QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices) (Zip Code) | (Registrant’s telephone number, including area code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
☒ | 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. | ☐ |
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. | ||||||||
Three Months Ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of products sold | |||||||||||
Selling and administrative expense | |||||||||||
Research and development expense | |||||||||||
Integration, restructuring and transaction expense | |||||||||||
Other operating expense, net | |||||||||||
Total Operating Costs and Expenses | |||||||||||
Operating Income | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Other expense, net | ( | ( | |||||||||
Income Before Income Taxes | |||||||||||
Income tax provision | |||||||||||
Net Income | $ | $ | |||||||||
Basic Earnings per Share | $ | $ | |||||||||
Diluted Earnings per Share | $ | $ | |||||||||
Dividends per Common Share | $ | $ |
Three Months Ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Net Income | $ | $ | |||||||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Foreign currency translation adjustments | |||||||||||
Defined benefit pension and postretirement plans | |||||||||||
Cash flow hedges | ( | ||||||||||
Other Comprehensive Income, Net of Tax | |||||||||||
Comprehensive Income | $ | $ |
December 31, 2024 | September 30, 2024 | ||||||||||
Assets | (Unaudited) | ||||||||||
Current Assets: | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Short-term investments | |||||||||||
Trade receivables, net | |||||||||||
Inventories: | |||||||||||
Materials | |||||||||||
Work in process | |||||||||||
Finished products | |||||||||||
Prepaid expenses and other | |||||||||||
Total Current Assets | |||||||||||
Property, Plant and Equipment | |||||||||||
Less allowances for depreciation and amortization | |||||||||||
Property, Plant and Equipment, Net | |||||||||||
Goodwill | |||||||||||
Developed Technology, Net | |||||||||||
Customer Relationships, Net | |||||||||||
Other Intangibles, Net | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current Liabilities: | |||||||||||
Current debt obligations | $ | $ | |||||||||
Payables, accrued expenses and other current liabilities | |||||||||||
Total Current Liabilities | |||||||||||
Long-Term Debt | |||||||||||
Long-Term Employee Benefit Obligations | |||||||||||
Deferred Income Taxes and Other Liabilities | |||||||||||
Commitments and Contingencies (See Note 5) | |||||||||||
Shareholders’ Equity | |||||||||||
Common stock — $ | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Deferred compensation | |||||||||||
Treasury stock | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
Three Months Ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to net income to derive net cash provided by continuing operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Change in operating assets and liabilities | ( | ||||||||||
Pension obligation | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net Cash Provided by Continuing Operating Activities | |||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Maturities and sales of investments | |||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Other, net | ( | ( | |||||||||
Net Cash Provided by (Used for) Investing Activities | ( | ||||||||||
Financing Activities | |||||||||||
Change in short-term debt | |||||||||||
Payments of debt | ( | ||||||||||
Repurchases of common stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net Cash Used for Financing Activities | ( | ( | |||||||||
Discontinued Operations | |||||||||||
Net cash used for operating activities of discontinued operations | ( | ||||||||||
Effect of exchange rate changes on cash and equivalents and restricted cash | ( | ||||||||||
Net decrease in cash and equivalents and restricted cash | ( | ( | |||||||||
Opening Cash and Equivalents and Restricted Cash | |||||||||||
Closing Cash and Equivalents and Restricted Cash | $ | $ | |||||||||
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, 2024 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common dividends ($ | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Issuance of shares under employee and other plans, net | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | ( | — | |||||||||||||||||||||||||||||
Repurchase of common stock | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
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, 2023 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common dividends ($ | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Issuance of shares under employee and other plans, net | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | ( | — | |||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Execution Date | Settlement Date | Aggregate Common Stock Repurchased (millions of dollars) (a) | Initial Shares Delivered (in thousands) | Additional Shares Delivered at Settlement (in thousands) (b) | Total Shares Delivered (in thousands) | |||||||||||||||||||||||||||
Q1 2025 | Q2 2025 | $ |
(Millions of dollars) | Total | Foreign Currency Translation | Benefit Plans | Cash Flow Hedges | Available-for-Sale Debt Securities | ||||||||||||||||||||||||
Balance at September 30, 2024 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income before reclassifications, net of taxes | |||||||||||||||||||||||||||||
Amounts reclassified into income, net of taxes | ( | ||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
(Millions of dollars) | Total | Foreign Currency Translation | Benefit Plans | Cash Flow Hedges | Available-for-Sale Debt Securities | ||||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes | ( | ||||||||||||||||||||||||||||
Amounts reclassified into income, net of taxes | |||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Average common shares outstanding | |||||||||||
Dilutive share equivalents from share-based plans | |||||||||||
Average common and common equivalent shares outstanding – assuming dilution | |||||||||||
Share equivalents excluded from the diluted shares outstanding calculation: | |||||||||||
Share-based plans (a) |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||||||||||||||||||||||||||
United States | International | Total | United States | International | Total | ||||||||||||||||||||||||||||||
Medical | |||||||||||||||||||||||||||||||||||
Medication Delivery Solutions | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Medication Management Solutions | |||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | |||||||||||||||||||||||||||||||||||
Advanced Patient Monitoring | |||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Life Sciences | |||||||||||||||||||||||||||||||||||
Specimen Management (a) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Diagnostic Solutions (a) | |||||||||||||||||||||||||||||||||||
Biosciences | |||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interventional | |||||||||||||||||||||||||||||||||||
Surgery | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Peripheral Intervention | |||||||||||||||||||||||||||||||||||
Urology and Critical Care | |||||||||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total Company revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Income Before Income Taxes | |||||||||||
Medical | $ | $ | |||||||||
Life Sciences | |||||||||||
Interventional | |||||||||||
Total Segment Operating Income | |||||||||||
Integration, restructuring and transaction expense | ( | ( | |||||||||
Net interest expense | ( | ( | |||||||||
Other unallocated items (a) | ( | ( | |||||||||
Total Income Before Income Taxes | $ | $ |
Three Months Ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of prior service credit | ( | ||||||||||
Amortization of loss | |||||||||||
Net pension cost | $ | $ |
(Millions of dollars) | Employee Termination | Other (a) | Total | ||||||||||||||
Balance at September 30, 2024 | $ | $ | $ | ||||||||||||||
Charged to expense | |||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Non-cash settlements | ( | ( | |||||||||||||||
