478000000false--09-30Q32019000001079512000000000.750.750.770.770.0370.046850.048750.05308000000 0000010795 2018-10-01 2019-06-30 0000010795 2019-06-30 0000010795 exch:XNYS bdx:Notes1.000dueDecember152022Member 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes1.401dueMay242023Member 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:DepositarysharesMember 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes0.174dueJune42021Member 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes1.208dueJune42026Member 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes3.020dueMay242025Member 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes0.632dueJune42023Member 2018-10-01 2019-06-30 0000010795 exch:XNYS us-gaap:CommonStockMember 2018-10-01 2019-06-30 0000010795 exch:XNYS bdx:Notes1.900dueDecember152026Member 2018-10-01 2019-06-30 0000010795 2018-09-30 0000010795 2017-10-01 2018-06-30 0000010795 2018-04-01 2018-06-30 0000010795 2019-04-01 2019-06-30 0000010795 2017-09-30 0000010795 2018-06-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-04-01 2019-06-30 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-10-01 2018-12-31 0000010795 2018-10-01 2018-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-09-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0000010795 2019-03-31 0000010795 2019-01-01 2019-03-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2019-04-01 2019-06-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0000010795 2018-12-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-10-01 2018-12-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-10-01 2018-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 0000010795 us-gaap:TreasuryStockMember 2018-10-01 2018-12-31 0000010795 us-gaap:TreasuryStockMember 2019-03-31 0000010795 us-gaap:RetainedEarningsMember 2018-12-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000010795 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000010795 us-gaap:RetainedEarningsMember 2019-06-30 0000010795 us-gaap:TreasuryStockMember 2018-09-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000010795 us-gaap:TreasuryStockMember 2018-12-31 0000010795 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-06-30 0000010795 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-10-01 2018-12-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-09-30 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-03-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000010795 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000010795 us-gaap:TreasuryStockMember 2019-06-30 0000010795 us-gaap:CommonStockMember 2018-09-30 0000010795 us-gaap:RetainedEarningsMember 2018-10-01 2018-12-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-12-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-01-01 2019-03-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000010795 us-gaap:CommonStockMember 2018-12-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000010795 us-gaap:CommonStockMember 2019-06-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-10-01 2018-12-31 0000010795 us-gaap:RetainedEarningsMember 2019-03-31 0000010795 us-gaap:CommonStockMember 2019-03-31 0000010795 us-gaap:RetainedEarningsMember 2018-09-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-10-01 2017-12-31 0000010795 2018-01-01 2018-03-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-03-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-10-01 2017-12-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-03-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-09-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-06-30 0000010795 2018-03-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-01 2018-06-30 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-04-01 2018-06-30 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2017-10-01 2017-12-31 0000010795 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-03-31 0000010795 2017-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-09-30 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2017-09-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000010795 2017-10-01 2017-12-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0000010795 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-03-31 0000010795 us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-12-31 0000010795 us-gaap:CommonStockMember 2017-12-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-03-31 0000010795 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000010795 us-gaap:RetainedEarningsMember 2017-12-31 0000010795 us-gaap:CommonStockMember 2017-09-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000010795 us-gaap:TreasuryStockMember 2017-12-31 0000010795 us-gaap:CommonStockMember 2018-03-31 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000010795 us-gaap:TreasuryStockMember 2018-03-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-06-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2017-09-30 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-03-31 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-04-01 2018-06-30 0000010795 us-gaap:RetainedEarningsMember 2018-03-31 0000010795 us-gaap:CommonStockMember 2018-06-30 0000010795 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000010795 us-gaap:TreasuryStockMember 2017-10-01 2017-12-31 0000010795 us-gaap:RetainedEarningsMember 2017-10-01 2017-12-31 0000010795 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0000010795 us-gaap:RetainedEarningsMember 2017-09-30 0000010795 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2017-10-01 2017-12-31 0000010795 us-gaap:TreasuryStockMember 2017-09-30 0000010795 us-gaap:TreasuryStockMember 2018-06-30 0000010795 us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-09-30 0000010795 us-gaap:RetainedEarningsMember 2018-06-30 0000010795 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000010795 us-gaap:ConvertiblePreferredStockMember 2019-04-01 2019-06-30 0000010795 us-gaap:ConvertiblePreferredStockMember 2017-10-01 2018-06-30 0000010795 us-gaap:ConvertiblePreferredStockMember 2018-04-01 2018-06-30 0000010795 us-gaap:ConvertiblePreferredStockMember 2018-10-01 2019-06-30 0000010795 bdx:WomensHealthProductClaimsMember 2018-04-01 2018-04-30 0000010795 bdx:PunitiveMember bdx:WomensHealthProductClaimsMember 2018-04-01 2018-04-30 0000010795 bdx:WomensHealthProductClaimsMember 2019-06-30 0000010795 bdx:CompensatoryMember bdx:WomensHealthProductClaimsMember 2018-04-01 2018-04-30 0000010795 bdx:FilterProductClaimsMember 2018-10-01 2019-06-30 0000010795 bdx:FilterProductClaimsMember 2019-06-30 0000010795 bdx:HerniaProductClaimsMember 2019-06-30 0000010795 us-gaap:OtherOperatingIncomeExpenseMember 2018-10-01 2019-06-30 0000010795 2019-07-01 2019-06-30 0000010795 bdx:ProductsandorServicesMember 2019-07-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 country:US 2018-04-01 2018-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 country:US 2019-04-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2019-04-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 us-gaap:NonUsMember 2019-04-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 us-gaap:NonUsMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-04-01 2018-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2019-04-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 us-gaap:CorporateNonSegmentMember 2018-10-01 2019-06-30 0000010795 us-gaap:MaterialReconcilingItemsMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember 2017-10-01 2018-06-30 0000010795 us-gaap:MaterialReconcilingItemsMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 us-gaap:CorporateNonSegmentMember 2017-10-01 2018-06-30 0000010795 us-gaap:MaterialReconcilingItemsMember 