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BD Announces Results For 2017 Third Fiscal Quarter

02:02 EDT 3 Aug 2017 | PR Newswire

FRANKLIN LAKES, N.J., Aug. 3, 2017 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $3.035 billion for the third fiscal quarter ended June 30, 2017.  This represents a decrease of 5.1 percent from the prior-year period and is primarily due to the divestiture of the Respiratory Solutions business that was completed in October 2016.  On a comparable, currency-neutral basis, third quarter revenues grew 2.4 percent.

"We are pleased with our third quarter performance and outlook for fiscal year 2017," said Vincent A. Forlenza, Chairman and CEO.  "We continue to deliver consistent, solid results while driving toward the successful closing of the C.R. Bard acquisition."

Third Quarter and Nine-Month Fiscal 2017 Operating ResultsAs reported, diluted earnings per share for the third quarter were $(0.75), compared with $1.80 in the prior-year period.  This represents a decrease of 141.7 percent and is primarily due to a non-cash charge resulting from a modification to dispensing lease contracts with customers as a result of the previously announced change in the U.S. dispensing business model.  Adjusted diluted earnings per share were $2.46, compared with $2.35 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 4.7 percent, or 7.7 percent on a currency-neutral basis.

For the nine-month period ended June 30, 2017, as reported, diluted earnings per share were $3.36, compared with $4.41 in the prior-year period.  This represents a decrease of 23.8 percent and is primarily due to the aforementioned non-cash charge related to the change in the U.S. dispensing business model.  Adjusted diluted earnings per share were $7.09, compared with $6.48 in the prior-year period.  This represents an increase in adjusted diluted earnings per share of 9.4 percent, or 13.1 percent on a currency-neutral basis.

Segment ResultsIn the BD Medical segment, as reported, worldwide revenues for the quarter of $2.038 billion decreased 8.8 percent from the prior-year period, primarily due to the aforementioned divestiture.  On a comparable, currency-neutral basis, revenues increased 1.3 percent.  The segment's results reflect solid performance in the Medication and Procedural Solutions, Diabetes Care and Pharmaceutical Systems units.  Performance in the Medication Management Solutions unit was impacted by the previously announced change in the U.S. dispensing business model, which includes a transformation from capital placements to a value-based software business model.

For the nine-month period ended June 30, 2017, BD Medical revenues were $5.989 billion as reported, a decrease of 6.7 percent from the prior-year period due to the aforementioned divestiture.  On a comparable, currency-neutral basis, BD Medical revenues increased 4.5 percent.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $997 million, an increase of 3.5 percent over the prior-year period, or an increase of 4.8 percent on a currency-neutral basis.  The segment's revenue growth reflects strong performance in the Biosciences unit and solid growth in the Diagnostic Systems and Preanalytical Systems units.

For the nine-month period ended June 30, 2017, BD Life Sciences revenues were $2.937 billion as reported, an increase of 3.7 percent over the prior-year period, and an increase of 4.6 percent on a currency-neutral basis.

Geographic ResultsAs reported, third quarter revenues in the U.S. of $1.603 billion decreased 7.6 percent from the prior-year period, primarily due to the aforementioned divestiture.  On a comparable basis, U.S. revenues increased 0.4 percent.  Within the BD Medical segment, growth in the U.S. in the Medication and Procedural Solutions and Diabetes Care units was offset by declines in the Medication Management Solutions and Pharmaceutical Systems units.  Performance in the Medication Management Solutions unit reflects the aforementioned change in the U.S. dispensing business model as well as the timing of capital placements that benefited growth in the first half of the fiscal year.  Revenues in the Pharmaceutical Systems unit declined due to a tough comparison to the prior-year period.  BD Life Sciences segment results in the U.S. reflect strength in the Preanalytical Systems and Biosciences units.

As reported, revenues outside of the U.S. of $1.433 billion declined 2.1 percent from the prior-year period primarily due to the aforementioned divestiture.  On a comparable, currency-neutral basis, revenues outside of the U.S. increased 4.7 percent.  International revenue growth reflects strong performance in both segments.  Within the BD Medical segment, growth was driven by strength in the Medication and Procedural Solutions and Pharmaceutical Systems units.  Growth in the BD Life Sciences segment reflects strength in the Diagnostic Systems and Biosciences units.

For the nine-month period ended June 30, 2017, U.S. revenues were $4.859 billion as reported, a decrease of 5.5 percent from the prior-year period, primarily due to the aforementioned divestiture.  On a comparable basis, U.S. revenues grew 3.3 percent.  As reported, revenues outside of the U.S. of $4.068 billion declined 1.0 percent from the prior-year period, primarily due to the aforementioned divestiture.  On a comparable, currency-neutral basis, revenues outside the U.S. grew 6.0 percent.

