EX-99.1 2 ex99103312019.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

1 Becton Drive
Franklin Lakes, NJ 07417
www.bd.com



bda10.jpg



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



BD ANNOUNCES RESULTS FOR 2019 SECOND FISCAL QUARTER;
UPDATES FISCAL 2019 GUIDANCE

•
As reported, revenues of $4.195 billion decreased 0.6 percent.
•
On a comparable, currency-neutral basis, revenues increased 3.4 percent.
•
As reported, diluted earnings per share of $(0.07) increased 63.2 percent.
•
As adjusted, diluted earnings per share of $2.59 decreased 2.3 percent, and increased 7.2 percent on a currency-neutral basis.
•
The company reaffirmed its full fiscal year 2019 comparable, currency-neutral revenue guidance, and updated its adjusted diluted earnings per share guidance.


Franklin Lakes, NJ (May 9, 2019) - BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.195 billion for the second fiscal quarter ended March 31, 2019. This represents a decrease of 0.6 percent from the prior-year period. On a comparable, currency-neutral basis, revenues increased 3.4 percent over the prior-year period.
 
“Through the second quarter we have delivered solid revenue growth and operating performance,” said Vincent A. Forlenza, chairman and CEO. “Our revised fiscal year 2019 outlook reflects recent, near-term regulatory and market pressures related to paclitaxel-coated devices and foreign currency, which will affect our EPS guidance range. We remain confident that our business is strong, fundamentals are in-tact, and we will continue to deliver value to our shareholders and customers around the world.”

Second Quarter and Six-Month Fiscal 2019 Operating Results
As reported, diluted earnings per share for the second quarter were $(0.07), compared with $(0.19) in the prior-year period. This represents an increase of 63.2 percent. Adjusted diluted earnings per share were $2.59, compared with $2.65 in the prior-year period. This represents a decrease in adjusted diluted earnings per share of 2.3 percent, or an increase of 7.2 percent on a currency-neutral basis.

For the six-month period ended March 31, 2019, as reported, diluted earnings per share were $1.98, compared with $(0.90) in the prior-year period. This represents an increase of 320.0 percent. Adjusted diluted earnings per share were $5.29, compared with $5.15 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 2.7 percent, or 10.5 percent on a currency-neutral basis.




Current period adjusted results exclude, among other items, charges to record product liability reserves of $331 million and the estimated cost of a product recall of $65 million.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.180 billion increased 0.4 percent over the prior-year period, or 3.8 percent on a comparable, currency-neutral basis. The segment’s results were driven by performance in the Medication Management Solutions, Diabetes Care and Pharmaceutical Systems units. Performance in the Medication Delivery Solutions unit reflects a tough comparison to the prior year, as well as distributor inventory adjustments during the quarter in the United States.

For the six-month period ended March 31, 2019, BD Medical revenues were $4.316 billion as reported, which represents an increase of 7.2 percent over the prior-year period. On a comparable, currency-neutral basis, BD Medical revenues increased 4.5 percent.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter of $1.052 billion decreased 4.2 percent from the prior-year period. On a comparable, currency-neutral basis, revenues increased 2.7 percent. Revenue growth was driven by performance in the Biosciences and Preanalytical Systems units. Growth in the Diagnostic Systems unit reflects a tough comparison to the strong flu season in the prior-year period.

For the six-month period ended March 31, 2019, BD Life Sciences revenues were $2.108 billion as reported, which represents a decrease of 1.6 percent from the prior-year period. On a comparable, currency-neutral basis, BD Life Sciences revenues of $2.099 billion increased 3.7 percent.

In the BD Interventional segment, as reported, worldwide revenues for the quarter of $0.963 billion increased 1.1 percent over the prior-year period, or 3.5 percent on a comparable, currency-neutral basis. The segment's results were driven by performance in the Urology and Critical Care and Peripheral Intervention units. Growth in the Surgery unit reflects a tough comparison to the prior-year period.

For the six-month period ended March 31, 2019, BD Interventional revenues were $1.932 billion as reported, which represents an increase of 70.2 percent over the prior-year period. On a comparable, currency-neutral basis, BD Interventional revenues increased 4.6 percent.

Geographic Results
As reported, second quarter revenues in the U.S. of $2.341 billion increased 0.7 percent from the prior-year period. On a comparable basis, U.S. revenues increased 2.2 percent over the prior-year period. Growth in the U.S. was driven by performance in the BD Medical and BD Interventional segments. BD Life Sciences' growth in the U.S. reflects the aforementioned comparison to a strong flu season in the prior year in the Diagnostic Systems unit.

As reported, revenues outside of the U.S. of $1.854 billion decreased 2.3 percent from the prior-year period. On a comparable, currency-neutral basis, revenues outside of the U.S. increased 4.9 percent over the prior-year period. International revenue growth was driven by strong performance in China and EMA.

For the six-month period ended March 31, 2019, U.S. revenues were $4.728 billion as reported, which represents an increase of 18.7 percent over the prior-year period. On a comparable basis, U.S. revenues of $4.724 billion grew 4.1 percent over the prior-year period. As reported, revenues outside of the U.S. of $3.628 billion grew 9.2 percent over the prior-year period. On a comparable, currency-neutral basis, revenues outside the U.S. of $3.623 billion grew 4.5 percent over the prior-year period.

Fiscal 2019 Outlook for Full Year
As reported, the company expects full fiscal year 2019 revenues to increase 8.0 to 9.0 percent, compared to 8.5 to 9.5 percent previously communicated, due to the estimated additional negative impact from foreign currency. The company continues to estimate full fiscal year 2019 revenues will increase 5.0 to 6.0 percent on a comparable, currency-neutral basis.

The company expects adjusted diluted earnings per share to be between $11.65 and $11.75, resulting in growth of approximately 12.0 percent on a currency-neutral basis. This is a decrease from previously issued guidance of approximately 13.0 to 14.0 percent growth, and is due to recent regulatory and market pressures related to paclitaxel-coated devices. Including the estimated additional unfavorable impact of foreign currency, adjusted diluted earnings per share are expected to grow approximately 6.0 to 7.0 percent over fiscal 2018 adjusted diluted earnings per share of $11.01.

Estimated adjusted diluted earnings per share for fiscal 2019 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax matters.



BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of BD's financial performance.

Conference Call Information
A conference call regarding BD’s second quarter results will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, May 9, 2019. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, May 14, 2019, confirmation number 1284128.

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

All “comparable” basis revenue growth rates relating to fiscal year 2019 presented throughout this release include, where applicable, the results of C. R. Bard, Inc. (“Bard”) in the prior-year period, and also include adjustments for certain items as detailed in the attached tables. Beginning in the second quarter of fiscal year 2018, the Company's organizational structure was based upon three principal business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Interventional segment was added upon the Company's completion of its acquisition of Bard, and this new segment includes the majority of Bard’s product offerings and certain product offerings that were previously reported in the Medical segment. Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit. Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; transactional and product related impacts; and the loss on debt extinguishment. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com.


