BD Announces Results For 2018 Third Fiscal Quarter; Raises Fiscal 2018 Revenue Guidance

 

- As reported, revenues of $4.278 billion increased 41.0 percent.
- On a comparable, currency-neutral basis, revenues increased 5.5 percent.
- As reported, diluted earnings per share of $2.03 increased 370.7 percent.
- As adjusted, diluted earnings per share of $2.91 increased 18.3 percent, or 11.0 percent on a currency-neutral basis.
- The company is raising full fiscal year 2018 revenue guidance, and narrowing its adjusted diluted earnings per share guidance.
- The company reaffirms that the acquisition of C.R. Bard is expected to be accretive to adjusted dilutive earnings per share on a high-single digit basis in fiscal year 2019.

FRANKLIN LAKES, N.J., Aug. 2, 2018 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.278 billion for the third fiscal quarter ended June 30, 2018. This represents an increase of 41.0 percent from the prior-year period, which is primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis that includes the revenues of C.R. Bard in the current and prior year, revenues increased 5.5 percent over the prior-year period.

"Our strong revenue growth and operating performance this quarter demonstrate that we are delivering on our strategy," said Vincent A. Forlenza, Chairman and CEO. "We are on track with the integration of C. R. Bard and continue to deliver on our financial commitments while providing innovative solutions for our customers and their patients worldwide."

Third Quarter and Nine-Month Fiscal 2018 Operating Results
As reported, diluted earnings per share for the third quarter were $2.03, compared with $(0.75) in the prior-year period. This represents an increase of 370.7 percent and is primarily due to a non-cash charge in the prior year related to the previously announced change in the U.S. dispensing business model. Adjusted diluted earnings per share were $2.91, compared with $2.46 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 18.3 percent, or 11.0 percent on a currency-neutral basis.

For the nine-month period ended June 30, 2018, as reported, diluted earnings per share were $1.27, compared with $3.36 in the prior-year period. This represents a decrease of 62.2 percent and is primarily due to purchase accounting expenses relating to acquisitions and additional tax expense relating to new U.S. tax legislation, as well as the aforementioned non-cash charge in the prior year related to the change in the U.S. dispensing model. Adjusted diluted earnings per share were $8.08, compared with $7.09 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 14.0 percent, or 8.0 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.246 billion increased 20.0 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, BD Medical revenues increased 5.7 percent over the prior-year period. The segment's results were driven by strong performance in the Medication Delivery Solutions and Medication Management Solutions units.

For the nine-month period ended June 30, 2018, BD Medical revenues were $6.270 billion as reported, an increase of 14.5 percent from the prior-year period. On a comparable, currency-neutral basis, BD Medical revenues of $6.480 billion increased 4.1 percent over the prior-year period, which includes an estimated 110 basis point adverse impact from the previously disclosed change in the U.S. dispensing business model.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $1.079 billion, an increase of 8.2 percent over the prior-year period, or 5.6 percent on a currency-neutral basis. Revenue growth reflects strong performance across the Preanalytical Systems, Diagnostic Systems and Biosciences units.

For the nine-month period ended June 30, 2018, BD Life Sciences revenues were $3.222 billion as reported, an increase of 9.7 percent from the prior-year period, or an increase of 6.7 percent on a currency-neutral basis.

In the BD Interventional segment, as reported, worldwide revenues for the quarter were $0.954 billion. On a comparable, currency-neutral basis, revenues increased 5.1 percent over the prior-year period. The segment's results reflect strong performance in the Peripheral Intervention and Urology and Critical Care units.

For the nine-month period ended June 30, 2018, BD Interventional revenues were $2.089 billion as reported. On a comparable, currency-neutral basis, BD Interventional revenues of $2.826 billion increased 4.9 percent.

Geographic Results
As reported, third quarter revenues in the U.S. of $2.338 billion increased 45.9 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable basis, U.S. revenues increased 5.9 percent over the prior-year period. Growth in the U.S. was driven by strong performance across the BD Medical and BD Life Sciences segments, and in the Peripheral Intervention and Urology and Critical Care units within the BD Interventional segment.

As reported, revenues outside of the U.S. of $1.941 billion increased 35.4 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, revenues outside of the U.S. increased 5.1 percent over the prior-year period. International revenue growth was driven by strong performance across the BD Life Sciences segment, as well as in the Medication Delivery Solutions and Medication Management Solutions units within the BD Medical segment, and the Surgery and Peripheral Intervention units in the BD Interventional segment.

For the nine-month period ended June 30, 2018, U.S. revenues were $6.319 billion as reported, an increase of 30.0 percent over the prior-year period. On a comparable basis, U.S. revenues of $6.916 billion increased 3.7 percent over the prior-year period, including an estimated 140 basis point adverse impact from the change in the U.S. dispensing business model. As reported, revenues outside of the U.S. of $5.261 billion increased 29.3 percent over the prior-year period. On a comparable, currency-neutral basis, revenues outside the U.S. of $5.611 billion increased 6.6 percent over the prior-year period.

Fiscal 2018 Outlook for Full Year
The company is raising its full fiscal year 2018 revenue guidance and now expects growth to exceed 31.5 percent on a reported basis, compared to previous guidance of approximately 31.0 to 31.5 percent growth. On a comparable, currency-neutral basis, the company is also raising its revenue guidance and now expects growth to exceed 5.5 percent, compared to previous guidance of 5.0 to 5.5 percent growth. Comparable revenue guidance continues to include an estimated 50 basis point adverse impact from the change in the U.S. dispensing business model and the estimated sales impact from Hurricane Maria in Puerto Rico on Bard's business during BD's first fiscal quarter.

The company is narrowing its full fiscal year 2018 adjusted diluted earnings per share guidance to a range of $10.95 to $11.05, from a range of $10.90 to $11.05 previously. This represents growth of approximately 15.5 to 16.5 percent over fiscal 2017 adjusted diluted earnings per share, and reflects the company's increased revenue outlook as well as a small decrease in the expected benefit from foreign currency. On a currency-neutral basis, the company continues to expect full fiscal year adjusted diluted earnings per share growth of approximately 12.0 percent.

Estimated adjusted diluted earnings per share for fiscal 2018 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 and litigation 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 third quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, August 2, 2018. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 9, 2018, confirmation number 2788137.

