collection risks associated with the availability of government funding and reimbursement practices. The Company believes the current reserves related to all governmental receivables are adequate and that this concentration of credit risk will not have a material adverse impact on its financial position or liquidity. |
Accounting Changes Accounting Changes (Policies) |
12 Months Ended |
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Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principle Adopted and New Accounting Principles Not Yet Adopted | New Accounting Principle Adopted On October 1, 2016, the Company prospectively adopted amended requirements issued by the Financial Accounting Standards Board ("FASB") relating to the timing of recognition and classification of share-based compensation award-related income tax effects. Upon the settlement of awards during fiscal year 2017, the Company recorded tax benefits for the year ended of $77 million to Income tax provision (benefit) within its consolidated statement of income. These tax benefits were recorded within Capital in excess of par value on the Company's consolidated balance sheet in the prior-year period. Because these excess tax benefits are no longer recorded in Capital in excess of par value, the current period adjustment for the dilutive impact of share equivalents from share-based plans, which is used in the Company's computation of diluted earnings per share, increased by approximately 1 million shares. Also per the amended guidance, the Company classified the $77 million of excess tax benefits for the year ended September 30, 2017 on its consolidated statement of cash flows within Net Cash Provided by Operating Activities, rather than Net Cash Provided by (Used for) Financing Activities, which included the excess tax benefits for the years ended September 30, 2016 and 2015. The amended guidance allows entities to account for award forfeitures as they occur; however, the Company has elected to continue its determination of compensation cost recognized in each period based upon an estimate of expected future forfeitures. New Accounting Principles Not Yet Adopted In February 2016, the FASB issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet. The new standard also requires expanded disclosures regarding leasing arrangements. The Company is currently evaluating the impact that this new lease accounting standard will have on its consolidated financial statements upon its adoption of the standard on October 1, 2019. In May 2014, the FASB issued a new revenue recognition standard. Under this standard, revenue will be recognized upon the transfer of goods or services to customers and the amount of revenue recognized will reflect the consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company intends to adopt the standard, as required, on October 1, 2018 and recently completed an initial assessment to identify the potential areas of impact that this new revenue recognition standard will have on its consolidated financial statements. As part of the initial assessment, the Company reviewed a representative sample of its contracts across its various businesses and geographies to identify potential differences that could result from applying the requirements of the new standard. The analysis included identifying whether there may be differences in timing of revenue recognition under the new standard as well as assessing performance obligations, variable consideration, and contract costs. The Company has not yet estimated the impact of the new standard on the timing and pattern of its revenue recognition. The Company continues to evaluate the available adoption methods, and apprises its audit committee of the project status regularly. |
Shareholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Certain Components of Shareholders' Equity | Changes in certain components of shareholders’ equity were as follows:
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Accumulated Other Comprehensive (Loss) Income | The components and changes of Accumulated other comprehensive income (loss) were as follows:
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Other Comprehensive Income (Loss), Tax | The tax impacts for amounts recognized in other comprehensive income before reclassifications were as follows:
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Earnings per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share | The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) for the years ended September 30 were as follows:
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Segment Data (Tables) |
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information for Company's Segments |
(A)Intersegment revenues are not material. (B)Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. Results in 2017 included a $748 million non-cash charge resulting from a modification to the Company's dispensing equipment lease contracts with customers, as well as a $336 million reversal of certain reserves related to an appellate court decision which, among other things, reversed an unfavorable antitrust judgment in the RTI case. Additional disclosures regarding the legal matter and the lease contract modification are provided in Notes 5 and 17, respectively. Results in 2015 reflected $293 million in recognition of the fair value step-up adjustment recorded relative to CareFusion’s inventory on the acquisition date. (C)Includes cash and investments and corporate assets. |
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Revenues to Unaffiliated Customers and Long-lived Assets Including Property, Plant and Equipment | Revenues to unaffiliated customers are generally based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.