***
This press release, including the section entitled “Fiscal 2019 Outlook for Full Year”, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues and earnings per share.  All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties.  Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement.  With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially.  These factors include, but are not limited to: risks relating to the integration of the C.R. Bard operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; fluctuations in costs and availability of raw materials and in BD’s ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or



foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services, or our suppliers’ ability to provide products needed for our operations; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD’s products; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators (including the potential impact of the recent FDA letter on the use of drug-coated balloons); our ability to successfully integrate any businesses we acquire; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; and issuance of new or revised accounting standards, as well as other factors discussed in BD’s filings with the Securities and Exchange Commission.  We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.




BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)

 
  
Three Months Ended March 31,
 
  
2019
 
2018
 
% Change
REVENUES
  
$
4,195

 
$
4,222

 
(0.6
)
 
 
 
 
 
 
 
Cost of products sold
  
2,221

 
2,616

 
(15.1
)
Selling and administrative expense
  
1,089

 
1,056

 
3.1

Research and development expense
  
252

 
259

 
(2.9
)
Acquisitions and other restructurings
  
101

 
104

 
(3.3
)
Other operating expense, net
  
396

 
—

 
100.0

TOTAL OPERATING COSTS AND EXPENSES
  
4,059

 
4,036

 
0.6

OPERATING INCOME
  
136

 
186

 
(26.9
)
 
 
 
 
 
 
 
Interest expense
  
(171
)
 
(185
)
 
(7.2
)
Interest income
  
18

 
4

 
385.1

Other income, net
  
20

 
1

 
2,058.2

INCOME BEFORE INCOME TAXES
  
3

 
6

 
(50.5
)
Income tax (benefit) provision
  
(17
)
 
18

 
(192.6
)
NET INCOME (LOSS)
  
20

 
(12
)
 
267.8

Preferred stock dividends
 
(38
)
 
(38
)
 
—

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS
 
$
(18
)
 
$
(50
)
 
64.3

 
  
 
 
 
 
 
EARNINGS PER SHARE
  
 
 
 
 
 
Basic Loss per Share
  
$
(0.07
)
 
$
(0.19
)
 
63.2

Diluted Loss per Share
  
$
(0.07
)
 
$
(0.19
)
 
63.2

 
  
 
 
 
 
 
AVERAGE SHARES OUTSTANDING (in thousands)
  
 
 
 
 
 
Basic
  
269,882
 
267,341
 
 
Diluted
  
269,882
 
267,341
 
 

Page 1


BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
 
  
Six Months Ended March 31,
 
  
2019
 
2018
 
% Change
REVENUES
  
$
8,355

 
$
7,302

 
14.4

 
 
 
 
 
 
 
Cost of products sold
  
4,408

 
4,143

 
6.4

Selling and administrative expense
  
2,161

 
1,829

 
18.2

Research and development expense
  
510

 
451

 
13.1

Acquisitions and other restructurings
  
191

 
458

 
(58.2
)
Other operating expense, net
  
61

 
—

 
100.0

TOTAL OPERATING COSTS AND EXPENSES
  
7,332

 
6,881

 
6.6

OPERATING INCOME
  
1,024

 
422

 
142.8

 
 
 
 
 
 
 
Interest expense
  
(342
)
 
(343
)
 
(0.3
)
Interest income
  
6

 
48

 
(87.9
)
Other income (expense), net
  
30

 
(15
)
 
301.5

INCOME BEFORE INCOME TAXES
  
718

 
111

 
544.7

Income tax provision
  
98

 
260

 
(62.2
)
NET INCOME (LOSS)
  
619

 
(148
)
 
517.4

Preferred stock dividends
 
(76
)
 
(76
)
 
—

NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS
 
$
544

 
$
(224
)
 
342.5

 
  
    
 
 
 
 
EARNINGS PER SHARE
  
 
 
 
 
 
Basic Earnings (Loss) per Share
  
$
2.02

 
$
(0.90
)
 
324.4

Diluted Earnings (Loss) per Share
  
$
1.98

 
$
(0.90
)
 
320.0

 
  
 
 
 
 
 
AVERAGE SHARES OUTSTANDING (in thousands)
  
 
 
 
 
 
Basic
  
269,454
 
248,484
 
 
Diluted
  
274,429
 
248,484
 
 







Page 2


BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions)

 
 
March 31, 2019
 
September 30, 2018
 
 
(Unaudited)
 
 
ASSETS
 
 
 
 
Cash and equivalents
 
$
686

 
$
1,140

Restricted cash
 
81

 
96

Short-term investments
 
10

 
17

Trade receivables, net
 
2,279

 
2,319

Inventories
 
2,627

 
2,451

Assets held for sale
 
—

 
137

Prepaid expenses and other
 
1,161

 
1,251

TOTAL CURRENT ASSETS
 
6,844

 
7,411

Property, plant and equipment, net
 
5,473

 
5,375

Goodwill and other intangibles, net
 
39,220

 
40,041

Other Assets
 
1,061

 
1,078

TOTAL ASSETS
 
$
52,598

 
$
53,904

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
Short-term debt
 
$
3,057

 
$
2,601

Other current liabilities
 
4,050

 
4,615

Long-term debt
 
17,556

 
18,894

Long-term employee benefit obligations
 
815

 
1,056

Deferred income taxes and other
 
5,810

 
5,743

Shareholders’ equity
 
21,309

 
20,994

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
52,598

 
$
53,904













Page 3


BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Amounts in millions)


 
 
Six Months Ended March 31,
 
 
2019
 
2018
OPERATING ACTIVITIES
 
 
 
 
Net income (loss)
 
$
619

 
$
(148
)
Depreciation and amortization
 
1,126

 
844

Change in operating assets and liabilities and other, net
 
(718
)
 
322

NET CASH PROVIDED BY OPERATING ACTIVITIES
 
1,027

 
1,017

INVESTING ACTIVITIES
 
 
 
 
Capital expenditures
 
(362
)
 
(391
)
Acquisitions of businesses, net of cash acquired
 
—

 
(15,006
)
Proceeds from divestitures, net
 
477

 
100

Other, net
 
(85
)
 
(77
)
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
 
30

 
(15,373
)
FINANCING ACTIVITIES
 
 
 
 
Change in credit facility borrowings
 
—

 
380

Proceeds from long-term debt and term loans
 
—

 
3,622

Payments of debt and term loans
 
(905
)
 
(1,833
)
Dividends paid
 
(491
)
 
(449
)
Other, net
 
(135
)
 
(155
)
NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
(1,532
)
 
1,565

Effect of exchange rate changes on cash and equivalents and restricted cash
 
5

 
29

NET DECREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH
 
(469
)
 
(12,762
)
OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH
 
1,236

 
14,179

CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH
 
$
767

 
$
1,417



Page 4


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended March 31,
(Unaudited; Amounts in millions)

