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) November 3, 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
(Registrants 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 November 3, 2016, Becton, Dickinson and Company (BD) issued a press release announcing its financial results for its fourth fiscal quarter and fiscal year ending September 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 fourth quarter and full 2016 fiscal year and the comparable prior year periods, and the related revenue growth rates between these periods, after adjusting for the amortization of a write down of deferred revenue recorded 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, and we make these adjustments so investors can better understand our underlying revenue growth rates. We also present international revenue, total company revenue and total company adjusted revenue growth rates for the fourth quarter and the full 2016 fiscal year after eliminating the effect of foreign currency translation, which can fluctuate from period to period. We believe that eliminating the impact of currency fluctuations is useful to investors as it provides additional information to help investors better understand the underlying performance of BD and evaluate our overall performance compared to the prior periods. |
We also present U.S. and total adjusted revenue growth rates for the fourth quarter of fiscal year 2016 after further adjusting to (i) eliminate the impact of a distribution agreement change relating to our Respiratory Solutions unit that resulted from the CareFusion acquisition, as if it had occurred at the start of our 2015 fiscal year, and (ii) with respect to total adjusted revenue growth, to eliminate the effect of foreign currency translation. We also show total company revenues and growth rate for the fourth quarter after further adjusting to eliminate the impact of acquisitions and divestitures, which can fluctuate from period to period (we refer to this adjusted measure as organic revenue). We believe these adjusted measures are useful to investors because they provide additional information to investors regarding our underlying revenue performance for the quarter and allow investors to better understand the overall revenue performance of the company compared to the prior period.
We also present U.S and total adjusted revenue, international revenue and organic revenue growth rates for fiscal year 2016 after adjusting for the above mentioned distribution agreement change and also assuming the acquisition of CareFusion occurred at the start of BDs 2015 fiscal year (which we refer to as comparable basis revenue). For international and total company revenues, we provide these measures after eliminating the effect of foreign currency fluctuations. We believe including the revenues that CareFusion recorded in fiscal year 2015 prior to the completion of our acquisition is useful to investors because it allows investors to better evaluate the revenue performance of the combined company following the acquisition.
We also present our estimated growth in adjusted revenues in fiscal year 2017 after eliminating the estimated impact of foreign currency fluctuations and our recent divestiture of our Respiratory Solutions unit and other divestitures that closed in fiscal year 2016 and fiscal year 2017. These divestitures can significantly impact period-to-period comparability, and these adjustments allow investors to evaluate the anticipated growth of our going forward business compared to our performance in fiscal year 2016.
| Earnings Per Share. We present diluted earnings per share (EPS) for the fourth quarter and full fiscal year 2016 and the comparable prior year periods 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 (referred to herein as adjusted EPS). We believe that adjusting for these items, which can significantly fluctuate from period to period and are not considered by management to be part of our ordinary operations, is useful to investors as it provides additional information to help investors to better understand the underlying operating results of BD and our overall performance for the periods presented and to facilitate comparisons between the periods shown. We also show the growth in adjusted EPS for the fourth quarter and full fiscal year 2016 compared to the prior year periods after eliminating the impact of foreign currency translation to further enable investors to evaluate BDs underlying earnings performance for these periods compared to the prior year periods. |
We also present our estimated EPS for fiscal year 2017 compared to fiscal year 2016 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 2017. Management believes that these adjustments allow investors to better evaluate BDs anticipated underlying earnings performance for fiscal year 2017 in relation to our underlying fiscal year 2016 performance.
BDs management uses each of these non-GAAP measures in its own evaluation of BDs 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 BDs financial results. Management believes the non-GAAP results provide a reasonable measure of BDs underlying performance before the effects of items that are considered by management to be outside of BDs underlying operational results or that affect period to period comparability. However, Non-GAAP results should not be considered in isolation and are not in accordance with, or a substitute for, GAAP results. Also, our non-GAAP results may differ from similar measures used by other companies, even if similar terms are used to identify such measures. Although BDs 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 BDs 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 BDs results.
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
Exhibit 99.1 Press release dated November 3, 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: November 3, 2016
Exhibit Index
99.1 | Press release dated November 3, 2016, which is furnished pursuant to Item 2.02 |
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 FOURTH FISCAL QUARTER AND FULL YEAR;
PROVIDES FISCAL 2017 GUIDANCE
| As reported, full fiscal year revenues of $12.483 billion increased 21.4 percent. On a comparable, currency-neutral basis, organic adjusted revenues grew 4.3 percent for the full year. |
| As reported, full fiscal year diluted earnings per share of $4.49 increased 34.0 percent. |
| As adjusted, full fiscal year diluted earnings per share of $8.59 increased 20.0 percent, or 29.1 percent on a currency-neutral basis. |
| As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent. |
| As adjusted, the Company expects full fiscal year 2017 diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent. |
Franklin Lakes, NJ (November 3, 2016) BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced quarterly revenues of $3.231 billion, as reported, for the fourth fiscal quarter ended September 30, 2016, an increase of 5.6 percent over the prior-year period revenues. On a comparable, currency-neutral basis, fourth quarter organic adjusted revenues grew 6.4 percent. For the full fiscal year ended September 30, 2016, as reported, revenues of $12.483 billion increased 21.4 percent over the prior-year as reported. On a comparable, currency-neutral basis, full fiscal year organic adjusted revenues grew 4.3 percent.