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Share-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Cost Relating to Share-Based Payments | The amounts and location of compensation cost relating to share-based payments included in the consolidated statements of income is as follows:
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Assumptions for Estimation of Fair Values of Stock Appreciation Rights Granted During Reporting Periods | The fair value was estimated on the date of grant using a lattice-based binomial option valuation model that uses the following weighted-average assumptions:
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Summary of SARs Outstanding | A summary of SARs outstanding as of September 30, 2017 and changes during the year then ended is as follows:
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Schedule Of Share Based Compensation, Summary of Stock Appreciation Rights Exercised [Table Text Block] | A summary of SARs exercised 2017, 2016 and 2015 is as follows:
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Summary of Stock Options Outstanding | A summary of options exercised 2017, 2016 and 2015 is as follows:
A summary of these stock options outstanding as of September 30, 2017 and changes during the year then ended is as follows:
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Summary of Performance-Based Restricted Stock Units Outstanding | A summary of restricted stock units outstanding as of September 30, 2017 and changes during the year then ended is as follows:
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Schedule Of Share Based Compensation, Restricted Stock Units, Grant Date Fair Value of Units Granted [Table Text Block] | The weighted average grant date fair value of restricted stock units granted during the years 2017, 2016 and 2015 are as follows:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The total fair value of stock units vested during 2017, 2016 and 2015 was as follows:
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Benefit Plans (Tables) |
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Net Pension and Other Postretirement Cost | Net pension and other postretirement cost for the years ended September 30 included the following components:
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Change in Benefit Obligation, Change in Fair Value of Plan Assets | The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:
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Pension Plans with Accumulated Benefit Obligations | Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:
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Weighted Average Assumptions Determining Pension Plan | The weighted average assumptions used in determining pension plan information were as follows:
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Expected Benefit Payments | Expected benefit payments are as follows:
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Fair Value Measurements of U.S. Plan Assets | The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2017 and 2016. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.
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Fair Value Measurements of Foreign Plan Assets | The following table provides the fair value measurements of international plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2017 and 2016.
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Pension Plans | Foreign Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value Pension Assets Measured Using Level 3 Inputs | The following table summarizes the changes, for the years ended September 30, 2017 and 2016, in the fair value of international pension assets measured using Level 3 inputs:
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Consideration Transferred | The fair value of consideration transferred consisted of the components below.
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Summary of Pro Forma Results | The following table provides the pro forma results for the years ended September 30, 2016 and 2015 as if CareFusion had been acquired as of October 1, 2013.
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Business Combination, Separately Recognized Transactions [Table Text Block] | The Company incurred integration, restructuring and transaction costs relating to acquisitions in 2017, 2016 and 2015:
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Business Restructuring Charges Business Restructuring Charges (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Accrual Activity | Restructuring liability activity in 2017, 2016 and 2015 was as follows:
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Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Intangible Assets | Intangible assets at September 30 consisted of:
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Reconciliation of Goodwill by Business Segment | The following is a reconciliation of goodwill by business segment:
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Derivative Instruments and Hedging Activities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects on Consolidated Balance Sheets | The location and amounts of derivative instrument fair values in the consolidated balance sheet are segregated below between designated, qualifying hedging instruments and ones that are not designated for hedge accounting.
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Financial Instruments and Fair Value Measurements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at September 30, 2017 and 2016 are classified in accordance with the fair value hierarchy in the following table:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Short-Term Debt | Short-term debt at September 30 consisted of:
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Summary of Long-Term Debt | The aggregate principal amounts of Bard notes which have been validly tendered for notes issued by the Company since the offers were commenced in May are provided below.
Long-Term Debt at September 30 consisted of:
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Summary of Interest Costs and Payments | A summary of interest costs and payments for the years ended September 30 is as follows:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes from Continuing Operations | The provision for income taxes the years ended September 30 consisted of:
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Components of Income from Continuing Operations Before Income Taxes | The components of Income Before Income Taxes for the years ended September 30 consisted of:
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Summary of Gross Amounts of Unrecognized Tax Benefits | The table below summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled. The Company believes it is reasonably possible that certain audits will close within the next twelve months but no significant increases or decreases in the amount of the unrecognized tax benefits are expected to result.