 
  
A
  
B
  
C=(A-B)/B
 
  
2019
 
2018
  
% Change
BD MEDICAL
  
 
  
 
  
 
Medication Delivery Solutions
  
$
484

  
$
504

 
(4.0
)
Medication Management Solutions
  
497

  
461

 
7.9

Diabetes Care
  
137

  
131

 
4.7

Pharmaceutical Systems
  
93

  
82

 
12.7

TOTAL
  
$
1,211

  
$
1,178

 
2.8

 
  
 
  
 
  
 
BD LIFE SCIENCES
  
 
  
 
  
 
Preanalytical Systems
  
$
171

 
$
181

 
(5.9
)
Diagnostic Systems
  
180

 
201

 
(10.5
)
Biosciences
  
120

 
116

 
3.8

TOTAL
  
$
470

 
$
498

 
(5.5
)
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
Surgery
 
$
271

 
$
276

 
(1.9
)
Peripheral Intervention
 
194

 
194

 
0.1

Urology and Critical Care
 
195

 
180

 
8.7

TOTAL
 
$
659

 
$
649

 
1.6

 
 
 
 
 
 
 
TOTAL UNITED STATES
  
$
2,341

 
$
2,325

 
0.7






Page 5


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)

 
  
 
  
 
  
 
 
D=(A-B)/B
 
E=(A-B-C)/B
 
  
A
  
B
  
C
 
% Change
 
  
2019
 
2018
  
FX Impact
 
Reported
 
FXN
BD MEDICAL
  
 
  
 
  
 
 
 
 
 
Medication Delivery Solutions
  
$
446

 
$
454

 
$
(31
)
 
(1.9
)
 
4.9

Medication Management Solutions
  
118

 
120

 
(8
)
 
(1.9
)
 
4.8

Diabetes Care
  
133

 
136

 
(9
)
 
(2.3
)
 
4.4

Pharmaceutical Systems
  
273

 
284

 
(15
)
 
(3.8
)
 
1.3

TOTAL
  
$
969

 
$
994

 
$
(63
)
 
(2.5
)
 
3.8

 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
  
 
  
 
 
 
 
 
Preanalytical Systems
  
$
195

 
$
200

 
$
(15
)
 
(2.4
)
 
4.9

Diagnostic Systems
  
209

 
209

 
(12
)
 
—

 
5.9

Biosciences
  
177

 
191

 
(9
)
 
(7.1
)
 
(2.3
)
TOTAL
  
$
582

 
$
600

 
$
(36
)
 
(3.1
)
 
3.0

 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
75

 
$
75

 
$
(4
)
 
0.2

 
5.7

Peripheral Intervention
 
148

 
145

 
(9
)
 
2.6

 
8.8

Urology and Critical Care
 
80

 
84

 
(4
)
 
(4.6
)
 
0.2

TOTAL
 
$
303

 
$
303

 
$
(17
)
 
—

 
5.6

 
  
 
  
 
  
 
 
 
 
 
TOTAL INTERNATIONAL
  
$
1,854

 
$
1,898

 
$
(116
)
 
(2.3
)
 
3.8






Page 6


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)

 
  
 
  
 
  
 
 
D=(A-B)/B
 
E=(A-B-C)/B
 
  
A
  
B
  
C
 
% Change
 
  
2019
 
2018
  
FX Impact
 
Reported
 
FXN
BD MEDICAL
  
 
  
 
  
 
 
 
 
 
Medication Delivery Solutions
  
$
929

 
$
958

 
$
(31
)
 
(3.0
)
 
0.2

Medication Management Solutions
  
615

 
581

 
(8
)
 
5.9

 
7.3

Diabetes Care
  
270

 
267

 
(9
)
 
1.1

 
4.5

Pharmaceutical Systems
  
366

 
366

 
(15
)
 
(0.1
)
 
3.9

TOTAL
  
$
2,180

 
$
2,172

 
$
(63
)
 
0.4

 
3.3

 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
 
 
 
 
 
 
 
Preanalytical Systems
  
$
366

 
$
381

 
$
(15
)
 
(4.1
)
 
(0.2
)
Diagnostic Systems
  
389

 
410

 
(12
)
 
(5.1
)
 
(2.1
)
Biosciences
  
297

 
307

 
(9
)
 
(3.0
)
 
—

TOTAL
  
$
1,052

 
$
1,098

 
$
(36
)
 
(4.2
)
 
(0.9
)
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
345

 
$
351

 
$
(4
)
 
(1.5
)
 
(0.3
)
Peripheral Intervention
 
342

 
338

 
(9
)
 
1.1

 
3.8

Urology and Critical Care
 
275

 
264

 
(4
)
 
4.5

 
6.0

TOTAL
 
$
963

 
$
952

 
$
(17
)
 
1.1

 
2.9

 
  
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
  
$
4,195

 
$
4,222

 
$
(116
)
 
(0.6
)
 
2.1






Page 7


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Six Months Ended March 31,
(Unaudited; Amounts in millions)
 
  
A
  
B
  
C=(A-B)/B
 
  
2019
 
2018
  
% Change
BD MEDICAL
  
 
  
 
  
 
Medication Delivery Solutions
  
$
1,004

 
$
874

 
14.9

Medication Management Solutions
  
1,003

 
932

 
7.7

Diabetes Care
  
282

 
277

 
2.0

Pharmaceutical Systems
  
161

 
136

 
18.3

TOTAL
  
$
2,450

 
$
2,218

 
10.5

 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
  
 
  
 
Preanalytical Systems
  
$
371

 
$
366

 
1.5

Diagnostic Systems
  
355

 
367

 
(3.4
)
Biosciences
  
228

 
224

 
1.9

TOTAL
  
$
954

 
$
957

 
(0.3
)
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
Surgery
 
$
545

 
$
428

 
27.3

Peripheral Intervention
 
385

 
198

 
94.4

Urology and Critical Care
 
393

 
180

 
118.6

TOTAL
 
$
1,323

 
$
806

 
64.1

 
  
 
  
 
  
 
TOTAL UNITED STATES
  
$
4,728

 
$
3,982

 
18.7




Page 8


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
 
  
 
  
 
 
D=(A-B)/B
 
E=(A-B-C)/B
 
  
A
  
B
  
C
 
% Change
 
  
2019
 
2018
  
FX Impact
 
Reported
 
FXN
BD MEDICAL
  
 
  
 
  
 
 
 
 
 
Medication Delivery Solutions
  
$
883

 
$
826

 
$
(51
)
 
6.9

 
13.1

Medication Management Solutions
  
236

 
237

 
(11
)
 
(0.4
)
 
4.3

Diabetes Care
  
261

 
267

 
(14
)
 
(2.2
)
 
3.0

Pharmaceutical Systems
  
485

 
475

 
(19
)
 
1.9

 
5.9

TOTAL
  
$
1,865

 
$
1,806

 
$
(94
)
 
