BD Announces Results for 2019 Second Fiscal Quarter; Updates Fiscal 2019 Guidance
FRANKLIN LAKES, N.J., May 9, 2019 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.195 billion for the second fiscal quarter ended March 31, 2019. This represents a decrease of 0.6 percent from the prior-year period. On a comparable, currency-neutral basis, revenues increased 3.4 percent over the prior-year period.
"Through the second quarter we have delivered solid revenue growth and operating performance," said Vincent A. Forlenza, chairman and CEO. "Our revised fiscal year 2019 outlook reflects recent, near-term regulatory and market pressures related to paclitaxel-coated devices and foreign currency, which will affect our EPS guidance range. We remain confident that our business is strong, fundamentals are in-tact, and we will continue to deliver value to our shareholders and customers around the world."
Second Quarter and Six-Month Fiscal 2019 Operating Results
As reported, diluted earnings per share for the second quarter were $(0.07), compared with $(0.19) in the prior-year period. This represents an increase of 63.2 percent. Adjusted diluted earnings per share were $2.59, compared with $2.65 in the prior-year period. This represents a decrease in adjusted diluted earnings per share of 2.3 percent, or an increase of 7.2 percent on a currency-neutral basis.
For the six-month period ended March 31, 2019, as reported, diluted earnings per share were $1.98, compared with $(0.90) in the prior-year period. This represents an increase of 320.0 percent. Adjusted diluted earnings per share were $5.29, compared with $5.15 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 2.7 percent, or 10.5 percent on a currency-neutral basis.
Current period adjusted results exclude, among other items, charges to record product liability reserves of $331 million and the estimated cost of a product recall of $65 million.
Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.180 billion increased 0.4 percent over the prior-year period, or 3.8 percent on a comparable, currency-neutral basis. The segment's results were driven by performance in the Medication Management Solutions, Diabetes Care and Pharmaceutical Systems units. Performance in the Medication Delivery Solutions unit reflects a tough comparison to the prior year, as well as distributor inventory adjustments during the quarter in the United States.
For the six-month period ended March 31, 2019, BD Medical revenues were $4.316 billion as reported, which represents an increase of 7.2 percent over the prior-year period. On a comparable, currency-neutral basis, BD Medical revenues increased 4.5 percent.
In the BD Life Sciences segment, as reported, worldwide revenues for the quarter of $1.052 billion decreased 4.2 percent from the prior-year period. On a comparable, currency-neutral basis, revenues increased 2.7 percent. Revenue growth was driven by performance in the Biosciences and Preanalytical Systems units. Growth in the Diagnostic Systems unit reflects a tough comparison to the strong flu season in the prior-year period.
For the six-month period ended March 31, 2019, BD Life Sciences revenues were $2.108 billion as reported, which represents a decrease of 1.6 percent from the prior-year period. On a comparable, currency-neutral basis, BD Life Sciences revenues of $2.099 billion increased 3.7 percent.
In the BD Interventional segment, as reported, worldwide revenues for the quarter of $0.963 billion increased 1.1 percent over the prior-year period, or 3.5 percent on a comparable, currency-neutral basis. The segment's results were driven by performance in the Urology and Critical Care and Peripheral Intervention units. Growth in the Surgery unit reflects a tough comparison to the prior-year period.
For the six-month period ended March 31, 2019, BD Interventional revenues were $1.932 billion as reported, which represents an increase of 70.2 percent over the prior-year period. On a comparable, currency-neutral basis, BD Interventional revenues increased 4.6 percent.
Geographic Results
As reported, second quarter revenues in the U.S. of $2.341 billion increased 0.7 percent from the prior-year period. On a comparable basis, U.S. revenues increased 2.2 percent over the prior-year period. Growth in the U.S. was driven by performance in the BD Medical and BD Interventional segments. BD Life Sciences' growth in the U.S. reflects the aforementioned comparison to a strong flu season in the prior year in the Diagnostic Systems unit.
As reported, revenues outside of the U.S. of $1.854 billion decreased 2.3 percent from the prior-year period. On a comparable, currency-neutral basis, revenues outside of the U.S. increased 4.9 percent over the prior-year period. International revenue growth was driven by strong performance in China and EMA.
For the six-month period ended March 31, 2019, U.S. revenues were $4.728 billion as reported, which represents an increase of 18.7 percent over the prior-year period. On a comparable basis, U.S. revenues of $4.724 billion grew 4.1 percent over the prior-year period. As reported, revenues outside of the U.S. of $3.628 billion grew 9.2 percent over the prior-year period. On a comparable, currency-neutral basis, revenues outside the U.S. of $3.623 billion grew 4.5 percent over the prior-year period.
Fiscal 2019 Outlook for Full Year
As reported, the company expects full fiscal year 2019 revenues to increase 8.0 to 9.0 percent, compared to 8.5 to 9.5 percent previously communicated, due to the estimated additional negative impact from foreign currency. The company continues to estimate full fiscal year 2019 revenues will increase 5.0 to 6.0 percent on a comparable, currency-neutral basis.