2019-04-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0000010795 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0000010795 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember 2018-10-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 us-gaap:NonUsMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 country:US 2017-10-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:UrologyandCriticalCareMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember country:US bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:BiosciencesMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:MedicationManagementSolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:DiagnosticSystemsMember us-gaap:OperatingSegmentsMember bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:SurgeryMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 us-gaap:NonUsMember 2018-10-01 2019-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:MedicationDeliverySolutionsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:PreanalyticalSystemsMember us-gaap:OperatingSegmentsMember country:US bdx:LifeSciencesMember 2017-10-01 2018-06-30 0000010795 bdx:DiabetesCareMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember us-gaap:NonUsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:PeripheralInterventionMember us-gaap:OperatingSegmentsMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:PharmaceuticalSystemsMember us-gaap:OperatingSegmentsMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 country:US 2018-10-01 2019-06-30 0000010795 bdx:CRBardIncMember bdx:InterventionalMember 2018-04-01 2018-06-30 0000010795 bdx:CRBardIncMember 2017-10-01 2018-06-30 0000010795 bdx:AdvancedBioprocessingMember 2018-10-01 2019-06-30 0000010795 bdx:CRBardIncMember bdx:InterventionalMember 2017-10-01 2018-06-30 0000010795 bdx:CRBardIncMember bdx:MedicalMember 2017-10-01 2018-06-30 0000010795 bdx:CRBardIncMember bdx:MedicalMember 2018-04-01 2018-06-30 0000010795 bdx:CRBardIncMember 2018-04-01 2018-06-30 0000010795 us-gaap:PensionPlansDefinedBenefitMember 2018-04-01 2018-06-30 0000010795 us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-06-30 0000010795 us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000010795 us-gaap:PensionPlansDefinedBenefitMember 2018-10-01 2019-06-30 0000010795 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember bdx:AdvancedBioprocessingMember 2018-09-30 0000010795 us-gaap:OtherRestructuringMember bdx:OtherInitiativesMember 2018-10-01 2019-06-30 0000010795 bdx:OtherInitiativesMember 2018-10-01 2019-06-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:CRBardIncMember 2018-09-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:CRBardIncMember 2019-06-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:CRBardIncMember 2018-10-01 2019-06-30 0000010795 us-gaap:OtherRestructuringMember bdx:CRBardIncMember 2018-10-01 2019-06-30 0000010795 us-gaap:OtherRestructuringMember bdx:OtherInitiativesMember 2019-06-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:OtherInitiativesMember 2018-10-01 2019-06-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:OtherInitiativesMember 2019-06-30 0000010795 us-gaap:OtherRestructuringMember bdx:CRBardIncMember 2018-09-30 0000010795 bdx:CRBardIncMember 2019-06-30 0000010795 us-gaap:OtherRestructuringMember bdx:CRBardIncMember 2019-06-30 0000010795 us-gaap:OtherRestructuringMember bdx:OtherInitiativesMember 2018-09-30 0000010795 bdx:OtherInitiativesMember 2019-06-30 0000010795 bdx:OtherInitiativesMember 2018-09-30 0000010795 bdx:CRBardIncMember 2018-10-01 2019-06-30 0000010795 bdx:CRBardIncMember 2018-09-30 0000010795 us-gaap:EmployeeSeveranceMember bdx:OtherInitiativesMember 2018-09-30 0000010795 bdx:ProductRightsMember 2019-06-30 0000010795 us-gaap:TrademarksMember 2019-06-30 0000010795 us-gaap:DevelopedTechnologyRightsMember 2019-06-30 0000010795 us-gaap:TrademarksMember 2019-06-30 0000010795 us-gaap:DevelopedTechnologyRightsMember 2018-09-30 0000010795 us-gaap:CustomerRelationshipsMember 2018-09-30 0000010795 bdx:ProductRightsMember 2018-09-30 0000010795 us-gaap:CustomerRelationshipsMember 2019-06-30 0000010795 us-gaap:IntellectualPropertyMember 2018-09-30 0000010795 us-gaap:TrademarksMember 2018-09-30 0000010795 us-gaap:UnclassifiedIndefinitelivedIntangibleAssetsMember 2019-06-30 0000010795 us-gaap:UnclassifiedIndefinitelivedIntangibleAssetsMember 2018-09-30 0000010795 us-gaap:IntellectualPropertyMember 2019-06-30 0000010795 us-gaap:TrademarksMember 2018-09-30 0000010795 bdx:LifeSciencesMember 2019-06-30 0000010795 bdx:LifeSciencesMember 2018-09-30 0000010795 bdx:InterventionalMember 2019-06-30 0000010795 bdx:LifeSciencesMember 2018-10-01 2019-06-30 0000010795 bdx:InterventionalMember 2018-09-30 0000010795 bdx:MedicalMember 2018-09-30 0000010795 bdx:MedicalMember 2018-10-01 2019-06-30 0000010795 bdx:InterventionalMember 2018-10-01 2019-06-30 0000010795 bdx:MedicalMember 2019-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2018-09-30 0000010795 us-gaap:DebtMember us-gaap:NetInvestmentHedgingMember 2019-06-30 0000010795 us-gaap:CurrencySwapMember 2019-06-30 0000010795 us-gaap:DebtMember us-gaap:NetInvestmentHedgingMember 2018-09-30 0000010795 bdx:FixedToFloatingMember us-gaap:FairValueHedgingMember 2019-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2019-06-30 0000010795 us-gaap:CurrencySwapMember 2018-04-01 2018-06-30 0000010795 us-gaap:ForeignExchangeForwardMember 2018-04-01 2018-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2019-04-01 2019-06-30 0000010795 us-gaap:ForeignExchangeForwardMember 2019-04-01 2019-06-30 0000010795 us-gaap:CurrencySwapMember 2017-10-01 2018-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2018-10-01 2019-06-30 0000010795 us-gaap:CurrencySwapMember 2019-04-01 2019-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2018-04-01 2018-06-30 0000010795 us-gaap:ForeignExchangeForwardMember 2018-10-01 2019-06-30 0000010795 us-gaap:CurrencySwapMember 2018-10-01 2019-06-30 0000010795 us-gaap:ForeignExchangeForwardMember 2017-10-01 2018-06-30 0000010795 us-gaap:ForeignExchangeContractMember 2017-10-01 2018-06-30 0000010795 bdx:FixedToFloatingMember us-gaap:FairValueHedgingMember 2018-09-30 0000010795 srt:MaximumMember 2018-10-01 2019-06-30 0000010795 srt:MinimumMember 2018-10-01 2019-06-30 0000010795 currency:USD bdx:Notes0.632dueJune42023Member 2019-06-30 0000010795 bdx:FloatingRateNotesDueDecember292020Member us-gaap:SeniorNotesMember 2019-01-01 2019-03-31 0000010795 bdx:FloatingRateNotesDueDecember292020Member us-gaap:SeniorNotesMember 2019-03-31 0000010795 currency:USD bdx:Notes0.174dueJune42021Member 2019-06-30 0000010795 currency:USD bdx:Notes1.208dueJune42026Member 2019-06-30 0000010795 currency:EUR bdx:Notes1.208dueJune42026Member 2019-06-30 0000010795 bdx:Notes0.368dueJune62019Member 2019-06-30 0000010795 currency:EUR bdx:Notes0.368dueJune62019Member 2019-06-30 0000010795 currency:EUR bdx:Notes0.632dueJune42023Member 2019-06-30 0000010795 currency:EUR bdx:Notes0.174dueJune42021Member 2019-06-30 0000010795 bdx:Notes0.174dueJune42021Member 2019-06-30 0000010795 currency:USD bdx:Notes0.368dueJune62019Member 2019-06-30 0000010795 us-gaap:LongTermDebtMember 2019-06-30 0000010795 bdx:Notes1.208dueJune42026Member 2019-06-30 0000010795 bdx:Notes0.632dueJune42023Member 2019-06-30 0000010795 bdx:Notes5.000dueNovember122040Member 2019-06-30 0000010795 bdx:Notes4.685dueDecember152044Member 2019-06-30 0000010795 bdx:Notes3.700dueJune62027Member 2019-06-30 0000010795 bdx:Notes4.875dueMay152044Member 2019-06-30 bdx:segment iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares iso4217:EUR
Table of Contents
 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-4802
Becton, Dickinson and Company
(Exact name of registrant as specified in its charter)
New Jersey
 