3.3

 
8.5

 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
  
 
  
 
 
 
 
 
Preanalytical Systems
  
$
387

 
$
391

 
$
(23
)
 
(0.9
)
 
5.1

Diagnostic Systems
  
416

 
423

 
(19
)
 
(1.8
)
 
2.8

Biosciences
  
350

 
372

 
(14
)
 
(5.8
)
 
(2.0
)
TOTAL
  
$
1,153

 
$
1,186

 
$
(57
)
 
(2.7
)
 
2.1

 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
148

 
$
99

 
$
(6
)
 
48.7

 
55.0

Peripheral Intervention
 
294

 
146

 
(14
)
 
101.3

 
110.9

Urology and Critical Care
 
168

 
84

 
(6
)
 
99.7

 
106.5

TOTAL
 
$
609

 
$
329

 
$
(26
)
 
85.0

 
92.9

 
  
 
  
 
  
 
 
 
 
 
TOTAL INTERNATIONAL
  
$
3,628

 
$
3,321

 
$
(177
)
 
9.2

 
14.6




Page 9


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
 
  
 
  
 
 
D=(A-B)/B
 
E=(A-B-C)/B
 
  
A
  
B
  
C
 
% Change
 
  
2019
 
2018
  
FX Impact
 
Reported
 
FXN
BD MEDICAL
  
 
  
 
  
 
 
 
 
 
Medication Delivery Solutions
  
$
1,887

 
$
1,700

 
$
(51
)
 
11.0

 
14.0

Medication Management Solutions
  
1,239

 
1,168

 
(11
)
 
6.0

 
7.0

Diabetes Care
  
544

 
544

 
(14
)
 
(0.1
)
 
2.5

Pharmaceutical Systems
  
646

 
612

 
(19
)
 
5.6

 
8.6

TOTAL
  
$
4,316

 
$
4,024

 
$
(94
)
 
7.2

 
9.6

 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
  
 
  
 
 
 
 
 
Preanalytical Systems
  
$
758

 
$
756

 
$
(23
)
 
0.3

 
3.4

Diagnostic Systems
  
771

 
791

 
(19
)
 
(2.5
)
 
(0.1
)
Biosciences
  
579

 
596

 
(14
)
 
(2.9
)
 
(0.5
)
TOTAL
  
$
2,108

 
$
2,143

 
$
(57
)
 
(1.6
)
 
1.0

 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
693

 
$
528

 
$
(6
)
 
31.3

 
32.5

Peripheral Intervention
 
679

 
344

 
(14
)
 
97.3

 
101.4

Urology and Critical Care
 
560

 
264

 
(6
)
 
112.6

 
114.7

TOTAL
 
$
1,932

 
$
1,135

 
$
(26
)
 
70.2

 
72.5

 
  
 
  
 
  
 
 
 
 
 
TOTAL REVENUES
  
$
8,355

 
$
7,302

 
$
(177
)
 
14.4

 
16.9





Page 10


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Three Months Ended March 31,
(Unaudited; Amounts in millions)
 
  
 
 
  
 
 
 
  
 
 
  
 
 
  
A
 
  
B
 
C
  
D=B+C
 
  
E=(A-D)/D
 
 
BD Reported
 
 
BD Reported
 
Divestiture and Other Adjustments (a)
 
Comparable
 
 
Comparable % Change
 
  
2019
 
 
2018
 
  
2018
 
  
BD MEDICAL
  
 
 
  
 
 
 
  
 
 
  
 
Medication Delivery Solutions
  
$
484

 
  
$
504

 
$
(9
)
 
$
495

 
  
(2.3
)
Medication Management Solutions
  
497

 
  
461

 
—

 
461

 
  
7.9

Diabetes Care
  
137

 
  
131

 
—

 
131

 
  
4.7

Pharmaceutical Systems
  
93

 
  
82

 
—

 
82

 
  
12.7

TOTAL
  
$
1,211

 
  
$
1,178

 
$
(9
)
 
$
1,169

 
  
3.6

 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
  
 
 
 
 
 
 
  
 
Preanalytical Systems
  
$
171

 
  
$
181

 
$
(12
)
 
$
169

 
  
0.8

Diagnostic Systems
  
180

 
  
201

 
—

 
201

 
  
(10.5
)
Biosciences
  
120

 
  
116

 
(9
)
 
107

 
  
12.5

TOTAL
  
$
470

 
  
$
498

 
$
(21
)
 
$
477

 
  
(1.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
271

 
 
$
276

 
$
(5
)
 
$
271

 
 
(0.3
)
Peripheral Intervention
 
194

 
 
194

 
—

 
194

 
 
0.1

Urology and Critical Care
 
195

 
 
180

 
—

 
180

 
 
8.7

TOTAL
 
$
659

 
 
$
649

 
$
(5
)
 
$
645

 
 
2.3

 
  
 
 
  
 
 
 
  
 
 
  
 
TOTAL UNITED STATES
  
$
2,341

 
  
$
2,325

 
$
(34
)
 
$
2,291

 
  
2.2


(a)
Amounts include adjustments for BD's divestitures of its Advanced Bioprocessing business and soft tissue core needle biopsy product line, as well as Bard's divestiture of its Aspira® product line. Additionally, Medication Delivery Solutions and Preanalytical Systems results for the quarter ended March 31, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018. Accordingly, to ensure comparability of revenue growth, the results for the quarter ended March 31, 2018 have been adjusted to reflect these cumulative fees. The Company records rebate and customer incentive fees as a reduction to revenue.



Page 11


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
 
 
  
 
 
 
 
 
 
  
 
 
 
 
  
A
 
  
B
 
C
  
D=B+C
 
  
E
 
F=(A-D-E)/D
 
  
BD Reported
 
 
BD Reported
 
Divestiture Adjustments (a)
 
Comparable
 
  
FX Impact (b)
 
FXN % Change
 
  
2019
 
 
2018
 
  
2018
 
  
 
BD MEDICAL
  
 
 
  
 
 
 
 
 
 
  
 
 
 
Medication Delivery Solutions
  
$
446

  
  
$
454

 
$
—

 
$
454

  
  
$
(32
)
 
5.2

Medication Management Solutions
  
118

  
  
120

 
—

 
120

  
  
(8
)
 
4.8

Diabetes Care
  
133

  
  
136

 
—

 
136

  
  
(10
)
 
4.8

Pharmaceutical Systems
  
273

  
  
284

 
—

 
284

  
  
(15
)
 
1.3

TOTAL
  
$
969

  
  
$
994

 
$
—

 
$
994

  
  
$
(64
)
 
4.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
  
 
 
 
 
 
 
  
 
 
 
Preanalytical Systems
  
$
195

  
  
$
200

 
$
—

 
$
200

  
  
$
(16
)
 
5.8

Diagnostic Systems
  
209

  
  
209

 
—

 
209

  
  
(14
)
 
6.9

Biosciences
  
177

  
  