The company expects adjusted diluted earnings per share to be between $11.65 and $11.75, resulting in growth of approximately 12.0 percent on a currency-neutral basis. This is a decrease from previously issued guidance of approximately 13.0 to 14.0 percent growth, and is due to recent regulatory and market pressures related to paclitaxel-coated devices. Including the estimated additional unfavorable impact of foreign currency, adjusted diluted earnings per share are expected to grow approximately 6.0 to 7.0 percent over fiscal 2018 adjusted diluted earnings per share of $11.01.
Estimated adjusted diluted earnings per share for fiscal 2019 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of BD's financial performance.
Conference Call Information
A conference call regarding BD's second 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, May 9, 2019. 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 Tuesday, May 14, 2019, confirmation number 1284128.
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 2019 presented throughout this release include, where applicable, the results of C. R. Bard, Inc. ("Bard") in the prior-year period, and also include adjustments for certain items as detailed in the attached tables. Beginning in the second quarter of fiscal year 2018, the Company's organizational structure was based upon three principal business segments: BD Medical ("Medical"), BD Life Sciences ("Life Sciences") and BD Interventional ("Interventional"). The Interventional segment was added upon the Company's completion of its acquisition of Bard, and this new segment includes the majority of Bard's product offerings and certain product offerings that were previously reported in the Medical segment. Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit. Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; transactional and product related impacts; and the loss on debt extinguishment. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. 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 one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com.
***
This press release, including the section entitled "Fiscal 2019 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 the C.R. Bard 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; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services, or our suppliers' ability to provide products needed for our operations; 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; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators (including the potential impact of the recent FDA letter on the use of drug-coated balloons); our ability to successfully integrate any businesses we acquire; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; 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.
Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Three Months Ended March 31,
2019 2018 % Change
REVENUES $
4,195 $
4,222 (0.6)
Cost of products sold 2,221 2,616 (15.1)
Selling and administrative expense 1,089 1,056 3.1
Research and development expense 252 259 (2.9)
Acquisitions and other restructurings 101 104 (3.3)
Other operating expense, net 396 100.0
TOTAL OPERATING COSTS AND EXPENSES 4,059 4,036 0.6
OPERATING INCOME 136 186 (26.9)
Interest expense (171) (185) (7.2)
Interest income 18 4 385.1
Other income, net 20 1 2,058.2
INCOME BEFORE INCOME TAXES 3 6 (50.5)
Income tax (benefit) provision (17) 18 (192.6)
NET INCOME (LOSS) 20 (12) 267.8
Preferred stock dividends (38) (38)
NET LOSS APPLICABLE TO COMMON $
(18) $
(50) 64.3
SHAREHOLDERS
EARNINGS PER SHARE
Basic Loss per Share $
(0.07) $
(0.19) 63.2
Diluted Loss per Share $
(0.07) $
(0.19) 63.2
AVERAGE SHARES OUTSTANDING (in thousands)
Basic 269,882 267,341
Diluted 269,882 267,341
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Six Months Ended March 31,
2019 2018 % Change
REVENUES $
8,355 $
7,302 14.4
Cost of products sold 4,408 4,143 6.4
Selling and administrative expense 2,161 1,829 18.2
Research and development expense 510 451 13.1
Acquisitions and other restructurings 191 458 (58.2)
Other operating expense, net 61 100.0
TOTAL OPERATING COSTS AND EXPENSES 7,332 6,881 6.6
OPERATING INCOME 1,024 422 142.8
Interest expense (342) (343) (0.3)
Interest income 6 48 (87.9)
Other income (expense), net 30 (15) 301.5
INCOME BEFORE INCOME TAXES 718 111 544.7
Income tax provision 98 260 (62.2)
NET INCOME (LOSS) 619 (148) 517.4
Preferred stock dividends (76) (76)
NET INCOME (LOSS) APPLICABLE TO COMMON $
544 $
(224) 342.5
SHAREHOLDERS
EARNINGS PER SHARE
