(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||||||||||||||||||
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 | ||||
Medication Delivery Solutions | Peripheral intravenous ("IV") catheters (conventional, safety); advanced peripheral catheters (guidewire assisted peripherally inserted venous catheters, midline catheters, port access); central lines (peripherally inserted central catheters); acute dialysis catheters; vascular access technology (ultrasonic imaging); vascular care (lock solutions, prefilled flush syringes, disinfecting caps); vascular preparation (skin antiseptics, dressings, securement); needle-free IV connectors and extensions sets; closed-system drug transfer devices; hazardous drug detection; conventional and safety hypodermic syringes and needles, anesthesia needles (spinal, epidural) and trays; enteral syringes; and sharps disposal systems. | ||||
Medication Management Solutions | IV medication safety and infusion therapy delivery systems, including infusion pumps, dedicated disposables, and IV fluids; medication compounding workflow systems; automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and informatics and analytics solutions for enterprise medication management. | ||||
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. | ||||
Pharmaceutical Systems | Prefillable drug delivery systems - prefillable syringes, safety, shielding and self-injection systems and support services (combination product testing, technical and regulatory) - 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 | ||||
Integrated Diagnostic Solutions | Integrated systems for specimen collection; safety-engineered blood collection products and 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 and HPV tests for cervical cancer screening; rapid diagnostic assays for testing of respiratory infections; microbiology laboratory automation; and plated media for clinical and industrial applications. | ||||
Biosciences | Fluorescence-activated cell sorters and analyzers; antibodies and kits for performing cell analysis; reagent systems for life science research; solutions for high-throughput single-cell gene expression analysis; and clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers. | ||||
Organizational Unit | Principal Product Lines | ||||
Surgery | Hernia and soft tissue repair, biological grafts, bioresorbable grafts, biosurgery, and other surgical products; BD ChloraPrep™ surgical infection prevention products; and V. Mueller™ surgical and laparoscopic instrumentation products. | ||||
Peripheral Intervention | Percutaneous transluminal angioplasty (“PTA”) balloon catheters, peripheral vascular stents, self-expanding and balloon-expandable stent grafts, vascular grafts, drug coated balloons, ports, biopsy, chronic dialysis, feeding, inferior vena catheter filters, endovascular fistula creation devices and drainage products, and atherectomy and thrombectomy systems. | ||||
Urology and Critical Care | Urine management & measurement devices, urological drainage products, intermittent catheters, kidney stone management devices, Targeted Temperature Management, and fecal management devices. |
BD 2021 Workforce Diversity Representation | ||||||||||||||
Gender (Global) | Year-Over-Year Improvement | Race (U.S. Only) | Year-Over-Year Improvement | |||||||||||
Executive | 30% | +2% | 20% | — | ||||||||||
Management | 40% | +1% | 29% | +1% | ||||||||||
All associates | 49% | — | 38% | — |
Name | Age | Position | ||||||
Thomas E. Polen | 48 | Chairman since April 2021; Chief Executive Officer since January 2020; President since April 2017; Chief Operating Officer from October 2018 to January 2020; and Executive Vice President and President - Medical Segment from October 2014 to April 2017. | ||||||
Simon D. Campion | 50 | Executive Vice President and President, Interventional Segment since September 2018; Worldwide President, BD Interventional - Surgery from December 2017 to September 2018; President, Davol (now part of our Surgery business), C.R. Bard, Inc. from July 2015 to December 2017; and prior thereto, Vice President and General Manager, Davol. | ||||||
Alexandre Conroy | 58 | Executive Vice President and Chief Integrated Supply Chain Officer since February 2019; Worldwide President, Medication and Procedural Solutions from May 2017 to February 2019; and Executive Vice President and President, Europe, EMA and the Americas from June 2012 to May 2017. | ||||||
Christopher J. DelOrefice | 50 | Executive Vice President and Chief Financial Officer since September 2021; Vice President, Investor Relations, Johnson & Johnson from August 2018 to August 2021; Vice President, Finance, North America Hospital Medical Devices, Johnson & Johnson from June 2017 to August 2018; and Vice President, Finance, North America, Johnson & Johnson Consumer, March 2014 to June 2017. | ||||||
Antoine C. Ezell | 52 | Executive Vice President, President, North America and Chief Marketing Officer since October 2020; Executive Vice President and Chief Marketing Officer from January 2020 to October 2020; Vice President, Connected Care and Insulins, Eli Lilly and Company from January 2019 to January 2020; and prior thereto, Vice President, Enterprise Capabilities and Solutions, Eli Lilly; Chief Marketing Officer, Elanco Animal Health; and Chief Customer Officer, Eli Lilly. | ||||||
Roland Goette | 59 | Executive Vice President and President, EMEA since May 2017; and President, Europe from October 2014 to May 2017. | ||||||
David Hickey | 59 | Executive Vice President and President, Life Sciences Segment since January 2021; President, Integrated Diagnostics Solutions from October 2019 to January 2021; and President, Diagnostic Systems from July 2016 to September 2019. | ||||||
Samrat S. Khichi | 54 | Executive Vice President, Corporate Development, Public Policy, Regulatory Affairs and General Counsel since September 2021; Executive Vice President, Public Policy, Regulatory Affairs and General Counsel from May 2019 to September 2021; Executive Vice President and General Counsel from December 2017 to May 2019; and Senior Vice President, General Counsel and Corporate Secretary, C.R. Bard, Inc. from July 2014 to December 2017. | ||||||
Betty D. Larson | 45 | Executive Vice President and Chief Human Resources Officer since July 2018; Senior Vice President of Human Resources, Interventional Segment from December 2017 to July 2018; and Vice President, Human Resources, Chief Human Resources Officer, C.R. Bard, Inc. from September 2014 to December 2017. | ||||||
James Lim | 57 | Executive Vice President and President, Greater Asia since June 2012. | ||||||
Alberto Mas | 60 | Executive Vice President and President - Medical Segment since June 2018; Executive Vice President and President - Life Sciences Segment from October 2016 to June 2018; and Worldwide President - Diagnostic Systems from October 2013 to October 2016. | ||||||
Christopher R. Reidy | 64 | Executive Vice President and Chief Administrative Officer since September 2021; and Executive Vice President, Chief Financial Officer and Chief Administrative Officer from July 2013 to September 2021. |
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, 2021 (3) | 404,392 | $242.56 | 403,159 | 3,730,494 | |||||||||||||||||||
August 1-31, 2021 (4) | 2,515,405 | $251.90 | 2,515,301 | 1,215,193 | |||||||||||||||||||
September 1-30, 2021 | — | — | — | 1,215,193 | |||||||||||||||||||
Total | 2,919,797 | $250.61 | 2,918,460 | 1,215,193 |
2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions | $ | 4,057 | $ | 3,555 | $ | 3,848 | 14.1 | % | 2.4 | % | 11.7 | % | (7.6) | % | (1.4) | % | (6.2) | % | |||||||||||||||||||||||||||||||||||
Medication Management Solutions | 2,432 | 2,454 | 2,640 | (0.9) | % | 1.4 | % | (2.3) | % | (7.1) | % | (0.5) | % | (6.6) | % | ||||||||||||||||||||||||||||||||||||||
Diabetes Care | 1,160 | 1,084 | 1,110 | 7.0 | % | 2.2 | % | 4.8 | % | (2.4) | % | (1.4) | % | (1.0) | % | ||||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 1,829 | 1,588 | 1,465 | 15.2 | % | 4.1 | % | 11.1 | % | 8.4 | % | (1.0) | % | 9.4 | % | ||||||||||||||||||||||||||||||||||||||
Total Medical revenues | $ | 9,479 | $ | 8,680 | $ | 9,064 | 9.2 | % | 2.4 | % | 6.8 | % | (4.2) | % | (1.0) | % | (3.2) | % |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Medical segment operating income | $ | 2,583 | $ | 2,274 | $ | 2,824 | |||||||||||
Segment operating income as % of Medical revenues | 27.3 | % | 26.2 | % | 31.2 | % |
2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Integrated Diagnostic Solutions | $ | 5,225 | $ | 3,532 | $ | 3,106 | 47.9 | % | 3.8 | % | 44.1 | % | 13.7 | % | (1.4) | % | 15.1 | % | |||||||||||||||||||||||||||||||||||
Biosciences | 1,305 | 1,143 | 1,194 | 14.2 | % | 3.1 | % | 11.1 | % | (4.3) | % | (0.8) | % | (3.5) | % | ||||||||||||||||||||||||||||||||||||||
Total Life Sciences revenues | $ | 6,530 | $ | 4,675 | $ | 4,300 | 39.7 | % | 3.6 | % | 36.1 | % | 8.7 | % | (1.2) | % | 9.9 | % |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Life Sciences segment operating income | $ | 2,391 | $ | 1,405 | $ | 1,248 | |||||||||||
Segment operating income as % of Life Sciences revenues | 36.6 | % | 30.0 | % | 29.0 | % |
2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Surgery | $ | 1,296 | $ | 1,121 | $ | 1,242 | 15.7 | % | 1.3 | % | 14.4 | % | (9.7) | % | (0.3) | % | (9.4) | % | |||||||||||||||||||||||||||||||||||
Peripheral Intervention | 1,711 | 1,511 | 1,574 | 13.2 | % | 3.0 | % | 10.2 | % | (4.0) | % | (0.9) | % | (3.1) | % | ||||||||||||||||||||||||||||||||||||||
Urology and Critical Care | 1,232 | 1,130 | 1,110 | 9.0 | % | 1.4 | % | 7.6 | % | 1.8 | % | (0.2) | % | 2.0 | % | ||||||||||||||||||||||||||||||||||||||
Total Interventional revenues | $ | 4,239 | $ | 3,762 | $ | 3,926 | 12.7 | % | 2.0 | % | 10.7 | % | (4.2) | % | (0.5) | % | (3.7) | % |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Interventional segment operating income | $ | 933 | $ | 724 | $ | 903 | |||||||||||
Segment operating income as % of Interventional revenues | 22.0 | % | 19.2 | % | 23.0 | % |
2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 10,969 | $ | 9,716 | $ | 9,730 | 12.9 | % | — | 12.9 | % | (0.1) | % | — | (0.1) | % | |||||||||||||||||||||||||||||||||||||
International | 9,279 | 7,401 | 7,560 | 25.4 | % | 6.2 | % | 19.2 | % | (2.1) | % | (2.2) | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 20,248 | $ | 17,117 | $ | 17,290 | 18.3 | % | 2.7 | % | 15.6 | % | (1.0) | % | (1.0) | % | — | % |
2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | Total Change | Estimated FX Impact | FXN Change | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Emerging markets | $ | 2,866 | $ | 2,419 | $ | 2,710 | 18.5 | % | 2.9 | % | 15.6 | % | (10.7) | % | (3.6) | % | (7.1) | % |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Integration costs (a) | $ | 135 | $ | 214 | $ | 323 | |||||||||||
Restructuring costs (a) | 50 | 95 | 180 | ||||||||||||||
Separation and related costs (b) | 35 | — | — | ||||||||||||||
Purchase accounting adjustments (c) | 1,406 | 1,356 | 1,499 | ||||||||||||||
Transaction gain/loss, product and other litigation-related matters (d) | 272 | 631 | 646 | ||||||||||||||
Investment gains/losses and asset impairments (e) | (46) | 100 | 17 | ||||||||||||||
European regulatory initiative-related costs (f) | 135 | 106 | 51 | ||||||||||||||
Impacts of debt extinguishment | 185 | 8 | 54 | ||||||||||||||
Hurricane recovery-related impacts | — | — | (24) | ||||||||||||||
Total specified items | 2,170 | 2,510 | 2,749 | ||||||||||||||
Less: tax impact of specified items and tax reform (g) | 353 | 395 | 622 | ||||||||||||||
After-tax impact of specified items | $ | 1,818 | $ | 2,114 | $ | 2,127 |
2021 | 2020 | ||||||||||
Gross profit margin % prior-year period | 44.3 | % | 47.9 | % | |||||||
Impact of purchase accounting adjustments and other specified items | 2.7 | % | (2.0) | % | |||||||
Operating performance | 0.2 | % | (1.5) | % | |||||||
Foreign currency translation | (0.6) | % | (0.1) | % | |||||||
Gross profit margin % current-year period | 46.6 | % | 44.3 | % |
Increase (decrease) in basis points | ||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||||
Selling and administrative expense | $ | 4,867 | $ | 4,325 | $ | 4,332 | ||||||||||||||||||||||||||
% of revenues | 24.0 | % | 25.3 | % | 25.1 | % | (130) | 20 | ||||||||||||||||||||||||
Research and development expense | $ | 1,339 | $ | 1,096 | $ | 1,062 | ||||||||||||||||||||||||||
% of revenues | 6.6 | % | 6.4 | % | 6.1 | % | 20 | 30 | ||||||||||||||||||||||||
Acquisitions and other restructurings | $ | 185 | $ | 309 | $ | 480 | ||||||||||||||||||||||||||
Other operating expense, net | $ | 238 | $ | 363 | $ | 654 |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Charges to record product liability reserves, including related defense costs (See Note 5) | $ | 361 | $ | 378 | $ | 914 | |||||||||||
Gains on sale-leaseback transactions (See Note 17) | (158) | — | — | ||||||||||||||
Separation and related costs (a) | 35 | — | — | ||||||||||||||
Gain recognized on sale of Advanced Bioprocessing business (See Note 10) | — | — | (336) | ||||||||||||||
Charge to record the estimated cost of a product recall in the Medical segment | — | — | 75 | ||||||||||||||
Other | — | (15) | — | ||||||||||||||
Other operating expense, net | $ | 238 | $ | 363 | $ | 654 |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Interest expense | $ | (469) | $ | (528) | $ | (639) | |||||||||||
Interest income | 9 | 7 | 12 | ||||||||||||||
Net interest expense | $ | (460) | $ | (521) | $ | (627) |
2021 | 2020 | 2019 | |||||||||||||||
Effective income tax rate | 6.7 | % | 11.3 | % | (4.8) | % | |||||||||||
Impact, in basis points, from specified items and tax reform | (470) | (320) | (1,920) |
2021 | 2020 | 2019 | |||||||||||||||
Net income (Millions of dollars) | $ | 2,092 | $ | 874 | $ | 1,233 | |||||||||||
Diluted Earnings per Share | $ | 6.85 | $ | 2.71 | $ | 3.94 | |||||||||||
Unfavorable impact-specified items | $ | (6.22) | $ | (7.49) | $ | (7.74) | |||||||||||
Unfavorable impact-foreign currency translation | $ | (0.05) | $ | (0.15) | $ | (0.62) | |||||||||||
Increase (decrease) | |||||||||||
(Millions of dollars) | 2021 | 2020 | |||||||||
10% appreciation in U.S. dollar | $ | (66) | $ | (52) | |||||||
10% depreciation in U.S. dollar | $ | 66 | $ | 52 |
Increase (decrease) to fair value of interest rate derivatives outstanding | Increase (decrease) to earnings or cash flows | ||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
10% increase in interest rates | $ | 7 | $ | 13 | $ | — | $ | — | |||||||||||||||
10% decrease in interest rates | $ | (7) | $ | (14) | $ | — | $ | — |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Net cash provided by (used for) | |||||||||||||||||
Operating activities | $ | 4,647 | $ | 3,539 | $ | 3,330 | |||||||||||
Investing activities | $ | (1,880) | $ | (1,232) | $ | (741) | |||||||||||
Financing activities | $ | (3,306) | $ | 22 | $ | (3,223) |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
Change in credit facility borrowings | $ | — | $ | (485) | $ | 485 | |||||||||||
Proceeds from long-term debt and term loans | $ | 4,869 | $ | 3,389 | $ | 2,224 | |||||||||||
Payments of debt and term loans | $ | (5,112) | $ | (4,664) | $ | (4,744) | |||||||||||
Proceeds from issuances of equity securities | $ | — | $ | 2,917 | $ | — | |||||||||||
Share repurchases | $ | (1,750) | $ | — | $ | — | |||||||||||
Dividends paid | $ | (1,048) | $ | (1,026) | $ | (984) |
2021 | 2020 | 2019 | |||||||||||||||
Total debt (Millions of dollars) | $ | 17,610 | $ | 17,931 | $ | 19,390 | |||||||||||
Short-term debt as a percentage of total debt | 2.8 | % | 3.9 | % | 6.8 | % | |||||||||||
Weighted average cost of total debt | 2.4 | % | 2.8 | % | 2.9 | % | |||||||||||
Total debt as a percentage of total capital (a) | 41.0 | % | 41.3 | % | 45.6 | % |
S&P | Moody’s | Fitch | ||||||||||||||||||
Ratings: | ||||||||||||||||||||
Senior Unsecured Debt | BBB | Baa3 | BBB- | |||||||||||||||||
Commercial Paper | A-2 | P-3 | ||||||||||||||||||
Outlook | Stable | Positive | Positive |
/s/ Thomas E. Polen | /s/ Christopher J. DelOrefice | /s/ Thomas J. Spoerel | ||||||||||||
Thomas E. Polen | Christopher J. DelOrefice | Thomas J. Spoerel | ||||||||||||
Chairman, Chief Executive Officer and President | Executive Vice President and Chief Financial Officer | Senior Vice President, Controller and Chief Accounting Officer |
Estimation of Product Liability Reserves | |||||
Description of the Matter | As described in Note 5 to the consolidated financial statements, the Company is a defendant in various product liability matters in which the plaintiffs allege a wide variety of claims associated with the use of certain Company devices. At September 30, 2021, the Company’s product liability reserves totaled approximately $2.5 billion. The Company engaged an actuarial specialist to perform an analysis to estimate the outstanding liability for indemnity costs related to claims arising from these product liability matters. The methods used by the Company to estimate these reserves are based on reported claims, historical settlement amounts, and stage of litigation, among other items. Auditing management’s estimate of certain of the Company’s product liability reserves and the related disclosure was challenging due to the significant judgment required to determine the methods used to estimate the amount of unreported product liability claims and the indemnity costs and the key assumptions utilized in those methods given the stages of these matters and the amount of claims history. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s evaluation of the product liability reserves. For example, we tested controls over management's review of the methods, significant assumptions and the underlying data used by the actuary to estimate the product liability reserves. To evaluate management’s estimate of the product liability reserves, our audit procedures included, among others, testing the completeness and accuracy of the underlying data used by management's actuarial specialist to estimate the amount of unreported claims and the indemnity cost. For example, we compared filed and settled claims data to legal letters obtained from external counsel, and, on a sample basis, compared settlement amounts to the underlying agreements. In addition, we involved our actuarial specialists to assist us in evaluating the methods used to estimate the unreported claims and the indemnity cost used in the calculation of the product liability reserves. We have also assessed the adequacy of the Company’s disclosures in relation to these matters. |
Income taxes — Uncertain tax positions | |||||
Description of the Matter | As discussed in Notes 1 and 16 of the consolidated financial statements, the Company has recorded a liability of $447 million related to uncertain tax positions as of September 30, 2021. The Company conducts business in numerous countries and is therefore subject to income taxes in multiple jurisdictions, which impacts the provision for income taxes. Due to the multinational operations of the Company, changes in global income tax laws and regulations result in complexity in the accounting for and monitoring of income taxes including the provision for uncertain tax positions. Auditing the completeness of management’s identification of uncertain tax positions involved complex analysis and auditor judgment related to the evaluation of the income tax consequences of significant transactions, including internal restructurings, and changes in income tax laws and regulations in various jurisdictions, which is often subject to interpretation. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s income tax provision process, such as controls over management’s identification and assessment of changes to tax laws, regulations and income tax positions to account for uncertain tax positions, including management’s review of the related tax technical analyses. We performed audit procedures, among others, to evaluate the Company’s assumptions used to develop its uncertain tax positions and related unrecognized income tax benefit amounts by jurisdiction. We obtained an understanding of the Company’s legal structure through our review of organizational charts and related legal documents. We further considered the income tax consequences of significant transactions, including internal restructurings, and assessed management’s interpretation of those changes under the relevant jurisdiction’s tax law. Due to the complexity of income tax laws and regulations, we involved our tax subject matter professionals to assess the Company’s interpretation of and compliance with tax laws and regulations in these jurisdictions, as well as to identify changes in tax laws and regulations. We also involved our tax subject matter professionals to evaluate the technical merits of the Company’s accounting for its tax positions, including assessing the Company’s correspondence with the relevant tax authorities and evaluating third-party advice obtained by the Company. We also evaluated the Company’s income tax disclosures included in Note 16 to the consolidated financial statements in relation to these matters. |
Goodwill impairment — Interventional segment | |||||
Description of the Matter | At September 30, 2021, the Company’s goodwill assigned to the Interventional segment was $12.8 billion. As discussed in Note 1 of the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level using quantitative models. Auditing management’s annual goodwill impairment test was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting units. In particular, the fair value estimates were sensitive to significant assumptions such as the revenue growth rate and discount rate, which are affected by expectations about future market or economic conditions. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of the inputs and assumptions to the goodwill impairment analysis. To test the estimated fair value of the Company’s reporting units, our audit procedures included, among others, assessing fair value methodology, evaluating the prospective financial information used by the Company in its valuation analysis and involving our valuation specialists to assist in testing the significant assumptions discussed above. We compared the significant assumptions used by management to current industry and economic trends, historical financial results, and other relevant factors that would affect the significant assumptions. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units. In addition, we tested the reconciliation of the fair value of the reporting units to the market capitalization of the Company. |
/s/ ERNST & YOUNG LLP | |||||
We have served as the Company's auditor since 1959. | |||||
New York, New York | |||||
November 24, 2021 |
/s/ ERNST & YOUNG LLP | |||||
New York, New York | |||||
November 24, 2021 |
Millions of dollars, except per share amounts | 2021 | 2020 | 2019 | ||||||||||||||
Revenues | $ | $ | $ | ||||||||||||||
Cost of products sold | |||||||||||||||||
Selling and administrative expense | |||||||||||||||||
Research and development expense | |||||||||||||||||
Acquisitions and other restructurings | |||||||||||||||||
Other operating expense, net | |||||||||||||||||
Total Operating Costs and Expenses | |||||||||||||||||