191

 
(13
)
 
178

  
  
(10
)
 
5.1

TOTAL
  
$
582

  
  
$
600

 
$
(13
)
 
$
587

  
  
$
(41
)
 
6.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
75

 
 
$
75

 
$
(1
)
 
$
74

 
 
$
(4
)
 
6.9

Peripheral Intervention
 
148

 
 
145

 
—

 
145

 
 
(9
)
 
8.8

Urology and Critical Care
 
80

 
 
84

 
—

 
84

 
 
(4
)
 
0.2

TOTAL
 
$
303

 
 
$
303

 
$
(1
)
 
$
302

 
 
$
(17
)
 
5.9

 
  
 
 
  
 
 
 
 
 
 
  
 
 
 
TOTAL INTERNATIONAL
  
$
1,854

  
  
$
1,898

 
$
(14
)
 
$
1,884

  
  
$
(122
)
 
4.9


(a)
Amounts include adjustments for BD's divestitures of its Advanced Bioprocessing business and soft tissue core needle biopsy product line, as well as Bard's divestiture of its Aspira® product line.
(b)
Under U.S. generally accepted accounting principles and as a result of Argentina’s highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the quarter ended March 31, 2019.  The total foreign currency translation impact above includes $6 million that was calculated by comparing local currency revenues in Argentina for the quarter ended March 31, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.


Page 12


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Three Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
A
 
  
B
 
C
  
D=B+C
 
  
E
 
F=(A-D-E)/D
 
  
BD Reported
 
 
BD Reported
 
Divestiture and Other Adjustments (a)
 
Comparable
 
  
FX Impact (b)
 
FXN % Change
 
  
2019
 
 
2018
 
  
2018
 
  
 
BD MEDICAL
  
 
 
  
 
 
 
 
 
 
  
 
 
 
Medication Delivery Solutions
  
$
929

  
  
$
958

 
$
(9
)
 
$
949

  
  
$
(32
)
 
1.3

Medication Management Solutions
  
615

  
  
581

 
—

 
581

  
  
(8
)
 
7.3

Diabetes Care
  
270

  
  
267

 
—

 
267

  
  
(10
)
 
4.7

Pharmaceutical Systems
  
366

  
  
366

 
—

 
366

  
  
(15
)
 
3.9

TOTAL
  
$
2,180

  
  
$
2,172

 
$
(9
)
 
$
2,164

  
  
$
(64
)
 
3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
  
 
 
 
 
 
 
  
 
 
 
Preanalytical Systems
  
$
366

  
  
$
381

 
$
(12
)
 
$
369

  
  
$
(16
)
 
3.5

Diagnostic Systems
  
389

  
  
410

 
—

 
410

  
  
(14
)
 
(1.6
)
Biosciences
  
297

  
  
307

 
(22
)
 
285

  
  
(10
)
 
7.9

TOTAL
  
$
1,052

  
  
$
1,098

 
$
(34
)
 
$
1,064

  
  
$
(41
)
 
2.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
345

 
 
$
351

 
$
(5
)
 
$
345

 
 
$
(4
)
 
1.2

Peripheral Intervention
 
342

 
 
338

 
—

 
338

 
 
(9
)
 
3.8

Urology and Critical Care
 
275

 
 
264

 
—

 
264

 
 
(4
)
 
6.0

TOTAL
 
$
963

 
 
$
952

 
$
(5
)
 
$
947

 
 
$
(17
)
 
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
  
$
4,195

  
  
$
4,222

 
$
(48
)
 
$
4,175

  
  
$
(122
)
 
3.4


(a)
Amounts include adjustments for BD's divestitures of its Advanced Bioprocessing business and soft tissue core needle biopsy product line, as well as Bard's divestiture of its Aspira® product line. Additionally, Medication Delivery Solutions and Preanalytical Systems results for the quarter ended March 31, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018. Accordingly, to ensure comparability of revenue growth, the results for the quarter ended March 31, 2018 have been adjusted to reflect these cumulative fees. The Company records rebate and customer incentive fees as a reduction to revenue.
(b)
Under U.S. generally accepted accounting principles and as a result of Argentina’s highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the quarter ended March 31, 2019.  The total foreign currency translation impact above includes $6 million that was calculated by comparing local currency revenues in Argentina for the quarter ended March 31, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

Page 13


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Six Months Ended March 31,
(Unaudited; Amounts in millions)
 
  
A
 
B
 
C=A+B
 
  
D
  
E
 
F
 
G
  
H=D+E+F+G
 
  
I=(C-H)/H
 
  
BD Reported
 
Divestiture Adjustments (a)
 
Comparable
 
 
BD Reported
 
Bard Q1 (b)
 
Intercompany Adjustment (c)
 
Divestiture and Other Adjustments (a)
 
Comparable
 
 
Comparable % Change
 
  
2019
 
 
2019
 
 
2018
  
2018
 
 
  
2018
 
  
BD MEDICAL
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
Medication Delivery Solutions
  
$
1,004

 
$
—

 
$
1,004

 
  
$
874

 
$
145

 
$
(3
)
  
$
(9
)
 
$
1,007

 
  
(0.3
)
Medication Management Solutions
  
1,003

 
—

 
1,003

 
  
932

 
—

 
—

  
—

 
932

 
  
7.7

Diabetes Care
  
282

 
—

 
282

 
  
277

 
—

 
—

  
—

 
277

 
  
2.0

Pharmaceutical Systems
  
161

 
—

 
161

 
  
136

 
—

 
—

  
—

 
136

 
  
18.3

TOTAL
  
$
2,450

 
$
—

 
$
2,450

 
  
$
2,218

 
$
145

 
$
(3
)
  
$
(9
)
 
$
2,351

 
  
4.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
Preanalytical Systems
  
$
371

 
$
—

 
$
371

 
  
$
366

 
$
—

 
$
—

  
$
(12
)
 
$
354

 
  
5.0

Diagnostic Systems
  
355

 
—

 
355

 
  
367

 
—

 
—

  
—

 
367

 
  
(3.4
)
Biosciences
  
228

 
(4
)
 
225

 
  
224

 
—

 
—

  
(19
)
 
205

 
  
9.6

TOTAL
  
$
954

 
$
(4
)
 
$
951

 
  
$
957

 
$
—

 
$
—

  
$
(31
)
 
$
926

 
  
2.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
545

 
$
—

 
$
545

 
 
$
428

 
$
105

 
$
—

 
$
(15
)
 
$
518

 
 
5.2

Peripheral Intervention
 
385

 
—

 
385

 
 
198

 
188

 
—

 
—

 
386

 
 
(0.3
)
Urology and Critical Care
 
393

 
—

 
393

 
 
180

 
177

 
—

 
—

 
357

 
 
10.1

TOTAL
 
$
1,323

 
$
—

 
$
1,323

 
 
$
806

 
$
470

 
$
—

 
$
(15
)
 
$
1,261

 
 
4.9

 
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
TOTAL UNITED STATES
  
$
4,728

 
$
(4
)
 
$
4,724

 
  
$
3,982

 
$
614

 
$
(3
)
 
$
(54
)
 
$
4,539

 
  
4.1


(a)
The amounts for the six months ended March 31, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business. The amounts for the six months ended March 31, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. Additionally, Medication Delivery Solutions and Preanalytical Systems results for the six months ended March 31, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018. Accordingly, to ensure comparability of revenue growth, the results for the six months ended March 31, 2018 have been adjusted to reflect these cumulative fees. The Company records rebate and customer incentive fees as a reduction to revenue.
(b)
Amounts represent revenues for the quarter ended December 31, 2017. BD reported a Gore royalty amount, which was previously reported as revenues by Bard, as non-operating income in the current-year period.
(c)
Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.


