8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 4, 2016

BECTON, DICKINSON AND COMPANY

(Exact Name of Registrant as Specified in Its Charter)

New Jersey

(State or Other Jurisdiction of Incorporation)

001-4802	22-0760120
(Commission File Number)	(IRS Employer Identification No.)
1 Becton Drive, Franklin Lakes, New Jersey	07417-1880
(Address of Principal Executive Offices)	(Zip Code)

(201) 847-6800

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K Filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On August 4, 2016, Becton, Dickinson and Company (“BD”) issued a press release announcing its financial results for its third fiscal quarter ending June 30, 2016. A copy of the press release is furnished as Exhibit 99.1 to this report.

The press release furnished as Exhibit 99.1 contains certain financial measures that differ from those presented in accordance with U.S. generally accepted accounting principles (“non-GAAP measures”), as follows:

• Revenues. We present U.S. and total revenues for the company and for our BD Medical segment for the third quarter and first nine months of fiscal year 2016 and fiscal year 2015, and the related revenue growth rates between these periods, after adjusting for a write-down of deferred revenue made in connection with our acquisition of CareFusion Corporation (“CareFusion”) in March 2015 (referred to herein as “adjusted revenues”). This write-down served to lower reported revenues for these periods. We also present international revenues and total company adjusted revenues, and the related revenue growth rates, for the third quarter and first nine months of fiscal year 2016 after eliminating the effect of foreign currency translation. We believe that eliminating the deferred revenue write-down and the impact of currency fluctuations allow investors to better understand the underlying performance of BD and evaluate our performance in comparison to the prior periods.

We also present U.S. and total company adjusted revenues and revenue growth rates for the third quarter of fiscal year 2016 after further adjusting to (i) eliminate the impact of a distribution agreement change relating to our Respiratory Solutions unit, as if it had occurred at the start of our 2015 fiscal year, and (ii) with respect to total company revenues, to eliminate the effect of foreign currency translation. We also show total company revenues for the quarter after further adjusting to eliminate the impact of acquisitions and divestitures (which we refer to as “organic” revenue). We present these adjusted measures of revenue for the quarter because we believe they allow investors to better understand the underlying revenue performance of the company and evaluate it compared to the prior period.

We also present U.S., international and total adjusted revenues, and the related revenue growth rates, for the first nine months of fiscal year 2016, after adjusting for the above-mentioned distribution agreement change and also assuming the acquisition of CareFusion occurred at the start of BD’s 2015 fiscal year (which we refer to as a “comparable basis”). We provide the measures of international and total company revenue after eliminating the effect of foreign currency. We include revenues of CareFusion prior to the completion of our acquisition in these measures because we believe this allows investors to better understand and evaluate the revenue performance of the combined company following the acquisition.

We also present our estimated total company and Medical segment revenue growth rates for fiscal year 2016 after eliminating the impact of foreign currency fluctuations, and also present growth rates on a currency neutral “comparable” basis. We further present estimated total company revenue growth for fiscal year 2016 on an “organic” basis. We believe these measures allow investors to better understand and evaluate our anticipate revenue performance for the year compared to the prior period.

• Earnings Per Share. We present diluted earnings per share (“EPS”) for the third quarter and first nine months of fiscal years 2015 and 2016, and for the full 2015 fiscal year, after adjusting for purchase accounting adjustments, acquisition-related financing, transaction, integration and restructuring costs, pension settlement charges, an adjustment to the liability for employee termination costs recorded relative to workforce reductions in a prior fiscal year, and litigation charges (and the associated tax impact of these items), and for the dilutive impact of shares issued in the CareFusion acquisition prior to the consolidation of its operating results, as applicable. We believe that adjusting for these items, which are not considered by management to be part of our ordinary operations, allows investors to better understand the underlying operating results of BD for the periods presented and facilitates comparisons between the periods shown. We also show the growth in adjusted EPS for the third quarter and first nine months of fiscal year 2016 compared to the prior year periods after eliminating the impact of foreign currency translation to further enable investors to evaluate BD’s underlying earnings performance for these periods compared to the prior year periods.

We also present our estimated EPS for fiscal year 2016 compared to fiscal year 2015 EPS after eliminating the above-mentioned items from each fiscal year, as applicable, and adjusting for the anticipated impact of foreign currency translation in fiscal year 2016. Management believes that these adjustments allow investors to better evaluate BD’s anticipated underlying performance for fiscal year 2016 in relation to our underlying fiscal year 2015 performance.

BD’s management uses each of these non-GAAP measures in its own evaluation of BD’s performance, particularly when comparing performance to past periods and to the performance of peer companies. Management also uses the non-GAAP results for budget planning purposes on a quarterly and annual basis.

BD provides non-GAAP measures to investors on a supplemental basis in addition to our GAAP results, as they provide additional insight into BD’s financial results. Management believes the non-GAAP results provide a reasonable measure of BD’s underlying performance before the effects of items that are considered by management to be outside of BD’s underlying operational results or that affect period to period comparability.