Other adjustments | ( | ( | |||||||||||||||
Balance at December 31, 2024 | $ | $ | $ |
December 31, 2024 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
(Millions of dollars) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
Patents, trademarks and other | ( | ( | |||||||||||||||||||||||||||||||||
Amortized intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||||||||||||
Acquired in-process research and development | $ | $ | |||||||||||||||||||||||||||||||||
Trademarks | |||||||||||||||||||||||||||||||||||
Unamortized intangible assets | $ | $ |
(Millions of dollars) | Medical | Life Sciences | Interventional | Total | |||||||||||||||||||
Goodwill as of September 30, 2024 | $ | $ | $ | $ | |||||||||||||||||||
Purchase price allocation adjustments | ( | ( | |||||||||||||||||||||
Currency translation | ( | ( | ( | ( | |||||||||||||||||||
Goodwill as of December 31, 2024 | $ | $ | $ | $ |
(Millions of dollars) | Hedge Designation | December 31, 2024 | September 30, 2024 | ||||||||||||||
Foreign exchange contracts (a) | Undesignated | $ | $ | ||||||||||||||
Foreign exchange contracts (b) | Cash flow hedges | ||||||||||||||||
Foreign currency-denominated debt (c) | Net investment hedges | ||||||||||||||||
Cross-currency swaps (d) | Net investment hedges |
Three Months Ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Foreign currency-denominated debt | $ | $ | ( | ||||||||
Cross-currency swaps (a) | ( | ||||||||||
(Millions of dollars) | Hedge Designation | December 31, 2024 | September 30, 2024 | ||||||||||||||
Interest rate swaps (a) | Fair value hedges | $ | $ | ||||||||||||||
(Millions of dollars) | December 31, 2024 | September 30, 2024 | |||||||||
Cash and equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash and equivalents and restricted cash | $ | $ |
(Millions of dollars) | Basis of fair value measurement | December 31, 2024 | September 30, 2024 | ||||||||||||||
Institutional money market accounts (a) | Level 1 | $ | $ | ||||||||||||||
Current portion of long-term debt (b) | Level 2 | ||||||||||||||||
Long-term debt (b) | Level 2 |
Three Months Ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Trade receivables transferred to third parties under factoring arrangements | $ | $ |
December 31, 2024 | September 30, 2024 | ||||||||||
Amounts yet to be collected and remitted to the third parties | $ | $ |
Increase (decrease) in current-period revenues | |||||
Volume/other (a) | 3.5 | % | |||
Pricing | 0.4 | % | |||
Foreign currency impact | 0.2 | % | |||
Acquisition of Advanced Patient Monitoring | 5.7 | % | |||
Increase in revenues from the prior-year period | 9.8 | % |
Three months ended December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||
Medication Delivery Solutions | $ | 1,124 | $ | 1,052 | 6.9 | % | 0.1 | % | 6.8 | % | |||||||||||||||||||
Medication Management Solutions | 801 | 747 | 7.3 | % | 0.2 | % | 7.1 | % | |||||||||||||||||||||
Pharmaceutical Systems | 418 | 431 | (3.2) | % | — | % | (3.2) | % | |||||||||||||||||||||
Advance Patient Monitoring | 271 | — | NM | NM | NM | ||||||||||||||||||||||||
Total Medical Revenues | $ | 2,615 | $ | 2,230 | 17.3 | % | 0.2 | % | 17.1 | % |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Medical segment income | $ | 492 | $ | 535 | |||||||
Segment income as % of Medical revenues | 18.8 | % | 24.0 | % |
Three months ended December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||
Specimen Management (a) | 462 | 447 | 3.3 | % | — | % | 3.3 | % | |||||||||||||||||||||
Diagnostic Solutions (a) | 474 | 467 | 1.7 | % | 0.2 | % | 1.5 | % | |||||||||||||||||||||
Biosciences | 361 | 375 | (3.7) | % | 0.4 | % | (4.1) | % | |||||||||||||||||||||
Total Life Sciences Revenues | $ | 1,297 | $ | 1,288 | 0.7 | % | 0.2 | % | 0.5 | % |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Life Sciences segment income | $ | 383 | $ | 372 | |||||||
Segment income as % of Life Sciences revenues | 29.6 | % | 28.9 | % |
Three months ended December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||
Surgery | $ | 395 | $ | 369 | 7.0 | % | 0.2 | % | 6.8 | % | |||||||||||||||||||
Peripheral Intervention | 473 | 454 | 4.1 | % | 0.3 | % | 3.8 | % | |||||||||||||||||||||
Urology and Critical Care | 389 | 365 | 6.6 | % | 0.3 | % | 6.3 | % | |||||||||||||||||||||
Total Interventional Revenues | $ | 1,257 | $ | 1,188 | 5.8 | % | 0.3 | % | 5.5 | % |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Interventional segment income | $ | 387 | $ | 291 | |||||||
Segment income as % of Interventional revenues | 30.8 | % | 24.5 | % |
Three months ended December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||
United States | $ | 3,080 | $ | 2,749 | 12.0 | % | — | % | 12.0 | % | |||||||||||||||||||
International | 2,089 | 1,957 | 6.7 | % | 0.4 | % | 6.3 | % | |||||||||||||||||||||
Total Revenues | $ | 5,168 | $ | 4,706 | 9.8 | % | 0.2 | % | 9.6 | % |
Three months ended December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2024 | 2023 | Total Change | Estimated FX Impact | FXN Change | ||||||||||||||||||||||||
Emerging markets | $ | 729 | $ | 716 | 1.8 | % | (1.1) | % | 2.9 | % |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Restructuring costs (a) | $ | 66 | $ | 69 | |||||||
Integration costs (a) | 24 | 5 | |||||||||
Transaction costs (b) | 3 | — | |||||||||
Separation-related items (c) | — | 2 | |||||||||
Purchase accounting adjustments (d) | 570 | 362 | |||||||||
European regulatory initiative-related costs (e) | — | 23 | |||||||||
Product, litigation, and other items (f) | 102 | 14 | |||||||||
Total specified items | 764 | 475 | |||||||||
Less: tax impact of specified items and other tax related | 71 | (24) | |||||||||
After-tax impact of specified items | $ | 693 | $ | 499 |
Three-month period | |||||
December 31, 2023 gross profit margin % | 43.1 | % | |||
Impact of purchase accounting adjustments and other specified items | (3.6) | % | |||
Operating performance | 3.5 | % | |||
Foreign currency impact | 0.3 | % | |||
December 31, 2024 gross profit margin % | 43.3 | % |
Three months ended December 31, | Increase (decrease) in basis points | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(Millions of dollars) | |||||||||||||||||
Selling and administrative expense | $ | 1,318 | $ | 1,213 | |||||||||||||
% of revenues | 25.5 | % | 25.8 | % | (30) | ||||||||||||
Research and development expense | $ | 343 | $ | 290 | |||||||||||||
% of revenues | 6.6 | % | 6.2 | % | 40 | ||||||||||||
Integration, restructuring and transaction expense | $ | 92 | $ | 75 | |||||||||||||
Other operating expense, net | $ | 28 | $ | 11 |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Interest expense | $ | (155) | $ | (111) | |||||||
Interest income | 23 | 34 | |||||||||
Net interest expense | $ | (132) | $ | (77) |
Three months ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Effective income tax rate | 0.9 | % | 21.6 | % | |||||||
Impact, in basis points, from specified items | (600) | 1,520 |
Three months ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Net Income (Millions of dollars) | $ | 303 | $ | 281 | |||||||
Diluted Earnings per Share | $ | 1.04 | $ | 0.96 | |||||||
Unfavorable impact-specified items | $ | (2.39) | $ | (1.71) | |||||||
Favorable impact-foreign currency translation | $ | 0.01 |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Net cash provided by (used for): | |||||||||||
Operating activities | $ | 693 | $ | 855 | |||||||
Investing activities | $ | 204 | $ | (233) | |||||||
Financing activities | $ | (1,928) | $ | (862) |
Three months ended December 31, | |||||||||||
(Millions of dollars) | 2024 | 2023 | |||||||||
Cash inflow (outflow) | |||||||||||
Change in short-term debt | $ | 75 | $ | — | |||||||
Payments of debt | $ | (875) | $ | — | |||||||
Repurchases of common stock | $ | (750) | $ | (500) | |||||||
Dividends paid | $ | (302) | $ | (275) |
(Millions of dollars) | December 31, 2024 | September 30, 2024 | |||||||||
Total debt | $ | 18,758 | $ | 20,110 | |||||||