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Deferred Income Taxes | Deferred income taxes at September 30 consisted of:
(A)Net deferred tax assets are included in Other Assets and net deferred tax liabilities are included in Deferred Income Taxes and Other. |
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Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate | A reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows:
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Supplemental Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other Income (Expense), Net
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Trade Receivables, Allowances for Doubtful Accounts and Cash Discounts | The amounts recognized in 2017, 2016 and 2015 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:
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Inventories | Inventories at September 30 consisted of:
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Property, Plant and Equipment, Net | Property, Plant and Equipment, Net at September 30 consisted of:
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Supplementary Data (Unaudited) Supplementary Data (Unaudited) (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | SUPPLEMENTARY QUARTERLY DATA (UNAUDITED)
|
Accounting Changes Accounting Changes - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax (benefit) provision | $ (124) | $ 97 | $ 44 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | (77) | $ 0 | $ 0 |
New Accounting Pronouncement, Early Adoption, Effect | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax (benefit) provision | $ 77 | ||
Weighted Average Number of Shares Outstanding, Basic | 1 | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 77 |
Shareholders' Equity - Changes in Certain Components of Shareholders' Equity (Detail II) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Stockholders' Equity Note [Abstract] | |||
Common stock dividend per share (USD per share) | $ 2.92 | $ 2.64 | $ 2.40 |
Shareholders' Equity - Other Comprehensive Income (Loss), Tax (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Stockholders' Equity Note [Abstract] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ (60) | $ 79 | $ 47 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (5) | $ 7 | $ 10 |
Earnings per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share [Abstract] | |||
Average common shares outstanding (shares) | 218,943 | 212,702 | 202,537 |
Dilutive share equivalents from share-based plans (shares) | 4,645 | 4,834 | 4,972 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 223,588 | 217,536 | 207,509 |
Earnings per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share Footnotes (Detail) - shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,000,000 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 |
Segment Data - Additional Information (Detail) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2017
customer
segment
|
Sep. 30, 2016
USD ($)
customer
|
Sep. 30, 2015
USD ($)
customer
|
Oct. 03, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Number of principal business segments (segments) | segment | 2 | |||
Number of customers accounted for 10% or more of revenues (customers) | customer | 0 | 0 | 0 | |
Respiratory Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Revenue | $ | $ 822 | $ 417 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Respiratory Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Percent Of Business Sold | 50.10% |
Segment Data - Financial Information for Company's Segments Footnote (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 15, 2015 |
Dec. 31, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | |||||
Lease Contract Modification Related Charge | $ 748 | $ 0 | $ 0 | ||
Corporate and All Other | Care Fusion Corporation | |||||
Segment Reporting Information [Line Items] | |||||
Inventory step-up adjustment | $ 293 | ||||