Basic Earnings (Loss) per Share $
2.02 $
(0.90) 324.4
Diluted Earnings (Loss) per Share $
1.98 $
(0.90) 320.0
AVERAGE SHARES OUTSTANDING (in thousands)
Basic 269,454 248,484
Diluted 274,429 248,484
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions)
March 31, 2019 September 30, 2018
(Unaudited)
ASSETS
Cash and equivalents $
686 $
1,140
Restricted cash 81 96
Short-term investments 10 17
Trade receivables, net 2,279 2,319
Inventories 2,627 2,451
Assets held for sale 137
Prepaid expenses and other 1,161 1,251
TOTAL CURRENT ASSETS 6,844 7,411
Property, plant and equipment, net 5,473 5,375
Goodwill and other intangibles, net 39,220 40,041
Other Assets 1,061 1,078
TOTAL ASSETS $
52,598 $
53,904
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term debt $
3,057 $
2,601
Other current liabilities 4,050 4,615
Long-term debt 17,556 18,894
Long-term employee benefit obligations 815 1,056
Deferred income taxes and other 5,810 5,743
Shareholders' equity 21,309 20,994
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $
52,598 $
53,904
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Amounts in millions)
Six Months Ended March 31,
2019 2018
OPERATING ACTIVITIES
Net income (loss) $
619 $
(148)
Depreciation and amortization 1,126 844
Change in operating assets and liabilities and other, net (718) 322
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,027 1,017
INVESTING ACTIVITIES
Capital expenditures (362) (391)
Acquisitions of businesses, net of cash acquired (15,006)
Proceeds from divestitures, net 477 100
Other, net (85) (77)
NET CASH PROVIDED BY (USED FOR) INVESTING 30 (15,373)
ACTIVITIES
FINANCING ACTIVITIES
Change in credit facility borrowings 380
Proceeds from long-term debt and term loans 3,622
Payments of debt and term loans (905) (1,833)
Dividends paid (491) (449)
Other, net (135) (155)
NET CASH (USED FOR) PROVIDED BY FINANCING (1,532) 1,565
ACTIVITIES
Effect of exchange rate changes on cash and equivalents 5 29
and restricted cash
NET DECREASE IN CASH AND EQUIVALENTS AND (469) (12,762)
RESTRICTED CASH
OPENING CASH AND EQUIVALENTS AND 1,236 14,179
RESTRICTED CASH
CLOSING CASH AND EQUIVALENTS AND $
767 $
1,417
RESTRICTED CASH
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended March 31,
(Unaudited; Amounts in millions)
A
B C=(A-B)/B
2019 2018 % Change
BD MEDICAL
---
Medication Delivery Solutions $
484 $
504 (4.0)
Medication Management Solutions 497 461 7.9
Diabetes Care 137 131 4.7
Pharmaceutical Systems 93 82 12.7
TOTAL $
1,211 $
1,178 2.8
BD LIFE SCIENCES
---
Preanalytical Systems $
171 $
181 (5.9)
Diagnostic Systems 180 201 (10.5)
Biosciences 120 116 3.8
TOTAL $
470 $
498 (5.5)
BD INTERVENTIONAL
---
Surgery $
271 $
276 (1.9)
Peripheral Intervention 194 194 0.1
Urology and Critical Care 195 180 8.7
TOTAL $
659 $
649 1.6
TOTAL UNITED STATES $
2,341 $
2,325 0.7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2019 2018 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions $
446 $
454 $
(31) (1.9) 4.9
Medication Management Solutions 118 120 (8) (1.9) 4.8
Diabetes Care 133 136 (9) (2.3) 4.4
Pharmaceutical Systems 273 284 (15) (3.8) 1.3
TOTAL $
969 $
994 $
(63) (2.5) 3.8
BD LIFE SCIENCES
---
Preanalytical Systems $
195 $
200 $
(15) (2.4) 4.9
Diagnostic Systems 209 209 (12) 5.9
Biosciences 177 191 (9) (7.1) (2.3)
TOTAL $
582 $
600 $
(36) (3.1) 3.0
BD INTERVENTIONAL
---
Surgery $
75 $
75 $
(4) 0.2 5.7
Peripheral Intervention 148 145 (9) 2.6 8.8
Urology and Critical Care 80 84 (4) (4.6) 0.2
TOTAL $
303 $
303 $
(17) 5.6
TOTAL INTERNATIONAL $
1,854 $
1,898 $
(116) (2.3) 3.8
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2019 2018 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions $
929 $
958 $
(31) (3.0) 0.2
Medication Management Solutions 615 581 (8) 5.9 7.3
Diabetes Care 270 267 (9) 1.1 4.5
Pharmaceutical Systems 366 366 (15) (0.1) 3.9
TOTAL $
2,180 $
2,172 $
(63) 0.4 3.3
BD LIFE SCIENCES
---
Preanalytical Systems $
366 $
381 $
(15) (4.1) (0.2)
Diagnostic Systems 389 410 (12) (5.1) (2.1)
Biosciences 297 307 (9) (3.0)
TOTAL $
1,052 $
1,098 $
(36) (4.2) (0.9)
BD INTERVENTIONAL
---
Surgery $
345 $
351 $
(4) (1.5) (0.3)
Peripheral Intervention 342 338 (9) 1.1 3.8
Urology and Critical Care 275 264 (4) 4.5 6.0
TOTAL $
963 $
952 $
(17) 1.1 2.9
TOTAL REVENUES $
4,195 $
4,222 $
(116) (0.6) 2.1
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Six Months Ended March 31,
(Unaudited; Amounts in millions)
A
B C=(A-B)/B
2019 2018 % Change
BD MEDICAL
---
Medication Delivery Solutions $
1,004 $
874 14.9
Medication Management Solutions 1,003 932 7.7