Weighted average cost of total debt | 3.3 | % | 3.4 | % | |||||||
Total debt as a percentage of total capital* | 42.0 | % | 42.9 | % |
For the three months ended December 31, 2024 | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
October 1 - 31, 2024 | 1,110 | $ | 240.01 | — | 6,681,777 | |||||||||||||||||||||
November 1 – 30, 2024 | 257 | 236.47 | — | 6,681,777 | ||||||||||||||||||||||
December 1 – 31, 2024 (3) | 2,636,667 | 230.36 | 2,636,667 | 4,045,110 | ||||||||||||||||||||||
Total | 2,638,034 | $ | 230.37 | 2,636,667 | 4,045,110 |
Subsidiary Issuer of Guaranteed Securities. | ||||||||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to SEC Rule 13a - 14(a). | ||||||||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to Rule 13a - 14(b) and Section 1350 of Chapter 63 of Title 18 of the U.S. Code. | ||||||||
101 | The following materials from this report, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Becton, Dickinson and Company | |||||
(Registrant) |
/s/ Christopher J. DelOrefice | |||||
Christopher J. DelOrefice | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) | |||||
/s/ Thomas E. Polen | |||||
Thomas E. Polen | |||||
Chairman, Chief Executive Officer and President |
/s/ Christopher J. DelOrefice | |||||
Christopher J. DelOrefice | |||||
Executive Vice President and Chief Financial Officer |
/s/ Thomas E. Polen | |||||
Name: Thomas E. Polen | |||||
Chief Executive Officer |
/s/ Christopher J. DelOrefice | |||||
Name: Christopher J. DelOrefice | |||||
Chief Financial Officer |
Condensed Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 31, 2024 |
Dec. 31, 2023 |
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Income Statement [Abstract] | ||
Revenues | $ 5,168 | $ 4,706 |
Cost of products sold | 2,933 | 2,679 |
Selling and administrative expense | 1,318 | 1,213 |
Research and development expense | 343 | 290 |
Integration, restructuring and transaction expense | 92 | 75 |
Other operating expense, net | 28 | 11 |
Total Operating Costs and Expenses | 4,715 | 4,267 |
Operating Income | 453 | 439 |
Interest expense | 155 | 111 |
Interest income | 23 | 34 |
Other expense, net | (16) | (4) |
Income Before Income Taxes | 306 | 359 |
Income tax provision | 3 | 77 |
Net Income | $ 303 | $ 281 |
Basic Earnings per Share (USD per share) | $ 1.05 | $ 0.97 |
Diluted Earnings per Share (USD per share) | 1.04 | 0.96 |
Dividends per Common Share (USD per share) | $ 1.04 | $ 0.95 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 31, 2024 |
Dec. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 303 | $ 281 |
Other Comprehensive Income (Loss), Net of Tax | ||
Foreign currency translation adjustments | 46 | 40 |
Defined benefit pension and postretirement plans | 8 | 12 |
Cash flow hedges | 2 | (18) |
Other Comprehensive Income, Net of Tax | 56 | 33 |
Comprehensive Income | $ 359 | $ 314 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2024 |
Sep. 30, 2024 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 640,000,000 | 640,000,000 |
Common stock, shares issued (shares) | 370,594,401 | 370,594,401 |
Basis of Presentation |
3 Months Ended |
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Dec. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 2024 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.
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Accounting Changes |
3 Months Ended |
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Dec. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting Changes New Accounting Principles Not Yet Adopted In November 2024, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that requires the Company to disclose more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in each relevant income statement expense caption. The update is effective for the Company beginning with its fiscal year 2028 reporting and for interim reporting beginning with its fiscal year 2029. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures. In December 2023, the FASB issued an accounting standard update that requires more disaggregated information to be included in the income tax rate reconciliation and income taxes paid annual disclosures. This update is effective for the Company beginning in its fiscal year 2026 and the Company is currently evaluating the impact that this update will have on its disclosures. In November 2023, the FASB issued a new accounting standard update that requires more disaggregated expense information about a public entity’s reportable segments. This update is effective for the Company beginning with its fiscal year 2025 reporting and for interim reporting beginning with its fiscal year 2026. The Company is currently evaluating the impact that this update will have on its disclosures.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Changes in certain components of shareholders' equity for the first quarters of fiscal years 2025 and 2024 were as follows:
(a)Common stock held in trusts consists of the Company’s shares held in rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. Share Repurchases In the first quarter of fiscal year 2025, the Company executed an accelerated share repurchase (“ASR”) agreement and accounted for the agreement as two transactions upon prepayment: (1) the initial delivery of shares was recorded as an increase to Common stock in treasury to recognize the acquisition of common stock acquired in a treasury stock transaction, and (2) the remaining amount of shares was recorded as a decrease to Capital in excess of par value to recognize a net share-settled forward sale contract indexed to the Company's own common stock. The impacts of these accelerated share repurchase transactions were as follows:
(a) Excludes a 1% excise tax on share repurchases of $6 million. (b) Upon final settlement of the repurchase agreement and the forward sale contract, the Company’s receipt of additional shares was recorded as an increase to Common stock in treasury and an offsetting increase to Capital in excess of par value. The final settlement for the first quarter transaction amounted to $150 million. In the first quarter of fiscal year 2024, the Company executed and settled ASR agreements for the repurchase of 2.118 million shares of its common stock for total consideration of $500 million, excluding a 1% excise tax on share repurchases of $3 million. The share repurchases were recorded as an increase to Treasury stock. The share repurchases discussed above were made pursuant to the repurchase program authorized by the Board of Directors on November 3, 2021, for 10 million shares of BD common stock, for which there is no expiration date. As of December 31, 2024, 4 million shares remained unused under this program. On January 28, 2025, the Board of Directors authorized BD to repurchase up to an additional 10 million shares of BD common stock, for which there is no expiration date. The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2025 and 2024 were as follows:
The amounts of foreign currency translation recognized in other comprehensive income during the three months ended December 31, 2024 and 2023 included net gains (losses) relating to net investment hedges. The amounts recognized in other comprehensive income relating to cash flow hedges primarily related to foreign exchange contracts during the three months ended December 31, 2024 and forward starting interest rate swaps during the three months ended December 31, 2023. Additional disclosures regarding the Company's derivatives are provided in Note 12. The tax impacts for amounts recognized in other comprehensive income (loss) before reclassifications and for reclassifications out of Accumulated other comprehensive income (loss) relating to benefit plans and cash flow hedges during the three months ended December 31, 2024 and 2023 were immaterial to the Company's consolidated financial results.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | 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:
(a)Excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares.
