Segment Data

9 Months Ended

Jun. 30, 2019

The Company's organizational structure is based upon three principal business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Company's segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon segment operating income, which represents revenues reduced by product costs and operating expenses.

Revenues by segment, organizational unit and geographical areas for the three and nine-month periods are detailed below. The Company has no material intersegment revenues. On December 29, 2017, the Company completed its acquisition of C.R. Bard, Inc. ("Bard"), which is further discussed in Note 9. Bard's operating results were included in the Company’s consolidated results of operations beginning on January 1, 2018 and as such, are not included in the financial results detailed below for the first quarter of the prior-year nine-month period.



	Three Months Ended June 30,
(Millions of dollars)	2019						2018
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions	$	524	$	460	$	984	$	505	$	471	$	977
Medication Management Solutions	528		129		658		483		127		610
Diabetes Care	139		136		275		138		138		276
Pharmaceutical Systems	108		286		394		103		279		383
Total segment revenues	$	1,299	$	1,011	$	2,311	$	1,230	$	1,016	$	2,246

Life Sciences
Preanalytical Systems	$	203	$	204	$	407	$	199	$	205	$	404
Diagnostic Systems	155		212		368		151		211		362
Biosciences	117		167		284		126		188		314
Total segment revenues	$	475	$	583	$	1,058	$	476	$	603	$	1,079

Interventional
Surgery	$	273	$	76	$	349	$	259	$	77	$	336
Peripheral Intervention	195		155		350		195		157		353
Urology and Critical Care	198		85		283		178		87		265
Total segment revenues	$	666	$	316	$	981	$	632	$	322	$	954

Total Company revenues	$	2,440	$	1,910	$	4,350	$	2,338	$	1,941	$	4,278



	Nine Months Ended June 30,
(Millions of dollars)	2019						2018
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions	$	1,528	$	1,344	$	2,871	$	1,379	$	1,298	$	2,677
Medication Management Solutions	1,531		365		1,896		1,415		364		1,778
Diabetes Care	421		397		819		415		405		820
Pharmaceutical Systems	269		771		1,040		239		755		994
Total segment revenues	$	3,750	$	2,877	$	6,626	$	3,448	$	2,822	$	6,270

Life Sciences
Preanalytical Systems	$	574	$	591	$	1,165	$	565	$	595	$	1,160
Diagnostic Systems	510		628		1,138		518		634		1,152
Biosciences	345		517		862		350		559		910
Total segment revenues	$	1,430	$	1,736	$	3,166	$	1,433	$	1,789	$	3,222

Interventional
Surgery	$	819	$	223	$	1,042	$	687	$	177	$	864
Peripheral Intervention	580		449		1,029		393		303		697
Urology and Critical Care	590		253		843		358		171		529
Total segment revenues	$	1,989	$	925	$	2,914	$	1,438	$	651	$	2,089

Total Company revenues	$	7,168	$	5,538	$	12,706	$	6,319	$	5,261	$	11,581

Segment income for the three and nine-month periods was as follows:



	Three Months Ended June 30,						Nine Months Ended June 30,
(Millions of dollars)	2019			2018			2019			2018
Income Before Income Taxes
Medical (a) (b)	$	744		$	732		$	2,008		$	1,943
Life Sciences (c)	304			241			902			893
Interventional (b) (d)	183			175			623			102
Total Segment Operating Income	1,230			1,148			3,533			2,938
Acquisitions and other restructurings	(90		)	(142		)	(281		)	(600		)
Net interest expense	(154		)	(174		)	(490		)	(470		)
Other unallocated items (e)	(526		)	(184		)	(1,584		)	(1,110		)
Income Before Income Taxes	$	460		$	647		$	1,178		$	759


(a)	The amount for the nine months ended June 30, 2019 included $65 million of estimated remediation costs recorded to Other operating expense, net relating to a recall of a product component, which generally pre-dated the Company's acquisition of CareFusion in fiscal year 2015, within the Medication Management Solutions unit's infusion systems platform.

(b)

The amounts in 2018 included expense related to the recognition of a $478 million fair value step-up adjustment related to Bard's inventory on the acquisition date. The step-up adjustments recognized by the Medical and Interventional segments for the three months ended June 30, 2018 were $7 million and $49 million, respectively, and the adjustments recognized by the Medical and Interventional segments for the nine months ended June 30, 2018 were $60 million and $418 million, respectively.


(c)	The amounts in 2018 included charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit.


(d)	The amounts in 2019 included a charge recorded to write down the carrying value of certain intangible assets in the Surgery unit.

(e)

Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the nine months ended June 30, 2019 included a pre-tax charge of $331 million related to certain product liability matters, which is further discussed in Note 5, and also included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $336 million, which is further discussed in Note 10. The amounts for the three and nine months ended June 30, 2018 included the pre-tax gain recognized on the Company's sale of its non-controlling interest in Vyaire Medical of approximately $308 million.