22-0760120
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
 
 
1 Becton Drive,
Franklin Lakes,
New Jersey
07417-1880
 
(201)
847-6800
(Address of principal executive offices) (Zip Code)
 
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol
 
Name of Each Exchange on Which Registered
Common stock, par value $1.00
 
BDX
 
New York Stock Exchange
Depositary Shares, each representing 1/20th of a share of 6.125% Cumulative Preferred Stock Series A
 
BDXA
 
New York Stock Exchange
1.000% Notes due December 15, 2022
 
BDX22A
 
New York Stock Exchange
1.900% Notes due December 15, 2026
 
BDX26
 
New York Stock Exchange
1.401% Notes due May 24, 2023
 
BDX23A
 
New York Stock Exchange
3.020% Notes due May 24, 2025
 
BDX25
 
New York Stock Exchange
0.174% Notes due June 4, 2021
 
BDX/21
 
New York Stock Exchange
0.632% Notes due June 4, 2023
 
BDX/23A
 
New York Stock Exchange
1.208% Notes due June 4, 2026
 
BDX/26A
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No   ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
  
Accelerated filer
 
Non-accelerated filer
 
 
Smaller reporting company
 
Emerging growth company
 
 
 
 
 
 
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒
There were 269,954,141 shares of Common Stock, $1.00 par value, outstanding at June 30, 2019.