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Contingencies |
3 Months Ended |
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Dec. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. Given the uncertain nature of litigation generally, the Company is not able, in all cases, to reasonably estimate the amount or range of loss that could result from an unfavorable outcome of litigation in which the Company is a party. Even if the Company believes it has meritorious defenses, from time to time the Company engages in settlement discussions and mediations and considers settlements taking into account various factors including, among other things, developments in such legal proceedings and the resulting risks and uncertainties. These activities have resulted in settlements for certain matters and going forward could result in further settlements, which may be confidential and could be significant and result in charges in excess of accruals. In accordance with U.S. GAAP, the Company establishes accruals to the extent future losses are probable and reasonably estimable. With respect to putative class action lawsuits and certain tort actions in the United States and certain of the Canadian lawsuits described below or in its other SEC filings, the Company may not be able to determine if a probable loss exists or 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 any class. With respect to certain of the civil investigative demands (“CIDs”) served by the Department of Justice which are discussed below, the Company may not be able to determine if a probable loss exists, unless otherwise noted, 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. Product Liability Matters As of December 31, 2024, the Company is defending approximately 6,670 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The Company’s outstanding Hernia Product Claims as of September 30, 2024 were approximately 6,610, which reflected a settlement agreement that was consummated in the fourth quarter of fiscal year 2024 to resolve the vast majority of the Company’s existing hernia litigation. The majority of the claims are currently pending in a coordinated proceeding in Rhode Island State Court (“RI”) and in a federal multi-district litigation (“MDL”) established in the Southern District of Ohio, but claims are also pending in other state and/or federal court jurisdictions. In addition, outstanding 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. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters. There are no trials currently scheduled. The Company also continues to be a defendant in certain other mass tort litigation. As of December 31, 2024, the Company is defending product liability claims involving the Company’s line of pelvic mesh products, the majority of which are pending in a coordinated proceeding in New Jersey Superior Court and in various federal court jurisdictions, the Company’s line of inferior vena cava (“IVC”) filter products, which are pending in various jurisdictions, and the Company’s line of implantable ports, the majority of which are pending in an MDL in the United States District Court for the District of Arizona. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters. 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. Other Matters On November 2, 2020, a putative shareholder derivative action captioned Jankowski v. Forlenza, et al., Civ. No. 2:20-cv-15474, was filed in the U.S. District Court for the District of New Jersey by a shareholder, derivatively on behalf of the Company, against certain of the Company’s directors and officers. The complaint asserts claims for breach of fiduciary duty; violations of sections 10(b), 14(a) and 21D of the Exchange Act, and insider trading. The complaint principally alleges, that the Company made misleading statements regarding AlarisTM infusion pumps in a proxy statement and other SEC filings. A second federal derivative action was filed on January 24, 2021, and the two actions were consolidated and stayed. In March 2021, the Company received letters from two additional shareholders which, in general, mirrored the allegations in the derivative actions, and demanded, among other things, that the Board of Directors pursue claims against members of management for claimed breaches of fiduciary duties. Consistent with New Jersey law, the Board appointed a special committee to review the allegations and demands in the derivative actions and demand letters. Following an investigation, the special committee determined that no action was warranted, and rejected the shareholders’ demands, communicating its determination to counsel for the shareholders. On January 10, 2023, one of the two shareholders referenced above filed a separate derivative action that: (i) is generally consistent with the shareholder letter and the two prior actions; and (ii) purports to challenge the reasonableness of the special committee’s process and determination. That action was also stayed. Following entry of a stipulated scheduling order for an amended complaint and motion to dismiss the consolidated federal action, the case schedule was adjourned without date pending mediation. Mediation proceedings have taken place. On September 10, 2024, the Company received an additional substantially identical shareholder demand letter and on September 26, 2024, that shareholder filed a second substantially identical state court derivative action. In November 2024, the Company entered into an agreement in principle to resolve this matter for an amount that is not expected to be material to the Company’s consolidated financial results. Beginning in February 2021, the Company received subpoenas from the Enforcement Division of the Securities and Exchange Commission (“SEC”) requesting information from the Company relating to, among other things, certain reporting issues involving BD AlarisTM infusion pumps included in SEC disclosures prior to 2021. In December 2024, the Company reached an agreement to resolve the matter with the SEC for its previously accrued amount of $175 million. In accordance with the terms of the settlement, the Company has engaged and is working with an independent compliance consultant to review practices and procedures relating to the evaluation of product recalls and remediation under U.S. GAAP and its disclosure controls and procedures, including but not limited to controls and procedures relating to collection and assessment of information concerning potential risks, contingencies, operating events, trends, and uncertainties. In July 2017, C.R. Bard, which was acquired by the Company in December 2017, received a CID from 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 has responded to these requests and met with the Department of Justice in February and July 2024; discussions are ongoing. In April 2019, the Department of Justice served the Company and CareFusion with CIDs seeking information regarding certain of CareFusion’s contracts with the Department of Veteran’s Affairs, some dating back more than 10 years, for certain products, including AlarisTM and PyxisTM devices, in connection with a civil investigation of possible violations of the False Claims Act, and the government later expanded the investigation to include several additional contracts. The government has made several requests for documents and interviews or depositions of Company personnel and set forth a preliminary case assessment. The Company is cooperating with the government, responding to these requests and evaluating the assessment. In September 2021, the Company received a CID related to an inquiry initiated by the Department of Justice in the Northern District of Georgia in 2018 concerning sales and marketing practices with respect to certain aspects of the Company’s urology business. After multiple document productions and interviews, the Company and the government mediated the case in an effort to resolve this dispute; an agreement was reached to resolve this matter for an adequately accrued amount that is not material to the Company’s consolidated financial results. This matter is now resolved. In April 2023, the Department of Justice served the Company with a CID seeking information regarding the Company’s GenesisTM container products in connection with an investigation of possible violations of the False Claims Act. The government has requested documents and set forth a preliminary case assessment, and the Company is cooperating with the government, responding to its requests and evaluating the assessment. The Company was sued in state and federal courts in Georgia by plaintiffs who work or reside near Company facilities in Covington, GA, where ethylene oxide (“EtO”) sterilization activities take place. The federal cases have been dismissed and refiled in state court. The plaintiffs in the cases seek compensatory and punitive damages. Pursuant to Georgia statute, punitive damages in these cases are generally capped at $250,000 per claimant, unless the plaintiff can prove that the Company acted, or failed to act, with a specific intent to cause harm, which the court to date has cast as a jury issue, meaning that the jury could negate the cap. The cases allege a variety of injuries, including but not limited to multiple types of cancer, allegedly attributable to exposure to EtO. As of December 31, 2024, the Company has approximately 360 of such suits involving approximately 375 plaintiffs asserting individual personal injury claims; approximately 50 of the cases also allege injury caused by exposure to a chemical of another defendant entirely unrelated to the Company. No cases have yet been tried although a trial date has been set for one such case scheduled for April 2025. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters. In 2015, legislation was enacted in Italy which requires medical technology companies to make payments to the Italian government if Italy’s medical device expenditures exceed annual regional expenditure ceilings. The amount of these payments is based on the amount by which the regional ceilings for the given year were exceeded. Considerable uncertainty has existed regarding the enforceability and implementation of this payback legislation since it was enacted and the Company, as well as other medical device companies, have filed appeals which challenge the enforceability of this legislation. In July 2024, the Italian Constitutional Court issued two judgments which concluded that the medical device payback legislation is constitutional; however, litigation proceedings before Italian Courts are still pending. While the Company recorded $62 million during its fiscal year 2024 as a preliminary estimate of the liability related to this matter, substantially all of which relates to periods prior to fiscal year 2024, ultimate resolution is unknown at this time, and it is possible that the amount of the Company’s liability could differ from the currently accrued amount. In May 2024, CareFusion 303, Inc., the Company’s subsidiary that manufactures its BD PyxisTM dispensing equipment, received a Form 483 Notice following an inspection from the U.S. Food and Drug Administration (“FDA”) that contained observations of non-conformance with the FDA’s Quality System and Medical Device Reporting (“MDR”) regulations. In November 2024, the Company received a Warning Letter following the inspection of its Dispensing quality management system at its facility located in San Diego, California, citing certain alleged violations of the quality system regulations, MDR regulation, the corrections and removals reporting regulation and law. The Company’s liability recorded for estimated future costs associated with certain actions required to respond to the Warning Letter and to address the non-conformities was $50 million as of December 31, 2024, which reflected a $22 million adjustment recorded to increase the liability during the first quarter of fiscal year 2025. The Company submitted a comprehensive response to address FDA’s feedback in the Warning Letter, which committed to implementing additional corrective actions; however, no assurances can be given regarding further action by the FDA as a result of the Warning Letter, or that corrective actions proposed and taken by CareFusion 303, Inc. will be adequate to address the Warning Letter. Any failure to adequately address this Warning Letter may result in regulatory actions initiated by the FDA without further notice, which may include, but are not limited to, seizure, injunction and civil monetary penalties. As a result, the ultimate resolution of this Warning Letter and its impact on the Company’s operations is unknown at this time, and it is possible that the amount of the Company’s liability could exceed its currently accrued amount. 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 and is vigorously defending itself in each of these matters. Except as otherwise noted, the Company cannot predict the outcome of the other legal matters discussed above, nor can it predict whether any outcome will have a material adverse effect on the Company’s consolidated results of operations and/or consolidated cash flows. Further, the Company may not be able to determine if a probable loss exists for certain of the other legal matters discussed above, and accordingly, the Company has recorded no provisions for such matters in its consolidated results of operations. 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 Company also is subject to administrative proceedings under environmental laws in jurisdictions outside the U.S. 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 consolidated results of operations and/or consolidated cash flows. Litigation Accruals The Company regularly monitors and evaluates the status of product liability and other litigated matters, and may, from time-to-time, engage in settlement discussions and mediations taking into consideration, among other things, developments in the litigation and the risks and uncertainties associated therewith. These activities have resulted in confidential settlements and going forward could result in further settlements, the terms of which may be confidential and could be significant and result in charges in excess of accruals. A determination of the accrual amounts for these contingencies is made after analysis of each litigation matter. When appropriate, the accrual is developed with the consultation of outside counsel and, in the case of certain mass tort litigation, actuarial specialists regarding the nature, timing, and extent of each matter. During the first quarter of fiscal year 2024, the Company recorded a pre-tax benefit to Other operating expense, net, of approximately $36 million related to certain of the product liability matters discussed above under the heading “Product Liability Matters,” including the related legal defense costs. The benefit primarily reflected the favorable resolution of claims during the fiscal year. The Company considers relevant information when estimating its product liability accruals, including, but not limited to: the nature, number, and quality of unfiled and filed claims; the rate of claims being filed; the status of settlement discussions with plaintiffs’ counsel; 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. Because currently available information regarding product liability matters is often limited, there is inherent uncertainty and volatility relating to the Company’s estimate of product liability. As additional information becomes available, the Company records adjustments to its product liability accruals as required. Accruals for the Company's product liability claims which are discussed above, as well as the related legal defense costs, amounted to approximately $1.6 billion and $1.7 billion at December 31, 2024 and September 30, 2024, respectively. These accruals are recorded within Payables, accrued expenses and other current liabilities and Deferred Income Taxes and Other Liabilities on the Company's condensed consolidated balance sheets. The decrease in the Company’s product liability accrual as of December 31, 2024, as compared with September 30, 2024, largely reflected reductions due to the payment of settlements and legal fees. The increase in the number of outstanding hernia repair device claims discussed above did not materially impact the Company’s product liability accrual because the underlying estimate of the Company’s liability includes and already accounts for unfiled claims. Moreover, the accrual reflects the determination that the quality of new hernia report device claims has generally diminished over time. Amounts payable pursuant to the settlement agreement that was consummated in the fourth quarter of fiscal year 2024 to resolve the vast majority of the Company’s hernia litigation are included within the Company's current product liability accrual and will be paid out over a multi-year period. Claim activity during the first quarter of fiscal year 2025 relating to the pelvic mesh device and IVC filter matters did not materially impact the Company’s product liability accrual as of December 31, 2024. The particular outcome in any one product liability trial is typically not representative of potential outcomes of all cases or claims. Because the accrual already contemplates a wide range of possible outcomes, including those with a de minimis value, individual outcomes generally do not impact the value of other cases in the total case inventory or the overall product liability accrual. In view of the uncertainties discussed above, 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, financial condition, and/or consolidated cash flows.
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Revenues |
3 Months Ended |
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Dec. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company’s policies for recognizing sales have not changed from those described in the Company’s 2024 Annual Report on Form 10-K. The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. In the current and prior-year periods, the Company generated revenues attributable to licensing, which includes consideration received in exchange for the use of BD intellectual property by third parties. Measurement of Revenues The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. The Company’s rebate liabilities are classified as an offset to Trade receivables, net, or as Payables, accrued expenses and other current liabilities, depending on the form of settlement and were $813 million and $749 million at December 31, 2024 and September 30, 2024, respectively. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Effects of Revenue Arrangements on Condensed Consolidated Balance Sheets Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's condensed consolidated balance sheets. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's condensed consolidated balance sheets. Contract liabilities for unearned revenue that is allocable to performance obligations, such as extended warranty and software maintenance contracts, which are performed over time, were approximately $502 million and $482 million as of December 31, 2024 and September 30, 2024, respectively, and are included in Payables, accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. The Company's liability for product warranties provided under its agreements with customers is not material to its condensed consolidated balance sheets. Remaining Performance Obligations The Company's obligations relative to service contracts and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing contracts with original expected durations of more than one year, which are attributable to products and/or services that have not yet been installed or provided are estimated to be approximately $2.3 billion at December 31, 2024. The Company expects to recognize the majority of this revenue over the next three years. Within the Company's Medication Management Solutions, Medication Delivery Solutions, Diagnostic Solutions, and Biosciences units, some contracts also contain minimum purchase commitments of reagents or other consumables, and the future sales of these consumables represent additional unsatisfied performance obligations of the Company. The revenue attributable to the unsatisfied minimum purchase commitment-related performance obligations, for contracts with original expected durations of more than one year, is estimated to be approximately $2.0 billion at December 31, 2024. This revenue will be recognized over the customer relationship periods. Disaggregation of Revenues A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 7.
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Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data The Company's organizational structure is based upon three worldwide 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. 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 segment operating income, which represents revenues reduced by product costs and operating expenses. Revenues by segment, organizational unit and geographical areas for the three-month periods are detailed below. The Company has no material intersegment revenues.
(a) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. Segment income for the three-month periods was as follows:
(a)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense.
