Segment Data

12 Months Ended

Sep. 30, 2019

The Company's organizational structure is based upon three principal business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Company’s segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services.

Medical

Medical produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The primary customers served by Medical are hospitals and clinics; physicians’ office practices; consumers and retail pharmacies; governmental and nonprofit public health

agencies; pharmaceutical companies; and healthcare workers. Medical consists of the following organizational units:



Organizational Unit		Principal Product Lines
Medication Delivery Solutions		Peripheral intravenous ("IV") catheters (conventional, safety); advanced peripheral catheters (guidewire assisted peripherally inserted venous catheters, midline catheters, port access); central lines (peripherally inserted central catheters); acute dialysis catheters; vascular access technology (ultrasonic imaging); vascular care (lock solutions, prefilled flush syringes, disinfecting caps); vascular preparation (skin antiseptics, dressings, securement); needle-free IV connectors and extensions sets; closed-system drug transfer devices; hazardous drug detection; conventional and safety hypodermic syringes and needles, anesthesia needles (spinal, epidural) and trays; enteral syringes, sharps disposal systems.
Medication Management Solutions		IV medication safety and infusion therapy delivery systems, including infusion pumps, dedicated disposables, and IV fluids; medication compounding workflow systems; automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and informatics and analytics solutions for enterprise medication management.
Diabetes Care		Syringes, pen needles and other products related to the injection or infusion of insulin and other drugs used in the treatment of diabetes.
Pharmaceutical Systems		Prefillable drug delivery systems - prefillable syringes, safety, shielding and self-injection systems and support services - provided to pharmaceutical companies for use as containers for injectable pharmaceutical products, which are then placed on the market as drug/device combinations.

Life Sciences

Life Sciences provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections (“HAIs”) and cancers. In addition, Life Sciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. That information is used to aid the discovery and development of new drugs and vaccines, and to improve the diagnosis and management of diseases. The primary customers served by Life Sciences are hospitals, laboratories and clinics; blood banks; healthcare workers; public health agencies; physicians’ office practices; retail pharmacies; academic and government institutions; and pharmaceutical and biotechnology companies. Life Sciences consists of the following organizational units:



Organizational Unit		Principal Product Lines
Preanalytical Systems		Integrated systems for specimen collection; and safety-engineered blood collection products and systems.
Diagnostic Systems		Automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays for testing of respiratory infections; microbiology laboratory automation and plated media for clinical and industrial applications.
Biosciences		Fluorescence-activated cell sorters and analyzers; antibodies and kits for performing cell analysis; reagent systems for life science research; solutions for high-throughput single-cell gene expression analysis; and clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers.

Effective October 1, 2019, Life Sciences joined its Preanalytical Systems and Diagnostic Systems organizational units to create a new Integrated Diagnostic Solutions organizational unit which will focus on driving growth and innovation around integrated specimen management to diagnostic solutions. The new Integrated Diagnostic Solution organizational unit will consist of the following principal product lines:



Organizational Unit		Principal Product Lines
Integrated Diagnostic Solutions		Integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays for testing of respiratory infections; microbiology laboratory automation and plated media for clinical and industrial applications.

Interventional

Interventional provides vascular, urology, oncology and surgical specialty products that are, with the exception of the V. Muller surgical and laparoscopic instrumentation products, intended to be used once and then discarded or are either temporarily or permanently implanted. The primary customers served by Interventional are hospitals, individual healthcare professionals, extended care facilities, alternate site facilities and patients via the segment's Homecare business. The Interventional segment consists of the following organizational units:



Organizational Unit		Principal Product Lines
Surgery		Hernia and soft tissue repair, biological grafts, bioresorbable grafts, biosurgery, and other surgical products; BD ChloraPrep™ surgical infection prevention products, and V. Mueller™ surgical and laparoscopic instrumentation products.
Peripheral Intervention		Percutaneous transluminal angioplasty (“PTA”) balloon catheters, peripheral vascular stents, self-expanding and balloon-expandable stent grafts, vascular grafts, drug-coated balloons, ports, biopsy, chronic dialysis, feeding, IVC filters, endovascular fistula creation devices and drainage products.
Urology and Critical Care		Urine management devices, urological drainage products, intermittent catheters, kidney stone management devices, Targeted Temperature Management, and fecal management devices.

Additional Segment Information

Distribution of products is primarily through independent distribution channels, and directly to end-users by BD and independent sales representatives. No customer accounted for 10% or more of revenues in any of the three years presented.

Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income, which represents revenues reduced by product costs and operating expenses. Beginning with its first quarter fiscal year 2018, the Company changed its management reporting approach so that certain general and administrative costs, which were previously allocated to the segments, are now excluded from the segments' operating expenses. The Medical and Life Sciences segments' operating income for the year ended September 30, 2017 included allocated general corporate costs of $166 million and $113 million, respectively. No such allocations were made in the year ended September 30, 2019 or September 30, 2018.

Financial information for the Company’s segments is detailed below. The Company has no material intersegment revenues. As discussed in Note 10, the Company completed its acquisition of Bard on December 29, 2017. Bard's operating results were included in the Company’s consolidated results of operations beginning on January 1, 2018.