Operating Income | |||||||||||||||||
Interest expense | ( | ( | ( | ||||||||||||||
Interest income | |||||||||||||||||
Other (expense) income, net | ( | ||||||||||||||||
Income Before Income Taxes | |||||||||||||||||
Income tax provision (benefit) | ( | ||||||||||||||||
Net Income | |||||||||||||||||
Preferred stock dividends | ( | ( | ( | ||||||||||||||
Net income applicable to common shareholders | $ | $ | $ | ||||||||||||||
Basic Earnings per Share | $ | $ | $ | ||||||||||||||
Diluted Earnings per Share | $ | $ | $ |
Millions of dollars | 2021 | 2020 | 2019 | ||||||||||||||
Net Income | $ | $ | $ | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||
Defined benefit pension and postretirement plans | ( | ( | |||||||||||||||
Cash flow hedges | ( | ( | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | ( | ( | |||||||||||||||
Comprehensive Income | $ | $ | $ |
Millions of dollars, except per share amounts and numbers of shares | 2021 | 2020 | |||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Short-term investments | |||||||||||
Trade receivables, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other | |||||||||||
Total Current Assets | |||||||||||
Property, Plant and Equipment, Net | |||||||||||
Goodwill | |||||||||||
Developed Technology, Net | |||||||||||
Customer Relationships, Net | |||||||||||
Other Intangibles, Net | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Short-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Salaries, wages and related items | |||||||||||
Income taxes | |||||||||||
Total Current Liabilities | |||||||||||
Long-Term Debt | |||||||||||
Long-Term Employee Benefit Obligations | |||||||||||
Deferred Income Taxes and Other Liabilities | |||||||||||
Commitments and Contingencies (See Note 5) | |||||||||||
Shareholders’ Equity | |||||||||||
Preferred stock | |||||||||||
Common stock — $ | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Deferred compensation | |||||||||||
Common stock in treasury — at cost — | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
Millions of dollars | 2021 | 2020 | 2019 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Adjustments to net income to derive net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Share-based compensation | |||||||||||||||||
Deferred income taxes | ( | ( | ( | ||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Trade receivables, net | ( | ( | ( | ||||||||||||||
Inventories | ( | ( | ( | ||||||||||||||
Prepaid expenses and other | ( | ||||||||||||||||
Accounts payable, income taxes and other liabilities | ( | ||||||||||||||||
Pension obligation | ( | ||||||||||||||||
Excess tax benefits from payments under share-based compensation plans | |||||||||||||||||
Gain on sale of business | ( | ||||||||||||||||
Product liability-related charges | |||||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||
Net Cash Provided by Operating Activities | |||||||||||||||||
Investing Activities | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Acquisitions, net of cash acquired | ( | ( | |||||||||||||||
Proceeds from divestitures, net | |||||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||
Net Cash Used for Investing Activities | ( | ( | ( | ||||||||||||||
Financing Activities | |||||||||||||||||
Change in credit facility borrowings | ( | ||||||||||||||||
Proceeds from long-term debt and term loans | |||||||||||||||||
Payments of debt and term loans | ( | ( | ( | ||||||||||||||
Proceeds from issuance of equity securities | |||||||||||||||||
Repurchase of common stock | ( | ||||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||
Net Cash (Used for) Provided by Financing Activities | ( | ( | |||||||||||||||
Effect of exchange rate changes on cash and equivalents and restricted cash | ( | ( | |||||||||||||||
Net (Decrease) Increase in Cash and Equivalents and Restricted Cash | ( | ( | |||||||||||||||
Opening Cash and Equivalents and Restricted Cash | |||||||||||||||||
Closing Cash and Equivalents and Restricted Cash | $ | $ | $ |
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, 2018 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for share-based compensation and other plans, net | — | ( | ( | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of change in accounting principle (see Note 2) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||||||||||
Preferred shares converted to common shares | ( | — | — | — | — | ||||||||||||||||||||||||||||||
Public equity offerings | — | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation and other plans, net | — | ( | — | — | |||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for share-based compensation and other plans, net | — | ( | — | — | |||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Repurchase of common stock | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||
Effect of change in accounting principle (see Note 2) | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( |
Execution Date | Settlement Date | Aggregate Common Stock Repurchased (millions of dollars) | Initial Shares Delivered (in thousands) | Additional Shares Delivered at Settlement (in thousands) (a) | Total Shares Delivered (in thousands) | |||||||||||||||||||||||||||
Q3 2021 | Q4 2021 | $ | ||||||||||||||||||||||||||||||
Q4 2021 | Q1 2022 |
(Millions of dollars) | Total | Foreign Currency Translation | Benefit Plans | Cash Flow Hedges | |||||||||||||||||||
Balance at September 30, 2018 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss before reclassifications, net of taxes | ( | ( | ( | ( | |||||||||||||||||||
Amounts reclassified into income, net of taxes | |||||||||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss before reclassifications, net of taxes | ( | ( | ( | ( | |||||||||||||||||||
Amounts reclassified into income, net of taxes | |||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications, net of taxes | |||||||||||||||||||||||
Amounts reclassified into income, net of taxes | |||||||||||||||||||||||
Balance at September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Benefit Plans | |||||||||||||||||
Income tax (provision) benefit for net gains (losses) recorded in other comprehensive income | $ | ( | $ | $ |
2021 | 2020 | 2019 | |||||||||||||||
Average common shares outstanding | |||||||||||||||||
Dilutive share equivalents from share-based plans (a) (b) | |||||||||||||||||
Average common and common equivalent shares outstanding — assuming dilution |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
United States | International | Total | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
Medical | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Medication Management Solutions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Diabetes Care | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Life Sciences | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Integrated Diagnostic Solutions | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Biosciences | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Interventional | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Surgery | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Peripheral Intervention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Urology and Critical Care | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total Company revenues | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Income Before Income Taxes | |||||||||||||||||
Medical (a) (b) (c) | $ | $ | $ | ||||||||||||||
Life Sciences (d) | |||||||||||||||||
Interventional (e) | |||||||||||||||||
Total Segment Operating Income | |||||||||||||||||
Acquisitions and other restructurings | ( | ( | ( | ||||||||||||||
Unallocated other operating expense, net (f) | ( | ( | ( | ||||||||||||||
Net interest expense | ( | ( | ( | ||||||||||||||
Other unallocated items (g) | ( | ( | ( | ||||||||||||||
Total Income Before Income Taxes | $ | $ | $ | ||||||||||||||
Capital Expenditures | |||||||||||||||||
Medical | $ | $ | $ | ||||||||||||||
Life Sciences | |||||||||||||||||
Interventional | |||||||||||||||||
Corporate and All Other | |||||||||||||||||
Total Capital Expenditures | $ | $ | $ | ||||||||||||||
Depreciation and Amortization | |||||||||||||||||
Medical | $ | $ | $ | ||||||||||||||
Life Sciences | |||||||||||||||||
Interventional | |||||||||||||||||
Corporate and All Other | |||||||||||||||||
Total Depreciation and Amortization | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Revenues | |||||||||||||||||
United States | $ | $ | $ | ||||||||||||||
EMEA (a) | |||||||||||||||||
Greater Asia | |||||||||||||||||
Other (a) | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Long-Lived Assets | |||||||||||||||||
United States | $ | $ | $ | ||||||||||||||
EMEA (a) | |||||||||||||||||
Greater Asia | |||||||||||||||||
Other (a) | |||||||||||||||||
Corporate | |||||||||||||||||
$ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Cost of products sold | $ | $ | $ | ||||||||||||||
Selling and administrative expense | |||||||||||||||||
Research and development expense | |||||||||||||||||
Acquisitions and other restructurings | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Tax benefit associated with share-based compensation costs recognized | $ | $ | $ |
2021 | 2020 | 2019 | |||||||||||||||
Risk-free interest rate | |||||||||||||||||
Expected volatility | |||||||||||||||||
Expected dividend yield | |||||||||||||||||
Expected life | |||||||||||||||||
Fair value derived | $ | $ | $ |
SARs (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (Millions of dollars) | ||||||||||||||||||||
Balance at October 1 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited, canceled or expired | ( | ||||||||||||||||||||||
Balance at September 30 | $ | $ | |||||||||||||||||||||
Vested and expected to vest at September 30 | $ | $ | |||||||||||||||||||||
Exercisable at September 30 | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Total intrinsic value of SARs exercised | $ | $ | $ | ||||||||||||||
Total fair value of SARs vested | $ | $ | $ |
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 | $ | $ | ||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Distributed | ( | ( | ||||||||||||||||||||||||
Forfeited or canceled | ( | ( | ||||||||||||||||||||||||
Balance at September 30 | (a) | $ | $ | |||||||||||||||||||||||
Expected to vest at September 30 | (b) | $ | $ |
Performance-Based | Time-Vested | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Weighted average grant date fair value of units granted | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Performance-Based | Time-Vested | ||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||
Total fair value of units vested | $ | $ | $ | $ | $ | $ |
Pension Plans | |||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of prior service credit | ( | ( | ( | ||||||||||||||
Amortization of loss | |||||||||||||||||
Curtailment/settlement loss | |||||||||||||||||
Net pension cost | $ | $ | $ | ||||||||||||||
Net pension cost included in the preceding table that is attributable to international plans | $ | $ | $ |
Pension Plans | |||||||||||
(Millions of dollars) | 2021 | 2020 | |||||||||
Change in benefit obligation: | |||||||||||
Beginning obligation | $ | $ | |||||||||
Service cost | |||||||||||
Interest cost | |||||||||||
Plan amendments | ( | ||||||||||
Benefits paid | ( | ( | |||||||||
Impact of acquisitions | |||||||||||
Actuarial (gain) loss | ( | ||||||||||
Curtailments/settlements | ( | ( | |||||||||
Other, includes translation | |||||||||||
Benefit obligation at September 30 | $ | $ | |||||||||
Change in fair value of plan assets: | |||||||||||
Beginning fair value | $ | $ | |||||||||
Actual return on plan assets | |||||||||||
Employer contribution | |||||||||||
Benefits paid | ( | ( | |||||||||
Impact of acquisitions | |||||||||||
Settlements | ( | ( | |||||||||
Other, includes translation | |||||||||||
Plan assets at September 30 | $ | $ | |||||||||
Funded Status at September 30: | |||||||||||
Unfunded benefit obligation | $ | ( | $ | ( | |||||||
Amounts recognized in the Consolidated Balance Sheets at September 30: | |||||||||||
Other | $ | $ | |||||||||
Salaries, wages and related items | ( | ( | |||||||||
Long-term Employee Benefit Obligations | ( | ( | |||||||||
Net amount recognized | $ | ( | $ | ( | |||||||
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30: | |||||||||||
Prior service credit | $ | $ | |||||||||
Net actuarial loss | ( | ( | |||||||||
Net amount recognized | $ | ( | $ | ( |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Projected benefit obligation | $ | $ | |||||||||||||||||||||
Accumulated benefit obligation | $ | $ | |||||||||||||||||||||
Fair value of plan assets | $ | $ | $ | $ |
2021 | 2020 | 2019 | |||||||||||||||
Net Cost | |||||||||||||||||
Discount rate: | |||||||||||||||||
U.S. plans (a) | % | % | % | ||||||||||||||
International plans | |||||||||||||||||
Expected return on plan assets: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans | |||||||||||||||||
Rate of compensation increase: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans | |||||||||||||||||
Cash balance plan interest crediting rate: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans | |||||||||||||||||
Benefit Obligation | |||||||||||||||||
Discount rate: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans | |||||||||||||||||
Rate of compensation increase: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans | |||||||||||||||||
Cash balance plan interest crediting rate: | |||||||||||||||||
U.S. plans | |||||||||||||||||
International plans |
(Millions of dollars) | Pension Plans | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027-2031 |
Basis of fair value measurement (See Note 1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Total U.S. Plan Asset Balances | Investments Measured at Net Asset Value (a) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-U.S. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-Foreign | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other fixed income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Basis of fair value measurement (See Note 1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Total International Plan Asset Balances | Investments Measured at Net Asset Value | Level 1 | Level 2 | Level 3 (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-U.S. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-Foreign | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other fixed income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Employee Termination | Other | Total | |||||||||||||||||||||||||||||||||
(Millions of dollars) | Bard | Other Initiatives (a) | Bard (b) | Other Initiatives (a) | Bard | Other Initiatives (a) | |||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charged to expense | |||||||||||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Non-cash settlements | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charged to expense | |||||||||||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Non-cash settlements | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charged to expense | |||||||||||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Non-cash settlements | ( | ( | |||||||||||||||||||||||||||||||||
Other adjustments | ( | ( | |||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
(Millions of dollars) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
Product rights | ( | ( | |||||||||||||||||||||||||||||||||
Trademarks | ( | ( | |||||||||||||||||||||||||||||||||
Patents and other | ( | ( | |||||||||||||||||||||||||||||||||
Amortized intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||||||||||||
Acquired in-process research and development | $ | $ | |||||||||||||||||||||||||||||||||
Trademarks | |||||||||||||||||||||||||||||||||||
Unamortized intangible assets | $ | $ |
(Millions of dollars) | Medical | Life Sciences | Interventional | Total | |||||||||||||||||||
Goodwill as of September 30, 2019 | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions (a) | |||||||||||||||||||||||
Purchase price allocation adjustments | |||||||||||||||||||||||
Currency translation | |||||||||||||||||||||||
Goodwill as of September 30, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions (a) | |||||||||||||||||||||||
Purchase price allocation adjustments | |||||||||||||||||||||||
Currency translation | ( | ( | |||||||||||||||||||||
Goodwill as of September 30, 2021 | $ | $ | $ | $ |
(Millions of dollars) | Hedge Designation | 2021 | 2020 | ||||||||||||||
Foreign exchange contracts (a) | Undesignated | $ | $ | ||||||||||||||
Foreign currency-denominated debt (b) | Net investment hedges | ||||||||||||||||
Cross-currency swaps (c) | Net investment hedges |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Foreign currency-denominated debt | $ | $ | ( | $ | |||||||||||||
Cross-currency swaps (a) | ( | ( | |||||||||||||||
Foreign currency forward contract (b) | ( |
(Millions of dollars) | Hedge Designation | 2021 | 2020 | ||||||||||||||
Interest rate swaps (a) | Fair value hedges | $ | $ | ||||||||||||||
Forward starting interest rate swaps (b) | Cash flow hedges |
(Millions of dollars) | 2021 | 2020 | |||||||||
Cash and equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash and equivalents and restricted cash | $ | $ |
(Millions of dollars) | Basis of fair value measurement (See Note 1) | 2021 | 2020 | ||||||||||||||
Institutional money market accounts and ultra-short bond fund (a) | Level 1 | $ | $ | ||||||||||||||
Current portion of long-term debt (b) | Level 2 | ||||||||||||||||
Long-term debt (b) | Level 2 |
(Millions of dollars) | 2021 | 2020 | |||||||||
Trade receivables transferred to third parties under factoring arrangements | $ | $ | |||||||||
Amounts yet to be collected and remitted to the third parties |
(Millions of dollars) | 2021 | 2020 | |||||||||||||||
Current portion of long-term debt | |||||||||||||||||
(a) | $ | $ | |||||||||||||||
Floating Rate Notes due June 6, 2022 | |||||||||||||||||
Other | |||||||||||||||||
Total short-term debt | $ | $ |
(Millions of dollars) | 2021 | 2020 | |||||||||||||||
(a) | $ | $ | |||||||||||||||
(a) | |||||||||||||||||
Floating Rate Notes due June 6, 2022 | |||||||||||||||||
(a) | |||||||||||||||||
(b) | |||||||||||||||||
(a) | |||||||||||||||||
(a) | |||||||||||||||||
(a) | |||||||||||||||||
(b) | |||||||||||||||||
(b) | |||||||||||||||||
(b) | |||||||||||||||||
(b) | |||||||||||||||||
(b) | |||||||||||||||||
Total Long-Term Debt | $ | $ |
Interest rate and maturity | Period issued | Amount issued (millions of dollars) | Use of proceeds | |||||||||||||||||
Second quarter 2021 | $ | Retirement of | ||||||||||||||||||
Third quarter 2020 | Retirements of | |||||||||||||||||||
Third quarter 2020 | Retirements of |
Interest rate and maturity | Period issued | Amount issued (millions of Euros) | Amount issued (millions of dollars) | Use of proceeds | ||||||||||||||||||||||
Fourth quarter 2021 | € | $ | Fourth quarter 2021 retirements detailed below | |||||||||||||||||||||||
Fourth quarter 2021 | Fourth quarter 2021 retirements detailed below |
Interest rate and maturity | Period issued | Amount issued (millions of Euros) | Amount issued (millions of dollars) | Use of proceeds | ||||||||||||||||||||||
Fourth quarter 2021 | € | $ | Fourth quarter 2021 retirements detailed below | |||||||||||||||||||||||
Fourth quarter 2021 | Fourth quarter 2021 retirements detailed below | |||||||||||||||||||||||||
Second quarter 2021 | Retirement of |
(millions of dollars) | ||||||||||||||||||||||||||
Principal, interest rate and maturity | Period of retirement | Carrying value | Market price of retirement (a) | Loss recognized to Other (expense) income, net (b) | ||||||||||||||||||||||
$ | Fourth quarter 2021 | $ | $ | $ | ||||||||||||||||||||||
$ | Fourth quarter 2021 | |||||||||||||||||||||||||
$ | Fourth quarter 2021 | |||||||||||||||||||||||||
$ | Fourth quarter 2021 | |||||||||||||||||||||||||
$ | Fourth quarter 2021 | |||||||||||||||||||||||||
$ | Second quarter 2021 | |||||||||||||||||||||||||
Second quarter 2021 | ||||||||||||||||||||||||||
$ | First quarter 2021 |
(millions of dollars) | ||||||||||||||||||||||||||
Principal, interest rate and maturity | Period of retirement | Carrying value | Market price of retirement (a) | Loss recognized to Other (expense) income, net | ||||||||||||||||||||||
$ | Fourth quarter 2020 | $ | $ | $ | ||||||||||||||||||||||
$ | Third quarter 2020 | |||||||||||||||||||||||||
$ | Third quarter 2020 |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Charged to operations | $ | $ | $ | ||||||||||||||
Capitalized | |||||||||||||||||
Total interest costs | $ | $ | $ | ||||||||||||||
Interest paid, net of amounts capitalized | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | $ | ( | $ | |||||||||||||
State and local, including Puerto Rico | |||||||||||||||||
Foreign | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Deferred: | |||||||||||||||||
Domestic | $ | ( | $ | ( | $ | ( | |||||||||||
Foreign | ( | ( | ( | ||||||||||||||
( | ( | ( | |||||||||||||||
Income tax provision (benefit) | $ | $ | $ | ( |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Domestic, including Puerto Rico | $ | $ | ( | $ | |||||||||||||
Foreign | |||||||||||||||||
Income Before Income Taxes | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at October 1 | $ | $ | $ | ||||||||||||||
Increase due to acquisitions | |||||||||||||||||
Increase due to current year tax positions | |||||||||||||||||
Increase due to prior year tax positions | |||||||||||||||||
Decreases due to prior year tax positions | ( | ( | ( | ||||||||||||||
Decrease due to settlements with tax authorities | ( | ( | |||||||||||||||
Decrease due to lapse of statute of limitations | ( | ( | ( | ||||||||||||||
Balance at September 30 | $ | $ | $ | ||||||||||||||
Unrecognized tax benefits that would affect the effective tax rate if recognized | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Interest and penalties associated with unrecognized tax benefits | $ | $ | $ |
2021 | 2020 | ||||||||||||||||||||||
(Millions of dollars) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Compensation and benefits | $ | $ | — | $ | $ | — | |||||||||||||||||
Property and equipment | — | — | |||||||||||||||||||||
Intangibles | — | — | |||||||||||||||||||||
Loss and credit carryforwards | — | — | |||||||||||||||||||||
Product recall and liability reserves | — | — | |||||||||||||||||||||
Other | |||||||||||||||||||||||
Valuation allowance | ( | — | ( | — | |||||||||||||||||||
Net (a) | $ | $ | $ | $ |
2021 | 2020 | 2019 | |||||||||||||||
Federal statutory tax rate | % | % | % | ||||||||||||||
U.S. tax legislation (see discussion above) | ( | ||||||||||||||||
State and local income taxes, net of federal tax benefit | ( | ( | |||||||||||||||
Foreign income tax at rates other than 21% | ( | ( | ( | ||||||||||||||
Effect of foreign operations | ( | ( | |||||||||||||||
Effect of Research Credits and FDII/Domestic Production Activities | ( | ( | ( | ||||||||||||||
Effect of share-based compensation | ( | ( | |||||||||||||||
Effect of gain on divestitures | ( | ( | |||||||||||||||
Effect of valuation allowance release | ( | ||||||||||||||||
Other, net | ( | ( | |||||||||||||||
Effective income tax rate | % | % | ( | % |
(Millions of dollars, except per share amounts) | 2021 | 2020 | 2019 | ||||||||||||||
Tax impact related to tax holidays | $ | $ | $ | ( | |||||||||||||