Page 14


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
A
 
B
 
C=A+B
 
  
D
 
E
 
F
  
G=D+E+F
 
  
H
 
I=(C-G-H)/G
 
  
BD Reported
 
Divestiture Adjustments (a)
 
Comparable
 
 
BD Reported
 
Bard Q1 (b)
 
Divestiture Adjustments (a)
 
Comparable
 
  
FX Impact (c)
 
FXN % Change
 
  
2019
 
 
2019
 
 
2018
  
2018
 
  
2018
 
  
 
BD MEDICAL
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
Medication Delivery Solutions
  
$
883

 
$
—

 
$
883

  
  
$
826

 
$
68

 
$
—

 
$
895

  
  
$
(54
)
 
4.7

Medication Management Solutions
  
236

 
—

 
236

  
  
237

 
—

 
—

 
237

  
  
(11
)
 
4.3

Diabetes Care
  
261

 
—

 
261

  
  
267

 
—

 
—

 
267

  
  
(15
)
 
3.3

Pharmaceutical Systems
  
485

 
—

 
485

  
  
475

 
—

 
—

 
475

  
  
(19
)
 
5.9

TOTAL
  
$
1,865

 
$
—

 
$
1,865

  
  
$
1,806

 
$
68

 
$
—

 
$
1,874

  
  
$
(98
)
 
4.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
Preanalytical Systems
  
$
387

 
$
—

 
$
387

  
  
$
391

 
$
—

 
$
—

 
$
391

  
  
$
(27
)
 
6.0

Diagnostic Systems
  
416

 
—

 
416

  
  
423

 
—

 
—

 
423

  
  
(24
)
 
3.8

Biosciences
  
350

 
(5
)
 
345

  
  
372

 
—

 
(23
)
 
349

  
  
(16
)
 
3.6

TOTAL
  
$
1,153

 
$
(5
)
 
$
1,148

  
  
$
1,186

 
$
—

 
$
(23
)
 
$
1,163

  
  
$
(67
)
 
4.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
148

 
$
—

 
$
148

 
 
$
99

 
$
49

 
$
(3
)
 
$
145

 
 
$
(6
)
 
6.2

Peripheral Intervention
 
294

 
—

 
294

 
 
146

 
146

 
—

 
292

 
 
(14
)
 
5.4

Urology and Critical Care
 
168

 
—

 
168

 
 
84

 
90

 
—

 
174

 
 
(6
)
 
(0.5
)
TOTAL
 
$
609

 
$
—

 
$
609

 
 
$
329

 
$
285

 
$
(3
)
 
$
611

 
 
$
(26
)
 
3.9

 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
TOTAL INTERNATIONAL
  
$
3,628

 
$
(5
)
 
$
3,623

  
  
$
3,321

 
$
353

 
$
(26
)
 
$
3,648

  
  
$
(191
)
 
4.5


(a)
The amounts for the six months ended March 31, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business. The amounts for the six months ended March 31, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line.
(b)
Amounts represent revenues for the quarter ended December 31, 2017.
(c)
Under U.S. generally accepted accounting principles and as a result of Argentina’s highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the six months ended March 31, 2019.  The total foreign currency translation impact above includes $14 million that was calculated by comparing local currency revenues in Argentina for the six months ended March 31, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.


Page 15


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Six Months Ended March 31, (continued)
(Unaudited; Amounts in millions)
 
  
A
 
B
 
C=A+B
 
  
D
 
E
 
F
 
G
  
H=D+E+F+G
 
  
I
 
J=(C-H-I)/H
 
  
BD Reported
 
Divestiture Adjustments (a)
 
Comparable
 
 
BD Reported
 
Bard Q1 (b)
 
Intercompany Adjustment (c)
 
Divestiture and Other Adjustments (a)
 
Comparable
 
  
FX Impact (d)
 
FXN % Change
 
  
2019
 
 
2019
 
 
2018
  
2018
 
 
  
2018
 
  
 
BD MEDICAL
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
Medication Delivery Solutions
  
$
1,887

 
$
—

 
$
1,887

  
  
$
1,700

 
$
213

 
$
(3
)
 
$
(9
)
 
$
1,901

  
  
$
(54
)
 
2.1

Medication Management Solutions
  
1,239

 
—

 
1,239

  
  
1,168

 
—

 
—

 
—

 
1,168

  
  
(11
)
 
7.0

Diabetes Care
  
544

 
—

 
544

  
  
544

 
—

 
—

 
—

 
544

  
  
(15
)
 
2.6

Pharmaceutical Systems
  
646

 
—

 
646

  
  
612

 
—

 
—

 
—

 
612

  
  
(19
)
 
8.6

TOTAL
  
$
4,316

 
$
—

 
$
4,316

  
  
$
4,024

 
$
213

 
$
(3
)
 
$
(9
)
 
$
4,226

  
  
$
(98
)
 
4.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD LIFE SCIENCES
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Preanalytical Systems
  
$
758

 
$
—

 
$
758

  
  
$
756

 
$
—

 
$
—

 
$
(12
)
 
$
744

  
  
$
(27
)
 
5.5

Diagnostic Systems
  
771

 
—

 
771

  
  
791

 
—

 
—

 
—

 
791

  
  
(24
)
 
0.5

Biosciences
  
579

 
(9
)
 
570

  
  
596

 
—

 
—

 
(42
)
 
554

  
  
(16
)
 
5.8

TOTAL
  
$
2,108

 
$
(9
)
 
$
2,099

  
  
$
2,143

 
$
—

 
$
—

 
$
(54
)
 
$
2,089

  
  
$
(67
)
 
3.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD INTERVENTIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surgery
 
$
693

 
$
—

 
$
693

 
 
$
528

 
$
153

 
$
—

 
$
(18
)
 
$
663

 
 
$
(6
)
 
5.4

Peripheral Intervention
 
679

 
—

 
679

 
 
344

 
334

 
—

 
—

 
678

 
 
(14
)
 
2.2

Urology and Critical Care
 
560

 
—

 
560

 
 
264

 
267

 
—

 
—

 
531

 
 
(6
)
 