Diabetes Care 282 277 2.0
Pharmaceutical Systems 161 136 18.3
TOTAL $
2,450 $
2,218 10.5
BD LIFE SCIENCES
---
Preanalytical Systems $
371 $
366 1.5
Diagnostic Systems 355 367 (3.4)
Biosciences 228 224 1.9
TOTAL $
954 $
957 (0.3)
BD INTERVENTIONAL
---
Surgery $
545 $
428 27.3
Peripheral Intervention 385 198 94.4
Urology and Critical Care 393 180 118.6
TOTAL $
1,323 $
806 64.1
TOTAL UNITED STATES $
4,728 $
3,982 18.7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2019 2018 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions $
883 $
826 $
(51) 6.9 13.1
Medication Management Solutions 236 237 (11) (0.4) 4.3
Diabetes Care 261 267 (14) (2.2) 3.0
Pharmaceutical Systems 485 475 (19) 1.9 5.9
TOTAL $
1,865 $
1,806 $
(94) 3.3 8.5
BD LIFE SCIENCES
---
Preanalytical Systems $
387 $
391 $
(23) (0.9) 5.1
Diagnostic Systems 416 423 (19) (1.8) 2.8
Biosciences 350 372 (14) (5.8) (2.0)
TOTAL $
1,153 $
1,186 $
(57) (2.7) 2.1
BD INTERVENTIONAL
---
Surgery $
148 $
99 $
(6) 48.7 55.0
Peripheral Intervention 294 146 (14) 101.3 110.9
Urology and Critical Care 168 84 (6) 99.7 106.5
TOTAL $
609 $
329 $
(26) 85.0 92.9
TOTAL INTERNATIONAL $
3,628 $
3,321 $
(177) 9.2 14.6
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2019 2018 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions $
1,887 $
1,700 $
(51) 11.0 14.0
Medication Management Solutions 1,239 1,168 (11) 6.0 7.0
Diabetes Care 544 544 (14) (0.1) 2.5
Pharmaceutical Systems 646 612 (19) 5.6 8.6
TOTAL $
4,316 $
4,024 $
(94) 7.2 9.6
BD LIFE SCIENCES
---
Preanalytical Systems $
758 $
756 $
(23) 0.3 3.4
Diagnostic Systems 771 791 (19) (2.5) (0.1)
Biosciences 579 596 (14) (2.9) (0.5)
TOTAL $
2,108 $
2,143 $
(57) (1.6) 1.0
BD INTERVENTIONAL
---
Surgery $
693 $
528 $
(6) 31.3 32.5
Peripheral Intervention 679 344 (14) 97.3 101.4
Urology and Critical Care 560 264 (6) 112.6 114.7
TOTAL $
1,932 $
1,135 $
(26) 70.2 72.5
TOTAL REVENUES $
8,355 $
7,302 $
(177) 14.4 16.9
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Three Months Ended March 31,
(Unaudited; Amounts in millions)
A
B
C D=B+C E=(A-D)/D
BD
BD Divestiture Comparable Comparable
Reported Reported and Other % Change
Adjustments
(a)
2019 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
484 $
504 $
(9) $
495 (2.3)
Medication Management Solutions 497 461 461 7.9
Diabetes Care 137 131 131 4.7
Pharmaceutical Systems 93 82 82 12.7
TOTAL $
1,211 $
1,178 $
(9) $
1,169 3.6
BD LIFE SCIENCES
---
Preanalytical Systems $
171 $
181 $
(12) $
169 0.8
Diagnostic Systems 180 201 201 (10.5)
Biosciences 120 116 (9) 107 12.5
TOTAL $
470 $
498 $
(21) $
477 (1.3)
BD INTERVENTIONAL
---
Surgery $
271 $
276 $
(5) $
271 (0.3)
Peripheral Intervention 194 194 194 0.1
Urology and Critical Care 195 180 180 8.7
TOTAL $
659 $
649 $
(5) $
645 2.3
TOTAL UNITED STATES $
2,341 $
2,325 $
(34) $
2,291 2.2
(a) Amounts include adjustments for
BD's divestitures of its Advanced
Bioprocessing business and soft
tissue core needle biopsy product
line, as well as Bard's
divestiture of its Aspira(R)
product line. Additionally,
Medication Delivery Solutions and
Preanalytical Systems results for
the quarter ended March 31, 2019
included a total of $21 million in
cumulative customer rebate and
incentive fees relating to fiscal
year 2018. Accordingly, to ensure
comparability of revenue growth,
the results for the quarter ended
March 31, 2018 have been adjusted
to reflect these cumulative fees.
The Company records rebate and
customer incentive fees as a
reduction to revenue.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
A
B
C D=B+C
E F=(A-D-
E)/D
BD
BD Divestiture Comparable FX Impact FXN %
Reported Reported Adjustments (b) Change
(a)
2019 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
446 $
454
$ $
454 $
(32) 5.2
Medication Management Solutions 118 120 120 (8) 4.8
Diabetes Care 133 136 136 (10) 4.8
Pharmaceutical Systems 273 284 284 (15) 1.3
TOTAL $
969 $
994
$ $
994 $
(64) 4.0
BD LIFE SCIENCES
---
Preanalytical Systems $
195 $
200
$ $
200 $
(16) 5.8
Diagnostic Systems 209 209 209 (14) 6.9
Biosciences 177 191 (13) 178 (10) 5.1
TOTAL $
582 $
600 $
(13) $
587 $
(41) 6.0
BD INTERVENTIONAL
---
Surgery $
75 $
75 $
(1) $
74 $
(4) 6.9
Peripheral Intervention 148 145 145 (9) 8.8
Urology and Critical Care 80 84 84 (4) 0.2
TOTAL $
303 $
303 $
(1) $
302 $
(17) 5.9
TOTAL INTERNATIONAL $
1,854 $
1,898 $
(14) $
1,884 $
(122) 4.9
(a) Amounts include adjustments for
BD's divestitures of its Advanced
Bioprocessing business and soft
tissue core needle biopsy product
line, as well as Bard's
divestiture of its Aspira(R)
product line.