Impact of tax holiday on diluted earnings per share | ( | ||||||||||||||||
Income tax payments, net of refunds |
(Millions of dollars) | 2021 | 2020 | |||||||||
Right-of-use assets recorded in | $ | $ | |||||||||
Current lease liabilities recorded in | |||||||||||
Non-current lease liabilities recorded in |
(Millions of dollars) | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total payments due | |||||
Less: imputed interest | |||||
Total | $ |
(Millions of dollars) | 2021 | 2020 | 2019 | ||||||||||||||
Other investment gains, net (a) | $ | $ | $ | ||||||||||||||
Deferred compensation | |||||||||||||||||
Net pension and postretirement benefit cost (b) | ( | ( | |||||||||||||||
Losses on undesignated foreign exchange derivatives, net | ( | ( | ( | ||||||||||||||
Losses on debt extinguishment (c) | ( | ( | ( | ||||||||||||||
Product related matters | ( | ( | |||||||||||||||
Royalty and licensing income (d) | |||||||||||||||||
Hurricane-related insurance proceeds | |||||||||||||||||
Other | ( | ( | |||||||||||||||
Other (expense) income, net | $ | ( | $ | $ |
(Millions of dollars) | Allowance for Doubtful Accounts | Allowance for Cash Discounts | Total | ||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | ||||||||||||||
Additions charged to costs and expenses | |||||||||||||||||
Deductions and other | ( | (a) | ( | ( | |||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ||||||||||||||
Additions charged to costs and expenses | |||||||||||||||||
Deductions and other | ( | (a) | ( | ( | |||||||||||||
Balance at September 30, 2020 | $ | $ | $ | ||||||||||||||
Additions charged to costs and expenses | |||||||||||||||||
Deductions and other | ( | (a) | ( | ( | |||||||||||||
Balance at September 30, 2021 | $ | $ | $ |
(Millions of dollars) | 2021 | 2020 | |||||||||
Materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished products | |||||||||||
$ | $ |
(Millions of dollars) | 2021 | 2020 | |||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Machinery, equipment and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Less accumulated depreciation and amortization | |||||||||||
$ | $ |
Exhibit Number | Description | Method of Filing | ||||||||||||
Restated Certificate of Incorporation, dated as of January 30, 2019. | Incorporated by reference to Exhibit 3 to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2018. | |||||||||||||
Certificate of Amendment to the Company’s Restated Certificate of Incorporation, filed with the New Jersey Secretary of State and effective May 21, 2020. | Incorporated by reference to Exhibit 4.1 to the registration statement on Form 8-A filed by the Company on May 26, 2020. | |||||||||||||
By-Laws, as amended as of September 28, 2021. | Incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on October 4, 2021. | |||||||||||||
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 7.000% Debentures due August 1, 2027. | Incorporated by reference to Exhibit 4(d) to the registrant’s Current Report on Form 8-K filed on July 31, 1997. | |||||||||||||
Form of 6.700% Debentures due August 1, 2028. | Incorporated by reference to Exhibit 4(d) to the registrant’s Current Report on Form 8-K filed on July 29, 1999. | |||||||||||||
Form of 6.000% Notes due May 15, 2039. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on May 13, 2009. | |||||||||||||
Form of 5.000% Notes due November 12, 2040. | Incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed on November 12, 2010. | |||||||||||||
Form of 3.734% Notes due December 15, 2024. | Incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||||||||||||
Form of 4.685% Notes due December 15, 2044. | Incorporated by reference to Exhibit 4.5 to the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||||||||||||
Form of 3.875% Senior Notes due May 15, 2024. | Incorporated by reference to Exhibit 4.5 to 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 to the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||||||||||||
Form of 1.000% Notes due December 15, 2022. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on December 9, 2016. | |||||||||||||
Form of 1.900% Notes due December 15, 2026. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on December 9, 2016. |
Exhibit Number | Description | Method of Filing | ||||||||||||
Form of Floating Rate Notes due June 6, 2022. | Incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 3.363% Notes due June 6, 2024. | Incorporated by reference to Exhibit 4.5 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 3.700% Notes due June 6, 2027. | Incorporated by reference to Exhibit 4.6 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 4.669% Notes due June 6, 2047. | Incorporated by reference to Exhibit 4.7 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of Certificate for the 6.000% Mandatory Convertible Preferred Stock, Series B. | Incorporated by reference to Exhibit 4.2 to the registrant’s registration statement on Form 8-A filed on May 26, 2020. | |||||||||||||
Deposit Agreement, dated as of May 26, 2020, 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 26, 2020. | |||||||||||||
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 26, 2020. | |||||||||||||
Registration Rights Agreement, dated as of December 29, 2017, between Becton, Dickinson and Company and Citigroup Global Markets Inc. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on December 29, 2017. | |||||||||||||
Form of 6.700% Notes due December 1, 2026. | Incorporated by reference to Exhibit 4.4 to the registrant's Current Report on Form 8-K filed on December 29, 2017. | |||||||||||||
Indenture, dated as of December 1, 1996 between C.R. Bard, Inc. and The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee. | Incorporated by reference to Exhibit 4.1 to C.R. Bard, Inc.'s Registration Statement on Form S-3 (File No. 333-05997). | |||||||||||||
First Supplemental Indenture, dated May 18, 2017, between C. R. Bard, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of C.R. Bard, Inc. filed on May 23, 2017. | |||||||||||||
Form of 1.401% Notes due May 24, 2023. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on May 24, 2018. | |||||||||||||
Form of 3.020% Notes due May 24, 2025. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on May 24, 2018. | |||||||||||||
First Supplemental Indenture, dated as of June 4, 2019, among Becton Finance, as issuer, Becton, Dickinson and Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on June 4, 2019. |
Exhibit Number | Description | Method of Filing | ||||||||||||
Form of 0.632% Note due June 4, 2023. | Incorporated by reference to Exhibit 4.3 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of 1.208% Note due June 4, 2026. | Incorporated by reference to Exhibit 4.4 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of 2.823% Notes due May 20, 2030. | Incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed on May 20, 2020. | |||||||||||||
Form of 3.794% Notes due May 20, 2050. | Incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed on May 20, 2020. | |||||||||||||
Form of 1.957% Notes due February 11, 2031. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on February 11, 2021. | |||||||||||||
Second Supplemental Indenture, dated as of February 12, 2021, among Becton Finance, as issuer, Becton, Dickinson and Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on February 12, 2021. | |||||||||||||
Form of 1.213% Note due February 12, 2036. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on February 12, 2021. | |||||||||||||
Third Supplemental Indenture, dated as of August 13, 2021, among Becton Finance, as issuer, Becton, Dickinson and Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on August 13, 2021. | |||||||||||||
Form of 0.334% Notes due August 13, 2028. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on August 13, 2021. | |||||||||||||
Form of 1.336% Notes due August 13, 2041. | Incorporated by reference to Exhibit 4.3 to the registrant's Current Report on Form 8-K filed on August 13, 2021. | |||||||||||||
Form of 0.000% Notes due August 13, 2023. | Incorporated by reference to Exhibit 4.2 to the registrant’s registration statement on Form 8-A filed on August 13, 2021. | |||||||||||||
Form of 0.034% Notes due August 13, 2025. | Incorporated by reference to Exhibit 4.3 to the registrant’s registration statement on Form 8-A filed on August 13, 2021. | |||||||||||||
Description of the Registrant’s Securities. | Filed with this report. |
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 as of May 1, 2020.* | Incorporated by reference to Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2020. | |||||||||||||
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 filed on December 2, 2014. | |||||||||||||
Aircraft Time Sharing Agreement dated June 5, 2020, between the registrant and Thomas E. Polen.* | Incorporated by reference to Exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2020. | |||||||||||||
2004 Employee and Director Equity-Based Compensation Plan, as amended and restated as of November 24, 2020.* | Incorporated by reference to Exhibit 10(g)(i) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. | |||||||||||||
French Addendum to the 2004 Employee and Director Equity-Based Compensation Plan dated January 21, 2019.* | Incorporated by reference to Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on January 31, 2020. | |||||||||||||
Terms of Awards under 2004 Employee and Director Equity-Based Compensation Plan and Stock Award Plan.* | Incorporated by reference to Exhibit 10(g)(iii) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. | |||||||||||||
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. | |||||||||||||
Term sheet, dated August 25, 2017, between the registrant and Samrat Khichi.* | Incorporated by reference to Exhibit 10(o) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018. | |||||||||||||
C. R. Bard, Inc. Supplemental Executive Retirement Plan, dated as of July 13, 1988.* | Incorporated by reference to Exhibit 10p to the C.R. Bard, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 1993. | |||||||||||||
Supplemental Insurance/Retirement Plan Agreement (as Amended and Restated) between C.R. Bard, Inc. and its executive officers.* | Incorporated by reference to Exhibit 10be to the C.R. Bard, Inc. Quarterly Report on Form 10-Q for the period ended September 30, 2005. |
Exhibit Number | Description | Method of Filing | ||||||||||||
2005 Directors’ Stock Award Plan of C. R. Bard, Inc. (as Amended and Restated).* | Incorporated by reference to Exhibit 10bw to the C.R. Bard, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |||||||||||||
Letter Agreement, dated August 4, 2021, between the registrant and Christopher DelOrefice.* | Filed with this report. | |||||||||||||
Amended and Restated Credit Agreement, dated as of September 24, 2021, by and among Becton, Dickinson and Company, the other entities 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 September 27, 2021. | |||||||||||||
Subsidiaries of the registrant. | Filed with this report. | |||||||||||||
Subsidiary Issuer of Guaranteed Securities. | Filed with this report. | |||||||||||||
Consent of independent registered public accounting firm. | Filed with this report. | |||||||||||||
Power of Attorney. | Included on signature page. | |||||||||||||
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 iXBRL (Inline 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. | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
By: | /s/ GARY DEFAZIO | ||||||||||
Gary DeFazio | |||||||||||
Senior Vice President and Corporate Secretary |
Name | Capacity | |||||||
/S/ THOMAS E. POLEN | Chairman, Chief Executive Officer and President | |||||||
Thomas E. Polen | (Principal Executive Officer) | |||||||
/S/ CHRISTOPHER J. DELOREFICE | Executive Vice President and Chief Financial | |||||||
Christopher J. DelOrefice | Officer | |||||||
(Principal Financial Officer) | ||||||||
/S/ THOMAS J. SPOEREL | Senior Vice President, Controller | |||||||
Thomas J. Spoerel | and Chief Accounting Officer | |||||||
(Principal Accounting Officer) | ||||||||
Name | Capacity | |||||||
/S/ CATHERINE M. BURZIK | ||||||||
Catherine M. Burzik | Director | |||||||
/S/ CARRIE L. BYINGTON | ||||||||
Carrie L. Byington | Director | |||||||
/S/ R. ANDREW ECKERT | ||||||||
R. Andrew Eckert | Director | |||||||
/S/ CLAIRE M. FRASER | ||||||||
Claire M. Fraser | Director | |||||||
/S/ JEFFREY W. HENDERSON | ||||||||
Jeffrey W. Henderson | Director | |||||||
/S/ CHRISTOPHER JONES | ||||||||
Christopher Jones | Director | |||||||
/S/ MARSHALL O. LARSEN | ||||||||
Marshall O. Larsen | Director | |||||||
/S/ DAVID F. MELCHER | ||||||||
David F. Melcher | Director | |||||||
/S/ CLAIRE POMEROY | ||||||||
Claire Pomeroy | Director | |||||||
/S/ REBECCA W. RIMEL | ||||||||
Rebecca W. Rimel | Director | |||||||
/S/ TIMOTHY M. RING | ||||||||
Timothy M. Ring | Director | |||||||
/S/ BERTRAM L. SCOTT | ||||||||
Bertram L. Scott | Director |
Effective date | $120.00 | $140.00 | $160.00 | $180.00 | $200.00 | $220.00 | $240.00 | $250.00 | $260.00 | $270.00 | $288.00 | $300.00 | $325.00 | $350.00 | $400.00 | ||||||||||||||||||||||||||||||||
June 1, 2021 | 3.8744 | 3.8653 | 3.8323 | 3.7832 | 3.7259 | 3.6673 | 3.6122 | 3.5869 | 3.5635 | 3.5420 | 3.5082 | 3.4891 | 3.4573 | 3.4348 | 3.4095 | ||||||||||||||||||||||||||||||||
June 1, 2022 | 4.0323 | 4.0343 | 4.0149 | 3.9711 | 3.9057 | 3.8270 | 3.7452 | 3.7060 | 3.6691 | 3.6348 | 3.5813 | 3.5517 | 3.5044 | 3.4735 | 3.4438 | ||||||||||||||||||||||||||||||||
June 1, 2023 | 4.1666 | 4.1666 | 4.1666 | 4.1666 | 4.1666 | 4.1666 | 4.1666 | 3.9999 | 3.8461 | 3.7036 | 3.4721 | 3.4722 | 3.4722 | 3.4722 | 3.4722 |
CR1 = CR0x | OS1 | ||||
OS0 |
CR0 | the fixed conversion rate in effect immediately prior to 5:00 p.m., New York City time, on the record date (as defined below) for such dividend or distribution or immediately prior to 9:00 a.m., New York City time, on the effective date for such subdivision or combination, as the case may be; | ||||
CR1 | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on such record date or immediately after 9:00 a.m., New York City time, on such effective date, as the case may be; | ||||
OS0 | the number of shares of our common stock outstanding immediately prior to 5:00 p.m., New York City time, on such record date or immediately prior to 9:00 a.m., New York City time, on such effective date, as the case may be, and prior to giving effect to such event; and | ||||
OS1 | the number of shares of our common stock that would be outstanding immediately after, and solely as a result of, such dividend, distribution, subdivision or combination. |
CR1 = CR0x | (OS0 + X) | ||||
(OS0 + Y) |
CR0 | = | the fixed conversion rate in effect immediately prior to 5:00 p.m., New York City time, on the record date for such issuance; | ||||||
CR1 | = | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on such record date; | ||||||
OS0 | = | the number of shares of our common stock outstanding immediately prior to 5:00 p.m., New York City time, on such record date; | ||||||
X | = | the number of shares of our common stock issuable pursuant to such rights, options or warrants; and | ||||||
Y | = | the aggregate price payable to exercise such rights, options or warrants, divided by the average VWAP per share of our common stock for the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the date of announcement for such issuance. |
CR1 = CR0x | SP0 | ||||
SP0 - FMV |
CR0 | = | the fixed conversion rate in effect immediately prior to 5:00 p.m., New York City time, on the record date for such dividend or distribution; | ||||||
CR1 | = | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on such record date; | ||||||
SP0 | = | the average VWAP per share of our common stock for the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the ex-dividend date for such dividend or distribution; and | ||||||
FMV | = | the fair market value (as determined in good faith by our board of directors or a duly authorized committee thereof, which determination will be final) on the ex-dividend date for such dividend or distribution of shares of our capital stock (other than our common stock), evidences of our indebtedness, our assets or rights to acquire our capital stock, our indebtedness or our assets, expressed as an amount per share of our common stock. |
CR1 = CR0x | FMV + MP) | ||||
MP |
CR0 | = | the fixed conversion rate in effect at 5:00 p.m., New York City time, on the tenth trading day immediately following, and including, the ex-dividend date for such dividend or distribution; | ||||||
CR1 | = | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on the tenth trading day immediately following, and including, the ex-dividend date for such dividend or distribution; | ||||||
FMV | = | the average VWAP per share of such capital stock or similar equity interests distributed to holders of our common stock applicable to one share of our common stock over the 10 consecutive trading day period commencing on, and including, the ex- dividend date for such dividend or distribution; and | ||||||
MP | = | the average VWAP per share of our common stock over the 10 consecutive trading day period commencing on, and including, the ex-dividend date for such dividend or distribution. |
CR1 = CR0x | SP0 | ||||
(SP0 – C) |
CR0 | = | the fixed conversion rate in effect immediately prior to 5:00 p.m., New York City time, on the record date for such distribution; | ||||||
CR1 | = | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on the record date for such distribution; | ||||||
SP0 | = | the average VWAP per share of our common stock over the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the ex-dividend date for such distribution; and | ||||||
C | = | an amount of cash per share of our common stock we distribute to holders of our common stock; provided that in the case of a regular quarterly cash dividend or distribution, such amount will only include the amount of such dividend or distribution in excess of the initial dividend threshold. |
CR1 = CR0x | (FMV+(SP1 x OS1)) | ||||
(SP1 – OS0) |
CR0 | = | the fixed conversion rate in effect immediately prior to 5:00 p.m., New York City time, on the tenth trading day immediately following, and including, the trading day next succeeding the expiration date; | ||||||
CR1 | = | the fixed conversion rate in effect immediately after 5:00 p.m., New York City time, on the tenth trading day immediately following, and including, the trading day next succeeding the expiration date; | ||||||
FMV | = | the fair market value (as determined in good faith by our board of directors or a duly authorized committee thereof) as of the expiration date of the aggregate value of all cash and any other consideration paid or payable for shares of our common stock validly tendered or exchanged and not withdrawn as of the expiration date (the “purchased shares”); | ||||||
OS1 | = | the number of shares of our common stock outstanding as of the last time tenders or exchanges may be made pursuant to such tender or exchange offer (the “expiration time”), less any purchased shares; | ||||||
OS0 | = | the number of shares of our common stock outstanding at the expiration time, including any purchased shares; and | ||||||
SP1 | = | the average VWAP per share of our common stock over the 10 consecutive trading day period commencing on, and including, the trading day next succeeding the expiration date. |
Effective Date | $120.00 | $140.00 | $160.00 | $180.00 | $200.00 | $220.00 | $240.00 | $250.00 | $260.00 | $270.00 | $288.00 | $300.00 | $325.00 | $350.00 | $400.00 | ||||||||||||||||||||||||||||||||
June 1, 2021 | 0.1937 | 0.1933 | 0.1916 | 0.1892 | 0.1863 | 0.1834 | 0.1806 | 0.1793 | 0.1782 | 0.1771 | 0.1754 | 0.1745 | 0.1729 | 0.1717 | 0.1705 | ||||||||||||||||||||||||||||||||
June 1, 2022 | 0.2016 | 0.2017 | 0.2007 | 0.1986 | 0.1953 | 0.1914 | 0.1873 | 0.1853 | 0.1835 | 0.1817 | 0.1791 | 0.1776 | 0.1752 | 0.1737 | 0.1722 | ||||||||||||||||||||||||||||||||
June 1, 2023 | 0.2083 | 0.2083 | 0.2083 | 0.2083 | 0.2083 | 0.2083 | 0.2083 | 0.2000 | 0.1923 | 0.1852 | 0.1736 | 0.1736 | 0.1736 | 0.1736 | 0.1736 |
Applicable Market Value of our Common Stock on the Mandatory Conversion Date | Conversion Rate Per Depositary Share | ||||
Equal to or greater than the threshold appreciation price. | 0.1736 shares. | ||||
Less than the threshold appreciation price but greater than the initial price. | Between 0.1736 and 0.2083 shares, determined by dividing $50 by the applicable market value of our common stock. | ||||
Less than or equal to the initial price. | 0.2083 shares. |
US SUBSIDIARIES OF BECTON, DICKINSON AND COMPANY | |||||
Name of Subsidiary | Where Incorporated | ||||
Accuri Cytometers, Inc. | Delaware | ||||
Alverix, Inc. | Delaware | ||||
Bard Access Systems, Inc. | Utah | ||||
Bard Acquisition Sub, Inc. | Delaware | ||||
Bard ASDI, Inc. | New Jersey | ||||
Bard Brachytherapy, Inc. | Delaware | ||||
Bard Devices, Inc. | Delaware | ||||
Bard Global Holdings I LLC | Delaware | ||||
Bard Global Holdings II LLC | Delaware | ||||
Bard Global Holdings III LLC | Delaware | ||||
Bard IP Holdings Inc. | Delaware | ||||
Bard Healthcare, Inc. | Texas | ||||
Bard International, Inc. | Delaware | ||||
Bard MRL Acquisition Corp. | Delaware | ||||
Bard Peripheral Vascular, Inc. | Arizona | ||||
BD Ventures LLC | New Jersey | ||||
BDX INO LLC | Delaware | ||||
Becton Dickinson Biosciences, Systems and Reagents Inc. | California | ||||
Becton Dickinson Global Holdings I Inc. | Delaware | ||||
Becton Dickinson Global Holdings II LLC | Delaware | ||||
Becton Dickinson Global Holdings IV LLC | Delaware | ||||
Becton Dickinson Global Holdings V LLC | Delaware | ||||
Becton Dickinson Global Holdings VII LLC | Delaware | ||||
Becton Dickinson Global Holdings VIII LLC | Delaware | ||||
Becton Dickinson Infusion Therapy Systems Inc. | Delaware | ||||
Becton Dickinson Korea Holding, Inc. | Delaware | ||||
Becton Dickinson Malaysia, Inc. | Oregon | ||||
Becton Dickinson Matrex Holdings, Inc. | Delaware | ||||
Becton Dickinson Overseas Services Ltd. | Nevada | ||||
Becton Dickinson Venture LLC | Delaware | ||||
Bridger Biomed, Inc. | Montana | ||||
C. R. Bard, Inc. | New Jersey | ||||
Cardal II, LLC | Delaware | ||||
CareFusion 213, LLC | Delaware | ||||
CareFusion 2200, Inc. | Delaware | ||||
CareFusion 2201, Inc. | Delaware | ||||
CareFusion 302, LLC | Delaware |
CareFusion 303, Inc. | Delaware | ||||
CareFusion Corporation | Delaware | ||||
CareFusion Manufacturing, LLC | Delaware | ||||
CareFusion Resources, LLC | Delaware | ||||
CareFusion Solutions, LLC | Delaware | ||||
Cell Analysis Systems, Inc | Illinois | ||||
Cellular Research, Inc. | Delaware | ||||
CME America LLC | Delaware | ||||
CRISI Medical Systems, Inc. | Delaware | ||||
Davol Inc. | Delaware | ||||
DVL Acquisition Sub, Inc. | Delaware | ||||
Dymax Corporation | Pennsylvania |
Enturican, Inc. | Kansas | ||||
FJ International, Inc. | Oregon | ||||
FlowCardia, Inc. | Delaware | ||||
FlowCardia, LLC | Delaware | ||||
FlowJo LLC | Oregon | ||||
Franklin Lakes Enterprises, L.L.C. | New Jersey | ||||
Gesco International, Inc. | Massachusetts | ||||
Gesco International, LLC | Massachusetts | ||||
HandyLab, Inc. | Delaware | ||||
IBD Holdings LLC | Delaware | ||||
Iontophoretics Corporation | Utah | ||||
JoHome LLC | Oregon | ||||
Liberator Health and Education Services, Inc. | Florida | ||||