RTI Technologies | |||||
Segment Reporting Information [Line Items] | |||||
Loss Contingency Accrual, Period Increase (Decrease) | $ 12 | $ (336) | $ (336) |
Segment Data - Revenues to Unaffiliated Customers and Long-lived Assets Including Property, Plant and Equipment (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 3,166 | $ 3,035 | $ 2,969 | $ 2,922 | $ 3,231 | $ 3,198 | $ 3,067 | $ 2,986 | $ 12,093 | $ 12,483 | $ 10,282 |
Long-Lived Assets | 19,101 | 19,220 | 19,101 | 19,220 | 20,819 | ||||||
Corporate | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-Lived Assets | 366 | 329 | 366 | 329 | 332 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,504 | 6,893 | 5,069 | ||||||||
Long-Lived Assets | 13,151 | 14,075 | 13,151 | 14,075 | 15,513 | ||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,588 | 2,674 | 2,434 | ||||||||
Long-Lived Assets | 4,421 | 3,747 | 4,421 | 3,747 | 3,908 | ||||||
Greater Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,744 | 1,692 | 1,545 | ||||||||
Long-Lived Assets | 578 | 586 | 578 | 586 | 573 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,257 | 1,225 | 1,234 | ||||||||
Long-Lived Assets | $ 584 | $ 483 | $ 584 | $ 483 | $ 494 |
Share-Based Compensation - Assumptions for Estimation of Fair Values of Stock Appreciation Rights Granted During Reporting Periods (Detail) - Stock Appreciation Rights (SARs) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.33% | 2.17% | 2.20% |
Expected volatility | 20.00% | 19.00% | 19.00% |
Expected dividend yield | 1.71% | 1.76% | 1.78% |
Expected life | 7 years 6 months 12 days | 7 years 7 months 9 days | 7 years 7 months 9 days |
Fair value derived (USD per share) | $ 33.81 | $ 27.69 | $ 24.82 |
Share-Based Compensation - Summary of Performance-Based Restricted Stock Units Outstanding Footnote (Detail) shares in Thousands |
12 Months Ended |
---|---|
Sep. 30, 2017
shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Percentage of target payout on which performance-based restricted stock units are based | 200.00% |
Expected forfeited performance-based restricted stock units (shares) | 79 |
Units in excess of the expected performance payout (shares) | 573 |
Share-Based Compensation Summary of SARs Exercised (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total intrinsic value of SARs exercised | $ 148 | $ 148 | $ 96 |
Share Based Compensation Tax Benefit Realized From Exercise Of Stock Appreciation Rights | 53 | 52 | 34 |
Total fair value of SARs vested | $ 30 | $ 24 | $ 22 |
Share-Based Compensation Summary of Options Exercised (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Proceeds from Stock Options Exercised | $ 14 | $ 50 | $ 75 |
Actual tax benefit realized for tax deductions from stock option exercises | 8 | 17 | 20 |
Total intrinsic value of stock options exercised | 20 | 51 | 52 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 2 | $ 11 | $ 59 |
Share-Based Compensation Weighted Average Grant Date Fair Value of Restricted Stock Units (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Performance-Based Restricted Stock Units | |||
Schedule Of Share Based Compensation, Restricted Stock Units Award, Grant Date Fair Value of Units Granted [Line Items] | |||
Granted, stock units weighted average grant date fair value (USD per share) | $ 174.92 | $ 153.73 | $ 156.65 |
Time-Vested Restricted Stock Units | |||
Schedule Of Share Based Compensation, Restricted Stock Units Award, Grant Date Fair Value of Units Granted [Line Items] | |||
Granted, stock units weighted average grant date fair value (USD per share) | $ 165.96 | $ 145.57 | $ 136.30 |
Share-Based Compensation Fair Value of Stock Units Vested (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Performance-Based Restricted Stock Units | |||
Schedule Of Share Based Compensation, Restricted Stock Units, Fair Value of Stock Units Vested [Line Items] | |||
Total fair value of restricted stock units | $ 32 | $ 22 | $ 16 |