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 2018 presented throughout this release include the results of C. R. Bard, Inc. ("Bard") in the current and prior-year periods and are further adjusted 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 which 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. Prior-year amounts have been revised to reflect the movement of certain product offerings which were previously reported in the Medical segment and which are now reported in the Interventional segment, as discussed above. 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; the reversal of a litigation reserve; 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. As previously announced, comparable historical revenue schedules inclusive of Bard for BD's 2016 and 2017 fiscal years, and the first quarter of BD's 2018 fiscal year, are available on the Investor page of BD's website, www.bd.com/investors.

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 improve patient outcomes, improve the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to better diagnose 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. In 2017, BD welcomed C. R. Bard and its products into the BD family. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2018 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; the impact of the recent U.S. tax reform; 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, utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; 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; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; risks relating to our ability to continue to successfully integrate CareFusion's operations in order to fully obtain the benefits of the transaction; 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.

 

    BECTON DICKINSON AND COMPANY

    CONSOLIDATED INCOME STATEMENTS

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


                                                                           Three Months Ended June 30,

                                                                         2018                 2017            % Change
                                                                         ----                 ----          --------

    REVENUES                                                                     $4,278                  $3,035          41.0


    Cost of products sold                                               2,262                1,532          47.7

    Selling and administrative expense                                  1,081                  719          50.3

    Research and development expense                                      277                  186          49.1

    Acquisitions and other restructurings                                 146                   81          81.3

    Other operating expense, net                                            -                 741       (100.0)

    TOTAL OPERATING COSTS AND EXPENSES                                  3,766                3,258          15.6
                                                                        -----                -----          ----

    OPERATING INCOME (LOSS)                                               513                (223)        330.2


    Interest expense                                                    (182)               (184)        (1.0)

    Interest income                                                         8                   19        (59.4)

    Other income (expense), net                                           308                 (16)      2,063.0
                                                                                                       -------

    INCOME (LOSS) BEFORE INCOME TAXES                                     647                (404)        260.4

    Income tax provision (benefit)                                         53                (271)        119.6
                                                                                                         -----

    NET INCOME (LOSS)                                                     594                (132)        548.9

    Preferred stock dividends                                            (38)                (32)         16.9

    NET INCOME (LOSS) APPLICABLE TO COMMON                                         $556                  $(165)        437.6
    SHAREHOLDERS



    EARNINGS PER SHARE

    Basic Earnings (Loss) per Share                                               $2.08                 $(0.75)        377.3

    Diluted Earnings (Loss) per Share                                             $2.03                 $(0.75)        370.7


    AVERAGE SHARES OUTSTANDING (in thousands)

    Basic                                                             267,836              220,807

    Diluted                                                           273,925              220,807

 

 

    BECTON DICKINSON AND COMPANY

    CONSOLIDATED INCOME STATEMENTS

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


                                                                            Nine Months Ended June 30,

                                                                         2018                  2017           % Change
                                                                         ----                  ----         --------

    REVENUES                                                                     $11,581                $8,927           29.7


    Cost of products sold                                               6,410                 4,539        41.2

    Selling and administrative expense                                  2,912                 2,151        35.3

    Research and development expense                                      728                   554        31.6

    Acquisitions and other restructurings                                 604                   243       148.4

    Other operating expense, net                                            -                  405     (100.0)

    TOTAL OPERATING COSTS AND EXPENSES                                 10,655                 7,892        35.0
                                                                       ------                 -----        ----

    OPERATING INCOME                                                      926                 1,035      (10.5)


    Interest expense                                                    (525)                (364)       44.1

    Interest income                                                        55                    31        80.5

    Other income (expense), net                                           302                  (51)      697.3

    INCOME BEFORE INCOME TAXES                                            759                   650        16.6

    Income tax provision (benefit)                                        313                 (123)      354.9

    NET INCOME                                                            446                   773      (42.3)

    Preferred stock dividends                                           (114)                 (32)      250.6

    NET INCOME APPLICABLE TO COMMON                                                 $332                  $741         (55.2)
    SHAREHOLDERS



    EARNINGS PER SHARE

    Basic Earnings per Share                                                       $1.30                 $3.43         (62.1)

    Diluted Earnings per Share                                                     $1.27                 $3.36         (62.2)


    AVERAGE SHARES OUTSTANDING (in thousands)

    Basic                                                             254,934               215,817

    Diluted                                                           260,860               220,406

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

    Three Months Ended June 30,

    (Unaudited; Amounts in millions)


                                                                                            A                    B                   C=(A-B)/B
                                                                                                                ---

                                                                                             2018                2017                   % Change
                                                                                             ----                ----                   --------

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                  $505                            $335                    50.8

    Medication Management                                                                     483                 447                    8.1
    Solutions

    Diabetes Care                                                                             138                 132                    4.7

    Pharmaceutical Systems                                                                    103                  93                   11.6

    TOTAL                                                                                            $1,230                          $1,006                    22.2
                                                                                                     ------                          ------                    ----


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $199                            $191                     4.2

    Diagnostic Systems                                                                        151                 145                    4.2

    Biosciences                                                                               126                 115                    9.7

    TOTAL                                                                                              $476                            $451                     5.6
                                                                                                       ----                            ----                     ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $259                            $142                      NM

    Peripheral Intervention (a)                                                               195                   3                            NM

    Urology and Critical Care                                                                 178                   -                           NM
                                                                                              ---                 ---                          ---

    TOTAL                                                                                              $632                            $145                      NM
                                                                                                       ----                            ----                     ---


    TOTAL UNITED STATES                                                                              $2,338                          $1,603                    45.9
                                                                                                     ------                          ------                    ----


    (a) The presentation of prior-period amounts reflects a reclassification of $145 million associated with the movement, effective on January 1, 2018, of certain
     product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

    Three Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)


                                                                                                                                                        D=(A-B)/B                    E=(A-B-C)/B
                                                                                                                                                        ---------                    -----------

                                                                                            A                    B                     C                        % Change
                                                                                           ---                  ---                   ---

                                                                                             2018                2017                FX Impact             Reported                        FXN
                                                                                             ----                ----                ---------             --------                        ---

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                  $471                              $367                             $23                    28.3                     22.1

    Medication Management                                                                     127                 109                        9                   17.1                9.1
    Solutions

    Diabetes Care                                                                             138                 131                        7                    5.4                0.1

    Pharmaceutical Systems                                                                    279                 258                       19                    8.4                1.0