 



BECTON, DICKINSON AND COMPANY
FORM 10-Q
For the quarterly period ended June 30, 2019
TABLE OF CONTENTS
 
 
Page
Number
Part I.
FINANCIAL INFORMATION
 
 
 
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
Part II.
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 
 
 
 
 
 
 
 

2



ITEM 1. FINANCIAL STATEMENTS
BECTON, DICKINSON AND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions of dollars
 
June 30,
2019
 
September 30,
2018
Assets
(Unaudited)
 
 
Current Assets:
 
 
 
Cash and equivalents
$
523

 
$
1,140

Restricted cash
71

 
96

Short-term investments
12

 
17

Trade receivables, net
2,220

 
2,319

Inventories:
 
 
 
Materials
569

 
510

Work in process
317

 
297

Finished products
1,743

 
1,644

 
2,629

 
2,451

Assets held for sale

 
137

Prepaid expenses and other
1,326

 
1,251

Total Current Assets
6,781

 
7,411

Property, Plant and Equipment
11,040

 
10,485

Less allowances for depreciation and amortization
5,491

 
5,111

Property, Plant and Equipment, Net
5,550

 
5,375

Goodwill
23,498

 
23,600

Developed Technology, Net
11,334

 
12,184

Customer Relationships, Net
3,507

 
3,723

Other Intangibles, Net
500

 
534

Other Assets
1,063

 
1,078

Total Assets
$
52,233

 
$
53,904

Liabilities and Shareholders’ Equity
 
 
 
Current Liabilities:
 
 
 
Short-term debt
$
2,168

 
$
2,601

Payables and accrued expenses
4,069

 
4,615

Total Current Liabilities
6,237

 
7,216

Long-Term Debt
18,016

 
18,894

Long-Term Employee Benefit Obligations
862

 
1,056

Deferred Income Taxes and Other
5,621

 
5,743

Commitments and Contingencies (See Note 5)


 


Shareholders’ Equity
 
 
 
Preferred stock
2

 
2

Common stock
347

 
347

Capital in excess of par value
16,227

 
16,179

Retained earnings
12,997

 
12,596

Deferred compensation
23

 
22

Common stock in treasury - at cost
(6,201
)
 
(6,243
)
Accumulated other comprehensive loss
(1,897
)
 
(1,909
)
Total Shareholders’ Equity
21,497

 
20,994

Total Liabilities and Shareholders’ Equity
$
52,233

 
$
53,904

Amounts may not add due to rounding.
See notes to condensed consolidated financial statements

3



BECTON, DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Millions of dollars, except per share data
(Unaudited)
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
$
4,350

 
$
4,278

 
$
12,706

 
$
11,581

Cost of products sold
2,276

 
2,262

 
6,684

 
6,405

Selling and administrative expense
1,076

 
1,086

 
3,238

 
2,915

Research and development expense
282

 
277

 
792

 
727

Acquisitions and other restructurings
90

 
142

 
281

 
600

Other operating expense, net

 

 
61

 

Total Operating Costs and Expenses
3,725

 
3,767

 
11,056

 
10,647

Operating Income
626

 
512

 
1,649

 
933

Interest expense
(156
)
 
(182
)
 
(498
)
 
(525
)
Interest income
2

 
8

 
8

 
55

Other (expense) income, net
(11
)
 
310

 
19

 
295

Income Before Income Taxes
460

 
647

 
1,178

 
759

Income tax provision
9

 
53

 
107

 
313

Net Income
451

 
594

 
1,071

 
446

Preferred stock dividends
(38
)
 
(38
)
 
(114
)
 
(114
)
Net income applicable to common shareholders
$
413

 
$
556

 
$
957

 
$
332

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic Earnings per Share
$
1.53

 
$
2.08

 
$
3.55

 
$
1.30

Diluted Earnings per Share
$
1.51

 
$
2.03

 
$
3.49

 
$
1.27

Dividends per Common Share
$
0.77

 
$
0.75

 
$
2.31

 
$
2.25

Amounts may not add due to rounding.
See notes to condensed consolidated financial statements

4



BECTON, DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of dollars
(Unaudited)
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Net Income
$
451

 
$
594

 
$
1,071

 
$
446

Other Comprehensive (Loss) Income, Net of Tax
 
 
 
 
 
 
 
Foreign currency translation adjustments
(68
)
 