Non-GAAP results should not be considered in isolation and are not in accordance with, or a substitute for, GAAP results. Our non-GAAP results may differ from similar measures used by other companies, even if similar terms are used to identify such measures. Although BD’s management believes non-GAAP results are useful in evaluating the performance of its business, its reliance on these measures is limited since items excluded from such measures may have a material impact on BD’s net income, earnings per share or cash flows calculated in accordance with GAAP. Therefore, management typically uses non-GAAP results in conjunction with GAAP results to address these limitations. Investors should also consider these limitations when evaluating BD’s results.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit 99.1    Press release dated August 4, 2016, which is furnished pursuant to Item 2.02

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BECTON, DICKINSON AND COMPANY
(Registrant)
By:	/s/ Gary DeFazio
	Gary DeFazio
	Senior Vice President and Corporate Secretary

Date: August 4, 2016

Exhibit Index

99.1 Press release dated August 4, 2016, which is furnished pursuant to Item 2.02

EX-99.1

Exhibit 99.1

1 Becton Drive

Franklin Lakes, NJ 07417

www.bd.com

Contact:

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

Kristen Cardillo, Corporate Communications – 201-847-5657

BD ANNOUNCES RESULTS FOR 2016 THIRD FISCAL QUARTER

• As reported, revenues of $3.198 billion increased 2.5 percent. On a comparable, currency-neutral basis, organic adjusted revenues grew 4.0 percent.

• As reported, diluted earnings per share were $1.80.

• Adjusted diluted earnings per share of $2.35 increased 14.6 percent, or 19.5 percent on a currency-neutral basis.

• As reported, the Company expects full fiscal year diluted earnings per share to be between $5.88 and $5.95. The Company reaffirms fiscal year 2016 adjusted diluted earnings per share guidance of $8.50 to $8.57.

• On a currency-neutral basis, the Company is raising adjusted diluted earnings per share to be between $9.08 and $9.15.

Franklin Lakes, NJ (August 4, 2016) – BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced quarterly revenues of $3.198 billion, as reported, for the third fiscal quarter ended June 30, 2016, an increase of 2.5 percent over the prior-year period revenues as reported. On a comparable, currency-neutral basis, third quarter organic adjusted revenues grew 4.0 percent.

“We are pleased with our results this quarter with both segments contributing to growth,” said Vincent A. Forlenza, Chairman, CEO and President. “The combination of solid revenue growth and continued margin improvement is allowing us to increase our investment in innovation while delivering double-digit increases in earnings. At the same time, we continue to drive significant accretion from the integration of BD and CareFusion and create meaningful value for shareholders.”

Third Quarter and Nine-Month Fiscal 2016 Operating Results

As reported, diluted earnings per share for the third quarter were $1.80, compared with $0.29 as reported in the prior-year period. Adjusted diluted earnings per share were $2.35, compared with $2.05 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 14.6 percent, or 19.5 percent on a currency-neutral basis.

For the nine-month period ended June 30, 2016, as reported, diluted earnings per share were $4.41, compared with $2.52 as reported in the prior-year period. Adjusted diluted earnings per share were $6.48, compared with $5.22 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 24.1 percent, or 33.9 percent on a currency-neutral basis.

Segment Results

In the BD Medical segment, as reported, worldwide revenues for the quarter were $2.235 billion, an increase of 1.6 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $2.237 billion grew 3.0 percent on a comparable, currency-neutral basis. The segment’s revenue growth reflects strong performance in the Medication Management Solutions and Diabetes Care units, and solid growth in the Medication and Procedural Solutions unit. Performance in the Pharmaceutical Systems and Respiratory Solutions units was negatively impacted, in part, by customer ordering patterns and the timing of capital placements, respectively, which occurred in the second fiscal quarter, earlier than initially anticipated.

For the nine-month period ended June 30, 2016, BD Medical revenues were $6.420 billion as reported, an increase of 46.7 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $6.431 billion grew 3.7 percent on a comparable, currency-neutral basis.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $963 million, an increase of 4.6 percent from the prior-year period revenues as reported, or an increase of 6.0 percent on a currency-neutral basis. The segment’s revenue growth reflects strong performance in the Diagnostic Systems and Preanalytical Systems units, and modest growth in the Biosciences unit. Growth in the Diagnostic Systems unit was driven by strong core microbiology sales including BD Kiestra™ installations during the quarter. Within the Biosciences unit, strong growth in research instruments and research reagents in the U.S. was partially offset by declines in Africa, as expected.

For the nine-month period ended June 30, 2016, BD Life Sciences revenues were $2.832 billion as reported, a decrease of 0.5 percent over the prior-year period revenues as reported, and an increase of 3.7 percent on a currency-neutral basis.

Geographic Results

As reported, third quarter revenues in the U.S. were $1.735 billion, an increase of 2.5 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $1.737 billion increased 3.4 percent on a comparable basis. Within the BD Medical segment, growth was driven by strong performance in the Medication Management Solutions and Pharmaceutical Systems units. The segment’s growth was negatively impacted by a decline in Medication and Procedural Solutions revenues, due in part to the divestiture of the spine business. Growth was also negatively impacted by the aforementioned timing of capital placements in the Respiratory Solutions unit. Growth in the BD Life Sciences segment was driven by solid growth in the Preanalytical Systems and Diagnostics Systems units, and strong research instrument and reagent sales in the Biosciences unit.