    TOTAL                                                                                            $1,016                              $864                             $58                    17.5                     10.8
                                                                                                     ------                              ----                             ---                    ----                     ----


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $205                              $185                              $8                    10.7                      6.2

    Diagnostic Systems                                                                        211                 191                       10                   10.7                5.7

    Biosciences                                                                               188                 171                        8                    9.7                4.9

    TOTAL                                                                                              $603                              $547                             $26                    10.4                      5.6
                                                                                                       ----                              ----                             ---                    ----                      ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                         $77                               $20                              $5                      NM                      NM

    Peripheral Intervention (a)                                                               157                   1                       10                     NM                                   NM

    Urology and Critical Care                                                                  87                   -                       5                     NM                                   NM

    TOTAL                                                                                              $322                               $22                             $19                      NM                      NM
                                                                                                       ----                               ---                             ---                     ---                     ---


    TOTAL INTERNATIONAL                                                                              $1,941                            $1,433                            $103                    35.4                     28.2
                                                                                                     ------                            ------                            ----                    ----                     ----


    (a) The presentation of prior-period amounts reflects a reclassification of $22 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

    Three Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)


                                                                                                                                                                D=(A-B)/B                        E=(A-B-C)/B
                                                                                                                                                                ---------                        -----------

                                                                                            A                    B                     C                        % Change
                                                                                           ---                  ---                   ---

                                                                                             2018                2017                FX Impact                    Reported                              FXN
                                                                                             ----                ----                ---------                    --------                              ---

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                  $977                              $702                             $23                    39.0                          35.8

    Medication Management                                                                     610                 556                        9                    9.8                8.3
    Solutions

    Diabetes Care                                                                             276                 263                        7                    5.1                2.4

    Pharmaceutical Systems                                                                    383                 350                       19                    9.3                3.8

    TOTAL                                                                                            $2,246                            $1,871                             $58                    20.0                          16.9
                                                                                                     ------                            ------                             ---                    ----                          ----


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $404                              $376                              $8                     7.4                           5.2

    Diagnostic Systems                                                                        362                 335                       10                    7.9                5.0

    Biosciences                                                                               314                 286                        8                    9.7                6.8

    TOTAL                                                                                            $1,079                              $997                             $26                     8.2                           5.6
                                                                                                     ------                              ----                             ---                     ---                           ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $336                              $163                              $5                      NM                           NM

    Peripheral Intervention (a)                                                               353                   5                       10                                   NM                          NM

    Urology and Critical Care                                                                 265                   -                       5                                   NM                          NM

    TOTAL                                                                                              $954                              $167                             $19                      NM                           NM
                                                                                                       ----                              ----                             ---                     ---                          ---


    TOTAL REVENUES                                                                                   $4,278                            $3,035                            $103                    41.0                          37.6
                                                                                                     ------                            ------                            ----                    ----                          ----


    (a) The presentation of prior-period amounts reflects a reclassification of $167 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

    Nine Months Ended June 30,

    (Unaudited; Amounts in millions)


                                                                                            A                    B                   C=(A-B)/B
                                                                                                                ---

                                                                                             2018                2017                   % Change
                                                                                             ----                ----                   --------

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                $1,379                          $1,026                    34.4

    Medication Management                                                                   1,415               1,403                    0.9
    Solutions

    Diabetes Care                                                                             415                 400                    3.8

    Pharmaceutical Systems                                                                    239                 231                    3.5

    TOTAL                                                                                            $3,448                          $3,060                    12.7
                                                                                                     ------                          ------                    ----


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $565                            $552                     2.2

    Diagnostic Systems                                                                        518                 471                    9.9

    Biosciences                                                                               350                 331                    5.7

    TOTAL                                                                                            $1,433                          $1,355                     5.8
                                                                                                     ------                          ------                     ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $687                            $434                      NM

    Peripheral Intervention (a)                                                               393                  10                            NM

    Urology and Critical Care                                                                 358                   -                           NM

    TOTAL                                                                                            $1,438                            $444                      NM
                                                                                                     ------                            ----                     ---


    TOTAL UNITED STATES                                                                              $6,319                          $4,859                    30.0
                                                                                                     ------                          ------                    ----


    (a) The presentation of prior-period amounts reflects a reclassification of $444 million associated with the movement, effective on January 1, 2018, of certain
     product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

    Nine Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)


                                                                                                                                                                D=(A-B)/B                        E=(A-B-C)/B
                                                                                                                                                                ---------                        -----------

                                                                                            A                    B                     C                        % Change
                                                                                           ---                  ---                   ---

                                                                                             2018                2017                FX Impact                    Reported                              FXN
                                                                                             ----                ----                ---------                    --------                              ---

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                $1,298                            $1,065                             $65                    21.9                          15.8

    Medication Management                                                                     364                 321                       26                   13.4                5.2
    Solutions

    Diabetes Care                                                                             405                 374                       21                    8.5                2.9

    Pharmaceutical Systems                                                                    755                 658                       59                   14.7                5.8

    TOTAL                                                                                            $2,822                            $2,417                            $171                    16.7                           9.7
                                                                                                     ------                            ------                            ----                    ----                           ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $595                              $541                             $29                    10.0                           4.7

    Diagnostic Systems                                                                        634                 548                       31                   15.8               10.2

    Biosciences                                                                               559                 494                       27                   13.4                7.9

    TOTAL                                                                                            $1,789                            $1,582                             $87                    13.1                           7.6
                                                                                                     ------                            ------                             ---                    ----                           ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $177                               $65                             $12                      NM                           NM

    Peripheral Intervention (a)                                                               303                   4                       22                                   NM                          NM

    Urology and Critical Care                                                                 171                   -                      11                                   NM                          NM

    TOTAL                                                                                              $651                               $68                             $45                      NM                           NM
                                                                                                       ----                               ---                             ---                     ---                          ---


    TOTAL INTERNATIONAL                                                                              $5,261                            $4,068                            $302                    29.3                          21.9
                                                                                                     ------                            ------                            ----                    ----                          ----


    (a) The presentation of prior-period amounts reflects a reclassification of $68 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

    Nine Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)


                                                                                                                                                                 D=(A-B)/B                        E=(A-B-C)/B
                                                                                                                                                                 ---------                        -----------

                                                                                            A                     B                     C                        % Change
                                                                                           ---                   ---                   ---