Fiscal 2017 Outlook for Full YearAs reported, the Company now expects full fiscal year 2017 revenues to decrease 3.0 to 3.5 percent, primarily due to the aforementioned divestiture of the Respiratory Solutions business.  This is an improvement from previously issued guidance of a 3.5 to 4.0 percent decrease in revenues and is due to a reduction in the estimated negative impact from foreign currency.  The Company continues to estimate that revenues for the full fiscal year 2017 will increase 4.5 to 5.0 percent on a comparable, currency-neutral basis that excludes Respiratory Solutions and other divestitures that closed in fiscal year 2016.

As reported, the Company now expects full fiscal year 2017 diluted earnings per share to be between $5.10 and $5.15, which represents growth of approximately 14.0 to 15.0 percent.  On a currency-neutral basis, the Company continues to expect full fiscal year adjusted diluted earnings per share to be between $9.70 and $9.80, which represents growth of approximately 13.0 to 14.0 percent, including an estimated 1.5 percentage points of dilution related to the Respiratory Solutions divestiture.  As a result of favorable foreign currency movement, the Company is raising its adjusted diluted earnings per share guidance to be between $9.42 and $9.47, which represents growth of approximately 10.0 percent over fiscal 2016 adjusted diluted earnings per share of $8.59.  This is an increase from previous guidance of $9.35 to $9.45, which represented growth of approximately 9.0 to 10.0 percent.  Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets, a non-cash charge resulting from a modification to dispensing lease contracts with customers, and the reversal of a litigation reserve.

Conference Call InformationA conference call regarding BD's third quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, August 3, 2017.  The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 10, 2017, confirmation number 50820826.

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

All "comparable" basis revenue growth rates relating to fiscal year 2017 presented throughout this release are adjusted for closed divestitures.  Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; a non-cash charge resulting from a modification to dispensing lease contracts with customers; the reversal of a litigation reserve; and the loss on debt extinguishment. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BDBD is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. BD leads in patient and health care worker safety and the technologies that enable medical research and clinical laboratories. The company provides innovative solutions that help advance medical research and genomics, enhance the diagnosis of infectious disease and cancer, improve medication management, promote infection prevention, equip surgical and interventional procedures, and support the management of diabetes. The company partners with organizations around the world to address some of the most challenging global health issues. BD has nearly 50,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2017 Outlook for Full Year", contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues and earnings per share.  All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties.  Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement.  With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially.  These factors include, but are not limited to: legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; new or changing laws and regulations impacting our business (including changes in the U.S. tax code or laws impacting foreign trade) or changes in enforcement practices with respect to such laws; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; risks relating to our ability to continue to successfully integrate CareFusion's operations in order to fully obtain the benefits of the transaction; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; and issuance of new or revised accounting standards, as well as other factors discussed in BD's filings with the Securities and Exchange Commission.  We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

Three Months Ended June 30,

2017

2016

% Change

REVENUES

$

3,035

$

3,198

(5.1)

Cost of products sold

1,532

1,651

(7.3)

Selling and administrative expense

719

728

(1.3)

Research and development expense

186

207

(10.2)

Acquisitions and other restructurings

81

96

(16.0)

Other operating expense

741

100.0

TOTAL OPERATING COSTS AND EXPENSES

3,258

2,682

21.5

OPERATING (LOSS) INCOME

(223)

516

(143.2)

Interest expense

(184)

(97)

89.1

Interest income

19

5

294.2

Other expense, net

(16)

(1)

       NM

(LOSS) INCOME BEFORE INCOME TAXES

(404)

422

(195.5)

Income tax (benefit) provision

(271)

32

(944.6)

NET (LOSS) INCOME

(132)

390

(133.9)

Preferred stock dividends

(32)

100.0

NET (LOSS) INCOME APPLICABLE TO COMMON
SHAREHOLDERS

$

(165)

$

390

(142.2)

EARNINGS PER SHARE

Basic Earnings per Share

$

(0.75)

$

1.83

(141.0)

Diluted Earnings per Share

$

(0.75)

$

1.80

(141.7)

AVERAGE SHARES OUTSTANDING (in thousands)

Basic

220,807

213,083

Diluted

220,807

217,372

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

Nine Months Ended June 30,

2017

2016

% Change

REVENUES

$

8,927

$

9,252

(3.5)

Cost of products sold

4,539

4,813

(5.7)

Selling and administrative expense

2,151

2,209

(2.6)

Research and development expense

554

575

(3.8)

Acquisitions and other restructurings

243

321

(24.2)

Other operating expense

405

100.0

TOTAL OPERATING COSTS AND EXPENSES

7,892

7,918

(0.3)

OPERATING INCOME

1,035

1,334

(22.4)

Interest expense

(364)

(293)

24.3

Interest income

31

14

124.2

Other (expense) income, net

(51)

10

(583.3)

INCOME BEFORE INCOME TAXES

650

1,065

(38.9)