We are extremely proud of our accomplishments during our first fiscal year as the new BD, said Vincent A. Forlenza, Chairman, CEO and President. Our solid revenue growth and continued margin expansion allow us to invest in innovation while delivering double-digit increases in earnings. We look forward to fiscal 2017 with confidence as we continue to focus on improving outcomes, expanding access to care, lowering costs and optimizing safety, which will ultimately enrich our purpose of advancing the world of health.
Fourth Quarter and Full Year Fiscal 2016 Operating Results
As reported, diluted earnings per share for the fourth quarter were $0.09, compared with $0.84 as reported in the prior-year period. This represents a decrease of 89.3 percent and is primarily due to charges related to the attainment of cost synergies. Adjusted diluted earnings per share were $2.12, compared with $1.94 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 9.3 percent, or 16.5 percent on a currency-neutral basis.
For the full fiscal year ended September 30, 2016, as reported, diluted earnings per share were $4.49, compared with $3.35 as reported in the prior-year period. This represents an increase of 34.0 percent. Adjusted diluted earnings per share were $8.59, compared with $7.16 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 20.0 percent, or 29.1 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 7.3 percent over the prior-year period revenues. As adjusted, BD Medical revenues of $2.237 billion grew 7.9 percent on a comparable, currency-neutral basis. The segments revenue growth reflects strong performance in the Medication Management Solutions and Medication and Procedural Solutions units, and solid results in the Pharmaceutical Systems and Diabetes Care units. Strong performance in the Respiratory Solutions unit was aided, in part, by a favorable comparison to the prior year, as expected.
For the twelve-month period ended September 30, 2016, BD Medical revenues were $8.654 billion as reported, an increase of 34.0 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $8.669 billion grew 4.7 percent on a comparable, currency-neutral basis.
In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $996 million, an increase of 2.1 percent over the prior-year period revenues, or an increase of 2.7 percent on a currency-neutral basis. The segments revenue growth reflects solid performance in the Preanalytical Systems and Biosciences units. Within the Biosciences unit, strong growth in the research platform in the U.S. was partially offset by continued declines in Africa, as previously communicated. Growth in the Diagnostic Systems unit was impacted, in part, by the timing of installations of the BD Kiestra lab automation system that benefited the third fiscal quarter of fiscal 2016, in conjunction with a tough comparison to the prior-year period.
For the twelve-month period ended September 30, 2016, BD Life Sciences revenues were $3.829 billion as reported, an increase of 0.2 percent over the prior-year period revenues as reported, and an increase of 3.4 percent on a currency-neutral basis.
Geographic Results
As reported, fourth quarter revenues in the U.S. were $1.748 billion, an increase of 7.1 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $1.751 billion increased 7.2 percent on a comparable basis. Within the BD Medical segment, growth was driven by strong performance across the Medication Management Solutions, Medication and Procedural Solutions, and Pharmaceutical Systems units. Growth in BD Life Sciences was driven by strong performance across the segment.
As reported, revenues outside of the U.S. were $1.483 billion, representing an increase of 3.9 percent over the prior-year period revenues as reported, or an increase of 5.2 percent on a currency-neutral basis. International revenue growth reflects strong growth in the BD Medical segment. Within the BD Medical segment, results were driven by double-digit growth in China, strength in dispensing and infusion, and sales of safety-engineered products. Growth in the BD Medical segment was aided, in part, by the aforementioned favorable comparison to the prior year period in the Respiratory Solutions unit. BD Life Sciences segment revenues were about flat when compared with the prior-year period revenues. Results in the BD Life Sciences segment were impacted by the aforementioned tough comparison to the prior-year period related to the timing of installations of the BD Kiestra lab automation system, and continued declines in Africa within the Biosciences unit.
For the twelve-month period ended September 30, 2016, U.S. revenues were $6.893 billion as reported, an increase of 36.0 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $6.907 billion grew 4.4 percent on a comparable basis. As reported, revenues outside of the U.S. were $5.590 billion, an increase of 7.2 percent over the prior-year period revenues as reported. On a comparable, currency-neutral basis, revenues outside the U.S. grew 4.2 percent.
Fiscal 2017 Outlook for Full Year
As reported, the Company expects full fiscal year 2017 revenues to decrease 3.0 to 3.5 percent, primarily due to the divestiture of the Respiratory Solutions business that was completed in October 2016. The Company estimates full fiscal year 2017 revenues will increase 4.5 to 5.0 percent on a comparable, currency-neutral basis that excludes Respiratory Solutions and other closed divestitures in fiscal years 2016 and 2017.
As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent. The Company expects adjusted diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent including an estimated 1.5 percentage points of dilution related to the Respiratory Solutions divestiture. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent over fiscal 2016 adjusted diluted earnings per share of $8.59. Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets.
Conference Call Information
A conference call regarding BDs fourth quarter results will be broadcast live on BDs website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, November 3, 2016. The conference call will be available for replay on BDs 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, November 10, 2016, confirmation number 94169710.
Non-GAAP Financial Measures/Financial Tables
This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
All comparable basis revenue growth rates relating to fiscal year 2016 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, 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 40,000 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 bd.com.