                                                                                             2018                 2017                FX Impact                    Reported                              FXN
                                                                                             ----                 ----                ---------                    --------                              ---

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                 $2,677                            $2,091                             $65                    28.0                           24.9

    Medication Management                                                                   1,778                1,723                       26                    3.2                1.7
    Solutions

    Diabetes Care                                                                             820                  773                       21                    6.1                3.4

    Pharmaceutical Systems                                                                    994                  889                       59                   11.8                5.2

    TOTAL                                                                                             $6,270                            $5,477                            $171                    14.5                           11.4
                                                                                                      ------                            ------                            ----                    ----                           ----


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                             $1,160                            $1,094                             $29                     6.1                            3.4

    Diagnostic Systems                                                                      1,152                1,019                       31                   13.1               10.1

    Biosciences                                                                               910                  825                       27                   10.3                7.0

    TOTAL                                                                                             $3,222                            $2,937                             $87                     9.7                            6.7
                                                                                                      ------                            ------                             ---                     ---                            ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                         $864                              $499                             $12                      NM                            NM

    Peripheral Intervention (a)                                                               697                   14                       22                                   NM                          NM

    Urology and Critical Care                                                                 529                    -                      11                                   NM                          NM

    TOTAL                                                                                             $2,089                              $513                             $45                      NM                            NM
                                                                                                      ------                              ----                             ---                     ---                           ---


    TOTAL REVENUES                                                                                   $11,581                            $8,927                            $302                    29.7                           26.3
                                                                                                     -------                            ------                            ----                    ----                           ----


    (a) The presentation of prior-period amounts reflects a reclassification of $513 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

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

    Three Months Ended June 30,

    (Unaudited; Amounts in millions)



                                                                                               A                  B           C            D                   E             F=B+C+D+E            G=(A-F)/F
                                                                                              ---                ---         ---          ---                 ---                                 ---------

                                                                                              BD                  BD      Bard (b)   Intercompany         Divestiture        Comparable          Comparable
                                                                                           Reported         Reported (a)              Adjustment          Adjustments                             % Change
                                                                                                                                          (c)                 (d)
                                                                                                                                          ---                 ---

                                                                                                2018                 2017       2017                  2017
                                                                                                ----                 ----       ----                  ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                  $505                    $335                  $144                             $(3)    $             -    $476     6.2

    Medication Management Solutions                                                              483                  447          -              -                   -               447                 8.1

    Diabetes Care                                                                                138                  132          -              -                   -               132                 4.7

    Pharmaceutical Systems                                                                       103                   93          -              -                   -                93                11.6

    TOTAL                                                                                            $1,230                  $1,006                  $144                             $(3)    $             -  $1,147     7.2
                                                                                                     ------                  ------                  ----                              ---   ---           ---  ------     ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $199                    $191               $     -                  $            -    $             -    $191     4.2

    Diagnostic Systems                                                                           151                  145          -              -                   -               145                 4.2

    Biosciences                                                                                  126                  115          -              -                   -               115                 9.7

    TOTAL                                                                                              $476                    $451               $     -                  $            -    $             -    $451     5.6
                                                                                                       ----                    ----             ---   ---                ---          ---  ---           ---    ----     ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $259                    $142                  $129                   $            -               $(9)    $262   (1.4)

    Peripheral Intervention (a)                                                                  195                    3        178               -                   -               181                 7.6

    Urology and Critical Care                                                                    178                    -       167               -                   -               167                 6.9

    TOTAL                                                                                              $632                    $145                  $474                   $            -               $(9)    $610     3.5
                                                                                                       ----                    ----                  ----                 ---          ---                ---     ----     ---


    TOTAL UNITED STATES                                                                              $2,338                  $1,603                  $618                             $(3)               $(9)  $2,208     5.9
                                                                                                     ------                  ------                  ----                              ---                 ---   ------     ---

    (a)              Reflects a reclassification of $145
                     million associated with the
                     movement, effective on January 1,
                     2018, of certain product offerings
                     from the Medical segment to the
                     Interventional segment.

    (b)              Amounts presented in alignment with
                     BD's current-period segment,
                     organizational unit and regional
                     reporting structure.  Also reflects
                     the elimination of revenues from the
                     Peripheral Intervention unit related
                     to a royalty income stream, reported
                     as revenues by Bard, which BD
                     reports 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)              Represents adjustments for BD's
                     divestiture of its soft tissue core
                     needle biopsy product line and
                     Bard's divestiture of its Aspira(R)
                     product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

    SUPPLEMENTAL INFORMATION

    Three Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)


                                                                                               A                  B           C           D                E=B+C+D                  F           G=(A-E-F)/E
                                                                                              ---                ---         ---         ---                                       ---          -----------

                                                                                              BD                  BD      Bard (b)   Divestiture         Comparable             FX Impact                   FXN %
                                                                                           Reported         Reported (a)             Adjustments                                                   Change
                                                                                                                                         (c)
                                                                                                                                         ---

                                                                                                2018                 2017       2017                 2017
                                                                                                ----                 ----       ----                 ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                  $471                    $367                  $59                  $    -                $426               $23   5.3

    Medication Management Solutions                                                              127                  109          -             -                109                      9      9.1

    Diabetes Care                                                                                138                  131          -             -                131                      7      0.1

    Pharmaceutical Systems                                                                       279                  258          -             -                258                     19      1.0

    TOTAL                                                                                            $1,016                    $864                  $59                  $    -                $923               $58   3.8
                                                                                                     ------                    ----                  ---                ---  ---                ----               ---   ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $205                    $185              $     -                 $    -                $185                $8   6.2

    Diagnostic Systems                                                                           211                  191          -             -                191                     10      5.7

    Biosciences                                                                                  188                  171          -             -                171                      8      4.9

    TOTAL                                                                                              $603                    $547              $     -                 $    -                $547               $26   5.6
                                                                                                       ----                    ----            ---   ---               ---  ---                ----               ---   ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                         $77                     $20                  $45                    $(2)                 $64                $5  14.4

    Peripheral Intervention (a)                                                                  157                    1        134              -                136                     10      8.7

    Urology and Critical Care                                                                     87                    -        80              -                 80                      5      3.0

    TOTAL                                                                                              $322                     $22                 $259                    $(2)                $279               $19   8.4
                                                                                                       ----                     ---                 ----                     ---                 ----               ---   ---


    TOTAL INTERNATIONAL                                                                              $1,941                  $1,433                 $318                    $(2)              $1,749              $103   5.1
                                                                                                     ------                  ------                 ----                     ---               ------              ----   ---

    (a)                    Reflects a reclassification of $22
                           million associated with the
                           movement, effective on January 1,
                           2018, of certain product offerings
                           from the Medical segment to the
                           Interventional segment.