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Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and certain international locations. The measurement date used for these plans is September 30. Net pension cost included the following components for the three-month periods:
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Acquisition |
3 Months Ended |
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Dec. 31, 2024 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Advanced Patient Monitoring On September 3, 2024, the Company completed its acquisition of Edwards Lifesciences’ Critical Care product group (“Critical Care”), which was renamed as BD Advanced Patient Monitoring (“Advanced Patient Monitoring”). Since the acquisition date, financial results for Advanced Patient Monitoring’s product offerings are being reported as a separate organizational unit within the Medical segment. Advanced Patient Monitoring is a global leader in advanced monitoring solutions that expands the Company’s portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement the Company's existing technologies serving operating rooms and intensive care units. The Company funded the transaction with cash on hand, using net proceeds raised through debt issuances in the third quarter of fiscal year 2024 and borrowings under its commercial paper program. The acquisition was accounted for under the acquisition method of accounting for business combinations. The Company is in the process of finalizing the allocation of the purchase price to the individual assets acquired and liabilities assumed, related to assessing certain assumptions underlying the valuation of intangible assets. The preliminary allocations of the purchase price provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. These provisional estimates may be adjusted upon the availability of further information regarding events or circumstances that existed at the acquisition date. Such adjustments may be significant. The fair value of consideration transferred in connection with the acquisition was $3.906 billion. As of December 31, 2024, the assets acquired and the liabilities assumed in this acquisition included developed technology intangible assets of $717 million, customer relationships intangible assets of $653 million and $713 million of other net assets, which are primarily inventory. The goodwill recorded from the excess of the purchase price over the fair value of the acquired net assets was $1.823 billion, which related to synergies expected to be gained from combining operations of the acquiree and acquirer, as well as revenue and cash flow projections associated with future innovative technologies expected to occur. The preliminary estimate of the goodwill that is expected to be deductible for tax purposes is approximately $1.1 billion. The Company included Advanced Patient Monitoring in its consolidated results of operations beginning on September 3, 2024. The Company’s unaudited pro forma Revenues for the three months ended December 31, 2023, giving effect as if Advanced Patient Monitoring had been acquired as of October 1, 2022, were $4.957 billion. The calculation of pro forma Net Income for the three months ended December 31, 2023 is not practicable because of complexities associated with its hypothetical calculation.
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Business Restructuring Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Restructuring Charges | Business Restructuring Charges The Company incurred restructuring costs during the three months ended December 31, 2024, primarily in connection with the Company's simplification and other cost-saving initiatives, which were recorded within Integration, restructuring and transaction expense. These simplification and other cost-saving initiatives are focused on reducing complexity, optimizing the Company’s supply chain efficiency, streamlining its global manufacturing footprint, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Company’s segments. Restructuring liability activity for the three months ended December 31, 2024 was as follows:
(a) Other non-employee-related expenses primarily relate to other costs associated with the execution of the Company’s cost efficiency and restructuring programs, such as incremental project management costs and facility exit costs.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets consisted of:
Intangible amortization expense was $395 million and $365 million for the three months ended December 31, 2024 and 2023, respectively. The following is a reconciliation of goodwill by business segment:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items had on the Company’s balance sheets and the fair values of the derivatives outstanding at December 31, 2024 and September 30, 2024 were not material. The effects on the Company’s financial performance and cash flows are provided below. Foreign Currency Risks and Related Strategies The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts. In order to mitigate transactional foreign currency exposures resulting from anticipated intercompany purchases and sales denominated in a currency other than local functional currencies, the Company has hedged a portion of this currency risk with certain instruments such as foreign exchange forward and option contracts, which are designated as cash flow hedges. In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has hedged the currency risk associated with those investments with certain instruments, such as foreign currency-denominated debt and cross-currency swaps, which are designated as net investment hedges, as well as currency exchange contracts. The notional amounts of the Company’s foreign currency-related derivative instruments as of December 31, 2024 and September 30, 2024 were as follows:
(a)Represents hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. Net amounts recognized in Other expense, net, during the three months ended December 31, 2024 and 2023 were immaterial to the Company's consolidated financial results. (b)Represents foreign exchange contracts related to anticipated intercompany purchases and sales, described above, which generally have durations of less than eighteen months. (c)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (d)Represents cross-currency swaps, which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. Net gains or losses resulting from the change in fair value of the foreign exchange contracts designated as cash flow hedges are initially recorded within Other comprehensive income (loss) and reclassified into earnings upon the occurrence of the related underlying third-party transaction. If foreign exchange contracts designated as cash flow hedges are terminated prematurely as a result of the hedged transaction being probable of not occurring, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is immediately reclassified into Revenues or Cost of products sold (depending on whether the hedged item is an intercompany sale or purchase). Net after tax losses recognized in Other comprehensive income (loss) as well as amounts reclassified from Accumulated other comprehensive income (loss) into earnings relating to these cash flow hedges during the three months ended December 31, 2024 were immaterial. No amounts relating to foreign exchange contracts designated as cash flow hedges were recognized in Other comprehensive income (loss) or reclassified from Accumulated other comprehensive income (loss) during three months ended December 31, 2023. The amounts expected to be reclassified from accumulated other comprehensive income into earnings within the next 12 months, are not material to the Company's consolidated financial results. Net gains or losses relating to the net investment hedges, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as foreign currency translation in Other comprehensive income (loss), net of tax. Upon the termination of a net investment hedge, any net gain or loss included in Accumulated other comprehensive income (loss) relative to the investment hedge remains until the foreign subsidiary investment is disposed of or is substantially liquidated. Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows:
(a) The amount for the three months ended December 31, 2024 includes a loss, net of tax, of $18 million recognized on terminated cross-currency swaps. Interest Rate Risks and Related Strategies The Company uses a mix of fixed and variable rate debt to manage its interest rate exposure, and periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either cash flow or fair value hedges. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss), net of tax. If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings, within Interest expense, over the remaining life of the hedged debt. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. Amounts recorded during the three months ended December 31, 2024 and 2023 were immaterial to the Company's consolidated financial results. The notional amounts of the Company’s interest rate-related derivative instruments as of December 31, 2024 and September 30, 2024 were as follows:
(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on secured overnight financing rates (“SOFR”). Other Risk Exposures The Company purchases resins, which are oil-based components used in the manufacture of certain products. Significant increases in world oil prices that lead to increases in resin purchase costs could impact future operating results. From time to time, the Company has managed price risks associated with these commodity purchases through commodity derivative forward contracts. The Company's commodity derivative forward contracts at December 31, 2024 and September 30, 2024 were immaterial to the Company's consolidated financial results.
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Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The following reconciles cash and equivalents and restricted cash reported within the Company's condensed consolidated balance sheets at December 31, 2024 and September 30, 2024 to the total of these amounts shown on the Company's condensed consolidated statements of cash flows:
Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. The fair values of the Company’s financial instruments are as follows:
(a)These financial instruments are recorded within Cash and equivalents on the condensed consolidated balance sheets. The institutional money market accounts permit daily redemption. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. (b)Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments primarily consist of time deposits with maturities greater than three months and less than one year. All other instruments measured by the Company at fair value, including derivatives, contingent consideration liabilities and available-for-sale debt securities, are immaterial to the Company's condensed consolidated balance sheets. Nonrecurring Fair Value Measurements In the first quarter of fiscal year 2025, the Company recorded a non-cash asset impairment charge of $30 million to Research and development expense to write down the carrying value of certain assets in the Life Sciences segment. The amount recognized was recorded to adjust the carrying amount of assets to the assets' fair values, which were estimated, based upon a market participant's perspective, using Level 3 measurements, including values estimated using the income approach. Transfers of Trade Receivables Over the normal course of its business activities, the Company transfers certain trade receivable assets to third parties under factoring agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer. Accordingly, the Company accounts for the transfers as sales of trade receivables by recognizing an increase to Cash and equivalents and a decrease to Trade receivables, net when proceeds from the transactions are received. The costs incurred by the Company in connection with factoring activities were not material to its consolidated financial results. The amounts transferred and yet to be remitted under factoring arrangements are provided below.