6.6

TOTAL
 
$
1,932

 
$
—

 
$
1,932

 
 
$
1,135

 
$
755

 
$
—

 
$
(18
)
 
$
1,872

 
 
$
(26
)
 
4.6

 
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
TOTAL REVENUES
  
$
8,355

 
$
(9
)
 
$
8,347

  
  
$
7,302

 
$
968

 
$
(3
)
 
$
(81
)
 
$
8,186

  
  
$
(191
)
 
4.3


(a)
The amounts for the six months ended March 31, 2019 and 2018 include adjustments for BD's divestiture of its Advanced Bioprocessing business. The amounts for the six months ended March 31, 2018 also include adjustments for BD's divestitures of its soft tissue core needle biopsy product line and Bard's divestiture of its Aspira® product line. Additionally, Medication Delivery Solutions and Preanalytical Systems results for the six months ended March 31, 2019 included a total of $21 million in cumulative customer rebate and incentive fees relating to fiscal year 2018. Accordingly, to ensure comparability of revenue growth, the results for the six months ended March 31, 2018 have been adjusted to reflect these cumulative fees. The Company records rebate and customer incentive fees as a reduction to revenue.
(b)
Amounts represent revenues for the quarter ended December 31, 2017. BD reported a Gore royalty amount, which was previously reported as revenues by Bard, as non-operating income in the current-year period.
(c)
Represents the elimination of revenues from the Medication Delivery Solutions unit which BD previously recognized from Bard as third-party revenues and that would be treated as intercompany revenues in the current-year period.
(d)
Under U.S. generally accepted accounting principles and as a result of Argentina’s highly inflationary economy, the functional currency of the Company's operations in Argentina was the U.S. dollar for the six months ended March 31, 2019.  The total foreign currency translation impact above includes $14 million that was calculated by comparing local currency revenues in Argentina for the six months ended March 31, 2019, translated using the prior-period exchange rate, to the reported U.S. dollar revenues for this same period.

Page 16


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
 
  
Three Months Ended March 31,
 
  
2019
 
2018
 
Growth
 
Foreign
Currency
Translation
 
Foreign
Currency
Neutral
Growth
 
Growth %
 
Foreign
Currency
Neutral
Growth %
Reported Diluted Loss per Share
  
$
(0.07
)
 
$
(0.19
)
 
$
0.12

 
$
(0.25
)
 
$
0.37

 
63.2
 %
 
194.7
%
Purchase accounting adjustments ($379 million and $790 million pre-tax, respectively) (1)
  
1.40

 
2.96

 
 
 
—

 
 
 
 
 
 
Restructuring costs ($31 million and $19 million pre-tax, respectively) (2)
  
0.12

 
0.07

 
 
 
—

 
 
 
 
 
 
Integration costs ($70 million and $79 million pre-tax, respectively) (2)
  
0.26

 
0.29

 
 
 
—

 
 
 
 
 
 
Transaction gain/loss and product-related matters ($396 million pre-tax) (3)
 
1.47

 
—

 
 
 
—

 
 
 
 
 
 
European regulatory initiative-related costs ($10 million pre-tax) (4)
 
0.04

 
—

 
 
 
—

 
 
 
 
 
 
Transaction costs ($1 million and $7 million pre-tax, respectively) (2)
 
—

 
0.03

 
 
 
—

 
 
 
 
 
 
Losses on debt extinguishment ($1 million and $13 million pre-tax, respectively) (5)
 
—

 
0.05

 
 
 
—

 
 
 
 
 
 
Hurricane recovery costs ($5 million pre-tax)
 
—

 
0.02

 
 
 
—

 
 
 
 
 
 
Dilutive impact (6)
 
(0.04
)
 
(0.06
)
 
 
 
—

 
 
 
 
 
 
Impact of tax reform and income tax benefit of special items ($160 million and $137 million, respectively)
  
(0.59
)
 
(0.51
)
 
 
 
—

 
 
 
 
 
 
Adjusted Diluted Earnings per Share
  
$
2.59

 
$
2.65

 
$
(0.06
)
 
$
(0.25
)
 
$
0.19

 
(2.3
)%
 
7.2
%

(1)
Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. The amount in 2018 also included a fair value step-up adjustment of $422 million recorded relative to Bard's inventory on the acquisition date.
(2)
Represents restructuring, integration and transaction costs associated with acquisitions.
(3)
Includes amounts recorded to Other operating expense, net to record product liability reserves of $331 million and the estimated cumulative costs of a product recall of $65 million.
(4)
Represents initial costs required to develop processes and systems to comply with emerging regulations such as the European Union Medical Device Regulation ("EUMDR") and General Data Protection Regulation ("GDPR").
(5)
Represents losses recognized upon the extinguishment of certain long-term senior notes.
(6)
The amount in 2019 represents the exclusion of share equivalents associated with share-based plans from the reported diluted shares outstanding calculation because such equivalents would have been antidilutive due to the net loss applicable to common shareholders incurred during the period.  The amount in 2018 represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard. The adjusted diluted average shares outstanding (in thousands) in 2019 and 2018 were 274,287 and 273,693, respectively.




Page 17


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
 
  
Six Months Ended March 31,
 
  
2019
 
2018
 
Growth
 
Foreign
Currency
Translation
 
Foreign
Currency
Neutral
Growth
 
Growth %
 
Foreign
Currency
Neutral
Growth %
Reported Diluted Earnings (Loss) per Share
  
$
1.98

 
$
(0.90
)
 
$
2.88

  
$
(0.39
)
 
$
3.27

  
320.0
%
 
363.3
%
Purchase accounting adjustments ($757 million and $925 million pre-tax, respectively) (1)
  
2.76

 
3.72

 
 
 
(0.01
)
 
 
  
 
 
 
Restructuring costs ($72 million and $255 million pre-tax, respectively) (2)
  
0.26

 
1.02

 
 
 
—

 
 
  
 
 
 
Integration costs ($143 million and $153 million pre-tax, respectively) (2)
  
0.52

 
0.61

 
 
 
—

 
 
  
 
 
 
Transaction gain/loss and product-related matters ($61 million pre-tax) (3)
 
0.22

 
—

 
 
 
—

 
 
 
 
 
 
European regulatory initiative-related costs ($15 million pre-tax) (4)
 
0.05

 
—

 
 
 
—

 
 
 
 
 
 
Transaction costs ($2 million and $51 million pre-tax, respectively) (2)
  
0.01

 
0.20

 
 
 
—

 
 
  
 
 
 
Losses on debt extinguishment ($1 million and $13 million pre-tax, respectively) (5)
  
—

 
0.05

 
 
 
—

 
 
 
 
 
 
Financing impacts ($49 million pre-tax) (6)
 
—

 
0.20

 
 
 
—

 
 
 
 
 
 
Hurricane recovery costs ($12 million pre-tax)
 
—

 
0.05

 
 
 
—

 
 
 
 