(b) Under U.S. generally accepted
accounting principles and as a
result of Argentina's highly
inflationary economy, the
functional currency of the
Company's operations in Argentina
was the U.S. dollar for the
quarter ended March 31, 2019. The
total foreign currency translation
impact above includes $6 million
that was calculated by comparing
local currency revenues in
Argentina for the quarter ended
March 31, 2019, translated using
the prior-period exchange rate,
to the reported U.S. dollar
revenues for this same period.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
A
B
C D=B+C
E F=(A-D-
E)/D
BD
BD Divestiture Comparable FX Impact FXN %
Reported Reported and Other (b) Change
Adjustments
(a)
2019 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
929 $
958 $
(9) $
949 $
(32) 1.3
Medication Management Solutions 615 581 581 (8) 7.3
Diabetes Care 270 267 267 (10) 4.7
Pharmaceutical Systems 366 366 366 (15) 3.9
TOTAL $
2,180 $
2,172 $
(9) $
2,164 $
(64) 3.8
BD LIFE SCIENCES
---
Preanalytical Systems $
366 $
381 $
(12) $
369 $
(16) 3.5
Diagnostic Systems 389 410 410 (14) (1.6)
Biosciences 297 307 (22) 285 (10) 7.9
TOTAL $
1,052 $
1,098 $
(34) $
1,064 $
(41) 2.7
BD INTERVENTIONAL
---
Surgery $
345 $
351 $
(5) $
345 $
(4) 1.2
Peripheral Intervention 342 338 338 (9) 3.8
Urology and Critical Care 275 264 264 (4) 6.0
TOTAL $
963 $
952 $
(5) $
947 $
(17) 3.5
TOTAL REVENUES $
4,195 $
4,222 $
(48) $
4,175 $
(122) 3.4
(a) Amounts include adjustments for
BD's divestitures of its Advanced
Bioprocessing business and soft
tissue core needle biopsy product
line, as well as Bard's
divestiture of its Aspira(R)
product line. Additionally,
Medication Delivery Solutions and
Preanalytical Systems results for
the quarter ended March 31, 2019
included a total of $21 million in
cumulative customer rebate and
incentive fees relating to fiscal
year 2018. Accordingly, to ensure
comparability of revenue growth,
the results for the quarter ended
March 31, 2018 have been adjusted
to reflect these cumulative fees.
The Company records rebate and
customer incentive fees as a
reduction to revenue.
(b) Under U.S. generally accepted
accounting principles and as a
result of Argentina's highly
inflationary economy, the
functional currency of the
Company's operations in Argentina
was the U.S. dollar for the
quarter ended March 31, 2019. The
total foreign currency translation
impact above includes $6 million
that was calculated by comparing
local currency revenues in
Argentina for the quarter ended
March 31, 2019, translated using
the prior-period exchange rate,
to the reported U.S. dollar
revenues for this same period.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Six Months Ended March 31,
(Unaudited; Amounts in millions)
A
B C=A+B
D
E
F
G H=D+E+F+ I=(C-H)/H
G
BD Divestiture Comparable
BD Bard Q1 (b) Intercompany Divestiture Comparable Comparable
Reported Adjustments Reported Adjustment and Other % Change
(a) (c) Adjustments
(a)
2019 2019 2018 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
1,004
$ $
1,004 $
874 $
145 $
(3) $
(9) $
1,007 (0.3)
Medication Management Solutions 1,003 1,003 932 932 7.7
Diabetes Care 282 282 277 277 2.0
Pharmaceutical Systems 161 161 136 136 18.3
TOTAL $
2,450
$ $
2,450 $
2,218 $
145 $
(3) $
(9) $
2,351 4.2
BD LIFE SCIENCES
---
Preanalytical Systems $
371
$ $
371 $
366
$
$ $
(12) $
354 5.0
Diagnostic Systems 355 355 367 367 (3.4)
Biosciences 228 (4) 225 224 (19) 205 9.6
TOTAL $
954 $
(4) $
951 $
957
$
$ $
(31) $
926 2.7
BD INTERVENTIONAL
---
Surgery $
545
$ $
545 $
428 $
105
$ $
(15) $
518 5.2
Peripheral Intervention 385 385 198 188 386 (0.3)
Urology and Critical Care 393 393 180 177 357 10.1
TOTAL $
1,323
$ $
1,323 $
806 $
470
$ $
(15) $
1,261 4.9
TOTAL UNITED STATES $
4,728 $
(4) $
4,724 $
3,982 $
614 $
(3) $
(54) $
4,539 4.1
(a) The amounts for the six months
ended March 31, 2019 and 2018
include adjustments for BD's
divestiture of its Advanced
Bioprocessing business. The
amounts for the six months ended
March 31, 2018 also include
adjustments for BD's divestitures
of its soft tissue core needle
biopsy product line and Bard's
divestiture of its Aspira(R)
product line. Additionally,
Medication Delivery Solutions and
Preanalytical Systems results for
the six months ended March 31,
2019 included a total of $21
million in cumulative customer
rebate and incentive fees relating
to fiscal year 2018. Accordingly,
to ensure comparability of revenue
growth, the results for the six
months ended March 31, 2018 have
been adjusted to reflect these
cumulative fees. The Company
records rebate and customer
incentive fees as a reduction to
revenue.