Liberator Health and Wellness, Inc. | Florida | ||||
Liberator Medical Holdings, Inc. | Nevada | ||||
Liberator Medical Supply, Inc. | Florida | ||||
Loma Vista Medical, Inc. | Delaware | ||||
Loma Vista Medical, LLC | Delaware | ||||
Lutonix, Inc. | Delaware | ||||
Medafor, Inc. | Minnesota | ||||
MedChem Products, Inc. | Massachusetts | ||||
Medegen, LLC | California | ||||
Med-Design Corporation | Delaware | ||||
Med-Design Investment Holdings, Inc. | Delaware | ||||
Medinservice.com, Inc. | Utah | ||||
Medivance, Inc. | Delaware | ||||
Med-Safe Systems, Inc. | California | ||||
NAT Diagnostics Inc. | Delaware |
Navarre Biomedical, LLC | Minnesota | ||||
Navarre Biomedical, Ltd. | Minnesota | ||||
Neomend, Inc. | Delaware | ||||
NOW Medical Distribution, Inc. | Delaware | ||||
NOW Medical Distribution, LLC | Delaware | ||||
Omega Biosystems Incorporated | Delaware | ||||
PharMingen | California | ||||
ProSeed, Inc. | New Jersey | ||||
PureWick Corporation | California | ||||
Roberts Laboratories, Inc. | Arizona | ||||
Rochester Medical Corporation | Minnesota | ||||
Safety Syringes, Inc. | California | ||||
SenoRx, Inc. | Delaware | ||||
SenoRx, LLC | Delaware | ||||
Shield Healthcare Centers, Inc. | Delaware | ||||
Sirigen, Inc. | California | ||||
Specialized Cooperative Corporation | Utah | ||||
Specialized Health Products International, Inc. | Delaware | ||||
Specialized Health Products International, LLC | Delaware | ||||
Specialized Health Products, Inc. | Utah | ||||
Staged Diabetes Management LLC | New Jersey | ||||
Surgical Site Solutions, Inc. | Wisconsin | ||||
Tepha, Inc. | Delaware | ||||
Tri-County Medical & Ostomy Supplies, Inc. | Tennessee | ||||
TriPath Imaging, Inc. | Delaware | ||||
TVA Medical, Inc. | Delaware |
Vascular Pathways, Inc. | Delaware | ||||
Velano Vascular, Inc. | Delaware | ||||
Venetec International, Inc. | Delaware | ||||
Venetec International, LLC | Delaware | ||||
Y-Med, Inc. | Delaware | ||||
Y-Med, LLC | Delaware | ||||
ZebraSci, Inc. | Delaware | ||||
NON-US SUBSIDIARIES OF BECTON, DICKINSON AND COMPANY | |||||
Name of Subsidiary | Where Incorporated | ||||
Bard (Thailand) Limited | Thailand | ||||
Bard Australia Pty. Limited | Australia, New South Wales |
Bard Benelux N.V. | Belgium | ||||
Bard Brasil Indústria e Comércio de Produtos Para a Saúde Ltda. | Brazil | ||||
Bard Canada Inc. | Canada, Ontario | ||||
Bard Chile S.p.A. | Chile | ||||
Bard Czech Republic s.r.o. | Czech Republic, Prague | ||||
Bard de Espana, S.A. | Spain | ||||
Bard Dublin ITC Limited | Ireland | ||||
Bard EMEA Finance Center Sp.z o.o. | Poland | ||||
Bard European Distribution Center N.V. | Belgium | ||||
Bard Finance B.V. & Co. KG. | Netherlands | ||||
Bard Financial Services Ltd. | England | ||||
Bard Finland OY | Finland | ||||
Bard France S.A.S. | France | ||||
Bard Healthcare Science (Shanghai) Limited | China, Shanghai | ||||
Bard Hellas S.A. | Greece | ||||
Bard Holding SAS | France | ||||
Bard Holdings Limited | England | ||||
Bard Holdings Netherlands B.V. | Netherlands | ||||
Bard Hong Kong Limited | Hong Kong | ||||
Bard India Healthcare Pvt. Ltd. | India, Maharashtra | ||||
Bard International Holdings, B.V. | Netherlands | ||||
(Bard Istanbul Healthcare Limited Company) | Turkey, Istanbul | ||||
Bard Korea Ltd. | Korea, Republic | ||||
Bard Limited | England | ||||
Bard Malaysia Healthcare Sdn. Bhd. | Malaysia | ||||
Bard Medica SA | Switzerland, Geneva | ||||
Bard Medical Devices (Beijing) Co., Ltd. | China | ||||
Bard Medical R&D (Shanghai) Co., Ltd. | China, Shanghai | ||||
Bard Medical SA (Proprietary) Limited | South Africa, Johannesburg, Gauteng | ||||
Bard Mexico Realty, S. de R.L. de C.V. | Mexico, Chihuahua | ||||
Bard Norden AB | Sweden | ||||
Bard Norway AS | Norway | ||||
Bard Pacific Health Care Company Ltd. | Taiwan | ||||
Bard Poland Sp. z.o.o. | Poland | ||||
Bard Productos Plasticos e Medicos Ltda. | Brazil |
Bard Reynosa, S.A. de C.V. | Mexico, Tamaulipas | ||||
Bard S.r.l. | Italy | ||||
Bard Sdn. Bhd. | Malaysia | ||||
Bard Shannon Limited | Ireland | ||||
Bard Singapore Private Limited | Singapore |
Bard Sourcing Office Singapore Pte. Ltd. | Singapore | ||||
Bard Sweden AB | Sweden | ||||
Bard UK Newco Limited | England | ||||
BD Holding S. de R.L. de C.V. | Mexico | ||||
BD Infection Prevention BV | Belgium | ||||
BD Kiestra BV | Netherlands | ||||
BD Rapid Diagnostic (Suzhou) Co., Ltd. | China | ||||
BD San Luis Potosi, S.A. de C.V. | Mexico, San Luis | ||||
BD Switzerland Sarl | Switzerland | ||||
BD West Africa Limited | Ghana | ||||
Becton Dickinson A.G. | Switzerland | ||||
Becton Dickinson A/S | Denmark | ||||
Becton, Dickinson and Company, Ltd. | Ireland | ||||
Becton Dickinson Argentina S.R.L. | Argentina | ||||
Becton Dickinson Asia Holdings Ltd. | Gibraltar | ||||
Becton Dickinson Asia Limited | Hong Kong | ||||
Becton Dickinson Austria GmbH | Austria | ||||
Becton Dickinson Austria Holdings GmbH | Austria | ||||
Becton Dickinson Benelux N.V. | Belgium | ||||
Becton, Dickinson B.V. | Netherlands | ||||
Becton Dickinson B.V. Saudi Limited Company | Saudi Arabia | ||||
Becton Dickinson Canada Inc. | Canada | ||||
Becton Dickinson Caribe Ltd. | Cayman Islands | ||||
Becton Dickinson Croatia d.o.o. | Croatia | ||||
Becton Dickinson Czechia s.r.o. | Czech Republic | ||||
Becton Dickinson de Colombia Ltda. | Colombia | ||||
Becton Dickinson de Mexico, S.A. de C.V. | Mexico | ||||
Becton Dickinson del Uruguay S.A. | Uruguay | ||||
Becton Dickinson Dispensing Belgium BVBA | Belgium | ||||
Becton Dickinson Dispensing Denmark A/S | Denmark | ||||
Becton Dickinson Dispensing France SAS | France | ||||
Becton Dickinson Dispensing Ireland Limited | Ireland | ||||
Becton Dickinson Dispensing Norway | Norway | ||||
Becton Dickinson Dispensing Spain S.L.U. | Spain | ||||
Becton Dickinson Dispensing UK Ltd. | United Kingdom | ||||
Becton Dickinson Distribution Center N.V. | Belgium | ||||
Becton Dickinson East Africa Ltd. | Kenya | ||||
Becton Dickinson Euro Finance Sarl | Luxembourg | ||||
Becton Dickinson Europe Holdings S.A.S. | France | ||||
Becton Dickinson France S.A.S. | France | ||||
Becton Dickinson (Gibraltar) Holdings Ltd. | Gibraltar |
Becton Dickinson (Gibraltar) Limited | Gibraltar | ||||
Becton Dickinson (Gibraltar) Management Limited | Gibraltar | ||||
Becton Dickinson GmbH | Germany | ||||
Becton Dickinson GSA Beteilgungs GmbH | Germany | ||||
Becton Dickinson Guatemala S.A. | Guatemala | ||||
Becton Dickinson Hellas S.A. | Greece | ||||
Becton Dickinson Holdings Limited | Ireland | ||||
Becton Dickinson Holdings Pte Ltd. | Singapore |
Becton Dickinson Hungary Kft. | Hungary | ||||
Becton Dickinson India Private Limited | India, Maharashtra | ||||
Becton, Dickinson Industrias Cirurgicas, Ltda. | Brazil | ||||
Becton Dickinson Infusion Therapy AB | Sweden | ||||
Becton Dickinson Infusion Therapy Holdings UK Limited | United Kingdom | ||||
Becton Dickinson Infusion Therapy Systems Inc., S.A. de C.V. | Mexico, Sonora | ||||
Becton Dickinson Infusion Therapy UK | United Kingdom | ||||
Becton Dickinson Insulin Syringe, Ltd. | Cayman Islands | ||||
Becton Dickinson International Holdings Pte Ltd. | Singapore | ||||
Becton Dickinson International Holdings II Pte Ltd. | Singapore | ||||
Becton Dickinson International Holdings III Pte Ltd. | Singapore | ||||
Becton Dickinson Israel Ltd. | Israel | ||||
Becton Dickinson Italia S.p.A. | Italy | ||||
Becton Dickinson Ithalat Ihracat Limited Sirketi | Turkey | ||||
Becton Dickinson Global Services Centre Sdn. Bhd | Malaysia | ||||
Becton Dickinson Holdings Ltd. | Ireland | ||||
Becton Dickinson Korea Ltd. | Korea | ||||
Becton Dickinson Ltd. | New Zealand | ||||
Becton Dickinson Luxembourg Finance S.a.r.L. | Luxembourg | ||||
Becton Dickinson Luxembourg Global Holdings Sarl | Luxembourg | ||||
Becton Dickinson Luxembourg Holdings II S.a.r.L | Luxembourg | ||||
Becton Dickinson Luxembourg Holdings III S.a.r.L | Luxembourg | ||||
Becton Dickinson Luxembourg Holdings V S.a.r.L. | Luxembourg | ||||
Becton Dickinson Management GmbH & Co. KG | Germany | ||||
Becton Dickinson (Mauritius) Limited | Mauritius | ||||
Becton Dickinson Medical (S) Pte Ltd. | Singapore | ||||
Becton Dickinson Medical Devices (Shanghai) Co., Ltd. | China | ||||
Becton Dickinson Medical Devices (Suzhou) Co., Ltd. | China | ||||
Becton Dickinson Medical Products Pte. Ltd. | Singapore | ||||
Becton Dickinson Medical Technology (Jiangsu) Co. Ltd. | China | ||||
Becton Dickinson Netherlands Global Holdings II C.V. | Netherlands | ||||
Becton Dickinson Netherlands Holdings B.V. | Netherlands |
Becton Dickinson Netherlands Holdings II B.V. | Netherlands | ||||
Becton Dickinson Norway AS | Norway | ||||
Becton Dickinson O.Y. | Finland | ||||
Becton Dickinson Pakistan (Pvt) Ltd. | Pakistan | ||||
Becton Dickinson Penel Limited | Cayman Islands | ||||
Becton Dickinson Philippines, Inc. | Philippines | ||||
Becton Dickinson Polska Sp.z.o.o. | Poland | ||||
Becton Dickinson Portugal, Unipessoal, Lda. | Portugal | ||||
Becton Dickinson Pty. Ltd. | Australia | ||||
Becton Dickinson (Pty) Ltd. | South Africa | ||||
Becton Dickinson Research Centre Ireland Limited | Ireland | ||||
Becton Dickinson Rowa Germany GmbH | Germany | ||||
Becton Dickinson Rowa Italy Srl | Italy | ||||
Becton Dickinson S.A. | Spain | ||||
Becton Dickinson Sample Collection GmbH | Switzerland | ||||
Becton Dickinson Scot Financing L.P. | Scotland | ||||
Becton Dickinson Scot Financing L.L.P. | Scotland | ||||
Becton Dickinson Sdn. Bhd. | Malaysia | ||||
Becton Dickinson Slovakia s.r.o. | Slovakia | ||||
Becton Dickinson Sweden AB | Sweden | ||||
Becton Dickinson Sweden Holdings AB | Sweden | ||||
Becton Dickinson Switzerland Global Holdings SarL | Switzerland |
Becton Dickinson Technology Campus India | India | ||||
Becton Dickinson (Thailand) Limited | Thailand | ||||
Becton Dickinson UK Financing I Limited | United Kingdom | ||||
Becton Dickinson UK Financing II Limited | United Kingdom | ||||
Becton Dickinson U.K. Limited | United Kingdom | ||||
Becton Dickinson Venezuela, C.A. | Venezuela | ||||
Becton Dickinson Verwaltungs GmbH | Germany | ||||
Becton Dickinson Vostok LLC | Russia | ||||
Becton Dickinson Worldwide Investments Sa.r.L. | Luxembourg | ||||
Becton Dickinson Zambia Limited | Zambia | ||||
Benex Ltd. | Ireland | ||||
C. R. Bard Do Brasil Productos Medicos Ltda. | Brazil | ||||
C. R. Bard (Portugal) - Produtos e Artigos Medicos e Farmaceuticos | Brazil | ||||
C. R. Bard GmbH | Germany | ||||
C. R. Bard Netherlands Sales B.V. | Netherlands | ||||
CareFusion Asia (HK) Limited | Hong Kong | ||||
CareFusion (Barbados) SrL | Barbados | ||||
CareFusion BH 335 d.o.o. Cazin | Bosnia |
Care Fusion Development Private Limited | India | ||||
CareFusion D.R. 203 Ltd. | Bermuda | ||||
CareFusion (Shanghai) Commercial and Trading Co. Limited | China | ||||
CareFusion France 309 S.A.S. | France | ||||
CareFusion Israel 330 Ltd. | Israel | ||||
CareFusion Italy 312 S.p.A. | Italy | ||||
CareFusion Mexico 215 S.A. de C.V. | Mexico | ||||
CareFusion Netherlands 328 B.V. | Netherlands | ||||
CareFusion Netherlands 503 B.V. | Netherlands | ||||
CareFusion Netherlands 504 B.V. | Netherlands | ||||
CareFusion Netherlands Financing 283 C.V. | Netherlands | ||||
CareFusion S.A. 319 (Proprietary) Limited | South Africa | ||||
CareFusion U.K. 244 Limited | United Kingdom | ||||
CareFusion U.K. 305 Limited | United Kingdom | ||||
CareFusion U.K. 306 Limited | United Kingdom | ||||
Carmel Pharma AB | Sweden | ||||
Clearstream Technologies Group Limited | Ireland | ||||
Clearstream Technologies Limited | Ireland | ||||
CME Ltd. | Israel | ||||
CME Medical (UK) Limited | United Kingdom | ||||
CME UK (Holdings) Limited | United Kingdom | ||||
Corporativo BD de Mexico, S. de R.L. de C.V. | Mexico | ||||
DLD (Bermuda) Ltd. | Bermuda | ||||
Davol International Limited | England | ||||
Davol Surgical Innovations, S.A. de C.V. | Mexico, Chihuahua | ||||
Distribuidora BD Mexico, S.A. de C.V. | Mexico | ||||
Dutch American Manufacturers (D.A.M.) B.V. | Netherlands | ||||
Embo Medical Limited | Ireland | ||||
Enturia de Mexico S. de R.L. de C.V. | Mexico | ||||
Gamer Lasertechnik GmbH | Germany | ||||
GenCell Biosystems Ltd. | Ireland | ||||
GeneOhm Sciences Canada ULC | Canada | ||||
Kabushiki Kaisha Medicon (Medicon, Inc.) | Japan | ||||
Limited Liability Company Bard Rus | Russian Federation | ||||
Nippon Becton Dickinson Company, Ltd. | Japan | ||||
PreAnalytiX GmbH | Switzerland |
Pristine Access Technologies, Inc. | Israel | ||||
P.R.C. (Isialys) Societe a responsabilitie limitee (Societe a associe unique) | France | ||||
Procesos para Esterilizacion, S.A. de C.V. | Mexico | ||||
Productos Bard de Mexico, S.A. de C.V. | Mexico, Mexico City | ||||
Productos Para el Cuidado de la Salud, S.A. de C.V. | Mexico, Sonora | ||||
PT Becton Dickinson Indonesia | Indonesia | ||||
Puls Medical Devices AS LC | Norway | ||||
Rochester Medical Ltd. | United Kingdom | ||||
Sendal, S.L.U. | Spain | ||||
Sirigen II Limited | United Kingdom | ||||
Sistemas Médicos ALARIS, S.A. de C.V. | Mexico, Baja | ||||
Straub Medical AG | Switzerland | ||||
Vas-Cath Incorporated | Canada, Ontario |
Date: November 24, 2021 | ||
/s/ Thomas E. Polen | ||
Thomas E. Polen | ||
Chairman, Chief Executive Officer and President |
Date: November 24, 2021 | ||
/s/ Christopher J. DelOrefice | ||
Christopher J. DelOrefice | ||
Executive Vice President and Chief Financial Officer |
Date: November 24, 2021 | ||
/s/ Thomas E. Polen | ||
Thomas E. Polen | ||
Chief Executive Officer |
Date: November 24, 2021 | ||
/s/ Christopher J. DelOrefice | ||
Christopher J. DelOrefice | ||
Chief Financial Officer |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
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Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 2,092 | $ 874 | $ 1,233 |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustments | 124 | (161) | (93) |
Defined benefit pension and postretirement plans | 255 | (35) | (275) |
Cash flow hedges | 81 | (67) | (6) |
Other Comprehensive Income (Loss), Net of Tax | 460 | (265) | (374) |
Comprehensive Income | $ 2,552 | $ 609 | $ 859 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2021 |
Sep. 30, 2020 |
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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) | 364,639,901 | 364,639,901 |
Common stock in treasury, shares (shares) | 80,163,949 | 74,622,657 |
Summary of Significant Accounting Policies |
12 Months Ended |
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Sep. 30, 2021 | |
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" or "BD") have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). 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. Restricted Cash Restricted cash consists of cash restricted from withdrawal and usage and largely represents funds that are restricted for certain product liability matters assumed in the acquisition of C.R. Bard, Inc. ("Bard"), which are further discussed in Note 5. Trade 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 expected credit losses relating to trade receivables and is determined based on historical experience, current conditions, reasonable and supportable forecasts and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectable. Inventories Inventories are stated at the lower of approximate cost or net realizable value determined on the first-in, first-out basis. 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, to 13 years for machinery and equipment and to 20 years for leasehold improvements. Depreciation and amortization expense was $731 million, $646 million and $633 million in fiscal years 2021, 2020 and 2019, respectively. Goodwill and Other Intangible Assets The Company’s unamortized intangible assets include goodwill which arise from acquisitions of businesses. The Company currently reviews 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. The Company’s review of goodwill for each reporting unit compares the fair value of the reporting unit, estimated using an income approach, with its carrying value. The annual impairment review performed on July 1, 2021 indicated that all identified reporting units’ fair values exceeded their respective carrying values. 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. Customer relationship assets are generally amortized over periods ranging from 10 to 15 years, using the straight-line method. Other intangibles with finite useful lives, which include patents, are amortized over periods principally ranging from 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 The Company recognizes revenue from product sales when the customer obtains control of the product, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized upon customer acceptance of these installed products. Revenue for certain service arrangements, including extended warranty and software maintenance contracts, is recognized ratably over the contract term. When arrangements include multiple performance obligations, the total transaction price of the contract is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Variable consideration such as rebates, sales discounts and sales returns are estimated and treated as a reduction of revenue in the same period the related revenue is recognized. These estimates are based on contractual terms, historical practices, and current trends, and are adjusted as new information becomes available. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. Equipment lease transactions with customers are evaluated and classified as either operating or sales-type leases. Generally, these arrangements are accounted for as operating leases and therefore, revenue is recognized at the contracted rate over the rental period defined within the customer agreement. Additional disclosures regarding the Company's accounting for revenue recognition are provided in Note 6. Shipping and Handling Costs The Company considers its shipping and handling costs to be contract fulfillment costs and records them within Selling and administrative expense. Shipping expense was $656 million, $551 million and $511 million in 2021, 2020 and 2019, respectively. Contingencies The Company establishes accruals for future losses which are both probable and can be reasonably estimated (and in the case of environmental matters, without considering possible third-party recoveries). Additional disclosures regarding the Company's accounting for contingencies are provided in Note 5. 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. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. Cash flows for all other derivatives, including undesignated hedges, are classified in the same line item as the cash flows of the related hedged item, which is generally within operating or financing activities. Additional disclosures regarding the Company's accounting for derivative instruments are provided in Note 13. Income Taxes The Company has reviewed its needs in the United States for possible repatriation of undistributed earnings of its foreign subsidiaries and continues to invest foreign subsidiaries earnings outside of the United States to fund foreign investments or meet foreign working capital and property, plant and equipment expenditure needs. As a result, the Company is permanently reinvested with respect to all of its historical foreign earnings as of September 30, 2021. Deferred taxes are not provided on undistributed earnings of foreign subsidiaries that are indefinitely reinvested. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable because of the complexities associated with its hypothetical calculation. 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. Fair Value Measurements A fair value hierarchy is applied to prioritize inputs used in measuring fair value. The three levels of inputs used to measure fair value are detailed below. Additional disclosures regarding the Company’s fair value measurements are provided in Notes 9 and 14. Level 1 — Inputs to the valuation methodology which represent unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 — Inputs to the valuation methodology which include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 — Inputs to the valuation methodology which are unobservable and significant to the fair value measurement. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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. BD’s Intention to Spin Off Diabetes Care On May 6, 2021, the Company announced its intention to spin off its Diabetes Care business as a separate publicly traded company to BD’s shareholders. The proposed spin-off is intended to be a tax-free transaction for U.S. federal income tax purposes and is expected to be completed in the first half of calendar year 2022, subject to the satisfaction of customary conditions, including final approval from BD’s Board of Directors and the effectiveness of a registration statement on Form 10.
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Accounting Changes |
12 Months Ended |
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Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | Accounting Changes New Accounting Principles Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s adoption of this accounting standard on October 1, 2020, using the modified retrospective method, did not have a material impact on the Company's consolidated financial statements. On October 1, 2020, the Company retrospectively adopted an accounting standard update which added, removed and clarified disclosure requirements relating to defined benefit plans and other postretirement plans. The Company’s adoption of this update on October 1, 2020 did not materially impact its disclosures. See Note 9 for the Company’s defined pension plan and other benefit plan disclosures. In July 2018, the FASB issued accounting standard update (“ASU”) ASU 2018-09, "Codification Improvements", which, among other items, amended an illustrative example of a fair value hierarchy disclosure to indicate that a certain type of investment should not always be considered to be eligible to use the net asset value ("NAV") per share practical expedient. Also, it further clarified that an entity should evaluate whether a readily determinable fair value exists or whether its investments qualify for the NAV practical expedient. The Company early adopted this standard in the fourth quarter of fiscal year 2020 on a prospective basis, which is reflected in the fair value hierarchy classification of pension assets in Note 9, but does not change the fair value measurements of the investments. In August 2018, the FASB issued a new accounting standard to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company early adopted this standard as of April 1, 2020 on a prospective basis. The adoption of this standard did not materially impact the Company's consolidated financial statements. 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, as well as expanded disclosures regarding leasing arrangements. The Company adopted this standard on October 1, 2019, and elected certain practical expedients permitted under the transition guidance, including a transition method which allows application of the new standard at its adoption date, rather than at the earliest comparative period presented in the financial statements. The Company also elected not to perform any reassessments relative to its expired and existing leases upon its adoption of the new requirements. The Company's adoption of this standard did not materially impact its consolidated financial statements. Additional disclosures regarding the Company’s lease arrangements are provided in Note 17. On October 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606") using the modified retrospective method. Under ASC 606, revenue is recognized upon the transfer of control of goods or services to customers and reflects the amount of consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company assessed the impact of this new standard on its consolidated financial statements based upon a review of contracts that were not completed as of October 1, 2018. This accounting standard adoption, which is further discussed in Note 6, did not materially impact any line items of the Company's consolidated income statements and balance sheet. On October 1, 2018, the Company retrospectively adopted an accounting standard update which requires all components of net periodic pension and postretirement benefit costs to be disaggregated from the service cost component and to be presented on the income statement outside a subtotal of income from operations, if one is presented. Upon the Company's adoption of the accounting standard update, which did not have a material impact on its consolidated financial statements, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other (expense) income, net on its consolidated income statements for all periods presented. On October 1, 2018, the Company adopted an accounting standard update which requires that the income tax effects of intercompany sales or transfers of assets, except those involving inventory, be recognized in the income statement as income tax expense (or benefit) in the period that the sale or transfer occurs. The Company adopted this accounting standard update, which did not have a material impact on its consolidated financial statements, using the modified retrospective method.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Changes in certain components of shareholders’ equity were as follows:
(a)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. Share Repurchases In fiscal year 2021, the Company executed two accelerated share repurchase agreements and accounted for each agreement as two transactions upon prepayment: (1) the initial delivery of shares was recorded as an increase to Common stock in treasury to recognize the acquisition of common stock acquired in a treasury stock transaction, and (2) the remaining amount of shares was recorded as a decrease to Capital in excess of par value to recognize a net share-settled forward sale contract indexed to the Company's own common stock. The impacts of these accelerated share repurchase transactions were as follows:
(a) Upon final settlement of each repurchase agreement and the forward sale contract, the Company’s receipt of additional shares was recorded as an increase to Common stock in treasury and an offsetting increase to Capital in excess of par value. The final settlement for the fourth quarter transaction amounted to $150 million. The Company also repurchased approximately 2.066 million shares of its common stock during fiscal year 2021 through open market repurchases, which were recorded as a $500 million increase to Common stock in treasury. The share repurchases discussed above were made pursuant to the repurchase program authorized by the Board of Directors on September 24, 2013 for 10 million shares, for which there is no expiration date. In November 2021, the Board of Directors authorized the Company to repurchase up to an additional 10 million shares of BD common stock, for which there is no expiration date. Common and Preferred Stock Conversions and Offerings In accordance with their terms, the Company's 2.475 million mandatory convertible preferred shares that were issued in May 2017 in connection with the Company's acquisition of Bard were converted into 11.703 million shares of BD common stock on the mandatory conversion date of May 1, 2020. Also in May 2020, the Company completed registered public offerings of equity securities including: •6.250 million shares of the Company's common stock for net proceeds of $1.459 billion (gross proceeds of $1.500 billion). •1.500 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 $1.459 billion (gross proceeds of $1.500 billion). If and when declared, dividends on the mandatory convertible preferred stock will be payable on a cumulative basis at an annual rate of 6.00% 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 5.2 million and up to a maximum of 6.2 million shares of Company common stock at an exchange ratio, 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 June 1, 2023. 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 years ended September 30, 2021, 2020 and 2019 included net gains (losses) relating to net investment hedges, as further discussed in Note 13. Other comprehensive income relating to benefit plans during the year ended September 30, 2021 included a net gain of $24 million recognized as a result of the Company’s remeasurement, as of October 31, 2020, of the legacy Bard U.S. defined pension benefit plan upon its merger with the BD defined benefit cash balance pension plan in the first quarter of fiscal year 2021. The amounts recognized in other comprehensive income relating to cash flow hedges in 2021 and 2020 related to forward starting interest rate swaps. Additional disclosures regarding the Company's derivatives are provided in Note 13. The tax impacts for amounts recognized in other comprehensive income before reclassifications were as follows:
The tax impacts for cash flow hedges recognized in other comprehensive income before reclassifications in 2021, 2020 and 2019 were immaterial to the Company's consolidated financial results. The tax impacts for reclassifications out of Accumulated other comprehensive income (loss) relating to benefit plans and cash flow hedges in 2021, 2020 and 2019 were also immaterial to the Company's consolidated financial results.
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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:
(a)In 2021, 2020 and 2019, dilutive share equivalents associated with mandatory convertible preferred stock of 6 million, 9 million and 12 million, respectively, were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The issuance of the convertible preferred stock is further discussed in Note 3. (b)In both 2021 and 2020, 1 million of certain share-based compensation awards were excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares. In 2019, no such awards were excluded from the diluted earnings per share calculation. Additional disclosures regarding the Company’s share-based compensation are provided in Note 8.
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Commitments and Contingencies |
12 Months Ended |
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Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has certain future purchase commitments entered in the normal course of business to meet operational and capital requirements. As of September 30, 2021, these commitments aggregated to approximately $1.670 billion and 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 in which the Company is a party. With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of any class. With respect to the civil investigative demands (“CIDs”) served by the Department of Justice, discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. 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. Product Liability Matters The Company believes that certain settlements and judgments, as well as legal defense costs, may be covered under indemnification obligations from other parties, which if disputed, the Company intends to vigorously contest. Amounts recovered under the Company’s product liability indemnification arrangements may be less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that other parties will pay claims or that indemnity will be otherwise available. Hernia Product Claims As of September 30, 2021, the Company is defending approximately 25,030 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The majority of those claims are currently pending in a coordinated proceeding in Rhode Island State Court and in a federal multi-district litigation (“MDL”) established in the Southern District of Ohio, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. From time to time, the Company engages in resolution discussions with plaintiffs’ law firms regarding certain of the Hernia Product Claims, but the Company also intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. The first bellwether trial in the hernia MDL began in August 2021, resulting in a complete defense verdict. Trials are scheduled into fiscal year 2022 in various state and/or federal courts, including one trial currently scheduled for January 2022 in the MDL. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. The Company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Women’s Health Product Claims As of September 30, 2021, the Company is defending approximately 405 product liability claims involving the Company’s line of pelvic mesh devices. The majority of those claims are currently pending in various federal court jurisdictions, and a coordinated proceeding in New Jersey State Court, but claims are also pending in other state court jurisdictions. In addition, those claims include putative class actions filed in the United States. Not included in the figures above are approximately 830 filed and unfiled claims that have been asserted or threatened against the Company but lack sufficient information to determine whether a pelvic mesh device of the Company is actually at issue. The claims identified above also include products manufactured by both the Company and two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the Company. Medtronic has an obligation to defend and indemnify the Company with respect to any product defect liability relating to products its subsidiaries had manufactured. In July 2015, the Company reached an agreement with Medtronic in which Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the Company under supply agreements with Medtronic. In June 2017, the Company amended the agreement with Medtronic to transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on terms similar to the July 2015 agreement, including with respect to the obligation to make payments to Medtronic toward these potential settlements. As of September 30, 2021, the Company has paid Medtronic $161 million toward these potential settlements. The Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any. The foregoing lawsuits, unfiled claims, putative class actions, and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as the “Women’s Health Product Claims.” The Women’s Health Product Claims generally seek damages for personal injury allegedly resulting from use of the products. As of September 30, 2021, the Company has reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 15,295 of the Women’s Health Product Claims. The Company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which are not included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The Company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements. A trial in the New Jersey coordinated proceeding began in March 2018, and in April 2018 a jury entered a verdict against the Company in the total amount of $68 million ($33 million compensatory; $35 million punitive). In March 2021, the Appellate Division of the New Jersey Superior Court vacated the verdict and ordered a new trial. Plaintiffs have sought appeal of the reversal to the New Jersey Supreme Court and the Company has cross-appealed on a separate issue; the court has advised it will consider the appeal and cross-appeal. Additional trials of Women’s Health Product Claims may take place over the next 12 months, which could potentially include consolidated trials. During the course of engaging in settlement discussions with plaintiffs’ law firms, the Company has learned, and may in future periods learn, additional information regarding these and other unfiled claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. Filter Product Claims As of September 30, 2021, the Company is defending approximately 275 product liability claims involving the Company’s line of inferior vena cava (“IVC”) filters (collectively, the “Filter Product Claims”). The majority of those claims were previously pending in an MDL in the United States District Court for the District of Arizona, but those MDL claims either have been, or are in the process of being, remanded to various federal jurisdictions. Filter Product Claims are also pending in various state court jurisdictions, including a coordinated proceeding in Arizona State Court. In addition, those claims include putative class actions filed in the United States and Canada. The Filter Product Claims generally seek damages for personal injury allegedly resulting from use of the products. The Company has limited information regarding the nature and quantity of certain of the Filter Product Claims. The Company continues to receive claims and lawsuits and may in future periods learn additional information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. On May 31, 2019, the MDL Court ceased accepting direct filings or transfers into the Filter Product Claims MDL and, as noted above, remands for non-settled cases have begun. Federal and state court trials are scheduled over the next 12 months. As of September 30, 2021, the Company entered into settlement agreements and/or settlement agreements in principle for approximately 9,505 cases. In most product liability litigations (like those described above), plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters. Other Legal 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. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. On February 27, 2020, a putative class action captioned Kabak v. Becton, Dickinson and Company, et al., Civ. No. 2:20-cv-02155 (SRC) (CLW), now captioned Industriens Pensionsforsikring v. Becton, Dickinson and Company, et al., was filed in the U.S. District Court for the District of New Jersey against the Company and certain of its officers. The complaint, which purports to be brought on behalf of all persons (other than defendants) who purchased or otherwise acquired the Company's common stock from November 5, 2019 through February 5, 2020, asserts claims for purported violations of Sections 10 and 20 of the Securities Exchange Act of 1934 and Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, and seeks, among other things, damages and costs. The complaint alleges that defendants concealed material information regarding AlarisTM infusion pumps, including that (1) certain pumps exhibited software errors, (2) the Company was investing in remediation efforts as opposed to other enhancements and (3) the Company was thus reasonably likely to recall certain pumps and/or experience regulatory delays. These alleged omissions, the complaint asserts, rendered certain public statements about the Company’s business, operations and prospects false or misleading, causing investors to purchase stock at an inflated price. The plaintiff filed a second amended complaint to add certain additional factual allegations on February 3, 2021, which the Company moved to dismiss on March 19, 2021. The motion to dismiss was granted and the second amended complaint was dismissed in its entirety on September 15, 2021. The court’s order, however, gave plaintiff forty-five days to replead, which it did on October 29, 2021. The Company believes the allegations are without merit and intends to defend itself vigorously. On November 2, 2020, a civil action captioned Jankowski v. Forlenza, et al., Civ. No. 2:20-cv-15474, was filed in the U.S. District Court for the District of New Jersey by a shareholder, Ronald Jankowski, derivatively on behalf of the Company, against its individual directors and certain of its officers. The complaint seeks recovery for breach of fiduciary duties by directors and various officers; violations of the Securities Exchange Act of 1934; and insider trading. In general, the complaint alleges, among other things, that various directors and/or officers (1) caused the Company to issue purportedly misleading statements and SEC filings regarding AlarisTM infusion pumps, (2) issued a misleading proxy statement, (3) engaged in improper insider trading and (4) caused or contributed to various violations of the Securities Exchange Act of 1934, including sections 10(b), 14(a) and 21D. The complaint seeks damages, including restitution and disgorgement of profits, and an injunction requiring the Company to undertake remedial measures with respect to certain corporate governance and internal procedures. A second derivative action, Schranz v. Polen, et al., Civ. No 2:21-cv-01081, was filed on January 24, 2021 in the U.S. District Court for the District of New Jersey and the two actions were consolidated. In March 2021, the Company received letters from two additional shareholders which, in general, mirrored the allegations in the Jankowski and Schranz consolidated actions, and demanded, among other things, that the Board of Directors pursue civil action against members of management for claimed breaches of fiduciary duties. Consistent with New Jersey law, the Board appointed a special committee to review the allegations and demands in the derivative actions and demand letters. Following an investigation, the special committee determined that no action was warranted, and rejected the shareholders’ demands. The special committee’s determination has been communicated to counsel for the shareholders. Should the shareholders continue to pursue their claims in court, the Company will take appropriate steps to seek dismissal of the complaints. In February 2021, the Company received a subpoena from the Enforcement Division of the SEC requesting information from the Company relating to, among other things, AlarisTM infusion pumps. The Company is cooperating with the SEC and responding to these requests. The Company cannot anticipate the timing, scope, outcome or possible impact of the investigation, financial or otherwise. In April 2019, the Department of Justice served the Company and CareFusion with CIDs seeking information regarding certain of CareFusion’s contracts with the Department of Veteran’s Affairs for certain products, including AlarisTM and PyxisTM devices, in connection with a civil investigation of possible violations of the False Claims Act, and the government recently expanded the investigation to include several additional contracts. The government has made several requests for documents and interviews or depositions of Company personnel. The Company is cooperating with the government and responding to these requests. In September 2021, the Company received a CID related to an inquiry initiated by the Northern District of Georgia in 2018. The requests concern sales and marketing practices with respect to certain aspects of the Company’s urology business. The government has made requests for documents and has interviewed employees. The inquiry is ongoing and the Company is cooperating with the government and responding to its requests. In September 2021, the Company was served with a complaint from the New Mexico Attorney General, alleging violations of the state’s consumer protection laws in connection with the sales and marketing of its IVC filters. The Company is preparing its initial response and intends to vigorously defend itself in the litigation. As the case is in its early stages, the Company cannot anticipate the timing, scope, outcome or possible impact at present. The Company cannot predict the outcome of these matters, nor can it predict whether any outcome will have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Accordingly, the Company has made no provisions for these other legal matters in its consolidated results of operations. In July 2021, the Company became aware of lawsuits that had been filed against it in state and federal court in Georgia. The suits were filed by plaintiffs who reside near Company facilities in Covington, GA, where ethylene oxide (“EtO”) sterilization activities take place and currently number approximately 160. The claims allege a variety of injuries, including but not limited to multiple types of cancer, allegedly attributable to exposure to EtO in the ambient air. The Company has meritorious defenses and intends to defend itself vigorously. 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 these suits pending against the Company and is engaged in a vigorous defense of each of these matters. Litigation Accruals The Company regularly monitors and evaluates the status of product liability and other legal matters, and may, from time-to-time, engage in settlement and mediation discussions taking into consideration developments in the matters and the risks and uncertainties surrounding litigation. These discussions could result in settlements of one or more of these claims at any time. During fiscal years 2021, 2020, and 2019, the Company recorded pre-tax charges to Other operating expense, net, of approximately $361 million, $378 million, and $914 million, respectively, related to certain of the product liability matters discussed above under the heading “Product Liability Matters,” including the related legal defense costs. The Company recorded these charges based on additional information obtained during fiscal years 2021 and 2020 including but not limited to: the nature and quantity of unfiled and filed claims and the continued rate of claims being filed in certain product liability matters; the status of certain settlement discussions with plaintiffs’ counsel; the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the Company and the stage of litigation. Accruals for the Company's product liability claims which are discussed above, as well as the related legal defense costs, amounted to approximately $2.5 billion at September 30, 2021 and 2020. These accruals, which are generally long-term in nature, are largely recorded within Deferred Income Taxes and Other Liabilities on the Company's consolidated balance sheets. As of September 30, 2021 and 2020, the Company had $106 million and $92 million, respectively, in qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain product liability matters. Payments to QSFs are recorded as a component of Restricted cash. The Company's expected recoveries related to product liability claims and related legal defense costs were approximately $93 million and $139 million at September 30, 2021 and 2020, respectively. The expected recoveries at September 30, 2021 related entirely to the Company’s agreements with Medtronic related to certain Women’s Health Product Claims. A substantial amount of the expected recoveries at September 30, 2020 related to the Company’s agreements with Medtronic related to certain Women’s Health Product Claims. The expected recoveries at September 30, 2021 related to the indemnification obligation are not in dispute with respect to claims that Medtronic settles pursuant to the agreements.