 
 
Dilutive Impact (7)
 
—

 
0.20

 
 
 
—

 
 
 
 
 
 
Impact of tax reform and income tax benefit of special items ($143 million and $2 million, respectively) (8)
  
(0.52
)
 
(0.01
)
 
 
 
—

 
 
  
 
 
 
Adjusted Diluted Earnings per Share
  
$
5.29

 
$
5.15

 
$
0.14

  
$
(0.40
)
 
$
0.54

  
2.7
%
 
10.5
%

(1)
Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. The amount in 2018 also included a fair value step-up adjustment of $422 million recorded relative to Bard's inventory on the acquisition date.
(2)
Represents restructuring, integration and transaction costs associated with acquisitions.
(3)
Includes amounts recorded to Other operating expense, net to record product liability reserves of $331 million and the estimated cumulative costs of a product recall of $65 million. Also includes the pre-tax gain of $335 million recognized in Other operating expense, net related to BD's sale of its Advanced Bioprocessing business.
(4)
Represents initial costs required to develop processes and systems to comply with emerging regulations such as the EUMDR and GDPR.
(5)
Represents losses recognized upon the extinguishment of certain long-term senior notes.
(6)
Represents financing impacts associated with the Bard acquisition.
(7)
Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard. The adjusted diluted average shares outstanding (in thousands) was 246,179.
(8)
The amounts for the six months ended March 31, 2019 and 2018 included additional tax expense, net, of $20 million and $275 million, respectively, relating to new U.S. tax legislation.


Page 18


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY2018
 
FY2019 Outlook
 
 
 
Revenues
 
% Change
 
FX Impact
 
% Change FXN
 
 
 
 
 
 
 
 
 
 
 
BDX Revenue
 
$
15,983

 
8.0% to 9.0%
 
~2.5%
 
10.5% to 11.5%
 
 
 
 
 
 
 
 
 
 
 
Comparable Revenue Growth
 
 
 
 
 
 
 
 
 
 
 
BD Including Bard
 
 
 
 
 
 
 
 
 
FY2018
 
FY2019 Outlook
 
 
 
 
 
 
 
Revenues
 
% Change FXN Comparable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BDX As Reported Revenue
 
$
15,983

 
 
 
 
 
 
 
Bard Q1
 
968

 
 
 
 
 
 
 
Intercompany Adjustment
 
(3
)
 
 
 
 
 
 
 
Rebate Adjustment
 
(21
)
 
 
 
 
 
 
 
Divestiture Adjustment (1)(2)
 
(124
)
 
 
 
 
 
 
 
BDX NewCo Comparable Revenue
 
$
16,803

 
5.0% to 6.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FXN - Foreign Currency Neutral
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 19


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)
 
 
 
 
 
 
 
 
 
 
 
FY2018
 
FY2019 Outlook
 
 
 
 
 
 
 
Revenues
 
% Change FXN Comparable
 
 
 
 
 
BD Medical As Reported Revenue
 
$
8,616

 
 
 
 
 
 
 
Bard Q1
 
213

 
 
 
 
 
 
 
Intercompany Adjustment
 
(3
)
 
 
 
 
 
 
 
Rebate Adjustment
 
(9
)
 
 
 
 
 
 
 
BD Medical Comparable Revenue
 
8,817

 
5.0% to 6.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD Life Sciences As Reported Revenue
 
$
4,330

 
 
 
 
 
 
 
Rebate Adjustment
 
(12
)
 
 
 
 
 
 
 
Divestiture Adjustment (1)
 
(106
)
 
 
 
 
 
 
 
BD Life Sciences Comparable Revenue
 
$
4,212

 
4.0% to 5.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BD Interventional as Reported Revenue
 
$
3,037

 
 
 
 
 
 
 
Bard Q1
 
755

 
 
 
 
 
 
 
Divestiture Adjustment (2)
 
(18
)
 
 
 
 
 
 
 
BD Interventional Comparable Revenue
 
$
3,774

 
4.5% to 5.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FXN - Foreign Currency Neutral
 
 
 
 
 
 
 
 
 
(1) Excludes the impact from the divestiture of BD's Advanced Bioprocessing business.
(2) Excludes the impact from the divestitures of BD's soft tissue core needle biopsy product line and Bard's Aspira product line of tunneled home drainage catheters and
       accessories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 20


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
FY2019 Outlook
 
 
 
 
 
Full Year FY2018
 
Full Year
FY2019 Outlook
 
% Increase
 
 
 
Reported Fully Diluted Earnings per Share
 
$
0.60

 
 
 
 
 
 
 
Purchase accounting adjustments ($1.733 billion pre-tax) (1)
 
6.55

 
 
 
 
 
 
 
Restructuring costs ($344 million pre-tax) (2)
 
1.30

 
 
 
 
 
 
 
Integration costs ($344 million pre-tax) (2)
 
1.30

 
 
 
 
 
 
 
Transaction costs ($56 million pre-tax) (3)
 
0.21

 
 
 
 
 
 
 
Financing impacts ($49 million pre-tax) (4)
 
0.19

 
 
 
 
 
 
 
Hurricane recovery costs ($17 million pre-tax)
 
0.07

 
 
 
 
 
 
 
Losses on debt extinguishment ($16 million pre-tax) (5)
 
0.06

 
 
 
 
 
 
 
Net impact of gain on sale of investment and asset impairments ($(151) million pre-tax) (6)
 
(0.57
)
 
 
 
 
 
 
 
Dilutive Impact (7)
 
0.30

 
 
 
 
 
 
 
Impact of tax reform and income tax benefit of special items ($265 million) (8)
 
1.00

 
 
 
 
 
 
 
Adjusted Fully Diluted Earnings per Share
 
$
11.01

 
$11.65 to 11.75
 
6.0% to 7.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated FX Impact
 
 
 
 
 
~5.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted FXN Growth
 
 
 
 
 
~12.0%
 
 
 
FXN - Foreign Currency Neutral

(1) Includes adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. The amount in 2018 also included a fair value step-up adjustment of $478 million recorded relative to Bard's inventory on the acquisition date.
(2)   Represents restructuring and integration costs associated with the Bard and CareFusion acquisitions, as well as restructuring costs associated with other portfolio rationalization initiatives.
(3)   Represents transaction costs primarily associated with the Bard acquisition.
(4)  Represents financing impacts associated with the Bard acquisition.
(5) Represents losses recognized upon the extinguishment of certain long-term senior notes.
(6)   Represents the net amount recognized in the period related to BD's sale of its non-controlling interest in Vyaire Medical, partially offset by $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit as well as $58 million of charges to write down the value of fixed assets primarily in the Diabetes Care unit.
(7)   Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the Bard acquisition and BD shares issued as consideration transferred to acquire Bard. The adjusted diluted average shares outstanding (in thousands) was 260,758.
(8) Includes additional tax expense, net, of $640 million relating to new U.S. tax legislation.

Page 21