(b) Amounts represent revenues for the
quarter ended December 31, 2017.
BD reported a Gore royalty amount,
which was previously reported as
revenues by Bard, as non-
operating income in the current-
year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
A
B C=A+B
D
E
F G=D+E+F
H I=(C-G-
H)/G
BD Divestiture Comparable
BD Bard Q1 (b) Divestiture Comparable FX Impact FXN %
Reported Adjustments Reported Adjustments (c) Change
(a) (a)
2019 2019 2018 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
883
$ $
883 $
826 $
68
$ $
895 $
(54) 4.7
Medication Management Solutions 236 236 237 237 (11) 4.3
Diabetes Care 261 261 267 267 (15) 3.3
Pharmaceutical Systems 485 485 475 475 (19) 5.9
TOTAL $
1,865
$ $
1,865 $
1,806 $
68
$ $
1,874 $
(98) 4.8
BD LIFE SCIENCES
---
Preanalytical Systems $
387
$ $
387 $
391
$
$ $
391 $
(27) 6.0
Diagnostic Systems 416 416 423 423 (24) 3.8
Biosciences 350 (5) 345 372 (23) 349 (16) 3.6
TOTAL $
1,153 $
(5) $
1,148 $
1,186
$ $
(23) $
1,163 $
(67) 4.5
BD INTERVENTIONAL
---
Surgery $
148
$ $
148 $
99 $
49 $
(3) $
145 $
(6) 6.2
Peripheral Intervention 294 294 146 146 292 (14) 5.4
Urology and Critical Care 168 168 84 90 174 (6) (0.5)
TOTAL $
609
$ $
609 $
329 $
285 $
(3) $
611 $
(26) 3.9
TOTAL INTERNATIONAL $
3,628 $
(5) $
3,623 $
3,321 $
353 $
(26) $
3,648 $
(191) 4.5
(a) The amounts for the six months
ended March 31, 2019 and 2018
include adjustments for BD's
divestiture of its Advanced
Bioprocessing business. The
amounts for the six months ended
March 31, 2018 also include
adjustments for BD's divestitures
of its soft tissue core needle
biopsy product line and Bard's
divestiture of its Aspira(R)
product line.
(b) Amounts represent revenues for the
quarter ended December 31, 2017.
(c) Under U.S. generally accepted
accounting principles and as a
result of Argentina's highly
inflationary economy, the
functional currency of the
Company's operations in Argentina
was the U.S. dollar for the six
months ended March 31, 2019. The
total foreign currency translation
impact above includes $14 million
that was calculated by comparing
local currency revenues in
Argentina for the six months ended
March 31, 2019, translated using
the prior-period exchange rate,
to the reported U.S. dollar
revenues for this same period.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
A
B C=A+B
D
E
F
G H=D+E+F+
I J=(C-H-
G I)/H
BD Divestiture Comparable
BD Bard Q1 (b) Intercompany Divestiture Comparable FX Impact FXN %
Reported Adjustments Reported Adjustment and Other (d) Change
(a) (c) Adjustments
(a)
2019 2019 2018 2018 2018
BD MEDICAL
---
Medication Delivery Solutions $
1,887
$ $
1,887 $
1,700 $
213 $
(3) $
(9) $
1,901 $
(54) 2.1
Medication Management Solutions 1,239 1,239 1,168 1,168 (11) 7.0
Diabetes Care 544 544 544 544 (15) 2.6
Pharmaceutical Systems 646 646 612 612 (19) 8.6
TOTAL $
4,316
$ $
4,316 $
4,024 $
213 $
(3) $
(9) $
4,226 $
(98) 4.5
BD LIFE SCIENCES
---
Preanalytical Systems $
758
$ $
758 $
756
$
$ $
(12) $
744 $
(27) 5.5
Diagnostic Systems 771 771 791 791 (24) 0.5
Biosciences 579 (9) 570 596 (42) 554 (16) 5.8
TOTAL $
2,108 $
(9) $
2,099 $
2,143
$
$ $
(54) $
2,089 $
(67) 3.7
BD INTERVENTIONAL
---
Surgery $
693
$ $
693 $
528 $
153
$ $
(18) $
663 $
(6) 5.4
Peripheral Intervention 679 679 344 334 678 (14) 2.2
Urology and Critical Care 560 560 264 267 531 (6) 6.6
TOTAL $
1,932
$ $
1,932 $
1,135 $
755
$ $
(18) $
1,872 $
(26) 4.6
TOTAL REVENUES $
8,355 $
(9) $
8,347 $
7,302 $
968 $
(3) $
(81) $
8,186 $
(191) 4.3
(a) The amounts for the six months
ended March 31, 2019 and 2018
include adjustments for BD's
divestiture of its Advanced
Bioprocessing business. The
amounts for the six months ended
March 31, 2018 also include
adjustments for BD's divestitures
of its soft tissue core needle
biopsy product line and Bard's
divestiture of its Aspira(R)
product line. Additionally,
Medication Delivery Solutions and
Preanalytical Systems results for
the six months ended March 31,
2019 included a total of $21
million in cumulative customer
rebate and incentive fees relating
to fiscal year 2018. Accordingly,
to ensure comparability of revenue
growth, the results for the six
months ended March 31, 2018 have
been adjusted to reflect these
cumulative fees. The Company
records rebate and customer
incentive fees as a reduction to
revenue.