Supplier Finance Programs The Company has agreements where participating suppliers are provided the ability to receive early payment of the Company’s obligations at a nominal discount through supplier finance programs entered into with third party financial institutions. The Company is not a party to these arrangements, and these programs do not impact the Company’s obligations or affect the Company’s payment terms, which generally range from 90 to 150 days. The agreements with the financial institutions do not require the Company to provide assets pledged as security or other forms of guarantees for the supplier finance programs. The Company had $118 million and $112 million of outstanding payables related to supplier finance programs as of December 31, 2024 and September 30, 2024, respectively, which were recorded within Payables, accrued expenses and other current liabilities on the Company's condensed consolidated balance sheets.
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Income Taxes |
3 Months Ended |
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Dec. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense The Company’s effective income tax rates for the three months ended December 31, 2024 and 2023 were 0.9% and 21.6%, respectively. The decrease in the Company’s effective tax rate for the three months ended December 31, 2024 was largely due to the partial release of the valuation allowance established for a non-U.S. tax credit.
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Subsequent Events |
3 Months Ended |
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Dec. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event BD’s Intention to Separate Biosciences and Diagnostic Solutions On February 5, 2025, the Company announced its intention to separate its Biosciences and Diagnostic Solutions business from the rest of the Company. The Company expects to announce more specifics on the separation plans by the end of fiscal year 2025 and intends to target completion of the transaction in fiscal year 2026. The completion of any separation transaction will be contingent upon various conditions and approvals, including approval of the Company’s board of directors, receipt of requisite regulatory clearances and compliance with applicable SEC requirements. No assurance can be given regarding the form that a separation transaction may take or the specific terms or timing, or that a separation will in fact occur.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 31, 2024 |
Dec. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net Income | $ 303 | $ 281 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 31, 2024
shares
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Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 11, 2024, Richard Byrd, Executive Vice President and President, Interventional Segment of BD, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Mr. Byrd’s plan is for (i) the exercise of up to 15,061 stock appreciation rights (“SARs”) at various exercise prices, net of shares withheld to satisfy applicable taxes, (ii) the sale of up to 2,399 shares of BD’s common stock, (iii) the sale of up to 1,123 shares of BD’s common stock upon the vesting of time vested units (“TVUs”), net of shares withheld to satisfy applicable taxes, and (iv) the sale of up to 1,590 shares of BD’s common stock upon the vesting of performance units, subject to the final payout factor and net of shares withheld to satisfy applicable taxes. The foregoing exercises or sales will be made in accordance with the prices and formulas set forth in the plan and such plan terminates on the earlier of the date all the shares under the plan are sold and March 15, 2026.
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Name | Richard Byrd |
Title | Executive Vice President and President, Interventional Segment of BD |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 11, 2024 |
Expiration Date | March 15, 2026 |
Antoine Ezell [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 16, 2024, Antoine Ezell, Executive Vice President, President of the Americas and Chief Marketing Officer of BD, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Mr. Ezell’s plan is for the sale of up to 3,900 shares of BD’s common stock. The sales will be made in accordance with the prices and formulas set forth in the plan and such plan terminates on the earlier of the date all the shares under the plan are sold and March 17, 2026.
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Name | Antoine Ezell |
Title | Executive Vice President, President of the Americas and Chief Marketing Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 16, 2024 |
Expiration Date | March 17, 2026 |
Richard Byrd, Trading Arrangement, Stock Appreciation Rights [Member] | Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 15,061 |
Richard Byrd, Trading Arrangement, Common Stock [Member] | Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 2,399 |
Richard Byrd, Trading Arrangement, Common Stock Upon The Vesting Of Time Vested Units [Member] | Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 1,123 |
Richard Byrd, Trading Arrangement, Common Stock Upon The Vesting Of Performance Units [Member] | Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 1,590 |
Antoine Ezell, Trading Arrangement, Common Stock [Member] | Antoine Ezell [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 3,900 |
Officer Trading Arrangement [Member] | Richard Byrd [Member] | |
Trading Arrangements, by Individual | |
Arrangement Duration | 459 days |
Officer Trading Arrangement [Member] | Antoine Ezell [Member] | |
Trading Arrangements, by Individual | |
Arrangement Duration | 456 days |
Accounting Changes (Policies) |
3 Months Ended |
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Dec. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principle Adopted and New Accounting Principles Not Yet Adopted | New Accounting Principles Not Yet Adopted In November 2024, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that requires the Company to disclose more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in each relevant income statement expense caption. The update is effective for the Company beginning with its fiscal year 2028 reporting and for interim reporting beginning with its fiscal year 2029. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures. In December 2023, the FASB issued an accounting standard update that requires more disaggregated information to be included in the income tax rate reconciliation and income taxes paid annual disclosures. This update is effective for the Company beginning in its fiscal year 2026 and the Company is currently evaluating the impact that this update will have on its disclosures. In November 2023, the FASB issued a new accounting standard update that requires more disaggregated expense information about a public entity’s reportable segments. This update is effective for the Company beginning with its fiscal year 2025 reporting and for interim reporting beginning with its fiscal year 2026. The Company is currently evaluating the impact that this update will have on its disclosures.
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Contingencies | The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. Given the uncertain nature of litigation generally, the Company is not able, in all cases, to reasonably estimate the amount or range of loss that could result from an unfavorable outcome of litigation in which the Company is a party. Even if the Company believes it has meritorious defenses, from time to time the Company engages in settlement discussions and mediations and considers settlements taking into account various factors including, among other things, developments in such legal proceedings and the resulting risks and uncertainties. These activities have resulted in settlements for certain matters and going forward could result in further settlements, which may be confidential and could be significant and result in charges in excess of accruals. In accordance with U.S. GAAP, the Company establishes accruals to the extent future losses are probable and reasonably estimable. With respect to putative class action lawsuits and certain tort actions in the United States and certain of the Canadian lawsuits described below or in its other SEC filings, the Company may not be able to determine if a probable loss exists or 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 any class. With respect to certain of the civil investigative demands (“CIDs”) served by the Department of Justice which are discussed below, the Company may not be able to determine if a probable loss exists, unless otherwise noted, 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 above, 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, financial condition, and/or consolidated cash flows.
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Revenues | Measurement of Revenues The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns.
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Derivative Instruments and Hedging Activities | The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The Company uses a mix of fixed and variable rate debt to manage its interest rate exposure, and periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either cash flow or fair value hedges. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss), net of tax. If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings, within Interest expense, over the remaining life of the hedged debt. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates.
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Cash Equivalents | Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. |
Restricted Cash | Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. |
Financial Instruments and Fair Value Measurements | The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions.Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments.Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments primarily consist of time deposits with maturities greater than three months and less than one year. |
Shareholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Shareholders Equity | Changes in certain components of shareholders' equity for the first quarters of fiscal years 2025 and 2024 were as follows:
(a)Common stock held in trusts consists of the Company’s shares held in rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan.
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Accelerated Share Repurchases | The impacts of these accelerated share repurchase transactions were as follows:
(a) Excludes a 1% excise tax on share repurchases of $6 million. (b) Upon final settlement of the repurchase agreement and the forward sale contract, the Company’s receipt of additional shares was recorded as an increase to Common stock in treasury and an offsetting increase to Capital in excess of par value. The final settlement for the first quarter transaction amounted to $150 million.
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Schedule of Accumulated Other Comprehensive Income (Loss) | The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2025 and 2024 were as follows:
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Common Shares Used in Computations of Basic and Diluted 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:
(a)Excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares.
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Segment Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Area | Revenues by segment, organizational unit and geographical areas for the three-month periods are detailed below. The Company has no material intersegment revenues.
(a) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business.
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Financial Information for Company's Segments | Segment income for the three-month periods was as follows:
(a)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense.