    (b)                    Amounts presented in alignment with
                           BD's current-period segment,
                           organizational unit and regional
                           reporting structure.

    (c)                    Represents adjustments for BD's
                           divestiture of its soft tissue core
                           needle biopsy product line and
                           Bard's divestiture of its Aspira(R)
                           product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

    Three Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)



                                                                                       A                  B           C            D                   E             F=B+C+D+E               G            H=(A-F-G)/F
                                                                                      ---                ---         ---          ---                 ---            ---------              ---           -----------

                                                                                      BD                  BD      Bard (b)   Intercompany         Divestiture        Comparable          FX Impact                       FXN %
                                                                                   Reported         Reported (a)              Adjustment          Adjustments                                                Change
                                                                                                                                  (c)                 (d)
                                                                                                                                  ---                 ---

                                                                                        2018                 2017       2017                                2017
                                                                                        ----                 ----       ----                                ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                          $977                    $702                  $203                             $(3)    $                -              $902      $23    5.8

    Medication Management                                                                610                  556          -              -                   -               556                      9     8.3
    Solutions

    Diabetes Care                                                                        276                  263          -              -                   -               263                      7     2.4

    Pharmaceutical Systems                                                               383                  350          -              -                   -               350                     19     3.8

    TOTAL                                                                                    $2,246                  $1,871                  $203                             $(3)    $                -            $2,070      $58    5.7
                                                                                             ------                  ------                  ----                              ---   ---              ---            ------      ---    ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                      $404                    $376               $     -                  $            -    $                -              $376       $8    5.2

    Diagnostic Systems                                                                   362                  335          -              -                   -               335                     10     5.0

    Biosciences                                                                          314                  286          -              -                   -               286                      8     6.8

    TOTAL                                                                                    $1,079                    $997               $     -                  $            -    $                -              $997      $26    5.6
                                                                                             ------                    ----             ---   ---                ---          ---  ---              ---              ----      ---    ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                $336                    $163                  $175                   $            -                 $(11)              $326       $5    1.7

    Peripheral Intervention (a)                                                          353                    5        312               -                   -               317                     10     8.1

    Urology and Critical Care                                                            265                    -       246               -                   -               246                      5     5.6

    TOTAL                                                                                      $954                    $167                  $733                   $            -                 $(11)              $889      $19    5.1
                                                                                               ----                    ----                  ----                 ---          ---                  ----               ----      ---    ---


    TOTAL REVENUES                                                                           $4,278                  $3,035                  $936                             $(3)                 $(11)            $3,957     $103    5.5
                                                                                             ------                  ------                  ----                              ---                   ----             ------     ----    ---

    (a)              Reflects a reclassification of $167
                     million associated with the
                     movement, effective on January 1,
                     2018, of certain product offerings
                     from the Medical segment to the
                     Interventional segment.

    (b)              Amounts presented in alignment with
                     BD's current-period segment,
                     organizational unit and regional
                     reporting structure.  Also reflects
                     the elimination of revenues from the
                     Peripheral Intervention unit related
                     to a royalty income stream, reported
                     as revenues by Bard, which BD
                     reports 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)              Represents adjustments for BD's
                     divestiture of its soft tissue core
                     needle biopsy product line and
                     Bard's divestiture of its Aspira(R)
                     product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

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

    Nine Months Ended June 30,

    (Unaudited; Amounts in millions)


                                                                                              A                 B                  C              D               E=A+B+C+D                      F              G              H                 I          J=F+G+H+I                K=(E-J)/J
                                                                                             ---               ---                ---            ---              ---------                     ---            ---            ---               ---         ---------                ---------

                                                                                             BD            Bard Q1 (b)       Intercompany    Divestiture          Comparable                     BD         Bard (b)     Intercompany      Divestiture      Comparable               Comparable
                                                                                          Reported                          Adjustment (c)   Adjustments                                   Reported (a)                   Adjustment       Adjustments                                % Change
                                                                                                                                                 (d)                                                                          (c)               (d)
                                                                                                                                                 ---                                                                          ---               ---

                                                                                               2018                2018                                 2018                    2017                   2017                           2017
                                                                                               ----                ----                                 ----                    ----                   ----                           ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                               $1,379                             $145                  $(3)                 $      -                      $1,521                             $1,026                     $429              $(11)       $       -      $1,444       5.3

    Medication Management                                                                     1,415                   -                   -               -             1,415                       1,403             -                -                -           1,403                0.9
    Solutions

    Diabetes Care                                                                               415                   -                   -               -               415                         400             -                -                -             400                3.8

    Pharmaceutical Systems                                                                      239                   -                   -               -               239                         231             -                -                -             231                3.5

    TOTAL                                                                                           $3,448                             $145                  $(3)                 $      -                      $3,590                             $3,060                     $429              $(11)       $       -      $3,478       3.2
                                                                                                    ------                             ----                   ---                ---    ---                      ------                             ------                     ----               ----      ---     ---      ------       ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                             $565                $               -               $    -                 $      -                        $565                               $552                $       -         $       -       $       -        $552       2.2

    Diagnostic Systems                                                                          518                   -                   -               -               518                         471             -                -                -             471                9.9

    Biosciences                                                                                 350                   -                   -               -               350                         331             -                -                -             331                5.7

    TOTAL                                                                                           $1,433                $               -               $    -                 $      -                      $1,433                             $1,355                $       -         $       -       $       -      $1,355       5.8
                                                                                                    ------              ---             ---             ---  ---               ---    ---                      ------                             ------              ---     ---       ---     ---     ---     ---      ------       ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                       $687                             $105                $    -                    $(15)                        $777                               $434                     $391          $       -           $(29)        $796     (2.4)

    Peripheral Intervention (a)                                                                 393                 188                    -               -               581                          10           521                 -                -             531                9.4

    Urology and Critical Care                                                                   358                 177                    -               -               535                           -          510                 -                -             510                4.9

    TOTAL                                                                                           $1,438                             $470                $    -                    $(15)                      $1,893                               $444                   $1,421          $       -           $(29)      $1,837       3.1
                                                                                                    ------                             ----              ---  ---                     ----                       ------                               ----                   ------        ---     ---            ----       ------       ---


    TOTAL UNITED STATES                                                                             $6,319                             $614                  $(3)                    $(15)                      $6,916                             $4,859                   $1,850              $(11)           $(29)      $6,670       3.7
                                                                                                    ------                             ----                   ---                      ----                       ------                             ------                   ------               ----             ----       ------       ---

    (a)                   Reflects a reclassification of $444
                          million associated with the
                          movement, effective on January 1,
                          2018, of certain product offerings
                          from the Medical segment to the
                          Interventional segment.