***
This press release, including the section entitled Fiscal 2017 Outlook for Full Year, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BDs 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 CareFusions 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 BDs products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BDs 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 BDs 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 BDs 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 September 30, | ||||||||||||
2016 | 2015 | % Change | ||||||||||
REVENUES |
$ | 3,231 | $ | 3,059 | 5.6 | |||||||
Cost of products sold |
1,679 | 1,630 | 3.0 | |||||||||
Selling and administrative expense |
796 | 756 | 5.3 | |||||||||
Research and development expense |
253 | 196 | 29.3 | |||||||||
Acquisitions and other restructurings |
407 | 182 | NM | |||||||||
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TOTAL OPERATING COSTS AND EXPENSES |
3,135 | 2,764 | 13.4 | |||||||||
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OPERATING INCOME |
96 | 296 | (67.5 | ) | ||||||||
Interest expense |
(95 | ) | (99 | ) | (3.9 | ) | ||||||
Interest income |
7 | (5 | ) | NM | ||||||||
Other income (expense), net |
1 | (2 | ) | NM | ||||||||
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INCOME BEFORE INCOME TAXES |
9 | 190 | (95.2 | ) | ||||||||
Income tax (benefit) provision |
(10 | ) | 9 | NM | ||||||||
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NET INCOME |
$ | 19 | $ | 181 | (89.6 | ) | ||||||
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EARNINGS PER SHARE |
||||||||||||
Basic Earnings per Share |
$ | 0.09 | $ | 0.86 | (89.5 | ) | ||||||
Diluted Earnings per Share |
$ | 0.09 | $ | 0.84 | (89.3 | ) | ||||||
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AVERAGE SHARES OUTSTANDING (in thousands) |
||||||||||||
Basic |
213,571 | 210,985 | ||||||||||
Diluted |
217,916 | 215,719 | ||||||||||
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NM - Not Meaningful
Page 1
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Twelve Months Ended September 30, | ||||||||||||
2016 | 2015 | % Change | ||||||||||
REVENUES |
$ | 12,483 | $ | 10,282 | 21.4 | |||||||
Cost of products sold |
6,492 | 5,587 | 16.2 | |||||||||
Selling and administrative expense |
3,005 | 2,563 | 17.3 | |||||||||
Research and development expense |
828 | 632 | 31.2 | |||||||||
Acquisitions and other restructurings |
728 | 426 | 70.8 | |||||||||
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TOTAL OPERATING COSTS AND EXPENSES |
11,053 | 9,207 | 20.0 | |||||||||
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OPERATING INCOME |
1,430 | 1,074 | 33.1 | |||||||||
Interest expense |
(388 | ) | (371 | ) | 4.5 | |||||||
Interest income |
21 | 15 | 36.0 | |||||||||
Other income, net |
11 | 21 | (44.5 | ) | ||||||||
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INCOME BEFORE INCOME TAXES |
1,074 | 739 | 45.3 | |||||||||
Income tax provision |
97 | 44 | NM | |||||||||
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NET INCOME |
$ | 976 | $ | 695 | 40.5 | |||||||
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EARNINGS PER SHARE |
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Basic Earnings per Share |
$ | 4.59 | $ | 3.43 | 33.8 | |||||||
Diluted Earnings per Share |
$ | 4.49 | $ | 3.35 | 34.0 | |||||||
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AVERAGE SHARES OUTSTANDING (in thousands) |
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Basic |
212,702 | 202,537 | ||||||||||
Diluted |
217,536 | 207,509 | ||||||||||
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NM - Not Meaningful
Page 2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended September 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 |
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Medication and Procedural Solutions |
$ | 511 | $ | 481 | $ | 511 | $ | 481 | 6.2 | 6.2 | ||||||||||||||
Medication Management Solutions |
430 | 390 | 430 | 390 | 10.3 | 10.3 | ||||||||||||||||||
Diabetes Care |
135 | 130 | 135 | 130 | 3.8 | 3.8 | ||||||||||||||||||
Pharmaceutical Systems |
85 | 78 | 85 | 78 | 10.1 | 10.1 | ||||||||||||||||||
Respiratory Solutions |
136 | 133 | 136 | 133 | 2.1 | 2.1 | ||||||||||||||||||
Deferred Revenue Adjustment * |
(3 | ) | (8 | ) | | | (64.1 | ) | | |||||||||||||||
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TOTAL |
$ | 1,294 | $ | 1,203 | $ | 1,297 | $ | 1,211 | 7.6 | 7.1 | ||||||||||||||
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BD LIFE SCIENCES |
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Preanalytical Systems |
$ | 182 | $ | 173 | $ | 182 | $ | 173 | 5.0 | 5.0 | ||||||||||||||
Diagnostic Systems |
153 | 146 | 153 | 146 | 5.1 | 5.1 | ||||||||||||||||||
Biosciences |
119 | 110 | 119 | 110 | 8.0 | 8.0 | ||||||||||||||||||
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TOTAL |
$ | 454 | $ | 429 | $ | 454 | $ | 429 | 5.8 | 5.8 | ||||||||||||||