As reported, revenues outside of the U.S. were $1.463 billion, representing an increase of 2.5 percent over the prior-year period revenues as reported, or an increase of 4.6 percent on a currency-neutral basis. International revenue growth reflects modest growth in the BD Medical segment and strong performance in the BD Life Sciences segment. Within the BD Medical segment, growth was driven by strength in China and sales of safety-engineered products. Growth in the BD Medical segment was negatively impacted, in part, by the aforementioned timing of customer orders and capital placements in the Pharmaceutical Systems and Respiratory Solutions units, respectively. Growth in the BD Life Sciences segment reflects strong performance in Western Europe in the Diagnostic Systems unit driven by core microbiology sales, and strong growth in the Preanalytical Systems unit across all regions. This growth was partially offset by the aforementioned declines in Africa within the Biosciences unit.

For the nine-month period ended June 30, 2016, U.S. revenues were $5.145 billion as reported, an increase of 49.7 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $5.156 billion grew 3.5 percent on a comparable basis. As reported, revenues outside of the U.S. were $4.107 billion, an increase of 8.5 percent over the prior-year period revenues as reported, or an increase of 16.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, revenues outside the U.S. grew 3.8 percent.

Fiscal 2016 Outlook for Full Year

As reported, and as adjusted, the Company now expects revenues to increase 21.0 to 21.5 percent. This is a decrease from previously issued guidance of 21.5 to 22.0 percent growth due to incremental currency headwinds. Excluding the impact of foreign currency, the Company continues to estimate that as reported, and as adjusted, revenues for the full fiscal year 2016 will increase 24.5 to 25.0 percent, including the accretion from the acquisition of CareFusion. On a comparable, currency-neutral basis, the Company continues to estimate organic adjusted revenues will increase 4.5 to 5.0 percent.

As reported, the Company expects full fiscal year diluted earnings per share to be between $5.88 and $5.95. The Company continues to expect full fiscal year 2016 adjusted diluted earnings per share to be between $8.50 and $8.57, which represents growth of approximately 19.0 to 20.0 percent. On a currency-neutral basis, the Company is raising full fiscal year 2016 adjusted diluted earnings per share to be between $9.08 and $9.15, which represents growth of approximately 27.0 to 28.0 percent over fiscal 2015 adjusted diluted earnings per share of $7.16. This is an increase from previously issued guidance of $9.01 to $9.08, which represented approximately 26.0 to 27.0 percent growth. Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets, and includes approximately 22.0 percentage points of accretion from the CareFusion acquisition.

Conference Call Information

A conference call regarding BD’s third quarter results will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, August 4, 2016. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 11, 2016, confirmation number 44231624.

Non-GAAP Financial Measures/Financial Tables

This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

All “comparable” basis revenue growth rates presented throughout this release include the results of CareFusion Corporation (“CareFusion”) in the current and prior-year periods. Adjusted revenues for the current and prior-year periods for the Company and the Medical segment in the U.S. exclude the amortization of a write down of deferred revenue made in connection with our acquisition of CareFusion, which served to lower reported revenues for each period. Adjusted revenue growth rates presented on a comparable basis reflect the aforementioned adjustments and further exclude the impact of a distribution agreement change in the Respiratory Solutions unit. Adjusted revenue growth rates presented on an “organic” comparable basis reflect the aforementioned adjustments and are further adjusted for closed acquisitions and divestitures. Current and prior-year adjusted diluted earnings per share results exclude the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); and integration, restructuring and transaction costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing costs; a litigation-related charge and the dilutive impact of shares issued in the CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD

BD is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. BD leads in patient and health care worker safety and the technologies that enable medical research and clinical laboratories. The company provides innovative solutions that help advance medical research and genomics, enhance the diagnosis of infectious disease and cancer, improve medication management, promote infection prevention, equip surgical and interventional procedures, optimize respiratory care and support the management of diabetes. The company partners with organizations around the world to address some of the most challenging global health issues. BD has more than 45,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit www.bd.com.

***

This press release, including the section entitled “Fiscal 2016 Outlook for Full Year”, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues and earnings per share. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to: risks relating to the integration of CareFusion’s operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers’ ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD’s products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD’s ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed in BD’s filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

	Three Months Ended June 30,
	2016			2015			% Change
REVENUES	$	3,198		$	3,120			2.5
Cost of products sold		1,651			1,946			(15.2	)
Selling and administrative expense		728			751			(3.0	)
Research and development expense		207			178			16.4
Acquisitions and other restructurings		96			108			(11.1	)
TOTAL OPERATING COSTS AND EXPENSES		2,682			2,983			(10.1	)
OPERATING INCOME		516			137			NM
Interest expense		(97	)		(105	)		(7.7	)
Interest income		5			2			NM
Other (expense) income, net		(1	)		5			NM
INCOME BEFORE INCOME TAXES		422			39			NM
Income tax provision (benefit)		32			(23	)		NM
NET INCOME	$	390		$	62			NM
EARNINGS PER SHARE
Basic Earnings per Share	$	1.83		$	0.30			NM
Diluted Earnings per Share	$	1.80		$	0.29			NM
AVERAGE SHARES OUTSTANDING (in thousands)
Basic		213,083			210,175
Diluted		217,372			214,928