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Revenue | Revenues As previously discussed in Note 2, the Company adopted ASC 606 in fiscal year 2019 using the modified retrospective method. The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. Timing of Revenue Recognition The Company's revenues are primarily recognized when the customer obtains control of the product sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized when customer acceptance of these installed products has been confirmed. For certain service arrangements, including extended warranty and software maintenance contracts, revenue is recognized ratably over the contract term. The majority of revenues relating to extended warranty contracts associated with certain instruments and equipment is generally recognized within a few years whereas deferred revenue relating to software maintenance contracts is generally recognized over a longer period. Measurement of Revenues The Company acts as the principal in substantially all of its customer arrangements and as such, generally records revenues on a gross basis. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. The Company considers its shipping and handling costs to be costs of contract fulfillment and has made the accounting policy election to record these costs within Selling and administrative expense. Payment terms extended to the Company's customers are based upon commercially reasonable terms for the markets in which the Company's products are sold. Because the Company generally expects to receive payment within one year or less from when control of a product is transferred to the customer, the Company does not generally adjust its revenues for the effects of a financing component. The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectable. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. Because these deductions represent estimates of the related obligations, judgment is required when determining the impact of these revenue deductions on gross revenues for a reporting period. Rebates provided by the Company are based upon prices determined under the Company's agreements with its end-user customers. Additional factors considered in the estimate of the Company's rebate liability include the quantification of inventory that is either in stock at or in transit to the Company's distributors, as well as the estimated lag time between the sale of product and the payment of corresponding rebates. The Company’s rebate liability at September 30, 2021 and 2020 was $576 million and $526 million, respectively. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Additional disclosures relating to sales discounts and sales returns are provided in Note 18. The Company's agreements with customers within certain organizational units including Medication Management Solutions, Integrated Diagnostic Solutions and Biosciences, contain multiple performance obligations including both products and certain services noted above. The transaction price for these agreements is allocated to each performance obligation based upon its relative standalone selling price. Standalone selling price is the amount at which the Company would sell a promised good or service separately to a customer. The Company generally estimates standalone selling prices using its list prices and a consideration of typical discounts offered to customers. Effects of Revenue Arrangements on Consolidated Balance Sheets Due to the nature of the majority of the Company's products and services, the Company typically does not incur costs to fulfill a contract in advance of providing the customer with goods or services. Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's consolidated balance sheets. The Company's costs to obtain contracts are comprised of sales commissions which are paid to the Company's employees or third party agents. The majority of the sales commissions incurred by the Company relate to revenue that is recognized over a period that is less than one year and as such, the Company has elected a practical expedient provided under ASC 606 to record the majority of its expense associated with sales commissions as it is incurred. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's consolidated balance sheets. The Company records contract liabilities for unearned revenue that is allocable to performance obligations, such as extended warranty and software maintenance contracts, which are performed over time as discussed further above. These contract liabilities are immaterial to the Company's consolidated financial results. The Company's liability for product warranties provided under its agreements with customers is not material to its consolidated balance sheets. Remaining Performance Obligations The Company's obligations relative to service contracts, which are further discussed above, and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing contracts with original expected durations of more than one year, which are attributable to products and/or services that have not yet been installed or provided, are estimated to be approximately $2.1 billion at September 30, 2021. The Company expects to recognize the majority of this revenue over the next three years. Within the Company's Medication Management Solutions, Medication Delivery Solutions, Integrated Diagnostic Solutions, and Biosciences units, some contracts also contain minimum purchase commitments of reagents or other consumables and the future sales of these consumables represent additional unsatisfied performance obligations of the Company. The revenue attributable to the unsatisfied minimum purchase commitment-related performance obligations, for contracts with original expected durations of more than one year, is estimated to be approximately $2.5 billion at September 30, 2021. This revenue will be recognized over the customer relationship periods. Disaggregation of Revenues A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 7.
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Segment Data | Segment Data The Company's organizational structure is based upon three worldwide 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. Medical 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 Medical are hospitals and clinics; physicians’ office practices; consumers and retail pharmacies; governmental and nonprofit public health agencies; pharmaceutical companies; and healthcare workers. Medical consists of the following organizational units: Medication Delivery Solutions; Medication Management Solutions; Diabetes Care; Pharmaceutical Systems. Life Sciences 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 and cancers. In addition, 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 Life Sciences are hospitals, laboratories and clinics; blood banks; healthcare workers; public health agencies; physicians’ office practices; retail pharmacies; academic and government institutions; and pharmaceutical and biotechnology companies. With the emergency use authorization approval of the BD Veritor™ At-Home COVID-19 Test, Life Sciences also serves patients directly. Life Sciences consists of the following organizational units: Integrated Diagnostic Solutions and Biosciences. Interventional Interventional provides vascular, urology, oncology and surgical specialty products that are intended, with the exception of the V. MuellerTM surgical and laparoscopic instrumentation products, to be used once and then discarded or are either temporarily or permanently implanted. The primary customers served by Interventional are hospitals, individual healthcare professionals, extended care facilities, alternate site facilities and patients via the segment's Homecare business. Interventional consists of the following organizational units: Surgery; Peripheral Intervention; Urology and Critical Care. Additional Segment Information 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. 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 operating income, which represents revenues reduced by product costs and operating expenses. The Company’s chief operating decision maker does not receive any asset information by business segment and, as such, the Company does not report asset information by business segment. Financial information for the Company’s segments is detailed below. The Company has no material intersegment revenues.
(a)The amounts in 2021 and 2020 include charges of $56 million and $244 million, respectively, recorded to Cost of products sold, related to the estimate of costs associated with remediation efforts for BD AlarisTM infusion pumps in the Medication Management Solutions unit. (b)The amount in 2020 included $41 million of charges to Cost of products sold to write down the value of fixed assets primarily in the Medication Delivery Solutions and Pharmaceutical Systems units. (c)The amount in 2019 included $75 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. (d)The amount in 2020 included charges of $57 million recorded to Cost of products sold to write down the carrying value of certain intangible and other assets in the Biosciences and Integrated Diagnostic Solutions units. (e)The amount in 2019 included a charge of $30 million recorded to Research and development expense to write down the carrying value of certain intangible assets in the Surgery unit. (f)The amounts in 2021, 2020 and 2019 include pre-tax charges of $361 million, $378 million and $914 million, respectively, related to certain product liability matters, which is further discussed in Note 5. The amount in 2021 also includes gains of $158 million on sale-leaseback transactions, which are further discussed in Note 17, and $35 million of costs incurred for consulting, legal, tax and other advisory services associated with the planned spin-off of BD's Diabetes Care business. The 2019 amount 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. (g)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. 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); EMEA (which includes Europe, the Middle East and Africa); Greater Asia (which includes countries in Greater China, Japan, South Asia, Southeast Asia, Korea, and Australia and New Zealand); and Other, which is comprised of Latin America (which includes Mexico, Central America, the Caribbean and South America) and Canada. 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.
(a)The amounts in fiscal years 2020 and 2019 reflect the reclassifications of $448 million and $478 million, respectively, of revenues and $55 million and $37 million, respectively, of long-lived assets in the Middle East and Africa.
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Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based CompensationThe 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”), 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. BD estimates forfeitures based on experience at the time of grant and adjusts expense to reflect actual forfeitures. The amounts and location of compensation cost relating to share-based payments included in the consolidated statements of income is as follows:
Upon the Company's acquisition of Bard in 2018, certain pre-acquisition equity awards of Bard were converted into either BD SARs or BD restricted stock awards, as applicable. These awards have substantially the same terms and conditions as the converted Bard awards immediately prior to the acquisition date. Compensation expense of $16 million and $40 million associated with these replacement awards was recorded in Acquisitions and other restructurings in 2020 and 2019, respectively. 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 generally vest over a period of four years and have a term of ten years. The fair value of awards was estimated on the date of grant using a lattice-based binomial option valuation model and these valuations were largely based upon 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 0.4 million shares during 2021 to satisfy the SARs exercised. A summary of SARs outstanding as of September 30, 2021 and changes during the year then ended is as follows:
A summary of SARs exercised during 2021, 2020 and 2019 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 performance period of three years. The performance measures for fiscal years 2021 and 2020 were average annual currency-neutral revenue growth and average annual return on invested capital, with the combined factor subject to adjustment based on the Company's relative total shareholder return (measures the Company’s stock performance during the performance period against that of peer companies). For fiscal year 2019, the performance measures were relative total shareholder return 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 performance period of three years. In fiscal years 2021 and 2020, the Company also issued additional performance-based time-vested units to certain key executives, which cliff vest three years after the date of grant and are tied to the Company’s performance against average annual growth in the Company’s Adjusted EPS over a performance period of three years. No shares will be issuable if the performance targets have not been met. 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 vest on a graded basis over a period of three years, 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, 2021 and changes during the year then ended is as follows:
(a)Based on 200% of target payout for performance based restricted units and 100% of the performance based time-vested units. (b)Net of expected forfeited units and units in excess of the expected performance payout of 63 thousand and 555 thousand shares, respectively. The weighted average grant date fair value of restricted stock units granted during the years 2021, 2020 and 2019 are as follows:
The total fair value of stock units vested during 2021, 2020 and 2019 was as follows:
At September 30, 2021, the weighted average remaining vesting term of performance-based and time vested restricted stock units is 1.27 and 0.89 years, 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, 2021, is approximately $247 million, which is expected to be recognized over a weighted-average remaining life of approximately 1.94 years. At September 30, 2021, 8.6 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, 2021, the Company has sufficient shares held in treasury to satisfy these payments. As of September 30, 2021, 93 thousand shares were held in trust relative to a Director's Deferral plan, which provides a means to defer director compensation, from time to time, on a deferred stock or cash basis. Also as of September 30, 2021, 259 thousand shares were issuable under a Deferred Compensation Plan that allows certain highly-compensated employees, including executive officers, to defer salary, annual incentive awards and certain equity-based compensation.
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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. Postretirement healthcare and life insurance benefits provided to qualifying domestic retirees as well as other postretirement benefit plans in international countries are not material. The measurement date used for the Company’s employee benefit plans is September 30. As a result of the Company’s conclusion to merge the legacy Bard pension plan into the BD defined benefit cash balance pension plan, the assets and liabilities of the legacy Bard U.S. defined pension benefit plan were remeasured as of October 31, 2020. Amendments to this plan were approved and communicated to affected employees in the first quarter of fiscal year 2021. The legacy Bard U.S. pension plan has been frozen to prevent new participants since January 1, 2011. Effective January 1, 2018, the legacy BD U.S. pension plan was frozen to limit the participation of employees who are hired or re-hired by the Company, or who transfer employment to the Company, on or after January 1, 2018. Net pension 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 losses recorded in 2021, 2020 and 2019 included lump sum benefit payments associated with certain plans. The Company recognizes pension settlements when payments from the plan exceed the sum of service and interest cost components of net periodic pension cost associated with the plan for the fiscal year. A curtailment loss in 2021, related to freezing a pension plan in Europe, was recorded when the loss was probable and estimable. All components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other (expense) income, net on its consolidated statements of income. The change in benefit obligation, change in fair value of pension 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 $1.033 billion and $935 million at September 30, 2021 and 2020, respectively. The international pension plan projected benefit obligations were $1.320 billion and $1.321 billion at September 30, 2021 and 2020, respectively. The benefit obligation associated with postretirement healthcare and life insurance plans provided to qualifying domestic retirees, which was largely recorded to Long-Term Employee Benefit Obligations, was $138 million and $148 million at September 30, 2021 and 2020, 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 weighted average assumptions used in determining pension plan information were as follows:
(a)The Company calculated the service and interest components utilizing 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. 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 discretionary contributions to its BD U.S. pension plan of $16 million during fiscal year 2021 and $134 million in October 2021. The Company did not make any required contributions in 2021 and does not anticipate any significant required contributions to its pension plans in 2022. Expected benefit payments are as follows:
Expected benefit payments associated with postretirement healthcare plans are immaterial to the Company's consolidated financial results. 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 68% of total benefit plan investments, based on September 30, 2021 market values, and have a target asset mix of 45% fixed income, 23% 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, 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, 2021 and 2020. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.
(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. Fixed Income Securities U.S. pension plan assets categorized above as fixed income securities include fund investments comprised of corporate and government and agency investments. 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 or have a readily determinable fair value based on published prices obtained from fund managers which represent the price at which the instruments can be redeemed at period end. The U.S. pension plan has no future funding commitments associated with these investments and has the right to redeem them upon one day’s notice, at any time and without restriction. 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 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 32% of the Company’s total benefit plan assets, based on market value at September 30, 2021. 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, 2021 and 2020.
(a)Changes in the fair value of international pension assets measured using Level 3 inputs for the years ended September 30, 2021 and 2020 were immaterial. 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 or have a readily determinable fair value based on published prices obtained from fund managers which represent the price at which the instruments can be redeemed at period end. The international plans holding these securities have no future funding commitments associated with these investments and has the right to redeem them upon one day’s notice, at any time and without restriction. 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. Defined Contribution Plans The cost of voluntary defined contribution plans which provide for a Company match or contribution was $153 million in 2021, $111 million in 2020 and $126 million in 2019. As a short term measure to preserve cash and reduce costs, the Company's matching contributions were temporarily suspended effective May 1, 2020 and matching contributions were reinstated in October 2020.
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Divestiture |
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Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | DivestituresIn October 2018, the Company completed the sale of its Life Sciences segment's Advanced Bioprocessing business. The Company recognized a pre-tax gain on the sale of approximately $336 million which was recorded as a component of Other operating expense, net in fiscal year 2019. |
Business Restructuring Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Restructuring Charges | Business Restructuring Charges In connection with the Company's 2018 acquisition of Bard, and simplification and other cost saving initiatives, the Company incurred restructuring costs which were largely recorded within Acquisitions and other restructurings on its consolidated statements of income. The simplification and other costs saving initiatives are focused on reducing complexity, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Company’s segments. Restructuring liability activity in 2021, 2020 and 2019 was as follows:
(a)Restructuring costs in 2021, 2020 and 2019 included expenses primarily related to simplification and other cost saving initiatives. (b)Expenses in 2020 and 2019 largely represented the costs associated with the conversion of certain pre-acquisition equity awards of Bard which, to encourage post-acquisition employee retention, were converted to BD equity awards with substantially the same terms and conditions as were applicable under such Bard awards immediately prior to the acquisition date.
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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 $1.403 billion, $1.384 billion and $1.497 billion in 2021, 2020 and 2019, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2022 to 2026 are as follows: 2022 — $1.399 billion; 2023 — $1.386 billion; 2024 — $1.384 billion; 2025 — $1.383 billion; 2026 — $1.357 billion. 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 Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging ActivitiesThe 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 had on the Company’s balance sheets and the fair values of the derivatives outstanding at September 30, 2021 and 2020 were not material. The effects on the Company’s 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. In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has hedged the currency risk associated with those investments with certain instruments such as foreign currency-denominated debt and cross-currency swaps, which are designated as net investment hedges, as well as currency exchange contracts. The notional amounts of the Company’s foreign currency-related derivative instruments as of September 30, 2021 and 2020 were as follows:
(a)Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and 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. Net amounts recognized in Other (expense) income, net, during the years ending September 30, 2021, 2020 and 2019 are detailed in Note 18. (b)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (c)Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. Net gains or losses relating to the net investment hedges, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as accumulated foreign currency translation in Other comprehensive income (loss). Upon the termination of a net investment hedge, any net gain or loss included in Accumulated other comprehensive income (loss) relative to the investment hedge remains until the foreign subsidiary investment is disposed of or is substantially liquidated. Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges as of September 30, 2021, 2020 and 2019 were as follows:
(a)The amount in 2021 includes a loss of $35 million recognized on terminated cross-currency swaps. (b)The amount in 2019 represented a loss recognized on a forward contract which was entered into and terminated in fiscal year 2019. Interest Rate Risks and Related Strategies The Company uses a mix of fixed and variable rate debt, which is further discussed in Note 15, to manage its interest rate exposure, and 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 cash flow or fair value hedges. 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 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 $1 million, net of tax. The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during 2021, 2020 and 2019 were not material to the Company's consolidated financial results. The Company recorded net after-tax gains (losses) of $72 million and $(75) million in Other comprehensive income (loss) relating to interest rate-related cash flow hedges during the years ended September 30, 2021 and 2020, respectively. The amounts recognized in other comprehensive income relating to interest rate hedges during the year ended 2019 were immaterial. 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. The amounts recorded during the years ended September 30, 2021 and 2020 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results. The notional amounts of the Company’s interest rate-related derivative instruments as of September 30, 2021 and 2020 were as follows:
(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. In fiscal year 2021, certain interest rate swaps were terminated at an immaterial net gain, concurrently with the redemption of the 3.125% notes due November 8, 2021. (b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances. Concurrently with the issuance of senior unsecured U.S. notes in the second quarter of fiscal year 2021, the notional amount of $500 million of the Company's outstanding forward starting interest rate swaps were terminated at an immaterial net loss. 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, 2021 and 2020.