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TOTAL UNITED STATES |
$ | 1,748 | $ | 1,632 | $ | 1,751 | $ | 1,640 | 7.1 | 6.7 | ||||||||||||||
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* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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. |
Page 3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended September 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 |
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Medication and Procedural Solutions |
$ | 372 | $ | 356 | $ | (9 | ) | 4.5 | 7.1 | |||||||||||
Medication Management Solutions |
107 | 89 | (3 | ) | 19.8 | 23.4 | ||||||||||||||
Diabetes Care |
131 | 127 | | 3.1 | 3.3 | |||||||||||||||
Pharmaceutical Systems |
265 | 254 | 1 | 4.1 | 3.6 | |||||||||||||||
Respiratory Solutions |
67 | 54 | | 23.7 | 24.3 | |||||||||||||||
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TOTAL |
$ | 941 | $ | 880 | $ | (12 | ) | 6.9 | 8.2 | |||||||||||
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BD LIFE SCIENCES |
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Preanalytical Systems |
$ | 177 | $ | 175 | $ | (4 | ) | 0.7 | 2.9 | |||||||||||
Diagnostic Systems |
189 | 196 | (1 | ) | (3.8 | ) | (3.1 | ) | ||||||||||||
Biosciences |
177 | 176 | (1 | ) | 0.8 | 1.5 | ||||||||||||||
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TOTAL |
$ | 542 | $ | 547 | $ | (6 | ) | (0.9 | ) | 0.3 | ||||||||||
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|||||||||||
TOTAL INTERNATIONAL |
$ | 1,483 | $ | 1,427 | $ | (18 | ) | 3.9 | 5.2 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Page 4
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended September 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 |
$ | 882 | $ | 836 | $ | 882 | $ | 836 | $ | (9 | ) | 5.5 | 6.6 | 5.5 | 6.6 | |||||||||||||||||||||
Medication Management Solutions |
537 | 479 | 537 | 479 | (3 | ) | 12.1 | 12.8 | 12.1 | 12.8 | ||||||||||||||||||||||||||
Diabetes Care |
266 | 257 | 266 | 257 | | 3.5 | 3.6 | 3.5 | 3.6 | |||||||||||||||||||||||||||
Pharmaceutical Systems |
350 | 332 | 350 | 332 | 1 | 5.5 | 5.1 | 5.5 | 5.1 | |||||||||||||||||||||||||||
Respiratory Solutions |
203 | 187 | 203 | 187 | | 8.3 | 8.5 | 8.3 | 8.5 | |||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(3 | ) | (8 | ) | | | | (64.1 | ) | (64.1 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 2,235 | $ | 2,083 | $ | 2,237 | $ | 2,091 | $ | (12 | ) | 7.3 | 7.8 | 7.0 | 7.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 359 | $ | 349 | $ | 359 | $ | 349 | $ | (4 | ) | 2.8 | 4.0 | 2.8 | 4.0 | |||||||||||||||||||||
Diagnostic Systems |
342 | 342 | 342 | 342 | (1 | ) | | 0.4 | | 0.4 | ||||||||||||||||||||||||||
Biosciences |
296 | 286 | 296 | 286 | (1 | ) | 3.6 | 4.0 | 3.6 | 4.0 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 996 | $ | 976 | $ | 996 | $ | 976 | $ | (6 | ) | 2.1 | 2.7 | 2.1 | 2.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL REVENUES |
$ | 3,231 | $ | 3,059 | $ | 3,234 | $ | 3,067 | $ | (18 | ) | 5.6 | 6.2 | 5.4 | 6.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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. |
Page 5
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Twelve Months Ended September 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 |
$ | 1,959 | $ | 1,483 | $ | 1,959 | $ | 1,483 | 32.1 | 32.1 | ||||||||||||||
Medication Management Solutions |
1,791 | 832 | 1,791 | 832 | NM | NM | ||||||||||||||||||
Diabetes Care |
521 | 491 | 521 | 491 | 6.0 | 6.0 | ||||||||||||||||||
Pharmaceutical Systems |
328 | 304 | 328 | 304 | 7.8 | 7.8 | ||||||||||||||||||
Respiratory Solutions |
560 | 297 | 560 | 297 | 88.6 | 88.6 | ||||||||||||||||||
Deferred Revenue Adjustment * |
(14 | ) | (20 | ) | | | (29.3 | ) | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
$ | 5,144 | $ | 3,386 | $ | 5,159 | $ | 3,407 | 51.9 | 51.4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||
Preanalytical Systems |
$ | 715 | $ | 689 | $ | 715 | $ | 689 | 3.7 | 3.7 | ||||||||||||||
Diagnostic Systems |
600 | 592 | 600 | 592 | 1.4 | 1.4 | ||||||||||||||||||
Biosciences |
433 | 402 | 433 | 402 | 7.9 | 7.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
$ | 1,748 | $ | 1,683 | $ | 1,748 | $ | 1,683 | 3.9 | 3.9 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL UNITED STATES |
$ | 6,893 | $ | 5,069 | $ | 6,907 | $ | 5,090 | 36.0 | 35.7 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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
Twelve Months Ended September 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 |
$ | 1,454 | $ | 1,367 | $ | (104 | ) | 6.4 | 14.0 | |||||||||||
Medication Management Solutions |
419 | 201 | (24 | ) | NM | NM | ||||||||||||||
Diabetes Care |
502 | 521 | (34 | ) | (3.6 | ) | 2.9 | |||||||||||||
Pharmaceutical Systems |
872 | 863 | (28 | ) | 0.9 | 4.2 | ||||||||||||||
Respiratory Solutions |