Time-Vested Restricted Stock Units | |||
Schedule Of Share Based Compensation, Restricted Stock Units, Fair Value of Stock Units Vested [Line Items] | |||
Total fair value of restricted stock units | $ 139 | $ 114 | $ 181 |
Benefit Plans - Net Pension and Other Postretirement Cost (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 110 | $ 81 | $ 77 |
Interest cost | 61 | 72 | 87 |
Expected return on plan assets | (112) | (109) | (123) |
Amortization of prior service credit | (14) | (15) | (15) |
Amortization of loss | 92 | 77 | 68 |
Settlements | 0 | (7) | 0 |
Net pension and postretirement cost | 138 | 113 | 93 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 3 |
Interest cost | 4 | 5 | 7 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | (5) | (5) | (5) |
Amortization of loss | 2 | 2 | 3 |
Settlements | 0 | 0 | 0 |
Net pension and postretirement cost | 4 | 5 | 9 |
Foreign Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension and postretirement cost | $ 43 | $ 35 | $ 32 |
Benefit Plans - Pension Plans with Accumulated Benefit Obligations (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation exceeds the fair value of plan assets, projected benefit obligation | $ 2,551 | $ 2,616 |
Accumulated benefit obligation exceeds the fair value of plan assets, accumulated benefit obligation | 2,470 | 2,529 |
Accumulated benefit obligation exceeds the fair value of plan assets, fair value of plan assets | 1,833 | 1,757 |
Projected benefit obligation exceeds the fair value of plan assets, projected benefit obligation | 2,613 | 2,682 |
Projected benefit obligation exceeds the fair value of plan assets, fair value of plan assets | $ 1,889 | $ 1,813 |
Benefit Plans - Weighted Average Assumptions Determining Pension Plan (Detail) - Pension Plans |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
U.S. Plans | |||
Net Cost | |||
Discount rate | 3.42% | 4.15% | 4.15% |
Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Benefit Obligation | |||
Discount rate | 3.72% | 3.42% | 4.15% |
Rate of compensation increase | 4.51% | 4.25% | 4.25% |
Foreign Plans | |||
Net Cost | |||
Discount rate | 1.70% | 2.84% | 3.14% |
Expected return on plan assets | 4.65% | 5.02% | 5.45% |
Rate of compensation increase | 2.33% | 2.33% | 2.49% |
Benefit Obligation | |||
Discount rate | 2.25% | 1.70% | 2.84% |
Rate of compensation increase | 2.30% | 2.33% | 2.33% |
Benefit Plans - Expected Benefit Payments (Detail) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | $ 173 |
2019 | 158 |
2020 | 159 |
2021 | 163 |
2022 | 165 |
2023-2027 | 859 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | 14 |
2019 | 14 |
2020 | 14 |
2021 | 13 |
2022 | 13 |
2023-2027 | $ 56 |
Acquisitions - Fair Value of Consideration Transferred (Detail) - Care Fusion Corporation $ in Millions |
Mar. 17, 2015
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Cash consideration | $ 10,085 |
Noncash consideration-fair value of shares issued | 2,269 |
Noncash consideration-fair value of stock options and other equity awards | 184 |
Total consideration transferred | $ 12,538 |
Acquisitions - Summary of Pro Forma Results (Detail) - Care Fusion Corporation - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Acquisition [Line Items] | ||
Revenues | $ 12,497 | $ 12,368 |
Net Income | $ 1,453 | $ 1,276 |
Diluted Earnings per Share (USD per share) | $ 6.68 | $ 5.92 |
Acquisitions Transaction, Integration, Financing and Restructuring Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Combinations [Abstract] | |||
Business Combination, Integration Related Costs | $ 237 | $ 192 | $ 95 |
Charged to expense | 85 | 526 | 271 |
Acquisition-related costs | $ 39 | $ 10 | $ 59 |
Business Restructuring Charges Business Restructuring Charges - Changes in Restructuring Balance (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 69 | $ 62 | $ 0 |
Assumed liability | 19 | ||
Charged to expense | 85 | 526 | 271 |
Cash payments | (57) | (148) | (94) |