(b) Amounts represent revenues for the
quarter ended December 31, 2017.
BD reported a Gore royalty amount,
which was previously reported as
revenues by Bard, as non-
operating income in the current-
year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
(d) Under U.S. generally accepted
accounting principles and as a
result of Argentina's highly
inflationary economy, the
functional currency of the
Company's operations in Argentina
was the U.S. dollar for the six
months ended March 31, 2019. The
total foreign currency translation
impact above includes $14 million
that was calculated by comparing
local currency revenues in
Argentina for the six months ended
March 31, 2019, translated using
the prior-period exchange rate,
to the reported U.S. dollar
revenues for this same period.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Three Months Ended March 31,
2019 2018 Growth Foreign Foreign Growth % Foreign
Currency Currency Currency
Translation Neutral Neutral
Growth Growth %
Reported Diluted Loss per Share $
(0.07) $
(0.19) $
0.12 $
(0.25) $
0.37 63.2 194.7
% %
Purchase accounting adjustments ($379 million and $790 million pre-tax, respectively) (1) 1.40 2.96
Restructuring costs ($31 million and $19 million pre-tax, respectively) (2) 0.12 0.07
Integration costs ($70 million and $79 million pre-tax, respectively) (2) 0.26 0.29
Transaction gain/loss and product-related matters ($396 million pre-tax) (3) 1.47
European regulatory initiative-related costs ($10 million pre-tax) (4) 0.04
Transaction costs ($1 million and $7 million pre-tax, respectively) (2) 0.03
Losses on debt extinguishment ($1 million and $13 million pre-tax, respectively) (5) 0.05
Hurricane recovery costs ($5 million pre-tax) 0.02
Dilutive impact (6) (0.04) (0.06)
Impact of tax reform and income tax benefit of special items ($160 million and $137 (0.59) (0.51)
million, respectively)
Adjusted Diluted Earnings per Share $
2.59 $
2.65 $
(0.06) $
(0.25) $
0.19 (2.3)
%
% 7.2
(1) Includes adjustments related to the
purchase accounting for acquisitions
impacting identified intangible
assets and valuation of fixed assets
and debt. The amount in 2018 also
included a fair value step-up
adjustment of $422 million recorded
relative to Bard's inventory on the
acquisition date.
(2) Represents restructuring, integration
and transaction costs associated
with acquisitions.
(3) Includes amounts recorded to Other
operating expense, net to record
product liability reserves of $331
million and the estimated cumulative
costs of a product recall of $65
million.
(4) Represents initial costs required to
develop processes and systems to
comply with emerging regulations
such as the European Union Medical
Device Regulation ("EUMDR") and
General Data Protection Regulation
("GDPR").
(5) Represents losses recognized upon the
extinguishment of certain long-term
senior notes.
(6) The amount in 2019 represents the
exclusion of share equivalents
associated with share-based plans
from the reported diluted shares
outstanding calculation because such
equivalents would have been
antidilutive due to the net loss
applicable to common shareholders
incurred during the period. The
amount in 2018 represents the
dilutive impact of BD shares issued
in May 2017, in anticipation of the
Bard acquisition and BD shares
issued as consideration transferred
to acquire Bard. The adjusted
diluted average shares outstanding
(in thousands) in 2019 and 2018 were
274,287 and 273,693, respectively.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Six Months Ended March 31,
2019 2018 Growth Foreign Foreign Growth % Foreign
Currency Currency Currency
Translation Neutral Neutral
Growth Growth %
Reported Diluted Earnings (Loss) per Share $
1.98 $
(0.90) $
2.88 $
(0.39) $
3.27 320.0 363.3
% %
Purchase accounting adjustments ($757 million and $925 million pre-tax, respectively) (1) 2.76 3.72 (0.01)
Restructuring costs ($72 million and $255 million pre-tax, respectively) (2) 0.26 1.02
Integration costs ($143 million and $153 million pre-tax, respectively) (2) 0.52 0.61
Transaction gain/loss and product-related matters ($61 million pre-tax) (3) 0.22
European regulatory initiative-related costs ($15 million pre-tax) (4) 0.05
Transaction costs ($2 million and $51 million pre-tax, respectively) (2) 0.01 0.20
Losses on debt extinguishment ($1 million and $13 million pre-tax, respectively) (5) 0.05
Financing impacts ($49 million pre-tax) (6) 0.20
Hurricane recovery costs ($12 million pre-tax) 0.05
Dilutive Impact (7) 0.20
Impact of tax reform and income tax benefit of special items ($143 million and $2 million, (0.52) (0.01)
respectively) (8)
Adjusted Diluted Earnings per Share $
5.29 $
5.15 $
0.14 $
(0.40) $
0.54 2.7 10.5
% %
(1) Includes adjustments related to the
purchase accounting for acquisitions
impacting identified intangible
assets and valuation of fixed assets
and debt. The amount in 2018 also
included a fair value step-up
adjustment of $422 million recorded
relative to Bard's inventory on the
acquisition date.