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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 MeasurementsThe following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at September 30, 2021 and 2020 to the total of these amounts shown on the Company's consolidated statements of cash flows:
The fair values of the Company’s financial instruments are as follows:
(a)These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption. Remaining cash and equivalents, excluding restricted cash, were $2.083 billion and $1.276 billion at September 30, 2021 and 2020, respectively. (b)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 Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year. All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets. Nonrecurring Fair Value Measurements In fiscal year 2021, the Company recorded charges to Cost of products sold of $49 million to write down the carrying value of certain fixed assets. In fiscal year 2020, the Company recorded charges to Cost of products sold of $57 million to write down the carrying values of certain intangible and other assets in the Biosciences and Integrated Diagnostic Solutions units, and $41 million to write down the value of fixed assets primarily in the Medication Delivery Solutions and Pharmaceutical Systems units. In fiscal year 2019, the Company recorded a charge to Research and development expense of $30 million to write down the carrying values of certain intangible assets in the Surgery unit. The amounts recognized in 2021, 2020 and 2019 were recorded to adjust the carrying amount of assets to the assets' fair values, which were estimated, based upon a market participant's perspective, using Level 3 inputs, including values estimated using the income approach. 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. Transfers of trade receivables Over the normal course of its business activities, the Company transfers certain trade receivable assets to third parties under factoring agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer. Accordingly, the Company accounts for the transfers as sales of trade receivables by recognizing an increase to Cash and equivalents and a decrease to Trade receivables, net when proceeds from the transactions are received. The costs incurred by the Company in connection with factoring activities were not material to its consolidated financial results. The amounts transferred and yet to be remitted under factoring arrangements in 2021 and 2020 are provided below. The Company’s transfers of trade receivables during fiscal year 2019 were not material to its consolidated financial results.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term debt The carrying value of Short-term debt, net of unamortized debt issuance costs, at September 30 consisted of:
(a)All of the aggregate principal amount outstanding was retired during 2021, as further discussed below. The weighted average interest rates for short-term debt were 1.15% and 0.20% at September 30, 2021 and 2020, respectively. Long-term debt The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:
(a)All or a portion of the aggregate principal amount outstanding was retired during 2021, as further discussed below. (b)Represents notes issued during 2021, as further discussed below. The aggregate annual maturities of Long-Term Debt including interest during the fiscal years ending September 30, 2022 to 2026 are as follows: 2022 — $433 million; 2023 — $2.749 billion; 2024 — $1.559 billion; 2025 — $2.164 billion; 2026 — $1.053 billion. Other current credit facilities During the fourth quarter of fiscal year 2021, the Company refinanced its five-year senior unsecured revolving credit facility that was to expire in December 2022, with a new five-year senior unsecured revolving credit facility that will expire in September 2026. The credit facility provides borrowings of up to $2.75 billion, with separate sub-limits of $100 million for letters of credit and swingline loans. The expiration date of the credit facility may be extended for up to two additional one year periods, subject to certain restrictions (including the consent of the lenders). The credit facility provides that the Company may, subject to additional commitments by lenders, request an additional $500 million of financing, for a maximum aggregate commitment under the credit facility of up to $3.25 billion. Proceeds from this facility may be used for general corporate purposes. There were no borrowings outstanding under the Company’s revolving credit facilities as of September 30, 2021 and 2020. In addition, the Company has informal lines of credit outside of the United States. The Company had no commercial paper borrowings outstanding as of September 30, 2021. Debt issuances The Company issued the following U.S. dollar-denominated debt during fiscal years 2021 and 2020:
The Company issued the following Euro-denominated debt during fiscal year 2021:
Also in fiscal year 2021, Becton Dickinson Euro Finance S.à r.l., a private limited liability company (société à responsabilité limitée), which is an indirect, wholly-owned finance subsidiary of the Company, issued Euro-denominated notes, listed below, which are fully and unconditionally guaranteed on a senior unsecured basis by the Company. No other of the Company's subsidiaries provide any guarantees with respect to these notes. The indenture covenants included a limitation on liens and a restriction on sale and leasebacks, change of control and consolidation, merger and sale of assets covenants. These covenants are subject to a number of exceptions, limitations and qualifications. The indenture does not restrict the Company, Becton Dickinson Euro Finance S.à r.l., or any other of the Company's subsidiaries from incurring additional debt or other liabilities, including additional senior debt. Additionally, the indenture does not restrict Becton Dickinson Euro Finance S.à r.l. and the Company from granting security interests over its assets. The notes issued by Becton Dickinson Euro Finance S.à r.l included the following:
Debt retirements The Company’s retirements of debt in fiscal year 2021 included the following:
(a)Included accrued interest, related premiums, fees and expenses. (b)All debt retirements in fiscal year 2021 were accounted for as early debt extinguishments. The Company’s retirements of debt in fiscal year 2020 included the following:
(a)Included accrued interest, related premiums, fees and expenses. (b)Debt retirement was accounted for as an early debt extinguishment. In March 2020, the Company entered into a 364-day senior unsecured term loan facility with borrowing capacity available of $2.0 billion. During the third quarter of fiscal year 2020, the Company repaid $1.9 billion of borrowings outstanding under this term loan with cash on hand and terminated the facility. 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 Provision for Income Taxes The provision (benefit) 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:
U.S. tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Act"), was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and created new taxes on certain foreign-sourced earnings. The Act subjects a U.S. shareholder to tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The Company has elected to account for its GILTI tax due as a period expense in the year the tax is incurred. During fiscal year 2019, the Company finalized its accounting for the income tax effects of the Act and recognized additional tax benefit of $50 million in 2019 as a result of this legislation within Income tax provision (benefit). During fiscal year 2019, the Company also changed its assertion with respect to historical unremitted foreign earnings, which resulted in a total tax benefit of $138 million, of which $67 million is related to the tax legislation benefit previously recorded, and is included as a component of Income tax provision (benefit) in fiscal 2019. The Company asserts indefinite reinvestment for all historical unremitted foreign earnings as of September 30, 2021. 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 the amount of unrecognized benefits will change due to one or more of the following events in the next twelve months: expiring statutes, audit activity, tax payments, other activity, or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate.
Upon the Company's acquisition of CareFusion in 2015, 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 $119 million at September 30, 2021 and is included in Deferred Income Taxes and Other Liabilities on the consolidated balance sheet. The following were included for the years ended September 30 as a component of Income tax provision (benefit) on the consolidated statements of income.
The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. The IRS has completed its audit for the BD legacy fiscal year 2014, BD combined company fiscal years 2015 and 2017 and CareFusion legacy fiscal years 2010 through short period 2015. With regard to Bard, all examinations have been completed through calendar year 2014, and calendar years 2015 through short period 2017 are currently under examination by the IRS. For the other major tax jurisdictions where the Company conducts business, tax years are generally open after 2012. 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 Liabilities on the consolidated balance sheets. Deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. Deferred taxes have not been provided on undistributed earnings of foreign subsidiaries as of September 30, 2021 since the determination of the total amount of unrecognized deferred tax liability is not practicable. Generally, deferred tax assets have been established as a result of net operating losses and credit carryforwards with expiration dates from 2022 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 at September 30, 2021 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 2022. Tax Rate Reconciliation A reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows:
The fluctuations in the Company’s reported tax rates are primarily due to the geographical mix of income attributable to foreign countries that have income tax rates that vary from the U.S. tax rate, and to the Act, the effects of which were recorded in fiscal year 2019. Tax Holidays and Payments The approximate tax impacts related to tax holidays in various countries in which the Company does business are provided below. The tax holidays expire at various dates through 2028. The Company’s income tax payments, net of refunds are also provided below.
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Leases, Codification Topic 842 |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases | Leases The Company leases real estate, vehicles and other equipment which are used in the Company’s manufacturing, administrative and research and development activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Company’s lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Company’s leases is approximately 6.9 years. An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option. The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. For the longer-term lease arrangements that are recognized on the Company’s consolidated balance sheet, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Company’s short-term leases, as well as variable costs relating to the Company’s lease arrangements, are not material to its consolidated financial results. The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under an arrangement. The weighted-average incremental borrowing rate that has been applied to measure the Company’s lease liabilities is 2.2%. The Company’s lease costs recorded in its consolidated statements of income for the years ended September 30, 2021 and 2020 were $132 million and $131 million, respectively, under the new lease accounting standard. Rental expense for all operating leases amounted to $169 million in 2019 under the previous accounting standard. Cash payments arising from the Company’s lease arrangements are reflected on its consolidated statement of cash flows as outflows used for operating activities. The right-of-use assets and lease liabilities recognized on the Company’s consolidated balance sheet as of September 30, 2021 and 2020 were as follows:
The Company’s payments due under its operating leases are as follows:
Sale-Leaseback Transactions During fiscal year 2021, the Company sold certain properties and concurrently entered into operating lease arrangements for each property, which met the requirements for sale-leaseback accounting. The Company recorded gross proceeds of $225 million related to the transactions and pre-tax gains of $158 million were recorded in Other operating expense. The lease agreements have initial lease terms between and three years and include options for the Company to extend the leases for an additional -to- months.
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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
(a)The amounts include gains (losses) recognized on changes to the fair value of certain equity investments. The amount in 2020 also includes a gain on the sale of an equity investment. (b)Represents all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost. (c)Represents losses recognized upon the extinguishment of certain senior notes, as further discussed in Note 15. (d)The amount in 2020 primarily represents licensing income. The amount in 2019 primarily represents the royalty income stream acquired in the Bard transaction, net of non-cash purchase accounting amortization. The royalty income stream was previously reported by Bard as revenues. Trade Receivables, Net The amounts recognized in 2021, 2020 and 2019 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:
(a)Accounts written off. Inventories Inventories at September 30 consisted of:
Property, Plant and Equipment, Net Property, Plant and Equipment, Net at September 30 consisted of:
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2021 | |
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" or "BD") have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). 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.
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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.
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Cash Equivalents | Cash Equivalents Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase.
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Restricted Cash | Restricted Cash Restricted cash consists of cash restricted from withdrawal and usage and largely represents funds that are restricted for certain product liability matters assumed in the acquisition of C.R. Bard, Inc. ("Bard"), which are further discussed in Note 5.
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Trade and Financing Receivables | Trade 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 expected credit losses relating to trade receivables and is determined based on historical experience, current conditions, reasonable and supportable forecasts and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectable.
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Inventories | Inventories Inventories are stated at the lower of approximate cost or net realizable value determined on the first-in, first-out basis.
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Property, Plant and Equipment | Property, Plant and EquipmentProperty, 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, | to 13 years for machinery and equipment and to 20 years for leasehold improvements.
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s unamortized intangible assets include goodwill which arise from acquisitions of businesses. The Company currently reviews 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. The Company’s review of goodwill for each reporting unit compares the fair value of the reporting unit, estimated using an income approach, with its carrying value. The annual impairment review performed on July 1, 2021 indicated that all identified reporting units’ fair values exceeded their respective carrying values. 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. Customer relationship assets are generally amortized over periods ranging from 10 to 15 years, using the straight-line method. Other intangibles with finite useful lives, which include patents, are amortized over periods principally ranging from 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.
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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).
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Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales when the customer obtains control of the product, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized upon customer acceptance of these installed products. Revenue for certain service arrangements, including extended warranty and software maintenance contracts, is recognized ratably over the contract term. When arrangements include multiple performance obligations, the total transaction price of the contract is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Variable consideration such as rebates, sales discounts and sales returns are estimated and treated as a reduction of revenue in the same period the related revenue is recognized. These estimates are based on contractual terms, historical practices, and current trends, and are adjusted as new information becomes available. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. Equipment lease transactions with customers are evaluated and classified as either operating or sales-type leases. Generally, these arrangements are accounted for as operating leases and therefore, revenue is recognized at the contracted rate over the rental period defined within the customer agreement.
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Contingencies | ContingenciesThe Company establishes accruals for future losses which are both probable and can be reasonably estimated (and in the case of environmental matters, without considering possible third-party recoveries). 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 in which the Company is a party. With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of any class. With respect to the civil investigative demands (“CIDs”) served by the Department of Justice, discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. 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.
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Derivative Financial Instruments | Derivative Financial InstrumentsAll 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. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. Cash flows for all other derivatives, including undesignated hedges, are classified in the same line item as the cash flows of the related hedged item, which is generally within operating or financing activities. |
Income Taxes | Income Taxes The Company has reviewed its needs in the United States for possible repatriation of undistributed earnings of its foreign subsidiaries and continues to invest foreign subsidiaries earnings outside of the United States to fund foreign investments or meet foreign working capital and property, plant and equipment expenditure needs. As a result, the Company is permanently reinvested with respect to all of its historical foreign earnings as of September 30, 2021. Deferred taxes are not provided on undistributed earnings of foreign subsidiaries that are indefinitely reinvested. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable because of the complexities associated with its hypothetical calculation. 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.
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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.
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Fair Value Measurement, Policy | Fair Value Measurements A fair value hierarchy is applied to prioritize inputs used in measuring fair value. The three levels of inputs used to measure fair value are detailed below. Additional disclosures regarding the Company’s fair value measurements are provided in Notes 9 and 14. Level 1 — Inputs to the valuation methodology which represent unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 — Inputs to the valuation methodology which include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 — Inputs to the valuation methodology which are unobservable and significant to the fair value measurement.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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.
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New Accounting Principle Adopted and New Accounting Principles Not Yet Adopted | Accounting Changes New Accounting Principles Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s adoption of this accounting standard on October 1, 2020, using the modified retrospective method, did not have a material impact on the Company's consolidated financial statements. On October 1, 2020, the Company retrospectively adopted an accounting standard update which added, removed and clarified disclosure requirements relating to defined benefit plans and other postretirement plans. The Company’s adoption of this update on October 1, 2020 did not materially impact its disclosures. See Note 9 for the Company’s defined pension plan and other benefit plan disclosures. In July 2018, the FASB issued accounting standard update (“ASU”) ASU 2018-09, "Codification Improvements", which, among other items, amended an illustrative example of a fair value hierarchy disclosure to indicate that a certain type of investment should not always be considered to be eligible to use the net asset value ("NAV") per share practical expedient. Also, it further clarified that an entity should evaluate whether a readily determinable fair value exists or whether its investments qualify for the NAV practical expedient. The Company early adopted this standard in the fourth quarter of fiscal year 2020 on a prospective basis, which is reflected in the fair value hierarchy classification of pension assets in Note 9, but does not change the fair value measurements of the investments. In August 2018, the FASB issued a new accounting standard to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company early adopted this standard as of April 1, 2020 on a prospective basis. The adoption of this standard did not materially impact the Company's consolidated financial statements. 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, as well as expanded disclosures regarding leasing arrangements. The Company adopted this standard on October 1, 2019, and elected certain practical expedients permitted under the transition guidance, including a transition method which allows application of the new standard at its adoption date, rather than at the earliest comparative period presented in the financial statements. The Company also elected not to perform any reassessments relative to its expired and existing leases upon its adoption of the new requirements. The Company's adoption of this standard did not materially impact its consolidated financial statements. Additional disclosures regarding the Company’s lease arrangements are provided in Note 17. On October 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606") using the modified retrospective method. Under ASC 606, revenue is recognized upon the transfer of control of goods or services to customers and reflects the amount of consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company assessed the impact of this new standard on its consolidated financial statements based upon a review of contracts that were not completed as of October 1, 2018. This accounting standard adoption, which is further discussed in Note 6, did not materially impact any line items of the Company's consolidated income statements and balance sheet. On October 1, 2018, the Company retrospectively adopted an accounting standard update which requires all components of net periodic pension and postretirement benefit costs to be disaggregated from the service cost component and to be presented on the income statement outside a subtotal of income from operations, if one is presented. Upon the Company's adoption of the accounting standard update, which did not have a material impact on its consolidated financial statements, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other (expense) income, net on its consolidated income statements for all periods presented. On October 1, 2018, the Company adopted an accounting standard update which requires that the income tax effects of intercompany sales or transfers of assets, except those involving inventory, be recognized in the income statement as income tax expense (or benefit) in the period that the sale or transfer occurs. The Company adopted this accounting standard update, which did not have a material impact on its consolidated financial statements, using the modified retrospective method.
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Revenue from Contract with Customer | Timing of Revenue Recognition The Company's revenues are primarily recognized when the customer obtains control of the product sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized when customer acceptance of these installed products has been confirmed. For certain service arrangements, including extended warranty and software maintenance contracts, revenue is recognized ratably over the contract term. The majority of revenues relating to extended warranty contracts associated with certain instruments and equipment is generally recognized within a few years whereas deferred revenue relating to software maintenance contracts is generally recognized over a longer period. Measurement of Revenues The Company acts as the principal in substantially all of its customer arrangements and as such, generally records revenues on a gross basis. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. The Company considers its shipping and handling costs to be costs of contract fulfillment and has made the accounting policy election to record these costs within Selling and administrative expense. Payment terms extended to the Company's customers are based upon commercially reasonable terms for the markets in which the Company's products are sold. Because the Company generally expects to receive payment within one year or less from when control of a product is transferred to the customer, the Company does not generally adjust its revenues for the effects of a financing component. The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectable. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. Because these deductions represent estimates of the related obligations, judgment is required when determining the impact of these revenue deductions on gross revenues for a reporting period. Rebates provided by the Company are based upon prices determined under the Company's agreements with its end-user customers. Additional factors considered in the estimate of the Company's rebate liability include the quantification of inventory that is either in stock at or in transit to the Company's distributors, as well as the estimated lag time between the sale of product and the payment of corresponding rebates. The Company’s rebate liability at September 30, 2021 and 2020 was $576 million and $526 million, respectively. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Additional disclosures relating to sales discounts and sales returns are provided in Note 18. The Company's agreements with customers within certain organizational units including Medication Management Solutions, Integrated Diagnostic Solutions and Biosciences, contain multiple performance obligations including both products and certain services noted above. The transaction price for these agreements is allocated to each performance obligation based upon its relative standalone selling price. Standalone selling price is the amount at which the Company would sell a promised good or service separately to a customer. The Company generally estimates standalone selling prices using its list prices and a consideration of typical discounts offered to customers.
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Fair Value of Financial Instruments, Policy | 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 |
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.
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Commitment and Contingencies (Policies) |
12 Months Ended |
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Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company establishes accruals for future losses which are both probable and can be reasonably estimated (and in the case of environmental matters, without considering possible third-party recoveries). 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 in which the Company is a party. With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of any class. With respect to the civil investigative demands (“CIDs”) served by the Department of Justice, discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. 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.
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Leases, Codification Topic 842 (Policies) |
12 Months Ended |
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Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Leases | The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Company’s lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Company’s leases is approximately 6.9 years. An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option.The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. For the longer-term lease arrangements that are recognized on the Company’s consolidated balance sheet, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. |
Short-term Leases | The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. |
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:
(a)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.
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Accelerated Share Repurchases | The impacts of these accelerated share repurchase transactions were as follows:
(a) Upon final settlement of each repurchase agreement and the forward sale contract, the Company’s receipt of additional shares was recorded as an increase to Common stock in treasury and an offsetting increase to Capital in excess of par value. The final settlement for the fourth quarter transaction amounted to $150 million.