Income tax (benefit) provision

(123)

107

(214.6)

NET INCOME

773

958

(19.3)

Preferred stock dividends

(32)

100.0

NET INCOME APPLICABLE TO COMMON
SHAREHOLDERS

$

741

$

958

(22.7)

EARNINGS PER SHARE

Basic Earnings per Share

$

3.43

$

4.51

(23.9)

Diluted Earnings per Share

$

3.36

$

4.41

(23.8)

AVERAGE SHARES OUTSTANDING (in thousands)

Basic

215,817

212,411

Diluted

220,406

217,146

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended June 30,

(Unaudited; Amounts in millions)

A

B

C=(A-B)/B

2017

2016

% Change

BD MEDICAL

Medication and Procedural Solutions *

$

480

$

473

1.5

Medication Management Solutions *

447

473

(5.5)

Diabetes Care

132

127

4.2

Pharmaceutical Systems

93

98

(5.3)

Respiratory Solutions *

136

NM

TOTAL

$

1,152

$

1,307

(11.9)

BD LIFE SCIENCES

Preanalytical Systems

$

191

$

180

5.9

Diagnostic Systems

145

142

2.1

Biosciences

115

106

8.2

TOTAL

$

451

$

428

5.2

TOTAL UNITED STATES

$

1,603

$

1,735

(7.6)

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

D=(A-B)/B

E=(A-B-C)/B

A

B

C

% Change

2017

2016

FX Impact

Reported

FXN

BD MEDICAL

Medication and Procedural Solutions

$

389

$

378

$

(10)

3.1

5.7

Medication Management Solutions

109

112

(4)

(3.0)

1.0

Diabetes Care

131

132

(3)

(0.7)

1.2

Pharmaceutical Systems

258

244

(5)

5.6

7.5

Respiratory Solutions

63

NM

NM

TOTAL

$

886

$

928

$

(21)

(4.5)

(2.2)

BD LIFE SCIENCES

Preanalytical Systems

$

185

$

186

$

(5)

(0.5)

2.0

Diagnostic Systems

191

185

(4)

3.0

5.0

Biosciences

171

164

(4)

4.2

6.4

TOTAL

$

547

$

535

$

(12)

2.2

4.4

TOTAL INTERNATIONAL

$

1,433

$

1,463

$

(33)

(2.1)

0.2

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

D=(A-B)/B

E=(A-B-C)/B

A

B

C

% Change

2017

2016

FX Impact

Reported

FXN

BD MEDICAL

Medication and Procedural Solutions

$

870

$

851

$

(10)

2.2

3.3

Medication Management Solutions *

556

585

(4)

(5.0)

(4.2)

Diabetes Care

263

258

(3)

1.7

2.7

Pharmaceutical Systems

350

342

(5)

2.5

3.9

Respiratory Solutions *

199

NM

NM

TOTAL

$

2,038

$

2,235

$

(21)

(8.8)

(7.8)

BD LIFE SCIENCES

Preanalytical Systems

$

376

$

366

$

(5)

2.6

3.9

Diagnostic Systems

335

327

(4)

2.6

3.8

Biosciences

286

270

(4)

5.8

7.1

TOTAL

$

997

$

963

$

(12)

3.5

4.8

TOTAL REVENUES

$

3,035

$

3,198

$

(33)

(5.1)

(4.0)

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

A

B

C=(A-B)/B

2017

2016

% Change

BD MEDICAL

Medication and Procedural Solutions

$

1,470

$

1,448

1.5

Medication Management Solutions *

1,403

1,351

3.8

Diabetes Care

400

386

3.6

Pharmaceutical Systems

231

242

(4.5)

Respiratory Solutions *

423

NM

TOTAL

$

3,504

$

3,850

(9.0)

BD LIFE SCIENCES

Preanalytical Systems

$

552

$

533

3.7

Diagnostic Systems

471

447

5.5

Biosciences

331

314

5.4

TOTAL

$

1,355

$

1,294

4.7

TOTAL UNITED STATES

$

4,859

$

5,145

(5.5)

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

D=(A-B)/B

E=(A-B-C)/B

A

B

C

% Change

2017

2016

FX Impact

Reported

FXN

BD MEDICAL

Medication and Procedural Solutions

$

1,133

$

1,082

$

(24)

4.7

6.9

Medication Management Solutions

321

312

(13)

2.8

6.8

Diabetes Care

374

371

(3)

0.6

1.5

Pharmaceutical Systems

658

607

(11)

8.4

10.3

Respiratory Solutions

196

NM

NM

TOTAL

$

2,485

$

2,569

$

(52)

(3.3)

(1.3)

BD LIFE SCIENCES

Preanalytical Systems

$

541

$

517

$

(11)

4.6

6.8

Diagnostic Systems

548

512

(6)

6.9

8.1

Biosciences

494

508

(7)