(2) Represents restructuring, integration
and transaction costs associated
with acquisitions.
(3) Includes amounts recorded to Other
operating expense, net to record
product liability reserves of $331
million and the estimated cumulative
costs of a product recall of $65
million. Also includes the pre-tax
gain of $335 million recognized in
Other operating expense, net related
to BD's sale of its Advanced
Bioprocessing business.
(4) Represents initial costs required to
develop processes and systems to
comply with emerging regulations
such as the EUMDR and GDPR.
(5) Represents losses recognized upon the
extinguishment of certain long-term
senior notes.
(6) Represents financing impacts
associated with the Bard
acquisition.
(7) Represents the dilutive impact of BD
shares issued in May 2017, in
anticipation of the Bard acquisition
and BD shares issued as
consideration transferred to acquire
Bard. The adjusted diluted average
shares outstanding (in thousands)
was 246,179.
(8) The amounts for the six months ended
March 31, 2019 and 2018 included
additional tax expense, net, of $20
million and $275 million,
respectively, relating to new U.S.
tax legislation.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION
FY2018
FY2019 Outlook
Revenues
% Change
FX Impact
% Change FXN
BDX Revenue $
15,983 8.0% to 9.0% ~2.5% 10.5% to 11.5%
Comparable Revenue Growth
BD Including
Bard
FY2018
FY2019 Outlook
Revenues
% Change FXN
Comparable
BDX As Reported Revenue $
15,983
Bard Q1 968
Intercompany Adjustment (3)
Rebate Adjustment (21)
Divestiture Adjustment (1)(2) (124)
BDX NewCo Comparable Revenue $
16,803 5.0% to 6.0%
FXN - Foreign Currency Neutral
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)
FY2018
FY2019 Outlook
Revenues
% Change FXN
Comparable
BD Medical As Reported Revenue $
8,616
Bard Q1 213
Intercompany Adjustment (3)
Rebate Adjustment (9)
BD Medical Comparable Revenue 8,817 5.0% to 6.0%
BD Life Sciences As Reported Revenue $
4,330
Rebate Adjustment (12)
Divestiture Adjustment (1) (106)
BD Life Sciences Comparable Revenue $
4,212 4.0% to 5.0%
BD Interventional as Reported Revenue $
3,037
Bard Q1 755
Divestiture Adjustment (2) (18)
BD Interventional Comparable Revenue $
3,774 4.5% to 5.5%
FXN - Foreign Currency Neutral
(1) Excludes the impact from the divestiture of BD's Advanced Bioprocessing business.
(2) Excludes the impact from the divestitures of BD's soft tissue core needle biopsy product line and Bard's Aspira product line of tunneled home drainage catheters and
accessories.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)
FY2019 Outlook
Full Year
Full Year
% Increase
FY2018
FY2019 Outlook
Reported Fully Diluted Earnings per Share $
0.60
Purchase accounting adjustments ($1.733 billion pre- 6.55
tax) (1)
Restructuring costs ($344 million pre-tax) (2) 1.30
Integration costs ($344 million pre-tax) (2) 1.30
Transaction costs ($56 million pre-tax) (3) 0.21
Financing impacts ($49 million pre-tax) (4) 0.19
Hurricane recovery costs ($17 million pre-tax) 0.07
Losses on debt extinguishment ($16 million pre-tax) (5) 0.06
Net impact of gain on sale of investment and asset (0.57)
impairments ($(151) million pre-tax) (6)
Dilutive Impact (7) 0.30
Impact of tax reform and income tax benefit of special 1.00
items ($265 million) (8)
Adjusted Fully Diluted Earnings per Share $
11.01
$11.65 to 11.75 6.0% to 7.0%
Estimated FX Impact ~5.5%
Adjusted FXN Growth ~12.0%
FXN - Foreign Currency Neutral
(1) Includes adjustments related to the purchase
accounting for acquisitions impacting identified
intangible assets and valuation of fixed assets and
debt. The amount in 2018 also included a fair
value step-up adjustment of $478 million recorded
relative to Bard's inventory on the acquisition
date.
(2) Represents restructuring and integration costs
associated with the Bard and CareFusion
acquisitions, as well as restructuring costs
associated with other portfolio rationalization
initiatives.
(3) Represents transaction costs primarily associated
with the Bard acquisition.
(4) Represents financing impacts associated with the
Bard acquisition.
(5) Represents losses recognized upon the extinguishment
of certain long-term senior notes.
(6) Represents the net amount recognized in the period
related to BD's sale of its non-controlling
interest in Vyaire Medical, partially offset by $81
million of charges recorded to write down the
carrying value of certain intangible and other
assets in the Biosciences unit as well as $58
million of charges to write down the value of fixed
assets primarily in the Diabetes Care unit.
(7) Represents the dilutive impact of BD shares issued
in May 2017, in anticipation of the Bard
acquisition and BD shares issued as consideration
transferred to acquire Bard. The adjusted diluted
average shares outstanding (in thousands) was
260,758.
(8) Includes additional tax expense, net, of $640
million relating to new U.S. tax legislation.
View original content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2019-second-fiscal-quarter-updates-fiscal-2019-guidance-300846853.html
SOURCE BD (Becton, Dickinson and Company)