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

	Nine Months Ended June 30,
	2016			2015			% Change
REVENUES	$	9,252		$	7,222			28.1
Cost of products sold		4,813			3,957			21.6
Selling and administrative expense		2,209			1,806			22.3
Research and development expense		575			436			32.0
Acquisitions and other restructurings		321			244			31.4
TOTAL OPERATING COSTS AND EXPENSES		7,918			6,444			22.9
OPERATING INCOME		1,334			779			71.3
Interest expense		(293	)		(272	)		7.5
Interest income		14			20			(33.0	)
Other income, net		10			23			(53.9	)
INCOME BEFORE INCOME TAXES		1,065			549			93.8
Income tax provision		107			35			NM
NET INCOME	$	958		$	514			86.2
EARNINGS PER SHARE
Basic Earnings per Share	$	4.51		$	2.58			74.8
Diluted Earnings per Share	$	4.41		$	2.52			75.0
AVERAGE SHARES OUTSTANDING (in thousands)
Basic		212,411			199,690
Diluted		217,146			204,236

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended June 30,

(Unaudited; Amounts in millions)

	A			B			C		D		E=(A-B)/B			F=(C-D)/D
	As Reported						Adjusted				% Change
	2016			2015			2016		2015		Reported			Adjusted
BD MEDICAL
Medication and Procedural Solutions	$	474		$	479		$	474	$	479		(1.1	)		(1.1	)
Medication Management Solutions		475			442			475		442		7.4			7.4
Diabetes Care		127			118			127		118		6.8			6.8
Pharmaceutical Systems		98			88			98		88		10.8			10.8
Respiratory Solutions		136			164			136		164		(16.9	)		(16.9	)
Deferred Revenue Adjustment *		(2	)		(13	)		—		—		(82.9	)		—
TOTAL	$	1,307		$	1,279		$	1,309	$	1,291		2.2			1.4
BD LIFE SCIENCES
Preanalytical Systems	$	180		$	175		$	180	$	175		3.3			3.3
Diagnostic Systems		142			138			142		138		2.8			2.8
Biosciences		106			102			106		102		4.2			4.2
TOTAL	$	428		$	414		$	428	$	414		3.4			3.4
TOTAL UNITED STATES	$	1,735		$	1,693		$	1,737	$	1,706		2.5			1.8

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX			% Change
	2016		2015		Impact			Reported			FXN
BD MEDICAL
Medication and Procedural Solutions	$	378	$	369	$	(15	)		2.2			6.2
Medication Management Solutions		112		112		(2	)		(0.1	)		1.6
Diabetes Care		132		126		(3	)		4.2			6.4
Pharmaceutical Systems		244		245		3			(0.5	)		(1.9	)
Respiratory Solutions		63		67		—			(6.7	)		(6.1	)
TOTAL	$	928	$	920	$	(16	)		0.8			2.6
BD LIFE SCIENCES
Preanalytical Systems	$	186	$	175	$	(6	)		6.3			9.9
Diagnostic Systems		185		164		(4	)		12.7			15.2
Biosciences		164		167		(2	)		(2.0	)		(0.6	)
TOTAL	$	535	$	506	$	(13	)		5.7			8.1
TOTAL INTERNATIONAL	$	1,463	$	1,427	$	(29	)		2.5			4.6

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A			B			C		D		E			F=(A-B)/B			G=(A-B-E)/B			H=(C-D)/D			I=(C-D-E)/D
														% Change
	As Reported						Adjusted				FX												Adjusted
	2016			2015			2016		2015		Impact			Reported			FXN			Adjusted			FXN
BD MEDICAL
Medication and Procedural Solutions	$	851		$	848		$	851	$	848	$	(15	)		0.3			2.1			0.3			2.1
Medication Management Solutions		587			554			587		554		(2	)		5.9			6.2			5.9			6.2
Diabetes Care		258			245			258		245		(3	)		5.5			6.6			5.5			6.6
Pharmaceutical Systems		342			333			342		333		3			2.5			1.5			2.5			1.5
Respiratory Solutions		199			232			199		232		—			(13.9	)		(13.7	)		(13.9	)		(13.7	)
Deferred Revenue Adjustment *		(2	)		(13	)		—		—		—			(82.9	)		(82.9	)		—			—
TOTAL	$	2,235		$	2,199		$	2,237	$	2,212	$	(16	)		1.6			2.4			1.1			1.9
BD LIFE SCIENCES
Preanalytical Systems	$	366		$	349		$	366	$	349	$	(6	)		4.8			6.6			4.8			6.6
Diagnostic Systems		327			302			327		302		(4	)		8.2			9.5			8.2			9.5
Biosciences		270			269			270		269		(2	)		0.4			1.2			0.4			1.2
TOTAL	$	963		$	921		$	963	$	921	$	(13	)		4.6			6.0			4.6			6.0
TOTAL REVENUES	$	3,198		$	3,120		$	3,200	$	3,133	$	(29	)		2.5			3.4			2.2			3.1

