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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
SHAREHOLDERS


$

(18)



$

(50)



64.3









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
SHAREHOLDERS


$

544



$

(224)



342.5









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
ACTIVITIES


30



(15,373)


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
ACTIVITIES


(1,532)



1,565


Effect of exchange rate changes on cash and equivalents
and restricted cash


5



29


NET DECREASE IN CASH AND EQUIVALENTS AND
RESTRICTED CASH


(469)



(12,762)


OPENING CASH AND EQUIVALENTS AND
RESTRICTED CASH


1,236



14,179


CLOSING CASH AND EQUIVALENTS AND
RESTRICTED CASH


$

767



$

1,417


 

 

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
Reported



BD
Reported


Divestiture
and Other
Adjustments 
(a)


Comparable



Comparable
% Change



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® 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
Reported



BD
Reported


Divestiture
Adjustments
(a)


Comparable



FX Impact
(b)


FXN %
Change



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® 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
Reported



BD
Reported


Divestiture
and Other
Adjustments 
(a)


Comparable



FX Impact
(b)


FXN %
Change



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® 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+
G



I=(C-H)/H



BD
Reported


Divestiture
Adjustments
(a)


Comparable



BD
Reported


Bard Q1 (b)


Intercompany
Adjustment
(c)


Divestiture
and Other 
Adjustments
(a)


Comparable



Comparable
% Change



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® 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
Reported


Divestiture
Adjustments
(a)


Comparable



BD
Reported


Bard Q1 (b)


Divestiture
Adjustments 
(a)


Comparable



FX Impact
(c)


FXN %
Change



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® 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+
G



I


J=(C-H-
I)/H



BD
Reported


Divestiture
Adjustments
(a)


Comparable



BD
Reported


Bard Q1 (b)


Intercompany
Adjustment
(c)


Divestiture
and Other
Adjustments 
(a)


Comparable



FX Impact
(d)


FXN %
Change



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® 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

Currency

Translation


Foreign

Currency

Neutral

Growth


Growth %


Foreign

Currency

Neutral

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
million, respectively)


(0.59)



(0.51)












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

Currency

Translation


Foreign

Currency

Neutral

Growth


Growth %


Foreign

Currency

Neutral

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,
respectively) (8)


(0.52)



(0.01)












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
FY2018


Full Year

FY2019 Outlook


% Increase




Reported Fully Diluted Earnings per Share


$

0.60









Purchase accounting adjustments ($1.733 billion pre-
tax) (1)


6.55









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
impairments ($(151) million pre-tax) (6)


(0.57)









Dilutive Impact (7)


0.30









Impact of tax reform and income tax benefit of special
items ($265 million) (8)


1.00









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.

 

 

Cision 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)