263 | 122 | (10 | ) | NM | NM | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL |
$ | 3,510 | $ | 3,074 | $ | (199 | ) | 14.2 | 20.7 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||
Preanalytical Systems |
$ | 694 | $ | 701 | $ | (53 | ) | (1.0 | ) | 6.6 | ||||||||||
Diagnostic Systems |
701 | 708 | (41 | ) | (1.0 | ) | 4.8 | |||||||||||||
Biosciences |
685 | 730 | (30 | ) | (6.1 | ) | (2.1 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL |
$ | 2,080 | $ | 2,139 | $ | (123 | ) | (2.7 | ) | 3.0 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL INTERNATIONAL |
$ | 5,590 | $ | 5,213 | $ | (322 | ) | 7.2 | 13.4 | |||||||||||
|
|
|
|
|
|
|
|
|
|
NM - Not Meaningful
Page 7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Twelve Months Ended September 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 |
$ | 3,413 | $ | 2,850 | $ | 3,413 | $ | 2,850 | $ | (104 | ) | 19.8 | 23.4 | 19.8 | 23.4 | |||||||||||||||||||||
Medication Management Solutions |
2,210 | 1,033 | 2,210 | 1,033 | (24 | ) | NM | NM | NM | NM | ||||||||||||||||||||||||||
Diabetes Care |
1,023 | 1,012 | 1,023 | 1,012 | (34 | ) | 1.1 | 4.4 | 1.1 | 4.4 | ||||||||||||||||||||||||||
Pharmaceutical Systems |
1,199 | 1,167 | 1,199 | 1,167 | (28 | ) | 2.7 | 5.1 | 2.7 | 5.1 | ||||||||||||||||||||||||||
Respiratory Solutions |
824 | 419 | 824 | 419 | (10 | ) | 96.8 | 99.1 | 96.8 | 99.1 | ||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(14 | ) | (20 | ) | | | | (29.3 | ) | (29.3 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 8,654 | $ | 6,460 | $ | 8,669 | $ | 6,480 | $ | (199 | ) | 34.0 | 37.0 | 33.8 | 36.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 1,409 | $ | 1,391 | $ | 1,409 | $ | 1,391 | $ | (53 | ) | 1.3 | 5.2 | 1.3 | 5.2 | |||||||||||||||||||||
Diagnostic Systems |
1,301 | 1,299 | 1,301 | 1,299 | (41 | ) | 0.1 | 3.3 | 0.1 | 3.3 | ||||||||||||||||||||||||||
Biosciences |
1,119 | 1,132 | 1,119 | 1,132 | (30 | ) | (1.2 | ) | 1.5 | (1.2 | ) | 1.5 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 3,829 | $ | 3,822 | $ | 3,829 | $ | 3,822 | $ | (123 | ) | 0.2 | 3.4 | 0.2 | 3.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL REVENUES |
$ | 12,483 | $ | 10,282 | $ | 12,497 | $ | 10,302 | $ | (322 | ) | 21.4 | 24.5 | 21.3 | 24.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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 September 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 |
$ | 511 | $ | | $ | 511 | $ | 481 | $ | | $ | 481 | $ | | $ | 481 | 6.2 | |||||||||||||||||||
Medication Management Solutions |
430 | | 430 | 390 | | 390 | | 390 | 10.3 | |||||||||||||||||||||||||||
Diabetes Care |
135 | | 135 | 130 | | 130 | | 130 | 3.8 | |||||||||||||||||||||||||||
Pharmaceutical Systems |
85 | | 85 | 78 | | 78 | | 78 | 10.1 | |||||||||||||||||||||||||||
Respiratory Solutions |
136 | | 136 | 133 | | 133 | (7 | ) | 126 | 7.7 | ||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(3 | ) | 3 | | (8 | ) | 8 | | | | | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 1,294 | $ | 3 | $ | 1,297 | $ | 1,203 | $ | 8 | $ | 1,211 | $ | (7 | ) | $ | 1,204 | 7.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 182 | $ | | $ | 182 | $ | 173 | $ | | $ | 173 | $ | | $ | 173 | 5.0 | |||||||||||||||||||
Diagnostic Systems |
153 | | 153 | 146 | | 146 | | 146 | 5.1 | |||||||||||||||||||||||||||
Biosciences |
119 | | 119 | 110 | | 110 | | 110 | 8.0 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL |
$ | 454 | $ | | $ | 454 | $ | 429 | $ | | $ | 429 | $ | | $ | 429 | 5.8 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL UNITED STATES |
$ | 1,748 | $ | 3 | $ | 1,751 | $ | 1,632 | $ | 8 | $ | 1,640 | $ | (7 | ) | $ | 1,633 | 7.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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 September 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 |
$ | 372 | $ | 356 | $ | (9 | ) | 7.1 | ||||||||
Medication Management Solutions |
107 | 89 | (3 | ) | 23.4 | |||||||||||
Diabetes Care |
131 | 127 | | 3.3 | ||||||||||||
Pharmaceutical Systems |
265 | 254 | 1 | 3.6 | ||||||||||||
Respiratory Solutions |
67 | 54 | | 24.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL |
$ | 941 | $ | 880 | $ | (12 | ) | 8.2 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
BD LIFE SCIENCES |
||||||||||||||||
Preanalytical Systems |
$ | 177 | $ | 175 | $ | (4 | ) | 2.9 | ||||||||
Diagnostic Systems |
189 | 196 | (1 | ) | (3.1 | ) | ||||||||||
Biosciences |
177 | 176 | (1 | ) | 1.5 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL |
$ | 542 | $ | 547 | $ | (6 | ) | 0.3 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL INTERNATIONAL |
$ | 1,483 | $ | 1,427 | $ | (18 | ) | 5.2 | ||||||||
|
|
|
|
|
|
|
|
Page 10
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL
Three Months Ended September 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 |
$ | 882 | $ | | $ | 882 | $ | 836 | $ | | $ | 836 | $ | | $ | 836 | $ | (9 | ) | 6.6 | ||||||||||||||||||||