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

	A			B			C		D		E=(A-B)/B			F=(C-D)/D
	As Reported						Adjusted				% Change
	2016			2015			2016		2015		Reported			Adjusted
BD MEDICAL
Medication and Procedural Solutions	$	1,448		$	1,003		$	1,448	$	1,003		44.4			44.4
Medication Management Solutions		1,361			442			1,361		442		NM			NM
Diabetes Care		386			361			386		361		6.8			6.8
Pharmaceutical Systems		242			226			242		226		7.0			7.0
Respiratory Solutions		425			164			425		164		NM			NM
Deferred Revenue Adjustment *		(12	)		(13	)		—		—		(7.7	)		—
TOTAL	$	3,850		$	2,183		$	3,862	$	2,196		76.4			75.9
BD LIFE SCIENCES
Preanalytical Systems	$	533		$	516		$	533	$	516		3.3			3.3
Diagnostic Systems		447			446			447		446		0.2			0.2
Biosciences		314			292			314		292		7.8			7.8
TOTAL	$	1,294		$	1,254		$	1,294	$	1,254		3.2			3.2
TOTAL UNITED STATES	$	5,145		$	3,437		$	5,156	$	3,450		49.7			49.5

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

Page 6

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A		B		C			D=(A-B)/B			E=(A-B-C)/B
	As Reported				FX			% Change
	2016		2015		Impact			Reported			FXN
BD MEDICAL
Medication and Procedural Solutions	$	1,082	$	1,011	$	(95	)		7.0			16.4
Medication Management Solutions		312		112		(21	)		NM			NM
Diabetes Care		371		394		(33	)		(5.7	)		2.8
Pharmaceutical Systems		607		609		(29	)		(0.4	)		4.4
Respiratory Solutions		196		67		(9	)		NM			NM
TOTAL	$	2,569	$	2,193	$	(187	)		17.1			25.6
BD LIFE SCIENCES
Preanalytical Systems	$	517	$	526	$	(49	)		(1.6	)		7.8
Diagnostic Systems		512		512		(39	)		0.1			7.8
Biosciences		508		555		(29	)		(8.3	)		(3.2	)
TOTAL	$	1,538	$	1,592	$	(117	)		(3.4	)		4.0
TOTAL INTERNATIONAL	$	4,107	$	3,785	$	(304	)		8.5			16.5

NM - Not Meaningful

Page 7

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A			B			C		D		E			F=(A-B)/B			G=(A-B-E)/B			H=(C-D)/D			I=(C-D-E)/D
														% Change
	As Reported						Adjusted				FX												Adjusted
	2016			2015			2016		2015		Impact			Reported			FXN			Adjusted			FXN
BD MEDICAL
Medication and Procedural Solutions	$	2,531		$	2,014		$	2,531	$	2,014	$	(95	)		25.7			30.4			25.7			30.4
Medication Management Solutions		1,673			554			1,673		554		(21	)		NM			NM			NM			NM
Diabetes Care		757			755			757		755		(33	)		0.3			4.7			0.3			4.7
Pharmaceutical Systems		849			835			849		835		(29	)		1.6			5.1			1.6			5.1
Respiratory Solutions		621			232			621		232		(9	)		NM			NM			NM			NM
Deferred Revenue Adjustment *		(12	)		(13	)		—		—		—			(7.7	)		(7.7	)		—			—
TOTAL	$	6,420		$	4,377		$	6,431	$	4,389	$	(187	)		46.7			50.9			46.5			50.8
BD LIFE SCIENCES
Preanalytical Systems	$	1,050		$	1,042		$	1,050	$	1,042	$	(49	)		0.8			5.6			0.8			5.6
Diagnostic Systems		959			957			959		957		(39	)		0.2			4.3			0.2			4.3
Biosciences		823			846			823		846		(29	)		(2.8	)		0.6			(2.8	)		0.6
TOTAL	$	2,832		$	2,845		$	2,832	$	2,845	$	(117	)		(0.5	)		3.7			(0.5	)		3.7
TOTAL REVENUES	$	9,252		$	7,222		$	9,263	$	7,235	$	(304	)		28.1			32.3			28.0			32.2

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

Page 8

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended June 30,

(Unaudited; Amounts in millions)

	A			B		C=A+B		D			E		F=D+E		G			H=F+G		I=(C-H)/H
				Deferred							Deferred							Comparable		Comparable
	Reported			Revenue		Adjusted		Reported			Revenue		Adjusted		Respiratory			Historical		Adjusted
	2016			Adjustment		2016		2015			Adjustment		2015		Adjustment **			2015		% Change
BD MEDICAL
Medication and Procedural Solutions	$	474		$	—	$	474	$	479		$	—	$	479	$	—		$	479		(1.1	)
Medication Management Solutions		475			—		475		442			—		442		—			442		7.4
Diabetes Care		127			—		127		118			—		118		—			118		6.8
Pharmaceutical Systems		98			—		98		88			—		88		—			88		10.8
Respiratory Solutions		136			—		136		164			—		164		(25	)		139		(1.9	)
Deferred Revenue Adjustment *		(2	)		2		—		(13	)		13		—		—			—		—
TOTAL	$	1,307		$	2	$	1,309	$	1,279		$	13	$	1,291	$	(25	)	$	1,266		3.4
BD LIFE SCIENCES
Preanalytical Systems	$	180		$	—	$	180	$	175		$	—	$	175	$	—		$	175		3.3
Diagnostic Systems		142			—		142		138			—		138		—			138		2.8
Biosciences		106			—		106		102			—		102		—			102		4.2
TOTAL	$	428		$	—	$	428	$	414		$	—	$	414	$	—		$	414		3.4
TOTAL UNITED STATES	$	1,735		$	2	$	1,737	$	1,693		$	13	$	1,706	$	(25	)	$	1,681		3.4