    (b)                   Amounts in 2018 represent revenues
                          for the quarter ended December 31,
                          2017; amounts in 2017 represent
                          revenues for the quarters ended
                          December 31, 2016, March 31, 2017
                          and June 30, 2017.  Amounts
                          presented in alignment with BD's
                          current-period segment,
                          organizational unit and regional
                          reporting structure.  Also reflects
                          the elimination of revenues from
                          the Peripheral Intervention unit
                          related to a royalty income stream,
                          reported as revenues by Bard, which
                          BD reports 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)                   Represents adjustments for BD's
                          divestiture of its soft tissue core
                          needle biopsy product line and
                          Bard's divestiture of its Aspira(R)
                          product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

    Nine Months Ended June 30, (continued)

    (Unaudited; Amounts in millions)



                                                                                               A                 B                C               D=A+B+C                     E                    F              G                    H=E+F+G                  I                J=(D-H-
                                                                                                                                                                                                                                                                                   I)/H
                                                                                                                                                                                                                                                                                   ----

                                                                                              BD            Bard Q1 (b)      Divestiture        Comparable                   BD                 Bard (b)     Divestiture             Comparable             FX Impact                   FXN %
                                                                                           Reported                          Adjustments                                Reported (a)                         Adjustments                                                          Change
                                                                                                                                 (c)                                                                             (c)
                                                                                                                                 ---                                                                             ---

                                                                                                2018                2018                   2018                     2017                     2017                        2017
                                                                                                ----                ----                   ----                     ----                     ----                        ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                                $1,298                           $68                    $    -                      $1,366                                $1,065                    $164                  $                 -     $1,229     $67     5.7

    Medication Management Solutions                                                              364                   -                -                 364                      321                    -               -                    321                    26                       5.2

    Diabetes Care                                                                                405                   -                -                 405                      374                    -               -                    374                    21                       2.9

    Pharmaceutical Systems                                                                       755                   -                -                 755                      658                    -               -                    658                    59                       5.8

    TOTAL                                                                                            $2,822                           $68                    $    -                      $2,890                                $2,417                    $164                  $                 -     $2,581    $173     5.3
                                                                                                     ------                           ---                  ---  ---                      ------                                ------                    ----                ---               ---     ------    ----     ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                              $595                $            -                   $    -                        $595                                  $541                   $   -                 $                 -       $541     $29     4.7

    Diagnostic Systems                                                                           634                   -                -                 634                      548                    -               -                    548                    31                      10.2

    Biosciences                                                                                  559                   -                -                 559                      494                    -               -                    494                    27                       7.9

    TOTAL                                                                                            $1,789                $            -                   $    -                      $1,789                                $1,582                   $   -                 $                 -     $1,582     $87     7.6
                                                                                                     ------              ---          ---                 ---  ---                      ------                                ------                 --- ---               ---               ---     ------     ---     ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                        $177                           $49                      $(3)                        $222                                   $65                    $126                                 $(7)       $184     $13    13.7

    Peripheral Intervention (a)                                                                  303                 146                 -                 449                        4                  379                -                    382                    27                      10.5

    Urology and Critical Care                                                                    171                  90                 -                 261                        -                 239                -                    239                    13                       3.8

    TOTAL                                                                                              $651                          $285                      $(3)                        $933                                   $68                    $744                                 $(7)       $806     $53     9.2
                                                                                                       ----                          ----                       ---                         ----                                   ---                    ----                                  ---        ----     ---     ---


    TOTAL INTERNATIONAL                                                                              $5,261                          $353                      $(3)                      $5,611                                $4,068                    $908                                 $(7)     $4,969    $312     6.6
                                                                                                     ------                          ----                       ---                       ------                                ------                    ----                                  ---      ------    ----     ---

    (a)              Reflects a reclassification of $68
                     million associated with the
                     movement, effective on January 1,
                     2018, of certain product offerings
                     from the Medical segment to the
                     Interventional segment.

    (b)              Amounts in 2018 represent revenues
                     for the quarter ended December 31,
                     2017; amounts in 2017 represent
                     revenues for the quarters ended
                     December 31, 2016, March 31, 2017
                     and June 30, 2017.  Amounts
                     presented in alignment with BD's
                     current-period segment,
                     organizational unit and regional
                     reporting structure.

    (c)              Represents adjustments for BD's
                     divestiture of its soft tissue core
                     needle biopsy product line and
                     Bard's divestiture of its Aspira(R)
                     product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

    Nine Months Ended June 30, (continued)

    (Unaudited; Amounts in millions


                                                                                       A                B               C             D                E=A+B+C+                      F              G              H                 I          J=F+G+H+I                    K                    L=(E-J-
                                                                                                                                                           D                                                                                                                                       K)/J
                                                                                                                                                          ---                                                                                                                                      ----

                                                                                      BD             Bard Q1      Intercompany   Divestiture          Comparable                     BD         Bard (b)     Intercompany      Divestiture      Comparable               FX Impact                        FXN %
                                                                                   Reported            (b)         Adjustment    Adjustments                                   Reported (a)                   Adjustment       Adjustments                                                        Change
                                                                                                                       (c)           (d)                                                                          (c)               (d)
                                                                                                                       ---           ---                                                                          ---               ---

                                                                                        2018             2018                               2018                    2017                   2017                           2017
                                                                                        ----             ----                               ----                    ----                   ----                           ----

    BD MEDICAL
    ----------

    Medication Delivery Solutions (a)                                                         $2,677                       $213                  $(3)                 $      -                      $2,887                             $2,091                     $593                    $(11)                     $       -      $2,673       $67       5.5

    Medication                                                                         1,778                -                 -               -             1,778                       1,723             -                -                -           1,723                        26             1.7
    Management Solutions