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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, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(a)In 2021, 2020 and 2019, dilutive share equivalents associated with mandatory convertible preferred stock of 6 million, 9 million and 12 million, respectively, were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The issuance of the convertible preferred stock is further discussed in Note 3. (b)In both 2021 and 2020, 1 million of certain share-based compensation awards were excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares. In 2019, no such awards were excluded from the diluted earnings per share calculation. Additional disclosures regarding the Company’s share-based compensation are provided in Note 8.
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Segment Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | Financial information for the Company’s segments is detailed below. The Company has no material intersegment revenues.
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Financial Information for Company's Segments |
(a)The amounts in 2021 and 2020 include charges of $56 million and $244 million, respectively, recorded to Cost of products sold, related to the estimate of costs associated with remediation efforts for BD AlarisTM infusion pumps in the Medication Management Solutions unit. (b)The amount in 2020 included $41 million of charges to Cost of products sold to write down the value of fixed assets primarily in the Medication Delivery Solutions and Pharmaceutical Systems units. (c)The amount in 2019 included $75 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. (d)The amount in 2020 included charges of $57 million recorded to Cost of products sold to write down the carrying value of certain intangible and other assets in the Biosciences and Integrated Diagnostic Solutions units. (e)The amount in 2019 included a charge of $30 million recorded to Research and development expense to write down the carrying value of certain intangible assets in the Surgery unit. (f)The amounts in 2021, 2020 and 2019 include pre-tax charges of $361 million, $378 million and $914 million, respectively, related to certain product liability matters, which is further discussed in Note 5. The amount in 2021 also includes gains of $158 million on sale-leaseback transactions, which are further discussed in Note 17, and $35 million of costs incurred for consulting, legal, tax and other advisory services associated with the planned spin-off of BD's Diabetes Care business. The 2019 amount 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. (g)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense.
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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.
(a)The amounts in fiscal years 2020 and 2019 reflect the reclassifications of $448 million and $478 million, respectively, of revenues and $55 million and $37 million, respectively, of long-lived assets in the Middle East and Africa.
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Share-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [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 of awards was estimated on the date of grant using a lattice-based binomial option valuation model and these valuations were largely based upon the following weighted-average assumptions:
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Summary of SARs Outstanding | A summary of SARs outstanding as of September 30, 2021 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 | A summary of SARs exercised during 2021, 2020 and 2019 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, 2021 and changes during the year then ended is as follows:
(a)Based on 200% of target payout for performance based restricted units and 100% of the performance based time-vested units. (b)Net of expected forfeited units and units in excess of the expected performance payout of 63 thousand and 555 thousand shares, respectively.
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Schedule Of Share Based Compensation, Restricted Stock Units, Grant Date Fair Value of Units Granted | The weighted average grant date fair value of restricted stock units granted during the years 2021, 2020 and 2019 are as follows:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The total fair value of stock units vested during 2021, 2020 and 2019 was as follows:
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Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension and Other Postretirement Cost | Net pension 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 pension 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, 2021 and 2020. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.
(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.
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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, 2021 and 2020.
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Business Restructuring Charges (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Accrual Activity | Restructuring liability activity in 2021, 2020 and 2019 was as follows:
(a)Restructuring costs in 2021, 2020 and 2019 included expenses primarily related to simplification and other cost saving initiatives. (b)Expenses in 2020 and 2019 largely represented the costs associated with the conversion of certain pre-acquisition equity awards of Bard which, to encourage post-acquisition employee retention, were converted to BD equity awards with substantially the same terms and conditions as were applicable under such Bard awards immediately prior to the acquisition date.
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Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of the Company’s foreign currency-related derivative instruments as of September 30, 2021 and 2020 were as follows:
(a)Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and 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. Net amounts recognized in Other (expense) income, net, during the years ending September 30, 2021, 2020 and 2019 are detailed in Note 18. (b)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (c)Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. The notional amounts of the Company’s interest rate-related derivative instruments as of September 30, 2021 and 2020 were as follows:
(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. In fiscal year 2021, certain interest rate swaps were terminated at an immaterial net gain, concurrently with the redemption of the 3.125% notes due November 8, 2021. (b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances. Concurrently with the issuance of senior unsecured U.S. notes in the second quarter of fiscal year 2021, the notional amount of $500 million of the Company's outstanding forward starting interest rate swaps were terminated at an immaterial net loss.
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Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges as of September 30, 2021, 2020 and 2019 were as follows:
(a)The amount in 2021 includes a loss of $35 million recognized on terminated cross-currency swaps. (b)The amount in 2019 represented a loss recognized on a forward contract which was entered into and terminated in fiscal year 2019.
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Financial Instruments and Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at September 30, 2021 and 2020 to the total of these amounts shown on the Company's consolidated statements of cash flows:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of the Company’s financial instruments are as follows:
(a)These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption. Remaining cash and equivalents, excluding restricted cash, were $2.083 billion and $1.276 billion at September 30, 2021 and 2020, respectively. (b)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
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Transfer of Financial Assets Accounted for as Sales | The amounts transferred and yet to be remitted under factoring arrangements in 2021 and 2020 are provided below. The Company’s transfers of trade receivables during fiscal year 2019 were not material to its consolidated financial results.
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Short-Term Debt | The carrying value of Short-term debt, net of unamortized debt issuance costs, at September 30 consisted of:
(a)All of the aggregate principal amount outstanding was retired during 2021, as further discussed below.
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Summary of Long-Term Debt | The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:
(a)All or a portion of the aggregate principal amount outstanding was retired during 2021, as further discussed below. (b)Represents notes issued during 2021, as further discussed below.
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Schedule of Debt Issuances | The Company issued the following U.S. dollar-denominated debt during fiscal years 2021 and 2020:
The Company issued the following Euro-denominated debt during fiscal year 2021:
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Schedule of Extinguishment of Debt | The Company’s retirements of debt in fiscal year 2021 included the following:
(a)Included accrued interest, related premiums, fees and expenses. (b)All debt retirements in fiscal year 2021 were accounted for as early debt extinguishments. The Company’s retirements of debt in fiscal year 2020 included the following:
(a)Included accrued interest, related premiums, fees and expenses. (b)Debt retirement was accounted for as an early debt extinguishment.
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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) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes from Continuing Operations | The provision (benefit) for income taxes the years ended September 30 consisted of:
The following were included for the years ended September 30 as a component of Income tax provision (benefit) on the consolidated statements of income.
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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 the amount of unrecognized benefits will change due to one or more of the following events in the next twelve months: expiring statutes, audit activity, tax payments, other activity, or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate.
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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 Liabilities on the consolidated balance sheets.
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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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Summary of Income Tax Holiday | The approximate tax impacts related to tax holidays in various countries in which the Company does business are provided below. The tax holidays expire at various dates through 2028. The Company’s income tax payments, net of refunds are also provided below.
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Leases, Codification Topic 842 (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information Related to Leases | The right-of-use assets and lease liabilities recognized on the Company’s consolidated balance sheet as of September 30, 2021 and 2020 were as follows:
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Lessee, Operating Lease, Liability, Maturity | The Company’s payments due under its operating leases are as follows:
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Supplemental Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | Other Income (Expense), Net
(a)The amounts include gains (losses) recognized on changes to the fair value of certain equity investments. The amount in 2020 also includes a gain on the sale of an equity investment. (b)Represents all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost. (c)Represents losses recognized upon the extinguishment of certain senior notes, as further discussed in Note 15. (d)The amount in 2020 primarily represents licensing income. The amount in 2019 primarily represents the royalty income stream acquired in the Bard transaction, net of non-cash purchase accounting amortization. The royalty income stream was previously reported by Bard as revenues.
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Trade Receivables, Allowances for Doubtful Accounts and Cash Discounts | The amounts recognized in 2021, 2020 and 2019 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:
(a)Accounts written off.
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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:
|
Shareholders' Equity - Changes in Certain Components of Shareholders' Equity (Detail II) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stockholders' Equity Note [Abstract] | |||
Common stock dividend per share (USD per share) | $ 3.32 | $ 3.16 | $ 3.08 |
Shareholders' Equity - Other Comprehensive Income (Loss), Tax (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stockholders' Equity Note [Abstract] | |||
Income tax (provision) benefit for net gains (losses) recorded in other comprehensive income | $ (42) | $ 30 | $ 91 |
Earnings per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share [Abstract] | |||
Average common shares outstanding (shares) | 289,288 | 278,971 | 269,943 |
Dilutive share equivalents from share-based plans (shares) | 2,801 | 3,431 | 4,832 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 292,089 | 282,402 | 274,775 |
Earnings per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share Footnotes (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000,000 | 1,000,000 | 0 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,000,000 | 9,000,000 | 12,000,000 |
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, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.68% | 1.69% | 3.05% |
Expected volatility | 23.00% | 19.00% | 18.00% |
Expected dividend yield | 1.46% | 1.24% | 1.27% |
Expected life | 7 years 4 months 24 days | 7 years 4 months 24 days | 7 years 2 months 12 days |
Fair value derived (USD per share) | $ 44.38 | $ 48.82 | $ 51.86 |
Share-Based Compensation Summary of SARs Exercised (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Payment Arrangement [Abstract] | |||
Total intrinsic value of SARs exercised | $ 102 | $ 212 | $ 260 |
Total fair value of SARs vested | $ 39 | $ 46 | $ 66 |
Share-Based Compensation Weighted Average Grant Date Fair Value of Restricted Stock Units (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
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) | $ 216.39 | $ 245.06 | $ 237.55 |
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) | $ 223.60 | $ 249.94 | $ 235.50 |
Share-Based Compensation Fair Value of Stock Units Vested (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
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 | $ 16 | $ 27 | $ 33 |
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 | $ 203 | $ 211 | $ 254 |
Benefit Plans - Net Pension and Other Postretirement Cost (Detail) - Pension Plans - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 150 | $ 153 | $ 134 |
Interest cost | 71 | 84 | 107 |
Expected return on plan assets | (174) | (188) | (180) |
Amortization of prior service credit | (16) | (13) | (13) |
Amortization of loss | 97 | 97 | 78 |
Curtailment/settlement loss | 9 | 4 | 10 |
Net pension cost | 137 | 137 | 135 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension cost | $ 41 | $ 41 | $ 32 |
Benefit Plans - Pension Plans with Accumulated Benefit Obligations (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation exceeds the fair value of plan assets, accumulated benefit obligation | $ 3,309 | $ 3,703 |
Accumulated benefit obligation exceeds the fair value of plan assets, fair value of plan assets | 2,712 | 2,936 |
Projected benefit obligation exceeds the fair value of plan assets, projected benefit obligation | 3,475 | 3,920 |
Projected benefit obligation exceeds the fair value of plan assets, fair value of plan assets | $ 2,780 | $ 2,996 |
Benefit Plans - Weighted Average Assumptions Determining Pension Plan (Detail) - Pension Plans |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Foreign Plans | |||
Net Cost | |||
Discount rate | 1.44% | 1.39% | 2.30% |
Expected return on plan assets | 4.92% | 5.05% | 4.98% |
Rate of compensation increase | 2.20% | 2.35% | 2.36% |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1.95% | 1.97% | 1.84% |
Benefit Obligation | |||
Discount rate | 1.75% | 1.44% | 1.39% |
Rate of compensation increase | 2.63% | 2.20% | 2.35% |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2.02% | 1.95% | 1.97% |
United States | |||
Net Cost | |||
Discount rate | 2.80% | 3.21% | 4.26% |
Expected return on plan assets | 6.25% | 7.25% | 7.25% |
Rate of compensation increase | 4.30% | 4.29% | 4.29% |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 4.00% | 4.00% | 4.00% |
Benefit Obligation | |||
Discount rate | 2.89% | 2.80% | 3.21% |
Rate of compensation increase | 4.31% | 4.30% | 4.29% |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 4.00% | 4.00% | 4.00% |
Benefit Plans - Expected Benefit Payments (Detail) - Pension Plans $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 242 |
2023 | 174 |
2024 | 178 |
2025 | 189 |
2026 | 206 |
2027-2031 | $ 1,113 |
Divestiture - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Business | $ 0 | $ 0 | $ 336 |
Advanced Bioprocessing | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Business | $ 336 |
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible amortization expense | $ 1,403 | $ 1,384 | $ 1,497 |
Estimated aggregate amortization expense in 2022 | 1,399 | ||
Estimated aggregate amortization expense in 2023 | 1,386 | ||
Estimated aggregate amortization expense in 2024 | 1,384 | ||
Estimated aggregate amortization expense in 2025 | 1,383 | ||
Estimated aggregate amortization expense in 2026 | $ 1,357 |
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification of terminated interest rate swaps to interest expense within the next 12 months | $ (1) | ||
Cash flow hedges | 81 | $ (67) | $ (6) |
Interest rate swaps | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cash flow hedges | 72 | (75) | |
Derivative, Notional Amount | 1,000 | 1,500 | |
Commodity forward contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 0 | $ 0 |
Financial Instruments and Fair Value Measurement - Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Fair Value Disclosures [Abstract] | ||||
Cash and equivalents | $ 2,283 | $ 2,825 | ||
Restricted Cash and Investments, Current | 109 | 92 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 2,392 | 2,917 | $ 590 | $ 1,236 |
Transfers of financial assets during the period. | $ 1,302 | $ 2,163 |
Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Institutional money market investments | $ 200 | $ 1,549 |
Fair value of debt classified from long term to short term | 503 | 702 |
Fair value of long-term debt | 18,537 | 18,970 |
Remaining cash equivalents | $ 2,083 | $ 1,276 |
Financial Instruments and Fair Value Measurements - Transfer of Financial Assets Accounted for as Sales (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Fair Value Disclosures [Abstract] | ||
Transfers of financial assets during the period. | $ 1,302 | $ 2,163 |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 130 | $ 256 |
Debt - Summary of Short-Term Debt (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Short-term Debt [Line Items] | ||
Other Short-term Borrowings | $ 0 | $ 5 |
Short-term debt | $ 500 | 707 |
Notes 0.174% due June 4, 2021 [Member] | ||
Short-term Debt [Line Items] | ||
Interest rate | 0.174% | |
Current portion of long-term debt | $ 0 | 701 |
Floating Rate Notes due June 6, 2022 | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 500 | $ 0 |
Debt - Summary of Interest Costs and Payments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Debt Disclosure [Abstract] | |||
Charged to operations | $ 469 | $ 528 | $ 639 |
Capitalized | 44 | 43 | 44 |
Total interest costs | 512 | 571 | 683 |
Interest paid, net of amounts capitalized | $ 474 | $ 515 | $ 658 |
Income Taxes - Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Federal | $ 102 | $ (50) | $ 235 |
State and local, including Puerto Rico | 46 | 47 | 41 |
Foreign | 290 | 400 | 300 |
Total, Current | 438 | 397 | 576 |
Domestic | (286) | (184) | (577) |
Foreign | (2) | (101) | (56) |
Total, Deferred | (288) | (286) | (633) |
Income tax provision | 150 | 111 | (57) |
Unrecognized tax benefits interest and penalties reflected in current year | $ 5 | $ 1 | $ 26 |
Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Domestic, including Puerto Rico | $ 133 | $ (489) | $ 799 |
Foreign | 2,109 | 1,474 | 377 |
Income Before Income Taxes | $ 2,242 | $ 985 | $ 1,176 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax [Line Items] | |||||
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRateNew | 21.00% | ||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 50 | ||||
OtherTaxExpenseBenefitRelatedtoHistoricUnremittedForeignEarnings | $ 67 | $ 138 | |||
Deferred Income Taxes and Other | |||||
Income Tax [Line Items] | |||||
Indemnification liability, non-current | $ 119 |
Income Taxes - Summary of Gross Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at October 1 | $ 620 | $ 577 | $ 601 |
Increase due to acquisitions | 2 | 1 | 3 |
Increase due to current year tax positions | 23 | 35 | 11 |
Increase due to prior year tax positions | 6 | 76 | 6 |
Decreases due to prior year tax positions | (4) | (49) | (39) |
Decrease due to settlements with tax authorities | (183) | (4) | 0 |
Decrease due to lapse of statute of limitations | (100) | (16) | (5) |
Balance at September 30 | 364 | 620 | 577 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 447 | $ 719 | $ 624 |
Income Taxes - Deferred Income Taxes (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Compensation and benefits, assets | $ 527 | $ 554 |
Loss and credit carryforwards, assets | 2,107 | 1,900 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 191 | 241 |
Other, assets | 555 | 501 |
Deferred income taxes, assets, gross | 3,379 | 3,196 |
Valuation allowance, assets | (2,036) | (1,820) |
Deferred income taxes, assets | 1,343 | 1,376 |
Property and equipment, liabilities | 410 | 361 |
Deferred Tax Liabilities, Other Finite-Lived Assets | 2,160 | 2,408 |
Other, liabilities | 123 | 137 |
Deferred income taxes, liabilities, gross | 2,693 | 2,906 |
Deferred income taxes, liabilities | $ 2,693 | $ 2,906 |
Income Taxes - Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
U.S. tax legislation (see discussion above) | 0 | 0 | (0.043) | |
State and local income taxes, net of federal tax benefit | (1.90%) | (1.90%) | 0.10% | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (8.10%) | (14.80%) | (6.60%) | |
Effect of foreign operations | (0.10%) | 19.10% | (5.50%) | |
Effect of Research Credits and FDII/Domestic Production Activities | (1.60%) | (5.00%) | (3.30%) | |
Effect of share-based compensation | 0.10% | (4.50%) | (3.90%) | |
Effective Income Tax Rate Reconciliation, Disposition of Asset, Percent | 0.00% | (4.50%) | (2.00%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (1.70%) | 0.00% | 0.00% | |
Other, net | (1.00%) | 1.90% | (0.30%) | |
Total | 6.70% | 11.30% | (4.80%) |
Income Taxes - Summary of Income Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Tax reductions related to tax holidays | $ 248 | $ 136 | $ (43) |
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.85 | $ 0.48 | $ (0.16) |
Income taxes paid, net | $ 670 | $ 518 | $ 536 |
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Right-of-use assets recorded in Other Assets | $ 446 | $ 418 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses |
Current lease liabilities recorded in Payables, accrued expenses and other current liabilities | $ 126 | $ 106 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Deferred Income Taxes and Other Liabilities | Deferred Income Taxes and Other Liabilities |
Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities | $ 344 | $ 336 |
Supplemental Financial Information - Other Income (Expense), Net (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 57 | $ 13 | $ 18 | |
Foreign Currency Transaction Gain (Loss), Realized | (13) | (17) | (23) | |
Losses on debt extinguishment | $ (1) | (178) | (8) | (59) |
Royalty Income, Nonoperating | 0 | 17 | 64 | |
Insurance Recoveries | 0 | 0 | 35 | |
Other Nonoperating Income | (3) | (3) | 4 | |
Other Nonoperating Income (Expense) | (97) | 23 | 43 | |
Other Nonoperating Income (Expense) | ||||
Deferred Compensation Investment Income (Expense) | 43 | 24 | 6 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (1) | 7 | (2) | |
Gains (Losses) on Product Related Matters | $ (2) | $ (9) | $ 0 |
Supplemental Financial Information - Trade Receivables, Allowances for Doubtful Accounts and Cash Discounts (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 94 | $ 88 | $ 86 |
Additions charged to costs and expenses | 118 | 78 | 125 |
Deductions and other | (114) | (73) | (123) |
Ending Balance | 97 | 94 | 88 |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 80 | 75 | 75 |
Additions charged to costs and expenses | 18 | 40 | 31 |
Deductions and other | (22) | (35) | (31) |
Ending Balance | 76 | 80 | 75 |
Allowance for Cash Discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 14 | 13 | 12 |
Additions charged to costs and expenses | 99 | 39 | 94 |
Deductions and other | (92) | (38) | (92) |
Ending Balance | $ 21 | $ 14 | $ 13 |
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Materials | $ 641 | $ 602 |
Work in process | 402 | 335 |
Finished products | 1,823 | 1,806 |
Inventories | $ 2,866 | $ 2,743 |
Supplemental Financial Information - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Land | $ 137 | $ 166 |
Buildings | 3,264 | 3,082 |
Machinery, equipment and fixtures | 9,301 | 8,454 |
Leasehold improvements | 241 | 216 |
Property, Plant and Equipment, gross | 12,942 | 11,919 |
Less accumulated depreciation and amortization | 6,549 | 5,996 |
Property, Plant and Equipment, Net | $ 6,393 | $ 5,923 |
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