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 9

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO FXN REVENUE CHANGE - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A		B		C			D=(A-B-C)/B
	Reported		Reported		FX			FXN
	2016		2015		Impact			% Change
BD MEDICAL
Medication and Procedural Solutions	$	378	$	369	$	(15	)		6.2
Medication Management Solutions		112		112		(2	)		1.6
Diabetes Care		132		126		(3	)		6.4
Pharmaceutical Systems		244		245		3			(1.9	)
Respiratory Solutions		63		67		—			(6.1	)
TOTAL	$	928	$	920	$	(16	)		2.6
BD LIFE SCIENCES
Preanalytical Systems	$	186	$	175	$	(6	)		9.9
Diagnostic Systems		185		164		(4	)		15.2
Biosciences		164		167		(2	)		(0.6	)
TOTAL	$	535	$	506	$	(13	)		8.1
TOTAL INTERNATIONAL	$	1,463	$	1,427	$	(29	)		4.6

Page 10

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A			B		C=A+B		D			E		F=D+E		G			H=F+G		I			J=(C-H-I)/H
																							Comparable
				Deferred							Deferred							Comparable		Comparable			Adjusted
	Reported			Revenue		Adjusted		Reported			Revenue		Adjusted		Respiratory			Historical		FX			FXN
	2016			Adjustment		2016		2015			Adjustment		2015		Adjustment **			2015		Impact			% Change
BD MEDICAL
Medication and Procedural Solutions	$	851		$	—	$	851	$	848		$	—	$	848	$	—		$	848	$	(15	)		2.1
Medication Management Solutions		587			—		587		554			—		554		—			554		(2	)		6.2
Diabetes Care		258			—		258		245			—		245		—			245		(3	)		6.6
Pharmaceutical Systems		342			—		342		333			—		333		—			333		3			1.5
Respiratory Solutions		199			—		199		232			—		232		(25	)		207		—			(3.3	)
Deferred Revenue Adjustment *		(2	)		2		—		(13	)		13		—		—			—		—			—
TOTAL	$	2,235		$	2	$	2,237	$	2,199		$	13	$	2,212	$	(25	)	$	2,187	$	(16	)		3.0
BD LIFE SCIENCES
Preanalytical Systems	$	366		$	—	$	366	$	349		$	—	$	349	$	—		$	349	$	(6	)		6.6
Diagnostic Systems		327			—		327		302			—		302		—			302		(4	)		9.5
Biosciences		270			—		270		269			—		269		—			269		(2	)		1.2
TOTAL	$	963		$	—	$	963	$	921		$	—	$	921	$	—		$	921	$	(13	)		6.0
TOTAL REVENUES	$	3,198		$	2	$	3,200	$	3,120		$	13	$	3,133	$	(25	)	$	3,108	$	(29	)		3.9

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 11

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A			B			C=(A-B)/B
	2016			2015			% Change
Reported	$	3,198		$	3,120			2.5
Deferred Revenue Adjustment *		2			13
Acquisitions & Divestitures Impact **		(3	)		(7	)
Respiratory Adjustment ***		—			(25	)
Comparable Adjusted Organic	$	3,197		$	3,101
FX Impact		(29	)
Comparable Adjusted Organic FXN	$	3,226		$	3,101			4.0

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** Excludes the impact from non-annualized acquisitions and the following closed divestitures: Simplist and Spine.

*** To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

Page 12

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

	A			B		C=A+B		D			E		F=D+E		G		H			I=F+G+H		J=(C-I)/I
				Deferred				BD			Deferred				CFN					Comparable		Comparable
	Reported			Revenue		Adjusted		Reported			Revenue		Adjusted		Reported		Respiratory			Historical		Adjusted
	2016			Adjustment		2016		2015			Adjustment		2015		1st Half 2015***		Adjustment **			2015		% Change
BD MEDICAL
Medication and Procedural Solutions	$	1,448		$	—	$	1,448	$	1,003		$	—	$	1,003	$	427	$	—		$	1,430		1.3
Medication Management Solutions		1,361			—		1,361		442			—		442		843		—			1,285		5.9
Diabetes Care		386			—		386		361			—		361		—		—			361		6.8
Pharmaceutical Systems		242			—		242		226			—		226		—		—			226		7.0
Respiratory Solutions		425			—		425		164			—		164		333		(71	)		426		(0.2	)
Deferred Revenue Adjustment *		(12	)		12		—		(13	)		13		—		—		—			—		—
TOTAL	$	3,850		$	12	$	3,862	$	2,183		$	13	$	2,196	$	1,603	$	(71	)	$	3,728		3.6
BD LIFE SCIENCES
Preanalytical Systems	$	533		$	—	$	533	$	516		$	—	$	516	$	—	$	—		$	516		3.3
Diagnostic Systems		447			—		447		446			—		446		—		—			446		0.2
Biosciences		314			—		314		292			—		292		—		—			292		7.8
TOTAL	$	1,294		$	—	$	1,294	$	1,254		$	—	$	1,254	$	—	$	—		$	1,254		3.2
TOTAL UNITED STATES	$	5,145		$	12	$	5,156	$	3,437		$	13	$	3,450	$	1,603	$	(71	)	$	4,982		3.5