    Diabetes Care                                                                        820                -                 -               -               820                         773             -                -                -             773                        21             3.4

    Pharmaceutical                                                                       994                -                 -               -               994                         889             -                -                -             889                        59             5.2
    Systems

    TOTAL                                                                                     $6,270                       $213                  $(3)                 $      -                      $6,480                             $5,477                     $593                    $(11)                     $       -      $6,059      $173       4.1
                                                                                              ------                       ----                   ---                ---    ---                      ------                             ------                     ----                     ----                    ---     ---      ------      ----       ---


    BD LIFE SCIENCES
    ----------------

    Preanalytical Systems                                                                     $1,160            $             -               $    -                 $      -                      $1,160                             $1,094                $       -                $      -                     $       -      $1,094       $29       3.4

    Diagnostic Systems                                                                 1,152                -                 -               -             1,152                       1,019             -                -                -           1,019                        31            10.1

    Biosciences                                                                          910                -                 -               -               910                         825             -                -                -             825                        27             7.0

    TOTAL                                                                                     $3,222            $             -               $    -                 $      -                      $3,222                             $2,937                $       -                $      -                     $       -      $2,937       $87       6.7
                                                                                              ------          ---           ---             ---  ---               ---    ---                      ------                             ------              ---     ---              ---    ---                   ---     ---      ------       ---       ---


    BD INTERVENTIONAL
    -----------------

    Surgery (a)                                                                                 $864                       $153                $    -                    $(18)                        $999                               $499                     $517                 $      -                         $(36)        $980       $13       0.6

    Peripheral Intervention                                                              697              334                  -               -             1,030                          14           900                 -                -             914                        27             9.9
    (a)

    Urology and Critical                                                                 529              267                  -               -               796                           -          749                 -                -             749                        13             4.6
    Care

    TOTAL                                                                                     $2,089                       $755                $    -                    $(18)                      $2,826                               $513                   $2,166                 $      -                         $(36)      $2,643       $53       4.9
                                                                                              ------                       ----              ---  ---                     ----                       ------                               ----                   ------               ---    ---                          ----       ------       ---       ---


    TOTAL REVENUES                                                                           $11,581                       $968                  $(3)                    $(18)                     $12,528                             $8,927                   $2,759                    $(11)                         $(36)     $11,639      $312       5.0
                                                                                             -------                       ----                   ---                      ----                      -------                             ------                   ------                     ----                           ----      -------      ----       ---

    (a)              Reflects a reclassification of $513
                     million associated with the
                     movement, effective on January 1,
                     2018, of certain product offerings
                     from the Medical segment to the
                     Interventional segment.

    (b)              Amounts in 2018 represent revenues
                     for the quarter ended December 31,
                     2017; amounts in 2017 represent
                     revenues for the quarters ended
                     December 31, 2016, March 31, 2017
                     and June 30, 2017.  Amounts
                     presented in alignment with BD's
                     current-period segment,
                     organizational unit and regional
                     reporting structure.  Also reflects
                     the elimination of revenues from the
                     Peripheral Intervention unit related
                     to a royalty income stream, reported
                     as revenues by Bard, which BD
                     reports 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)              Represents adjustments for BD's
                     divestiture of its soft tissue core
                     needle biopsy product line and
                     Bard's divestiture of its Aspira(R)
                     product line.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

    (Unaudited)


                                                                                                                          Three Months Ended June 30,
                                                                                                                     ---------------------------

                                                                                                  2018          2017               Growth                  Foreign             Foreign Growth %    Foreign

                                                                                                                                                        Currency            Currency             Currency

                                                                                                                                                      Translation            Neutral              Neutral

                                                                                                                                                                             Growth                Growth %
                                                                                                                                                                                                    -------

    Reported Diluted Earnings (Loss) per Share                                                         $2.03                      $(0.75)                            $2.78                $0.16             $2.62  370.7%  349.3%
                                                                                                       -----                       ------                             -----                -----             -----   -----    -----

    Purchase accounting adjustments ($433 million and $106 million pre-tax, respectively) (1)     1.58          0.48                                               -

    Restructuring costs ($33 million and $8 million pre-tax, respectively) (2)                    0.12          0.04                                               -

    Integration costs ($103 million and $50 million pre-tax, respectively) (2)                    0.37          0.23                                               -

    Transaction costs ($11 million and $23 million pre-tax, respectively) (2)                     0.04          0.10                                               -

    Financing impacts ($87 million pre-tax) (3)                                                      -         0.39                                               -

    Hurricane recovery costs ($3 million pre-tax) (4)                                             0.01             -                                              -

    Losses on debt extinguishment ($3 million and $31 million pre-tax, respectively) (5)          0.01          0.14                                               -

    Net impact of gain on sale of investment and asset impairments ($(214) million pre-tax) (6) (0.78)            -                                           0.01

    Lease contract modification-related charge ($741 million pre-tax) (7)                            -         3.36                                               -

    Dilutive impact (8)                                                                              -         0.18                                               -

    Income tax benefit of special items ($(130) million and $(377) million, respectively)       (0.48)       (1.71)                                              -
                                                                                                 -----         -----                                             ---

    Adjusted Diluted Earnings per Share                                                                $2.91                        $2.46                             $0.45                $0.18             $0.27   18.3%   11.0%
                                                                                                       -----                        -----                             -----                -----             -----    ----     ----

    (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 $56 million recorded
                     relative to Bard's inventory on the
                     acquisition date.

    (2)              Represents restructuring, integration
                     and transaction costs which are
                     associated with the Bard and
                     CareFusion acquisitions, as well as
                     restructuring and transaction costs
                     associated with other portfolio
                     rationalization initiatives.

    (3)              Represents financing impacts
                     associated with the Bard
                     acquisition.

    (4)              Represents costs incurred as a result
                     of hurricane-related damage to
                     production facilities in Puerto
                     Rico.

    (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.

    (7)              Represents a non-cash charge
                     resulting from a modification to our
                     dispensing equipment lease contracts
                     with customers.