(Millions of dollars)	2019						2018						2017
	United States		International		Total		United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions	$	2,048	$	1,811	$	3,859	$	1,892	$	1,752	$	3,644	$	1,378	$	1,434	$	2,812
Medication Management Solutions	2,104		525		2,629		1,957		513		2,470		1,843		452		2,295
Diabetes Care	573		538		1,110		564		541		1,105		546		510		1,056
Pharmaceutical Systems	392		1,073		1,465		357		1,040		1,397		328		929		1,256
Total segment revenues	$	5,116	$	3,947	$	9,064	$	4,770	$	3,846	$	8,616	$	4,095	$	3,325	$	7,419

Life Sciences
Preanalytical Systems	$	774	$	784	$	1,558	$	761	$	792	$	1,553	$	741	$	730	$	1,471
Diagnostic Systems	672		875		1,547		678		858		1,536		622		756		1,378
Biosciences	485		709		1,194		475		766		1,241		455		684		1,139
Total segment revenues	$	1,931	$	2,368	$	4,300	$	1,914	$	2,416	$	4,330	$	1,818	$	2,170	$	3,988

Interventional
Surgery (a)	$	1,098	$	299	$	1,397	$	946	$	245	$	1,192	$	577	$	89	$	666
Peripheral Intervention (a)	787		602		1,389		594		451		1,045		14		6		19
Urology and Critical Care	797		342		1,140		544		256		800		—		—		—
Total segment revenues	$	2,682	$	1,244	$	3,926	$	2,084	$	953	$	3,037	$	591	$	95	$	685

Total Company revenues	$	9,730	$	7,560	$	17,290	$	8,768	$	7,215	$	15,983	$	6,504	$	5,589	$	12,093

(a)Amounts presented in 2017 are associated with certain product offerings that were moved from the Medical segment to the Interventional segment in order to align with the reportable segment structure that became effective beginning in the second quarter of fiscal year 2018.



(Millions of dollars)	2019			2018			2017
Income Before Income Taxes
Medical (a) (b) (c)	$	2,824		$	2,624		$	1,907
Life Sciences (d)	1,248			1,207			772
Interventional (b) (e) (f)	903			306			248
Total Segment Operating Income	4,976			4,137			2,927
Acquisitions and other restructurings	(480		)	(740		)	(354		)
Net interest expense	(627		)	(641		)	(445		)
Other unallocated items (g)	(2,693		)	(1,583		)	(1,152		)
Total Income Before Income Taxes	$	1,176		$	1,173		$	976
Assets
Medical	$	22,925		$	23,493		$	15,552
Life Sciences	4,135			4,225			4,056
Interventional (f)	22,157			23,219			2,780
Total Segment Assets	49,217			50,938			22,388
Corporate and All Other (h)	2,548			2,966			15,347
Total Assets	$	51,765		$	53,904		$	37,734
Capital Expenditures
Medical	$	577		$	560		$	486
Life Sciences	230			255			212
Interventional (f)	120			65			16
Corporate and All Other	30			14			13
Total Capital Expenditures	$	957		$	895		$	727
Depreciation and Amortization
Medical	$	1,073		$	1,028		$	773
Life Sciences	284			275			254
Interventional (f)	881			658			52
Corporate and All Other	14			17			10
Total Depreciation and Amortization	$	2,253		$	1,978		$	1,088

(a)The amount in 2019 included $75 million of estimated remediation costs recorded to Other operating expense, net relating to a recall of a product component, which generally pre-dated the Company's acquisition of CareFusion in fiscal year 2015, within the Medication Management Solutions unit's infusion systems platform.

(b)The amounts in 2018 included expense related to the recognition of a $478 million fair value step-up adjustment related to Bard's inventory on the acquisition date. The step-up adjustments recognized by the Medical and Interventional segments in 2018 were $60 million and $418 million, respectively.

(c)The amount in 2018 included $58 million of charges to write down the value of fixed assets primarily in the Diabetes Care unit.

(d)The amount in 2018 included $81 million of charges recorded to write down the carrying value of certain intangible and other assets in the Biosciences unit.

(e)The amount in 2019 included a charge of $30 million recorded to write down the carrying value of certain intangible assets in the Surgery unit.

(f)Amounts presented in 2017 are associated with certain product offerings that were moved from the Medical segment to the Interventional segment in order to align with the reportable segment structure that became effective beginning in the second quarter of fiscal year 2018.

(g)Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. The amount in 2019 included a pre-tax charge of $914 million related to certain product liability matters, which is further discussed in Note 5, and also included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $336 million, which is further discussed in Note 11. Results in 2019 and 2018 were impacted by the Company's change in its management reporting approach, as further discussed above. The amount in 2018 included the pre-tax gain recognized on the Company's sale of its non-controlling interest in Vyaire Medical of approximately $303 million. Results in 2017 included a $748 million non-cash charge resulting from a modification to the Company's dispensing equipment lease contracts with customers, as well as the reversal of certain litigation reserves.

(h)Includes cash and investments and corporate assets.

Geographic Information

The countries in which the Company has local revenue-generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe; Greater Asia (which includes countries in East Asia, South Asia, Southeast Asia and the Oceania region); and Other, which is comprised of Latin America, Canada, and EMA (which includes the Commonwealth of Independent States, Middle East and Africa).

Revenues to unaffiliated customers are generally based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.



(Millions of dollars)	2019		2018		2017
Revenues
United States	$	9,730	$	8,768	$	6,504
Europe	3,359		3,298		2,588
Greater Asia	2,726		2,460		1,744
Other	1,476		1,457		1,257
	$	17,290	$	15,983	$	12,093
Long-Lived Assets
United States	$	37,053	$	38,982	$	13,151
Europe	5,483		5,640		4,421
Greater Asia	1,328		851		578
Other	861		645		584
Corporate	377		375		366
	$	45,101	$	46,494	$	19,101