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

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

Page 13

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A		B		C		D=B+C		E			F=(A-D-E)/D
			BD		CFN		Comparable		Comparable			Comparable
	Reported		Reported		Reported		Historical		FX			FXN
	2016		2015		1st Half 2015*		2015		Impact			% Change
BD MEDICAL
Medication and Procedural Solutions	$	1,082	$	1,011	$	117	$	1,128	$	(95	)		4.4
Medication Management Solutions		312		112		208		320		(21	)		4.0
Diabetes Care		371		394		—		394		(33	)		2.8
Pharmaceutical Systems		607		609		—		609		(29	)		4.4
Respiratory Solutions		196		67		138		206		(9	)		(0.1	)
TOTAL	$	2,569	$	2,193	$	463	$	2,656	$	(187	)		3.8
BD LIFE SCIENCES
Preanalytical Systems	$	517	$	526	$	—	$	526	$	(49	)		7.8
Diagnostic Systems		512		512		—		512		(39	)		7.8
Biosciences		508		555		—		555		(29	)		(3.2	)
TOTAL	$	1,538	$	1,592	$	—	$	1,592	$	(117	)		4.0
TOTAL INTERNATIONAL	$	4,107	$	3,785	$	463	$	4,248	$	(304	)		3.8

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

Page 14

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

	A			B		C=A+B		D			E		F=D+E		G		H			I=F+G+H		J			K=(C-I-J)/I
																									Comparable
				Deferred				BD			Deferred				CFN					Comparable		Comparable			Adjusted
	Reported			Revenue		Adjusted		Reported			Revenue		Adjusted		Reported		Respiratory			Historical		FX			FXN
	2016			Adjustment		2016		2015			Adjustment		2015		1st Half 2015***		Adjustment **			2015		Impact			% Change
BD MEDICAL
Medication and Procedural Solutions	$	2,531		$	—	$	2,531	$	2,014		$	—	$	2,014	$	544	$	—		$	2,557	$	(95	)		2.7
Medication Management Solutions		1,673			—		1,673		554			—		554		1,051		—			1,605		(21	)		5.5
Diabetes Care		757			—		757		755			—		755		—		—			755		(33	)		4.7
Pharmaceutical Systems		849			—		849		835			—		835		—		—			835		(29	)		5.1
Respiratory Solutions		621			—		621		232			—		232		471		(71	)		632		(9	)		(0.2	)
Deferred Revenue Adjustment *		(12	)		12		—		(13	)		13		—		—		—			—		—			—
TOTAL	$	6,420		$	12	$	6,431	$	4,377		$	13	$	4,389	$	2,066	$	(71	)	$	6,385	$	(187	)		3.7
BD LIFE SCIENCES
Preanalytical Systems	$	1,050		$	—	$	1,050	$	1,042		$	—	$	1,042	$	—	$	—		$	1,042	$	(49	)		5.6
Diagnostic Systems		959			—		959		957			—		957		—		—			957		(39	)		4.3
Biosciences		823			—		823		846			—		846		—		—			846		(29	)		0.6
TOTAL	$	2,832		$	—	$	2,832	$	2,845		$	—	$	2,845	$	—	$	—		$	2,845	$	(117	)		3.7
TOTAL REVENUES	$	9,252		$	12	$	9,263	$	7,222		$	13	$	7,235	$	2,066	$	(71	)	$	9,230	$	(304	)		3.7

* In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

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

Page 15

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

	Three Months Ended June 30,
												Foreign					Foreign
									Foreign			Currency					Currency
									Currency			Neutral					Neutral
	2016			2015			Growth		Translation			Growth		Growth %			Growth %
Reported Diluted Earnings per Share	$	1.80		$	0.29		$	1.51	$	(0.10	)	$	1.61		NM			NM
Purchase Accounting Adjustments ($127 million and $439 million pre-tax, respectively)		0.58	(1)		2.04	(2)
Restructuring Costs ($49 million and $75 million pre-tax, respectively) (3)		0.23			0.35
Integration Costs ($40 million and $24 million pre-tax, respectively) (3)		0.18			0.11
Transaction Costs ($7 million and $9 million pre-tax, respectively) (3)		0.03			0.04
Pension Settlement Charges ($3 million pre-tax) (4)		0.01			—
Financing Costs ($5 million pre-tax) (3)		—			0.02
Employee Termination Cost-related Amounts ($(5) million pre-tax) (5)		—			(0.02	)
Income Tax Benefit of Special Items ($(106) million and $(169) million)		(0.49	)		(0.79	)
Adjusted Diluted Earnings per Share	$	2.35		$	2.05		$	0.30	$	(0.10	)	$	0.40		14.6	%		19.5	%

⁽¹⁾ Includes non-cash amortization expense of $131 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of ($0) million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $4 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

⁽²⁾ Represents non-cash amortization expense of $148 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $291 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date.