    (8)              Represents the dilutive impact of BD
                     shares issued in May 2017, in
                     anticipation of the Bard
                     acquisition.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

    (Unaudited)


                                                                                                                            Nine Months Ended June 30,
                                                                                                                      --------------------------

                                                                                                       2018          2017                              Growth      Foreign              Foreign        Growth %   Foreign

                                                                                                                                                                Currency             Currency                   Currency

                                                                                                                                                              Translation             Neutral                    Neutral

                                                                                                                                                                                      Growth                      Growth %
                                                                                                                                                                                                                   -------

    Reported Diluted Earnings per Share                                                                     $1.27                            $3.36                           $(2.09)            $0.38                      $(2.47)  (62.2)%   (73.5)%
                                                                                                            -----                            -----                            ------             -----                       ------    ------     ------

    Purchase accounting adjustments ($1.4 billion and $361 million pre-tax, respectively) (1)          5.21          1.64                                               0.01

    Restructuring costs ($288 million and $54 million pre-tax, respectively) (2)                       1.10          0.25                                               0.01

    Integration costs ($255 million and $159 million pre-tax, respectively) (2)                        0.98          0.72                                               0.01

    Transaction costs ($61 million and $37 million pre-tax, respectively) (2)                          0.23          0.17                                                  -

    Financing impacts ($49 million and $87 million pre-tax, respectively) (3)                          0.19          0.40                                                  -

    Hurricane recovery costs ($15 million pre-tax) (4)                                                 0.06             -                                                 -

    Losses on debt extinguishment ($16 million and $73 million pre-tax, respectively) (5)              0.06          0.33                                                  -

    Net impact of gain on sale of investment and asset impairments ($(214) million pre-tax) (6)      (0.82)            -                                              0.01

    Litigation-related item ($(336) million pre-tax) (7)                                                  -       (1.52)                                                 -

    Lease contract modification-related charge ($741 million pre-tax) (8)                                 -         3.36                                                  -

    Dilutive Impact (9)                                                                                0.31          0.22                                                  -

    Income tax benefit of special items and impact of tax reform ($(133) million and $(404) million, (0.51)       (1.83)                                            (0.01)
    respectively) (10)


    Adjusted Diluted Earnings per Share                                                                     $8.08                            $7.09                             $0.99             $0.42                        $0.57     14.0%      8.0%
                                                                                                            -----                            -----                             -----             -----                        -----      ----        ---

    (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, integration
                        and transaction costs which are
                        associated with the Bard and
                        CareFusion acquisitions, as well as
                        restructuring and transaction costs
                        associated with other portfolio
                        rationalization initiatives.

    (3)                 Represents financing impacts
                        associated with the Bard acquisition.

    (4)                 Represents costs incurred as a result
                        of hurricane-related damage to
                        production facilities in Puerto Rico.

    (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.

    (7)                 Represents the reversal of certain
                        reserves related to an appellate
                        court decision which, among other
                        things, reversed an unfavorable
                        antitrust judgment in the RTI case.

    (8)                 Represents a non-cash charge
                        resulting from a modification to our
                        dispensing equipment lease contracts
                        with customers.

                       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
    (9)                 255,697.

                       Includes additional tax expense, net,
                        of $275 million relating to new U.S.
                        tax legislation. An estimated one-
                        time transition tax payable of $561
                        million, payable over an eight year
                        period with 8% due in each of the
                        first five years, was offset by a tax
                        benefit of $285 million related to
                        the remeasurement of deferred tax
                        balances due to the lower corporate
                        tax rate at which they are expected
    (10)                to reverse in the future.

 

 

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    FY 2018 OUTLOOK RECONCILIATION


                                                                                             BD Including Bard
                                                                                             -----------------


                                                       FY2017                                  FY2018 Outlook
                                                       ------                                  --------------

                                                      Revenues                      % Change                        FX Impact       % Change FXN
                                                      --------                      --------                        ---------       ------------


    BDX Revenue                                                        $12,093                               31.5%+           ~2.5%              29%+
                                                                       =======                                =====            ====                ===


    Comparable Revenue Growth

                                                       FY2017                                  FY2018 Outlook
                                                       ------                                  --------------

                                                      Revenues                                  % Change FXN
                                                                                                 Comparable
                                                                                                 ----------


    BDX As Reported Revenue                                            $12,093

    Divestitures Revenue (1)                                 (48)

    Bard As Reported                                        3,875

    Gore Royalty Classification                             (173)

    Intercompany Adjustment                                  (14)
                                                              ---

    BDX NewCo Comparable Revenue                                       $15,732                                5.5%+
                                                                       =======

    U.S. Dispensing Change & Bard Hurricane Impact                                                                  ~0.5%
                                                                                                                     ----

    NewCo Revenue Underlying                                                                6%+
                                                                                            ===




    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    FY 2018 OUTLOOK RECONCILIATION (continued)


                                                       FY2017                    FY2018 Outlook
                                                       ------                    --------------

                                                      Revenues                    % Change FXN
                                                                                   Comparable
                                                                                   ----------

    BD Medical As Reported Revenue                                      $8,105

    BD BU Re-alignment                                      (685)

    Bard BU Re-alignment                                      800

    Intercompany Adjustment                                  (14)
                                                              ---

    BD Medical Comparable Revenue                                       $8,205                                  5%+
                                                                        ======                                  ===


    BD Life Sciences As Reported Revenue                                $3,988                                  6%+
                                                                        ======                                  ===


    Bard Interventional as Reported                             $            -

    BD BU Re-alignment                                        685

    Bard As Reported                                        3,875

    Bard BU Re-alignment                                    (800)

    Divestitures Revenue (1)                                 (48)

    Gore Royalty Classification                             (173)
                                                             ----

    Bard Interventional Comparable Revenue                              $3,539                          4.5% - 5.5%
                                                                        ======

    Hurricane Impact                                                                        ~1%
                                                                                            ---

    NewCo Interventional Revenue Underlying                                         5.5% - 6.5%
                                                                                     ==========



                                                               BD Including Bard
                                                               -----------------

                                                                 FY2018 Outlook
                                                                 --------------

                                                      Full Year                    % Increase
                                                   FY2018 Outlook
                                                   --------------


    Adjusted Fully Diluted Earnings per Share      $10.95 - 11.05                 15.5% - 16.5%
                                                   ==============

    Estimated FX Impact                                                                     ~4%
                                                                                            ---

    Adjusted FXN Growth                                                                    ~12%
         FXN - Foreign National Currency



    (1)              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.

 

Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657

 

View original content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2018-third-fiscal-quarter-raises-fiscal-2018-revenue-guidance-300690672.html

SOURCE BD (Becton, Dickinson and Company)

Company Codes: NYSE:BDX

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