Medication Management Solutions |
537 | | 537 | 479 | | 479 | | 479 | (3 | ) | 12.8 | |||||||||||||||||||||||||||||
Diabetes Care |
266 | | 266 | 257 | | 257 | | 257 | | 3.6 | ||||||||||||||||||||||||||||||
Pharmaceutical Systems |
350 | | 350 | 332 | | 332 | | 332 | 1 | 5.1 | ||||||||||||||||||||||||||||||
Respiratory Solutions |
203 | | 203 | 187 | | 187 | (7 | ) | 180 | | 12.7 | |||||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(3 | ) | 3 | | (8 | ) | 8 | | | | | | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL |
$ | 2,235 | $ | 3 | $ | 2,237 | $ | 2,083 | $ | 8 | $ | 2,091 | $ | (7 | ) | $ | 2,084 | $ | (12 | ) | 7.9 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 359 | $ | | $ | 359 | $ | 349 | $ | | $ | 349 | $ | | $ | 349 | $ | (4 | ) | 4.0 | ||||||||||||||||||||
Diagnostic Systems |
342 | | 342 | 342 | | 342 | | 342 | (1 | ) | 0.4 | |||||||||||||||||||||||||||||
Biosciences |
296 | | 296 | 286 | | 286 | | 286 | (1 | ) | 4.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL |
$ | 996 | $ | | $ | 996 | $ | 976 | $ | | $ | 976 | $ | | $ | 976 | $ | (6 | ) | 2.7 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL REVENUES |
$ | 3,231 | $ | 3 | $ | 3,234 | $ | 3,059 | $ | 8 | $ | 3,067 | $ | (7 | ) | $ | 3,060 | $ | (18 | ) | 6.3 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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 September 30, (continued)
(Unaudited; Amounts in millions)
A | B | C=(A-B)/B | ||||||||||
2016 | 2015 | % Change | ||||||||||
Reported |
$ | 3,231 | $ | 3,059 | 5.6 | |||||||
Deferred Revenue Adjustment * |
3 | 8 | ||||||||||
Acquisitions & Divestitures Impact ** |
(3 | ) | (7 | ) | ||||||||
Respiratory Adjustment *** |
| (7 | ) | |||||||||
|
|
|
|
|||||||||
Comparable Adjusted Organic |
$ | 3,231 | $ | 3,053 | ||||||||
FX Impact |
(18 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Comparable Adjusted Organic FXN |
$ | 3,249 | $ | 3,053 | 6.4 | |||||||
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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
Twelve Months Ended September 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 | Reported | Respiratory | Historical | Adjusted | ||||||||||||||||||||||||||||||||
2016 | Adjustment | 2016 | 2015 | Adjustment | Adjusted | 1st Half 2015*** | Adjustment ** | 2015 | % Change | |||||||||||||||||||||||||||||||
BD MEDICAL |
||||||||||||||||||||||||||||||||||||||||
Medication and Procedural Solutions |
$ | 1,959 | $ | | $ | 1,959 | $ | 1,483 | $ | | $ | 1,483 | $ | 427 | $ | | $ | 1,910 | 2.5 | |||||||||||||||||||||
Medication Management Solutions |
1,791 | | 1,791 | 832 | | 832 | 843 | | 1,675 | 6.9 | ||||||||||||||||||||||||||||||
Diabetes Care |
521 | | 521 | 491 | | 491 | | | 491 | 6.0 | ||||||||||||||||||||||||||||||
Pharmaceutical Systems |
328 | | 328 | 304 | | 304 | | | 304 | 7.8 | ||||||||||||||||||||||||||||||
Respiratory Solutions |
560 | | 560 | 297 | | 297 | 333 | (78 | ) | 552 | 1.6 | |||||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(14 | ) | 14 | | (20 | ) | 20 | | | | | | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL |
$ | 5,144 | $ | 14 | $ | 5,159 | $ | 3,386 | $ | 20 | $ | 3,407 | $ | 1,603 | $ | (78 | ) | $ | 4,932 | 4.6 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 715 | $ | | $ | 715 | $ | 689 | $ | | $ | 689 | $ | | $ | | $ | 689 | 3.7 | |||||||||||||||||||||
Diagnostic Systems |
600 | | 600 | 592 | | 592 | | | 592 | 1.4 | ||||||||||||||||||||||||||||||
Biosciences |
433 | | 433 | 402 | | 402 | | | 402 | 7.9 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL |
$ | 1,748 | $ | | $ | 1,748 | $ | 1,683 | $ | | $ | 1,683 | $ | | $ | | $ | 1,683 | 3.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
TOTAL UNITED STATES |
$ | 6,893 | $ | 14 | $ | 6,907 | $ | 5,069 | $ | 20 | $ | 5,090 | $ | 1,603 | $ | (78 | ) | $ | 6,615 | 4.4 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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
Twelve Months Ended September 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 |
$ | 1,454 | $ | 1,367 | $ | 117 | $ | 1,483 | $ | (104 | ) | 5.0 | ||||||||||||
Medication Management Solutions |
419 | 201 | 208 | 409 | (24 | ) | 8.2 | |||||||||||||||||
Diabetes Care |
502 | 521 | | 521 | (34 | ) | 2.9 | |||||||||||||||||
Pharmaceutical Systems |
872 | 863 | | 863 | (28 | ) | 4.2 | |||||||||||||||||
Respiratory Solutions |
263 | 122 | 138 | 260 | (10 | ) | 5.0 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
$ | 3,510 | $ | 3,074 | $ | 463 | $ | 3,536 | $ | (199 | ) | 4.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||
Preanalytical Systems |
$ | 694 | $ | 701 | $ | | $ | 701 | $ | (53 | ) | 6.6 | ||||||||||||
Diagnostic Systems |
701 | 708 | | 708 | (41 | ) | 4.8 | |||||||||||||||||
Biosciences |
685 | 730 | | 730 | (30 | ) | (2.1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