(214
)
 
(27
)
 
(122
)
Defined benefit pension and postretirement plans
12

 
16

 
40

 
(57
)
Cash flow hedges
(3
)
 
1

 
(2
)
 

Other Comprehensive (Loss) Income, Net of Tax
(58
)
 
(197
)
 
12

 
(179
)
Comprehensive Income
$
393

 
$
397

 
$
1,082

 
$
267

Amounts may not add due to rounding.
See notes to condensed consolidated financial statements

5



BECTON, DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions of dollars
(Unaudited)
 
Nine Months Ended
June 30,
 
2019
 
2018
Operating Activities
 
 
 
Net income
$
1,071

 
$
446

Adjustments to net income to derive net cash provided by operating activities:
 
 
 
Depreciation and amortization
1,700

 
1,412

Share-based compensation
208

 
261

Deferred income taxes
(172
)
 
(472
)
Change in operating assets and liabilities
(661
)
 
430

Pension obligation
(150
)
 
(228
)
Excess tax benefits from payments under share-based compensation plans
45

 
63

Gain on sale of Vyaire interest

 
(308
)
Gain on sale of business
(336
)
 

Product liability-related charge
331

 

Other, net
(77
)
 
(45
)
Net Cash Provided by Operating Activities
1,959

 
1,559

Investing Activities
 
 
 
Capital expenditures
(599
)
 
(588
)
Proceeds from sale of investments, net
4

 
13

Acquisitions of businesses, net of cash acquired

 
(14,998
)
Proceeds from divestitures, net
477

 
534

Other, net
(182
)
 
(133
)
Net Cash Used for Investing Activities
(300
)
 
(15,173
)
Financing Activities
 
 
 
Change in credit facility borrowings
300

 
200

Proceeds from long-term debt and term loans
2,224

 
4,335

Payments of debt and term loans
(3,882
)
 
(2,723
)
Dividends paid
(737
)
 
(687
)
Other, net
(204
)
 
(176
)
Net Cash (Used for) Provided by Financing Activities
(2,300
)
 
949

Effect of exchange rate changes on cash and equivalents and restricted cash
(1
)
 
(5
)
Net decrease in cash and equivalents and restricted cash
(642
)
 
(12,670
)
Opening Cash and Equivalents and Restricted Cash
1,236

 
14,179

Closing Cash and Equivalents and Restricted Cash
$
594

 
$
1,509

 
 
 
 
Non-Cash Investing Activities
 
 
 
Fair value of shares issued as acquisition consideration
$

 
$
8,004

Fair value of equity awards issued as acquisition consideration
$

 
$
613

Amounts may not add due to rounding.
See notes to condensed consolidated financial statements

6



BECTON, DICKINSON AND COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2019
Note 1 – Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of the management of Becton, Dickinson and Company (the "Company" or "BD"), include all adjustments which are of a normal recurring nature, necessary for a fair presentation of the financial position and the results of operations and cash flows for the periods presented. However, the financial statements do not include all information and accompanying notes required for a presentation in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2018 Annual Report on Form 10-K. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.
Note 2Accounting Changes
New Accounting Principles Adopted
On October 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606") using the modified retrospective method. Under ASC 606, revenue is recognized upon the transfer of control of goods or services to customers and reflects the amount of consideration to which a reporting entity expects to be entitled in exchange for those goods or services. The Company assessed the impact of this new standard on its consolidated financial statements based upon a review of contracts that were not completed as of October 1, 2018. Amounts presented in the Company's financial statements for the prior-year periods have not been revised and are reflective of the revenue recognition requirements which were in effect for those periods. This accounting standard adoption, which is further discussed in Note 6, did not materially impact any line items of the Company's consolidated income statements and balance sheet.
On October 1, 2018, the Company retrospectively adopted an accounting standard update which requires all components of net periodic pension and postretirement benefit costs to be disaggregated from the service cost component and to be presented on the income statement outside a subtotal of income from operations, if one is presented. Upon the Company's adoption of the accounting standard update, which did not have a material impact on its consolidated financial statements, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other income (expense), net on its consolidated income statements for all periods presented. Revisions of prior-year period amounts were estimated based upon previously disclosed amounts.
On October 1, 2018, the Company adopted an accounting standard update which requires that the income tax effects of intercompany sales or transfers of assets, except those involving inventory, be recognized in the income statement as income tax expense (or benefit) in the period that the sale or transfer occurs. The Company adopted this accounting standard update, which did not have a material impact on its consolidated financial statements, using the modified retrospective method.
New Accounting Principle Not Yet Adopted
In February 2016, the FASB issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet.  The new standard also requires expanded disclosures regarding leasing arrangements.  The Company is in the process of evaluating the impact on its consolidated financial statements and anticipates most of its current operating leases will result in the recognition of right-of-use assets and corresponding lease liabilities on its consolidated balance sheet. The new standard is not expected to materially impact the Company's results of operations. The Company will adopt the standard on October 1, 2019 and will elect the transition method that allows application of the new standard at its adoption date, rather than at the earliest comparative period presented in the financial statements.