⁽³⁾ Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

⁽⁴⁾ Represents pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.

⁽⁵⁾ Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.

Page 16

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

	Nine Months Ended June 30,
												Foreign					Foreign
									Foreign			Currency					Currency
									Currency			Neutral					Neutral
	2016			2015			Growth		Translation			Growth		Growth %			Growth %
Reported Diluted Earnings per Share	$	4.41		$	2.52		$	1.89	$	(0.51	)	$	2.40		75.0	%		95.2	%
Purchase Accounting Adjustments ($395 million and $466 million pre-tax, respectively)		1.82	(1)		2.28	(2)
Restructuring Costs ($198 million and $136 million pre-tax, respectively) (3)		0.91			0.67
Integration Costs ($115 million and $55 million pre-tax, respectively) (3)		0.53			0.27
Transaction Costs ($7 million and $52 million pre-tax, respectively) (3)		0.03			0.26
Pension Settlement Charges ($3 million pre-tax) (4)		0.01			—
Financing Costs ($107 million pre-tax) (3)		—			0.53
Employee Termination Cost-related Amounts ($(5) million pre-tax) (5)		—			(0.02	)
Litigation-related Charge ($12 million pre-tax) (6)		—			0.06
Income Tax Benefit of Special Items ($(270) million and $(277) million)		(1.24	)		(1.36	)
Dilutive Share Impact (7)		—			0.02
Adjusted Diluted Earnings per Share	$	6.48		$	5.22		$	1.26	$	(0.51	)	$	1.77		24.1	%		33.9	%

⁽¹⁾ Includes non-cash amortization expense of $416 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $5 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $26 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

⁽²⁾  Includes non-cash amortization expense of $184 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $291 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes an acquisition-date accounting gain of $9 million pre-tax related to a previously held equity investment.

⁽³⁾ Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

⁽⁴⁾ Represents pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.

⁽⁵⁾ Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.

⁽⁶⁾ Represents a charge for plaintiff’s attorneys’ fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI.

⁽⁷⁾ Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The year-to-date adjusted diluted average shares outstanding (in thousands) is 197,390.

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY2016 OUTLOOK RECONCILIATION

	FY2015			FY2016 Outlook
	Revenues			% Increase		FX Impact		% Increase FXN
BDX As Reported Revenue	$	10,282			21.0% - 21.5%		~(3.5%)		24.5% - 25.0%
Deferred Revenue Adjustment		20			NM		NM		NM
BDX As Adjusted Revenue		10,302			21.0% - 21.5%		~(3.5%)		24.5% - 25.0%
CareFusion First Half Revenue		2,066
Respiratory Solution Adjustment (1)		(78	)
				% Increase FXN
				Comparable
BDX Comparable Revenue		12,290			4.5% - 5.0%
Inorganic Revenue (2)		(27	)
				Comparable Organic
BDX Comparable Organic Revenue	$	12,263			4.5% - 5.0%
BD Medical Revenue	$	6,460
Deferred Revenue Adjustment		20
BD Medical As Adjusted Revenue		6,480
CareFusion First Half Revenue		2,066
Respiratory Solution Adjustment (1)		(78	)
				% Increase FXN
				Comparable
BD Medical Comparable Revenue	$	8,469			4.5% - 5.0%
	FY2016 Outlook
	Full Year			Full Year
	FY2016			FY2015		% Increase
	(estimated)
Reported Fully Diluted Earnings per Share	$	5.88 - 5.95		$	3.35		NM
Purchase Accounting Adjustments		2.38			3.11
Restructuring Costs		0.91	(3)		1.31
Integration Costs		0.53	(3)		0.46
Transaction Costs		0.03	(3)		0.29
Pension Settlement Charges		0.01	(3)		—
Financing Costs		—			0.52
Litigation-related Charge		—			0.06
Employee Termination Cost-related Amounts		—			(0.02)
Income Tax Benefit of Special Items		(1.24	) (3)		(1.93)
Dilutive Share Impact		—			0.02
Adjusted Fully Diluted Earnings per Share	$	8.50 - 8.57		$	7.16		19.0% - 20.0%
FX Impact	$	(0.58	)				~(8.0%)
Adjusted FXN Growth	$	9.08 - 9.15					27.0% - 28.0%

⁽¹⁾ To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

⁽²⁾ Adjusts FY2015 revenues for the following closed divestitures: Simplist and Spine.

⁽³⁾ FY2016 restructuring, integration and transaction costs, pension settlement charges, and income tax benefit of special items reflect year-to-date realized costs.

NM - Not Meaningful

FXN - Foreign Currency Neutral

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