$ | 2,080 | $ | 2,139 | $ | | $ | 2,139 | $ | (123 | ) | 3.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL INTERNATIONAL |
$ | 5,590 | $ | 5,213 | $ | 463 | $ | 5,675 | $ | (322 | ) | 4.2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | 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
Twelve Months Ended September 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 |
$ | 3,413 | $ | | $ | 3,413 | $ | 2,850 | $ | | $ | 2,850 | $ | 544 | $ | | $ | 3,394 | $ | (104 | ) | 3.6 | ||||||||||||||||||||||
Medication Management Solutions |
2,210 | | 2,210 | 1,033 | | 1,033 | 1,051 | | 2,084 | (24 | ) | 7.2 | ||||||||||||||||||||||||||||||||
Diabetes Care |
1,023 | | 1,023 | 1,012 | | 1,012 | | | 1,012 | (34 | ) | 4.4 | ||||||||||||||||||||||||||||||||
Pharmaceutical Systems |
1,199 | | 1,199 | 1,167 | | 1,167 | | | 1,167 | (28 | ) | 5.1 | ||||||||||||||||||||||||||||||||
Respiratory Solutions |
824 | | 824 | 419 | | 419 | 471 | (78 | ) | 812 | (10 | ) | 2.7 | |||||||||||||||||||||||||||||||
Deferred Revenue Adjustment * |
(14 | ) | 14 | | (20 | ) | 20 | | | | | | | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
TOTAL |
$ | 8,654 | $ | 14 | $ | 8,669 | $ | 6,460 | $ | 20 | $ | 6,480 | $ | 2,066 | $ | (78 | ) | $ | 8,469 | $ | (199 | ) | 4.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
BD LIFE SCIENCES |
||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems |
$ | 1,409 | $ | | $ | 1,409 | $ | 1,391 | $ | | $ | 1,391 | $ | | $ | | $ | 1,391 | $ | (53 | ) | 5.2 | ||||||||||||||||||||||
Diagnostic Systems |
1,301 | | 1,301 | 1,299 | | 1,299 | | | 1,299 | (41 | ) | 3.2 | ||||||||||||||||||||||||||||||||
Biosciences |
1,119 | | 1,119 | 1,132 | | 1,132 | | | 1,132 | (30 | ) | 1.5 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
TOTAL |
$ | 3,829 | $ | | $ | 3,829 | $ | 3,822 | $ | | $ | 3,822 | $ | | $ | | $ | 3,822 | $ | (123 | ) | 3.4 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
TOTAL REVENUES |
$ | 12,483 | $ | 14 | $ | 12,497 | $ | 10,282 | $ | 20 | $ | 10,302 | $ | 2,066 | $ | (78 | ) | $ | 12,290 | $ | (322 | ) | 4.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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 REVENUE CHANGE TO COMPARABLE ADJUSTED ORGANIC FXN REVENUE CHANGE - TOTAL
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
A | B | C=(A-B)/B | ||||||||||
2016 | 2015 | % Change | ||||||||||
Reported |
$ | 12,483 | $ | 10,282 | 21.4 | |||||||
Deferred Revenue Adjustment * |
14 | 20 | ||||||||||
CareFusion Reported First Half FY2015 Revenue ** |
| 2,066 | ||||||||||
Acquisitions & Divestitures Impact *** |
(34 | ) | (27 | ) | ||||||||
Respiratory Adjustment **** |
| (78 | ) | |||||||||
|
|
|
|
|||||||||
Comparable Adjusted Organic |
$ | 12,463 | $ | 12,263 | ||||||||
FX Impact |
(322 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Comparable Adjusted Organic FXN |
$ | 12,786 | $ | 12,263 | 4.3 | |||||||
|
|
|
|
|
|
* | In accordance with U.S. GAAP business combination accounting rules, CareFusions 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. |
** | For the quarters ended December 31, 2014 and March 31, 2015. |
*** | 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 16
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Three Months Ended September 30, | ||||||||||||||||||||||||||||
Foreign | Foreign | |||||||||||||||||||||||||||
Foreign | Currency | Currency | ||||||||||||||||||||||||||
Currency | Neutral | Neutral | ||||||||||||||||||||||||||
2016 | 2015 | Growth | Translation | Growth | Growth % | Growth % | ||||||||||||||||||||||
Reported Diluted Earnings per Share |
$ | 0.09 | $ | 0.84 | $ | (0.75 | ) | $ | (0.14 | ) | $ | (0.61 | ) | (89.3 | %) | (72.6 | %) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Purchase Accounting Adjustments ($132 million and $179 million pre-tax,respectively) |
0.61 | (1) | 0.83 | (2) | ||||||||||||||||||||||||
Restructuring Costs ($328 million and $135 million pre-tax, respectively) (3) |
1.50 | 0.63 | ||||||||||||||||||||||||||
Integration Costs ($77 million and $40 million pre-tax, respectively) (3) |
0.35 | 0.19 | ||||||||||||||||||||||||||
Transaction Costs ($2 million and $7 million pre-tax, respectively) (3) |
0.01 | 0.03 | ||||||||||||||||||||||||||
Pension Settlement Charges ($3 million pre-tax) (4) |
0.01 | | ||||||||||||||||||||||||||
Income Tax Benefit of Special Items ($(99) million and $(123) million, respectively) |
(0.46 | ) | (0.57 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted Diluted Earnings per Share |
$ | 2.12 | $ | 1.94 | $ | 0.18 | $ | (0.14 | ) | $ | 0.32 | 9.3 | % | 16.5 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes adjustments for non-cash amortization expense of $128 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $3 million pre-tax to reflect CareFusions fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $2 million of pre-tax expense related to a net unfavorable change in the fair value of contingent consideration payments associated with certain acquisitions. |