7



Note 3Shareholders' Equity
Changes in certain components of shareholders' equity for the first three quarters of fiscal years 2019 and 2018 were as follows:
 
Common
Stock  Issued
at Par Value
 
Capital in
Excess of
Par Value
 
Retained
Earnings
 
Deferred
Compensation
 
Treasury Stock
(Millions of dollars)
Shares (in
thousands)
 
Amount
Balance at September 30, 2018
$
347

 
$
16,179

 
$
12,596

 
$
22

 
(78,463
)
 
$
(6,243
)
Net income

 

 
599

 

 

 

Common dividends ($0.77 per share)

 

 
(207
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for share-based compensation and other plans, net

 
(97
)
 

 
2

 
851

 
9

Share-based compensation

 
92

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
(12
)
 

Effect of changes in accounting principles (see Note 2)

 

 
68

 

 

 

Balance at December 31, 2018
$
347

 
$
16,174

 
$
13,018

 
$
24

 
(77,624
)
 
$
(6,235
)
Net income

 

 
20

 

 

 

Common dividends ($0.77 per share)

 

 
(208
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for share-based compensation and other plans, net

 
(57
)
 
(1
)
 
(1
)
 
618

 
42

Share-based compensation

 
60

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
50

 

Balance at March 31, 2019
$
347

 
$
16,177

 
$
12,792

 
$
23

 
(76,955
)
 
$
(6,192
)
Net income

 

 
451

 

 

 

Common dividends ($0.77 per share)

 

 
(208
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for share-based compensation and other plans, net

 
(6
)
 

 

 
219

 
(8
)
Share-based compensation

 
56

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
4

 

Balance at June 30, 2019
$
347

 
$
16,227

 
$
12,997

 
$
23

 
(76,733
)
 
$
(6,201
)


8



 
Common
Stock  Issued
at Par Value
 
Capital in
Excess of
Par Value
 
Retained
Earnings
 
Deferred
Compensation
 
Treasury Stock
(Millions of dollars)
Shares (in
thousands)
 
Amount
Balance at September 30, 2017
$
347

 
$
9,619

 
$
13,111

 
$
19

 
(118,745
)
 
$
(8,427
)
Net loss

 

 
(136
)
 

 

 

Common dividends ($0.75 per share)

 

 
(172
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for acquisition

 
6,487

 

 

 
37,306

 
2,121

Common stock issued for share-based compensation and other plans, net

 
(51
)
 

 

 
1,021

 
(37
)
Share-based compensation

 
142

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
(27
)
 

Balance at December 31, 2017
$
347

 
$
16,197

 
$
12,765

 
$
19

 
(80,445
)
 
$
(6,343
)
Net loss

 

 
(12
)
 

 

 

Common dividends ($0.75 per share)

 

 
(201
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for acquisition

 
(9
)
 

 

 

 

Common stock issued for share-based compensation and other plans, net

 
(94
)
 
(1
)
 
2

 
943

 
44

Share-based compensation

 
76

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
17

 

Effect of changes in accounting principles

 

 
103

 

 

 

Balance at March 31, 2018
$
347

 
$
16,170

 
$
12,616

 
$
21

 
(79,485
)
 
$
(6,300
)
Net income

 

 
594

 

 

 

Common dividends ($0.75 per share)

 

 
(201
)
 

 

 

Preferred dividends

 

 
(38
)
 

 

 

Common stock issued for share-based compensation and other plans, net

 
(25
)
 
(1
)
 
1

 
364

 
24

Share-based compensation

 
48

 

 

 

 

Common stock held in trusts, net (a)

 

 

 

 
(2
)
 

Balance at June 30, 2018
$
347

 
$
16,193

 
$
12,971

 
$
22

 
(79,124
)
 
$
(6,275
)
(a)
Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan.

9



The components and changes of Accumulated other comprehensive income (loss) for the first three quarters of fiscal years 2019 and 2018 were as follows:
(Millions of dollars)
Total
 
Foreign Currency
Translation
 
Benefit Plans
 

Cash Flow Hedges
Balance at September 30, 2018
$
(1,909
)
 
$
(1,162
)
 
$
(729
)
 
$
(17
)
Other comprehensive (loss) income before reclassifications, net of taxes
(32
)
 
(35
)
 
3

 
(1
)
Amounts reclassified into income, net of taxes
14

 

 
13

 
1

Balance at December 31, 2018
$
(1,927
)
 
$
(1,197
)
 
$
(714
)
 
$
(16
)
Other comprehensive income (loss) before reclassifications, net of taxes
74

 
76

 

 
(2
)
Amounts reclassified into income, net of taxes
14

 

 
13

 
1

Balance at March 31, 2019
$
(1,839
)
 
$
(1,121
)
 
$
(701
)
 
$
(17
)
Other comprehensive loss before reclassifications, net of taxes
(68
)
 
(68
)
 

 

Amounts reclassified into income, net of taxes
10

 

 
12

 
(2
)
Balance at June 30, 2019
$
(1,897
)
 