Non-cash settlements | (9) | (39) | (44) |
Other adjustments | (33) | (332) | (91) |
Ending balance | 55 | 69 | 62 |
Employee Termination | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 67 | 62 | 0 |
Assumed liability | 19 | ||
Charged to expense | 27 | 81 | 126 |
Cash payments | (45) | (76) | (74) |
Non-cash settlements | 0 | 0 | 0 |
Other adjustments | 0 | 0 | (9) |
Ending balance | 49 | 67 | 62 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 2 | 0 | 0 |
Assumed liability | 0 | ||
Charged to expense | 58 | 445 | 146 |
Cash payments | (12) | (72) | (20) |
Non-cash settlements | (9) | (39) | (44) |
Other adjustments | (33) | (332) | (81) |
Ending balance | $ 6 | $ 2 | $ 0 |
Business Restructuring Charges Business Restructuring Charges - Changes in Restructuring Balance Footnote (Detail) $ in Millions |
12 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Restructuring Cost and Reserve [Line Items] | |
Capitalized Computer Software, Impairments | $ 214 |
IT Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Change in workforce related costs | 13 |
Care Fusion Corporation | |
Restructuring Cost and Reserve [Line Items] | |
Change in workforce related costs | 40 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Respiratory Solutions | |
Restructuring Cost and Reserve [Line Items] | |
Gain (Loss) on Disposition of Business | $ (81) |
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible amortization expense | $ 533 | $ 552 | $ 346 |
Estimated aggregate amortization expense in 2018 | 526 | ||
Estimated aggregate amortization expense in 2019 | 519 | ||
Estimated aggregate amortization expense in 2020 | 518 | ||
Estimated aggregate amortization expense in 2021 | 514 | ||
Estimated aggregate amortization expense in 2022 | $ 503 |
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 7,419 | $ 7,537 |
Divestiture (A) | (25) | (32) |
Goodwill, Purchase Accounting Adjustments | 4 | (78) |
Goodwill, Foreign Currency Translation Gain (Loss) | 22 | (8) |
Acquisitions (C) | 143 | |
Goodwill, ending balance | 7,563 | 7,419 |
Medical | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 6,688 | 6,807 |
Divestiture (A) | (25) | (32) |
Goodwill, Purchase Accounting Adjustments | 4 | (79) |
Goodwill, Foreign Currency Translation Gain (Loss) | 16 | (8) |
Acquisitions (C) | 119 | |
Goodwill, ending balance | 6,802 | 6,688 |
Life Sciences | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 731 | 730 |
Divestiture (A) | 0 | 0 |
Goodwill, Purchase Accounting Adjustments | 0 | 1 |
Goodwill, Foreign Currency Translation Gain (Loss) | 6 | 0 |
Acquisitions (C) | 24 | |
Goodwill, ending balance | $ 761 | $ 731 |
Intangible Assets Intangible Assets - Reconciliation of Goodwill by Business Segment Footnote (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Oct. 03, 2016 |
|
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 4 | $ (78) | |
Medical | |||
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 4 | (79) | |
Care Fusion Corporation | Medical | |||
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 94 | ||
Respiratory Solutions | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Goodwill [Line Items] | |||
Disposal Group, Including Discontinued Operation, Percent Of Business Sold | 50.10% |
Derivative Instruments and Hedging Activities - Effects on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 15 | $ 25 |
Liability derivatives | 7 | 31 |
Derivatives Designated as Hedging Instruments | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 7 | 23 |
Liability derivatives | 0 | 18 |
Derivatives Not Designated as Hedging Instruments | Forward exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 8 | 3 |
Liability derivatives | $ 7 | $ 13 |
Debt - Summary of Short-Term Debt (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Short-term Debt [Line Items] | ||
Other Short-term Borrowings | $ 3 | $ 1 |
Short-term debt | 203 | 1,001 |
Commercial paper borrowings | ||