(2) | Includes adjustments for non-cash amortization expense of $152 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $27 million pre-tax to reflect CareFusions inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. |
(3) | Represents restructuring, integration, and transaction costs associated with the CareFusion acquisition and portfolio rationalization. |
(4) | Represents pension settlement charges associated with lump sum benefit payments made from the Companys U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plans pension cost. |
Page 17
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Twelve Months Ended September 30, | ||||||||||||||||||||||||||||
Foreign | Foreign | |||||||||||||||||||||||||||
Foreign | Currency | Currency | ||||||||||||||||||||||||||
Currency | Neutral | Neutral | ||||||||||||||||||||||||||
2016 | 2015 | Growth | Translation | Growth | Growth % | Growth % | ||||||||||||||||||||||
Reported Diluted Earnings per Share |
$ | 4.49 | $ | 3.35 | $ | 1.14 | $ | (0.64 | ) | $ | 1.78 | 34.0 | % | 53.1 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Purchase Accounting Adjustments ($527 million and $645 million pre-tax,respectively) |
2.42 | (1) | 3.11 | (2) | ||||||||||||||||||||||||
Restructuring Costs ($526 million and $271 million pre-tax, respectively) (3) |
2.42 | 1.31 | ||||||||||||||||||||||||||
Integration Costs ($192 million and $95 million pre-tax, respectively) (3) |
0.88 | 0.46 | ||||||||||||||||||||||||||
Transaction Costs ($10 million and $59 million pre-tax, respectively) (3) |
0.04 | 0.29 | ||||||||||||||||||||||||||
Pension Settlement Charges ($6 million pre-tax) (4) |
0.03 | | ||||||||||||||||||||||||||
Financing Costs ($107 million pre-tax) (3) |
| 0.52 | ||||||||||||||||||||||||||
Employee Termination Cost-related Amounts ($(5) million pre-tax) (5) |
| (0.02 | ) | |||||||||||||||||||||||||
Litigation-related Charge ($12 million pre-tax) (6) |
| 0.06 | ||||||||||||||||||||||||||
Income Tax Benefit of Special Items ($(369) million and $(400) million, respectively) |
(1.70 | ) | (1.93 | ) | ||||||||||||||||||||||||
Dilutive Share Impact (7) |
| 0.02 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted Diluted Earnings per Share |
$ | 8.59 | $ | 7.16 | $ | 1.43 | $ | (0.65 | ) | $ | 2.08 | 20.0 | % | 29.1 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes adjustments for non-cash amortization expense of $545 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $7 million pre-tax to reflect CareFusions fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $25 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 adjustments for non-cash amortization expense of $336 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $318 million pre-tax to reflect CareFusions inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. 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 Companys U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plans 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 plaintiffs 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. |
Page 18
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY2017 OUTLOOK RECONCILIATION
FY2016 | FY2017 Outlook | |||||||||||||||
Revenues | % Change | FX Impact | % Change FXN | |||||||||||||
BDX As Reported Revenue |
$ | 12,483 | (3.0% - 3.5%) | ~(1.0%) | (2.0% - 2.5%) | |||||||||||
% Increase FXN | ||||||||||||||||
Comparable | ||||||||||||||||
BDX As Reported Revenue |
$ | 12,483 | ||||||||||||||
Closed Divestitures Revenue (1) |
(843 | ) | ||||||||||||||
|
|
|
|
|||||||||||||
BDX Comparable Revenue |
$ | 11,639 | 4.5% - 5.0% | |||||||||||||
|
|
|
|
|||||||||||||
BD Medical Revenue |
$ | 8,654 | ||||||||||||||
Closed Divestitures Revenue (1) |
(843 | ) | ||||||||||||||
|
|
|
|
|||||||||||||
BD Medical Comparable Revenue |
$ | 7,811 | 4.5% - 5.0% | |||||||||||||
|
|
|
|
|||||||||||||
FY2017 Outlook | ||||||||||||||||
Full Year FY2017 Outlook |
Full Year FY2016 |
% Increase | ||||||||||||||
(estimated) | ||||||||||||||||
Reported Fully Diluted Earnings per Share |
$ | 7.23 - 7.33 | $ | 4.49 | NM | |||||||||||
Purchase Accounting Adjustments |
2.22 | 2.42 | ||||||||||||||
Restructuring Costs |
| (2) | 2.42 | |||||||||||||
Integration Costs |
| (2) | 0.88 | |||||||||||||
Transaction Costs |
| (2) | 0.04 | |||||||||||||
Pension Settlement Charges |
| (2) | 0.03 | |||||||||||||
Income Tax Benefit of Special Items |
| (2) | (1.70 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Adjusted Fully Diluted Earnings per Share |
$ | 9.45 - 9.55 | $ | 8.59 | 10% - 11% | |||||||||||
|
|
|
|
|||||||||||||
FX Impact |
$ | (0.17 | ) | ~(2.0%) | ||||||||||||
|
|
|
|
|||||||||||||
Adjusted FXN Growth |
$ | 9.62 - 9.72 | 12% - 13% | |||||||||||||
|
|
(1) | Excludes the impact from the following closed divestitures: Respiratory, Simplist and Spine. |
(2) | FY2017 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
Page 19
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