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Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension and Postretirement Cost | Net pension cost included the following components for the three-month periods:
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Business Restructuring Charges (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Accrual Activity | Restructuring liability activity for the three months ended December 31, 2024 was as follows:
(a) Other non-employee-related expenses primarily relate to other costs associated with the execution of the Company’s cost efficiency and restructuring programs, such as incremental project management costs and facility exit costs.
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Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Intangible Assets | Intangible assets consisted of:
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Reconciliation of Goodwill by Business Segment | The following is a reconciliation of goodwill by business segment:
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Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of the Company’s foreign currency-related derivative instruments as of December 31, 2024 and September 30, 2024 were as follows:
(a)Represents hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. Net amounts recognized in Other expense, net, during the three months ended December 31, 2024 and 2023 were immaterial to the Company's consolidated financial results. (b)Represents foreign exchange contracts related to anticipated intercompany purchases and sales, described above, which generally have durations of less than eighteen months. (c)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (d)Represents cross-currency swaps, which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. The notional amounts of the Company’s interest rate-related derivative instruments as of December 31, 2024 and September 30, 2024 were as follows:
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Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows:
(a) The amount for the three months ended December 31, 2024 includes a loss, net of tax, of $18 million recognized on terminated cross-currency swaps.
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Financial Instruments and Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following reconciles cash and equivalents and restricted cash reported within the Company's condensed consolidated balance sheets at December 31, 2024 and September 30, 2024 to the total of these amounts shown on the Company's condensed consolidated statements of cash flows:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of the Company’s financial instruments are as follows:
(a)These financial instruments are recorded within Cash and equivalents on the condensed consolidated balance sheets. The institutional money market accounts permit daily redemption. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. (b)Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments.
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Transfer of Financial Assets Accounted for as Sales | The amounts transferred and yet to be remitted under factoring arrangements are provided below.
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Shareholders' Equity - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions |
1 Months Ended | 3 Months Ended | |||
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Jan. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Jan. 28, 2025 |
Nov. 03, 2021 |
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Class of Stock [Line Items] | |||||
Share Repurchase Program, Authorized, Number of Shares | 10,000 | ||||
Share Repurchase Program, Remaining Authorized, Number of Shares | 4,000 | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Number of additional shares authorized to be repurchased (in shares) | 10,000 | ||||
Accelerated Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Repurchase of common stock (in shares) | 2,637 | 2,118 | |||
Stock repurchase program, authorized amount | $ 750 | $ 500 | |||
Percentage of excise tax excluded | 1.00% | 1.00% | |||
Stock Repurchase Program, Excise Tax | $ 3 | ||||
Accelerated Share Repurchase Program | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Repurchase of common stock (in shares) | 619 |
Earnings per Share (Detail) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Average common shares outstanding (shares) | 289,505 | 290,113 |
Dilutive share equivalents from share-based plans (shares) | 884 | 1,285 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 290,389 | 291,398 |
Share Based Compensation | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Share equivalents excluded from the diluted shares outstanding calculation (shares) | 2,758 | 552 |
Segment Data - Additional Information (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of principal business segments (segment) | 3 |
Benefit Plans (Detail) - Pension Plans - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 12 | $ 25 |
Interest cost | 42 | 39 |
Expected return on plan assets | (56) | (42) |
Amortization of prior service credit | 0 | (1) |
Amortization of loss | 10 | 16 |
Net pension cost | $ 8 | $ 37 |
Acquisition (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Sep. 03, 2024 |
Dec. 31, 2023 |
Dec. 31, 2024 |
Sep. 30, 2024 |
|
Business Acquisition [Line Items] | ||||
Goodwill | $ 26,329 | $ 26,465 | ||
Advanced Patient Monitoring | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 3,906 | |||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other Net Assets | 713 | |||
Goodwill | $ 1,823 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,100 | |||
Business Acquisition, Pro Forma Revenue | $ 4,957 | |||
Advanced Patient Monitoring | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 717 | |||
Advanced Patient Monitoring | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 653 |
Business Restructuring Charges (Detail) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2024
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 60 |
Charged to expense | 66 |
Cash payments | (65) |
Ending Balance | 53 |
Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | (6) |
Other adjustments | (2) |
Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 58 |
Charged to expense | 20 |
Cash payments | (29) |
Ending Balance | 47 |
Employee Termination | Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | 0 |
Other adjustments | (2) |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 2 |
Charged to expense | 46 |
Cash payments | (36) |
Ending Balance | 6 |
Other | Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | (6) |
Other adjustments | $ 0 |
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 395 | $ 365 |
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 26,465 |
Purchase price allocation adjustments | (12) |
Currency translation | (125) |
Goodwill, ending balance | 26,329 |
Medical | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 12,832 |
Purchase price allocation adjustments | (12) |
Currency translation | (51) |
Goodwill, ending balance | 12,769 |
Life Sciences | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 904 |
Purchase price allocation adjustments | 0 |
Currency translation | (8) |
Goodwill, ending balance | 896 |
Interventional | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 12,729 |
Purchase price allocation adjustments | 0 |
Currency translation | (66) |
Goodwill, ending balance | $ 12,663 |
Derivative Instruments and Hedging Activities - Schedule of Notional Amounts of Outstanding Derivative Positions (Detail) - USD ($) $ in Millions |
Dec. 31, 2024 |
Sep. 30, 2024 |
---|---|---|
Foreign Exchange Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 2,366 | $ 4,521 |
Foreign Exchange Contracts | Cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 394 | 543 |
Currency Swap | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 1,022 | 1,366 |
Interest Rate Swaps | Fair value hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 700 | 700 |
Foreign Currency-Denominated Debt | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 2,874 | $ 3,065 |
Derivative Instruments and Hedging Activities - Gains (Losses) on Net Investment Hedges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | $ 46 | $ 40 |
Foreign currency-denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | 145 | (29) |
Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | 67 | $ (55) |
Terminated Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | $ (18) |
Derivative Instruments and Hedging Activities - Additional Information (Detail) - Foreign Exchange Contracts - Cash flow hedges $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ 0 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0 |
Financial Instruments and Fair Value Measurements - Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|---|---|
Fair Value Disclosures [Abstract] | ||||
Cash and equivalents | $ 711 | $ 1,717 | ||
Restricted cash | 102 | 139 | ||
Cash and equivalents and restricted cash | $ 813 | $ 1,856 | $ 1,234 | $ 1,481 |
Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions |
Dec. 31, 2024 |
Sep. 30, 2024 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Institutional money market accounts | $ 0 | $ 285 |
Current portion of long-term debt | 831 | 1,748 |
Long-term debt | $ 16,337 | $ 17,199 |
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Sep. 30, 2024 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplier finance program, obligation | $ 118 | $ 112 |
Integration and Restructuring Expense | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset impairment charges | $ 30 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maturity period of short-term investments at the time of purchase | 3 months | |
Payment terms of supplier finance programs (in days) | 90 days | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maturity period of short-term investments at the time of purchase | 1 year | |
Payment terms of supplier finance programs (in days) | 150 days |
Financial Instruments and Fair Value Measurements - Transfer of Financial Assets Accounted for as Sales (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2024 |
|
Fair Value Disclosures [Abstract] | |||
Trade receivables transferred to third parties under factoring arrangements | $ 360 | $ 379 | |
Amounts yet to be collected and remitted to the third parties | $ 338 | $ 254 |
Income Taxes - Additional Information (Details) |
3 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 0.90% | 21.60% |
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