Short-term Debt [Line Items] | ||
Commercial paper borrowings | $ 0 | 200 |
4.900% Notes due April 15, 2018 | ||
Short-term Debt [Line Items] | ||
Interest rate | 4.90% | |
Current portion of long-term debt | $ 200 | 0 |
1.450% Notes due May 15, 2017 | ||
Short-term Debt [Line Items] | ||
Interest rate | 1.45% | |
Current portion of long-term debt | $ 0 | 300 |
Notes Due 2016 | ||
Short-term Debt [Line Items] | ||
Interest rate | 1.75% | |
Current portion of long-term debt | $ 0 | $ 500 |
Debt - Debt Exchange (Detail) - USD ($) $ in Millions |
5 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Sep. 30, 2016 |
|
Debt Instrument [Line Items] | |||
Long-Term Debt | $ 18,667 | $ 10,550 | |
CR Bard Inc [Member] | Exchanged Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-Term Debt | $ 1,150 | ||
Principal Amount Accepted for Exchange | 1,035 | ||
CR Bard Inc [Member] | Exchanged Notes [Member] | Notes 4.400% due January 15, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.40% | ||
Long-Term Debt | $ 500 | ||
Principal Amount Accepted for Exchange | 428 | ||
CR Bard Inc [Member] | Exchanged Notes [Member] | Notes 3.000% due May 15, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.00% | ||
Long-Term Debt | $ 500 | ||
Principal Amount Accepted for Exchange | 470 | ||
CR Bard Inc [Member] | Exchanged Notes [Member] | Notes 6.700% due December 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.70% | ||
Long-Term Debt | $ 150 | ||
Principal Amount Accepted for Exchange | $ 137 |
Debt - Summary of Interest Costs and Payments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Debt Disclosure [Abstract] | |||
Charged to operations | $ 521 | $ 388 | $ 371 |
Capitalized | 32 | 30 | 30 |
Total interest costs | 553 | 418 | 401 |
Interest paid, net of amounts capitalized | $ 435 | $ 392 | $ 313 |
Income Taxes - Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Federal | $ (230) | $ 312 | $ 50 |
State and local, including Puerto Rico | (20) | 17 | 15 |
Foreign | 200 | 286 | 252 |
Total, Current | (50) | 616 | 318 |
Domestic | (64) | (441) | (238) |
Foreign | (10) | (78) | (37) |
Total, Deferred | (74) | (519) | (274) |
Income tax provision | $ (124) | $ 97 | $ 44 |
Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Domestic, including Puerto Rico | $ (386) | $ (232) | $ (408) |
Foreign | 1,362 | 1,306 | 1,147 |
Income Before Income Taxes | $ 976 | $ 1,074 | $ 739 |
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 415 | $ 478 | $ 620 |
Unrecognized tax benefits interest and penalties reflected in current year | 57 | (38) | 5 |
Undistributed earnings of foreign subsidiaries | 9,600 | ||
Tax reductions related to tax holidays | $ 144 | $ 121 | $ 103 |
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.64 | $ 0.56 | $ 0.48 |
Income taxes paid, net | $ 265 | $ 218 | $ 240 |
Deferred Income Taxes and Other | |||
Income Tax [Line Items] | |||
Indemnification liability, non-current | $ 134 |
Income Taxes - Summary of Gross Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at October 1 | $ 469 | $ 593 | $ 206 |
Increase due to acquisitions | 0 | 0 | 326 |
Increase due to current year tax positions | 41 | 81 | 62 |
Increase due to prior year tax positions | 19 | 10 | 14 |
Decreases due to prior year tax positions | (30) | (3) | (2) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (145) | (147) | (10) |
Decrease due to settlements and lapse of statute of limitations | (5) | (65) | (3) |
Balance at September 30 | $ 349 | $ 469 | $ 593 |
Income Taxes - Deferred Income Taxes (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Compensation and benefits, assets | $ 618 | $ 720 |
Loss and credit carryforwards, assets | 1,098 | 1,101 |
Other, assets | 531 | 783 |
Deferred income taxes, assets, gross | 2,247 | 2,604 |
Valuation allowance, assets | (1,032) | (997) |
Deferred income taxes, assets | 1,216 | 1,606 |
Property and equipment, liabilities | 244 | 164 |