$
(1,189
)
 
$
(689
)
 
$
(19
)

(Millions of dollars)
Total
 
Foreign Currency
Translation
 
Benefit Plans
 

Cash Flow Hedges
Balance at September 30, 2017
$
(1,723
)
 
$
(1,001
)
 
$
(703
)
 
$
(18
)
Other comprehensive loss before reclassifications, net of taxes
(36
)
 
(36
)
 

 

Amounts reclassified into income, net of taxes
18

 

 
17

 
1

Balance at December 31, 2017
$
(1,740
)
 
$
(1,037
)
 
$
(686
)
 
$
(17
)
Other comprehensive income before reclassifications, net of taxes
128

 
128

 

 

Amounts reclassified into income, net of taxes
11

 

 
9

 
2

Tax effects reclassified into retained earnings
(103
)
 

 
(99
)
 
(4
)
Balance at March 31, 2018
$
(1,704
)
 
$
(909
)
 
$
(776
)
 
$
(20
)
Other comprehensive (loss) income before reclassifications, net of taxes
(210
)
 
(214
)
 
4

 

Amounts reclassified into income, net of taxes
13

 

 
12

 
1

Balance at June 30, 2018
$
(1,902
)
 
$
(1,123
)
 
$
(760
)
 
$
(18
)
The amount of foreign currency translation recognized in other comprehensive income during the three and nine months ended June 30, 2019 and 2018 included net gains (losses) relating to net investment hedges, as further discussed in Note 13. During the second quarter of 2018, as permitted under U.S. GAAP guidance, the Company reclassified stranded income tax effects on items within Accumulated other comprehensive income (loss) resulting from the enactment of new U.S. tax legislation to Retained earnings. The reclassified tax effects related to prior service credits and net actuarial losses relating to benefit plans, as well as to terminated cash flow hedges. The tax effects relating to these items are generally recognized as such amounts are amortized into earnings.
 
 
 
 
 
 
 
 


10



Note 4 – Earnings per Share
The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) were as follows:
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Average common shares outstanding
270,249

 
267,836

 
269,719

 
254,934

Dilutive share equivalents from share-based plans
4,087

 
6,089

 
4,791

 
5,926

Average common and common equivalent shares outstanding – assuming dilution
274,336

 
273,925

 
274,510

 
260,860

 
 
 
 
 
 
 
 
Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive:
 
 
 
 
 
 
 
Mandatory convertible preferred stock
11,685

 
11,685

 
11,685

 
11,685


Note 5Contingencies
Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the civil investigative demand served by the Department of Justice, as discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved.
In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows.
Product Liability Matters
The Company believes that certain settlements and judgments, as well as legal defense costs, relating to product liability matters are or may be covered in whole or in part under its product liability insurance policies with a limited number of insurance carriers, or, in some circumstances, indemnification obligations to the Company from other parties, which if disputed, the Company intends to vigorously contest. Amounts recovered under the Company’s product liability insurance policies or indemnification arrangements may be less than the stated coverage limits or less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers or other parties will pay claims or that coverage or indemnity will be otherwise available.
Hernia Product Claims
As of June 30, 2019, the Company is defending approximately 8,795 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The majority of those claims are currently pending in a coordinated proceeding in Rhode Island State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. From time to time, the Company engages in resolution discussions with plaintiffs’ law firms regarding certain of the Hernia Product Claims, but the Company also intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. Trials are scheduled throughout 2020 in various state and/or federal courts. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. In August 2018, a new hernia multi-district litigation (“MDL”) was ordered to be established in the Southern District of Ohio. The Company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect

11



on the Company’s business, results of operations, financial condition and/or liquidity.
Women’s Health Product Claims
As of June 30, 2019, the Company is defending approximately 985 product liability claims involving the Company’s line of pelvic mesh devices. The majority of those claims are currently pending in either the federal MDL in the United States District Court for the Southern District of West Virginia, or a coordinated proceeding in New Jersey State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include putative class actions filed in the United States. Not included in the figures above are approximately 1,010 filed and unfiled claims that have been asserted or threatened against the Company but lack sufficient information to determine whether a pelvic mesh device of the Company is actually at issue. The claims identified above also include products manufactured by both the Company and two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the Company. Medtronic has an obligation to defend and indemnify the Company with respect to any product defect liability relating to products its subsidiaries had manufactured. As described below, in July 2015 the Company reached an agreement with Medtronic (which was amended in June 2017) regarding certain aspects of Medtronic’s indemnification obligation. The foregoing lawsuits, unfiled claims, putative class actions, and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as the “Women’s Health Product Claims.” The Women’s Health Product Claims generally seek damages for personal injury allegedly resulting from use of the products.
As of June 30, 2019, the Company has reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 15,160 of the Women’s Health Product Claims. The Company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which are not included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The Company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements.
Starting in 2014 in the MDL, the court entered certain pre-trial orders requiring trial work up and remand of a significant number of Women’s Health Product Claims, including an order entered in the MDL on January 30, 2018, that requires the work up and remand of all remaining unsettled cases (the “WHP Pre-Trial Orders”). The WHP Pre-Trial Orders may result in material additional costs or trial verdicts in future periods in defending Women’s Health Product Claims. Trials are anticipated throughout 2019 in state courts. A trial in the New Jersey coordinated proceeding began in March 2018, and in April 2018 a jury entered a verdict against the Company in the total amount of $68 million ($33 million compensatory; $35 million punitive). The Company is in the process of appealing that verdict. A consolidated trial involving two plaintiffs is scheduled to begin in September 2019 in the New Jersey coordinated proceeding. The Company expects additional trials of Women’s Health Product Claims to take place over the next 12 months, which may potentially include consolidated trials.
In July 2015, as part of the agreement with Medtronic noted above, Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the Company under supply agreements with Medtronic, and the Company has paid Medtronic $121 million towards these potential settlements. In June 2017, the Company amended the agreement with Medtronic to transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on terms similar to the July 2015 agreement, including with respect to the obligation to make payments to Medtronic towards these potential settlements. The Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any.
During the course of engaging in settlement discussions with plaintiffs’ law firms, the Company has learned, and may in future periods learn, additional information regarding these and other unfiled claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company.
Filter Product Claims
As of June 30, 2019, the Company is defending approximately 4,525 product liability claims involving the Company’s line of inferior vena cava filters (collectively, the “Filter Product Claims”). The majority of those claims are currently pending in an MDL in the United States District Court for the District of Arizona, but claims are also pending in other state and/or federal court jurisdictions, including a coordinated proceeding in Arizona State Court. In addition, those claims include putative class actions filed in the United States and Canada. The Filter Product Claims generally seek damages for personal injury allegedly resulting from use of the products. The Company has limited information regarding the nature and quantity of certain of the Filter Product Claims. The Company continues to receive claims and lawsuits and may in future periods learn additional

12



information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. On May 31, 2019, the MDL Court ceased accepting direct filings or transfers into the Filter Product Claims MDL and remands for non-settled cases are expected to begin within the next three to six months. The MDL trials are scheduled throughout 2019 and 2020 in certain state and federal courts. As of June 30, 2019, the Company entered into settlement agreements and/or settlement agreements in principle for approximately 4,200 cases. On March 30, 2018, a jury in the first MDL trial found the Company liable for negligent failure to warn and entered a verdict in favor of plaintiffs. The jury found the Company was not liable for (a) strict liability design defect; (b) strict liability failure to warn; and (c) negligent design. The Company has appealed that verdict. On June 1, 2018, a jury in the second MDL trial unanimously found in favor of the Company on all claims. On August 17, 2018, the Court entered summary judgment in favor of the Company on all claims in the third MDL trial. On October 5, 2018, a jury in the fourth MDL trial unanimously found in favor of the Company on all claims. The Company expects additional trials of Filter Product Claims may take place over the next 12 months.
In most product liability litigations (like those described above), plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters.
In January 2017, the Company reached an agreement to resolve litigation filed in the Southern District of New York by its insurance carriers in connection with Women’s Health Product Claims and Filter Product Claims. The agreement requires the insurance carriers to reimburse the Company for certain future costs incurred in connection with Filter Product Claims up to an agreed amount. For certain product liability claims or lawsuits, the Company does not maintain or has limited remaining insurance coverage.
Other Legal Matters
Since early 2013, the Company has received subpoenas or Civil Investigative Demands from a number of State Attorneys General seeking information related to the sales and marketing of certain of the Company’s products that are the subject of the Hernia Product Claims and the Women’s Health Product Claims. The Company is cooperating with these requests. Although the Company has had, and continues to have, discussions with the State Attorneys General with respect to overall potential resolution of this matter, there can be no assurance that a resolution will be reached or what the terms of any such resolution may be.
In July 2017, a civil investigative demand was served by the Department of Justice seeking documents and information relating to an investigation into possible violations of the False Claims Act in connection with the sales and marketing of FloChec® and QuantaFloTM devices. The Company is cooperating with these requests. Since it is not feasible to predict the outcome of these matters, the Company cannot give any assurances that the resolution of these matters will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity.
The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. However, one or more of the proceedings could be material to the Company’s business and/or results of operations.
The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to these suits pending against the Company and is engaged in a vigorous defense of each of these matters.
Litigation Reserves
The Company regularly monitors and evaluates the status of product liability and other legal matters, and may, from time-to-time, engage in settlement and mediation discussions taking into consideration developments in the matters and the risks and uncertainties surrounding litigation. These discussions could result in settlements of one or more of these claims at any time.
In the second quarter of 2019, the Company recorded a pre-tax charge to Other operating expense, net, of approximately $331 million related to certain of the product liability matters discussed above under the heading “Product Liability Matters,”

13



including the related legal defense costs. The Company recorded this charge based on additional information obtained during the quarter, including but not limited to: the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the Company; and the stage of litigation.
Accruals for the Company's product liability claims which are specifically discussed above, as well as the related legal defense costs, amounted to approximately $1.9 billion at June 30, 2019 and