Deferred Tax Liabilities, Other Finite-Lived Assets | 1,584 | 1,571 |
Other, liabilities | 164 | 664 |
Deferred income taxes, liabilities, gross | 1,992 | 2,399 |
Deferred income taxes, liabilities | $ 1,992 | $ 2,399 |
Income Taxes - Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit | (2.60%) | 1.50% | (3.60%) |
Effect of foreign and Puerto Rico earnings and foreign tax credits | (40.80%) | (23.70%) | (24.50%) |
Effect of Research Credits and Domestic Production Activities | (2.70%) | (4.40%) | (1.60%) |
Effect of change in accounting for excess tax benefit relating to share-based compensation | 7.90% | 0.00% | 0.00% |
Other, net | 6.30% | 0.70% | 0.60% |
Total | (12.70%) | 9.10% | 5.90% |
Sale-Type Leases and Financing Receivables Sales-Type Leases and Financing Receivables - Additional Information (Detail) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Acquisition [Line Items] | ||||
Lessor, Sales-Type Lease, Contract Term | 5 years | |||
Lease Contract Modification Related Charge | $ 748 | $ 0 | $ 0 | |
Property, Plant and Equipment, Net | $ 4,638 | $ 3,901 | ||
Dispensing Lease Term Modification [Member] | ||||
Business Acquisition [Line Items] | ||||
Capital Leases, Net Investment in Sales Type Leases | $ (1,065) | |||
Property, Plant and Equipment, Net | $ 317 |
Supplemental Financial Information - Other Income (Expense), Net (Detail) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Losses on debt extinguishment | $ 31 | $ 42 | $ (73) | $ 0 | $ 0 |
Income (Loss) from Equity Method Investments | 3 | 8 | 9 | ||
Losses on undesignated foreign exchange derivatives, net | (11) | (3) | 0 | ||
Gains on previously held investments | 24 | 0 | 9 | ||
Other | 3 | 7 | 3 | ||
Other (expense) income, net | (57) | 11 | 21 | ||
Vyaire Medical [Member] | |||||
Income (Loss) from Equity Method Investments | $ (3) | $ 0 | $ 0 |
Supplemental Financial Information - Trade Receivables, Allowances for Doubtful Accounts and Cash Discounts (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 67 | $ 62 | $ 42 |
Additions charged to costs and expenses | 68 | 60 | 80 |
Deductions and other | (76) | (55) | (61) |
Ending Balance | 58 | 67 | 62 |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 61 | 53 | 30 |
Additions charged to costs and expenses | 25 | 23 | 33 |
Deductions and other | (32) | (14) | (11) |
Ending Balance | 54 | 61 | 53 |
Allowance for Cash Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 6 | 9 | 12 |
Additions charged to costs and expenses | 43 | 37 | 47 |
Deductions and other | (45) | (40) | (50) |
Ending Balance | $ 4 | $ 6 | $ 9 |
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Materials | $ 313 | $ 316 |
Work in process | 271 | 274 |
Finished products | 1,234 | 1,129 |
Inventories | $ 1,818 | $ 1,719 |
Supplemental Financial Information - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Land | $ 146 | $ 151 |
Buildings | 2,496 | 2,397 |
Machinery, equipment and fixtures | 6,584 | 5,749 |
Leasehold improvements | 163 | 121 |
Property, Plant and Equipment, gross | 9,389 | 8,419 |
Less accumulated depreciation and amortization | 4,752 | 4,518 |
Property, Plant and Equipment, Net | $ 4,638 | $ 3,901 |
Supplementary Data (Unaudited) Supplementary Data (Unaudited) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,166 | $ 3,035 | $ 2,969 | $ 2,922 | $ 3,231 | $ 3,198 | $ 3,067 | $ 2,986 | $ 12,093 | $ 12,483 | $ 10,282 |
Gross Profit | 1,554 | 1,504 | 1,432 | 1,452 | 1,552 | 1,547 | 1,484 | 1,408 | 5,942 | 5,991 | |
Net Income | $ 327 | $ (132) | $ 344 | $ 562 | $ 19 | $ 390 | $ 338 | $ 229 | $ 1,100 | $ 976 | $ 695 |
Earnings per Share: | |||||||||||
Basic Earnings per Share (USD per share) | $ 1.27 | $ (0.75) | $ 1.61 | $ 2.64 | $ 0.09 | $ 1.83 | $ 1.59 | $ 1.08 | $ 4.70 | $ 4.59 | $ 3.43 |
Diluted Earnings per Share (USD per share) | $ 1.24 | $ (0.75) | $ 1.58 | $ 2.58 | $ 0.09 | $ 1.80 | $ 1.56 | $ 1.06 | $ 4.60 | $ 4.49 | $ 3.35 |
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