(2.9)

(1.5)

TOTAL

$

1,582

$

1,538

$

(25)

2.9

4.5

TOTAL INTERNATIONAL

$

4,068

$

4,107

$

(76)

(1.0)

0.9

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

D=(A-B)/B

E=(A-B-C)/B

A

B

C

% Change

2017

2016

FX Impact

Reported

FXN

BD MEDICAL

Medication and Procedural Solutions

$

2,604

$

2,531

$

(24)

2.9

3.8

Medication Management Solutions *

1,723

1,663

(13)

3.6

4.4

Diabetes Care

773

757

(3)

2.1

2.6

Pharmaceutical Systems

889

849

(11)

4.8

6.1

Respiratory Solutions *

620

NM

NM

TOTAL

$

5,989

$

6,420

$

(52)

(6.7)

(5.9)

BD LIFE SCIENCES

Preanalytical Systems

$

1,094

$

1,050

$

(11)

4.1

5.2

Diagnostic Systems

1,019

959

(6)

6.3

6.9

Biosciences

825

823

(7)

0.2

1.1

TOTAL

$

2,937

$

2,832

$

(25)

3.7

4.6

TOTAL REVENUES

$

8,927

$

9,252

$

(76)

(3.5)

(2.7)

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

NM - Not Meaningful

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended June 30,

(Unaudited; Amounts in millions)

C

Divestiture

Revenue

Adjustment **

D=B+C

E=(A-D)/D

A

B

Comparable

Comparable
% Change

2017

2016

2016

BD MEDICAL

Medication and Procedural Solutions

$

480

$

473

$

(3)

$

470

2.1

Medication Management Solutions *

447

473

473

(5.5)

Diabetes Care

132

127

127

4.2

Pharmaceutical Systems

93

98

98

(5.3)

Respiratory Solutions *

136

(136)

TOTAL

$

1,152

$

1,307

$

(139)

$

1,168

(1.3)

BD LIFE SCIENCES

Preanalytical Systems

$

191

$

180

$

$

180

5.9

Diagnostic Systems

145

142

142

2.1

Biosciences

115

106

106

8.2

TOTAL

$

451

$

428

$

$

428

5.2

TOTAL UNITED STATES

$

1,603

$

1,735

$

(139)

$

1,596

0.4

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

C

Divestiture

Revenue

Adjustment **

D=B+C

F=(A-D-E)/D

A

B

Comparable

E

FXN % Change

2017

2016

2016

FX Impact

BD MEDICAL

Medication and Procedural Solutions

$

389

$

378

$

$

378

$

(10)

5.7

Medication Management Solutions

109

112

112

(4)

1.0

Diabetes Care

131

132

132

(3)

1.2

Pharmaceutical Systems

258

244

244

(5)

7.5

Respiratory Solutions

63

(63)

TOTAL

$

886

$

928

$

(63)

$

865

$

(21)

4.9

BD LIFE SCIENCES

Preanalytical Systems

$

185

$

186

$

$

186

$

(5)

2.0

Diagnostic Systems

191

185

185

(4)

5.0

Biosciences

171

164

164

(4)

6.4

TOTAL

$

547

$

535

$

$

535

$

(12)

4.4

TOTAL INTERNATIONAL

$

1,433

$

1,463

$

(63)

$

1,400

$

(33)

4.7

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

Three Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

C

F=(A-D-E)/D

A

B

Divestiture

Revenue

Adjustment **

D=B+C

E

Comparable

FXN

% Change

Comparable

Comparable

FX Impact

2017

2016

2016

BD MEDICAL

Medication and Procedural Solutions

$

870

$

851

$

(3)

$

848

$

(10)

3.7

Medication Management Solutions *

556

585

585

(4)

(4.2)

Diabetes Care

263

258

258

(3)

2.7

Pharmaceutical Systems

350

342

342

(5)

3.9

Respiratory Solutions *

199

(199)

TOTAL

$

2,038

$

2,235

$

(202)

$

2,033

$

(21)

1.3

BD LIFE SCIENCES

Preanalytical Systems

$

376

$

366

$

$

366

$

(5)

3.9

Diagnostic Systems

335

327

327

(4)

3.8

Biosciences

286

270

270

(4)

7.1

TOTAL

$

997

$

963

$

$

963

$

(12)

4.8

TOTAL REVENUES

$

3,035

$

3,198

$

(202)

$

2,996

$

(33)

2.4

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Nine Months Ended June 30,

(Unaudited; Amounts in millions)

C

Divestiture

Revenue

Adjustment **

D=B+C

E=(A-D)/D

A

B

Comparable

Comparable
% Change

2017

2016

2016

BD MEDICAL

Medication and Procedural Solutions

$

1,470

$

1,448

$

(17)

$

1,431

2.7

Medication Management Solutions *

1,403

1,351

1,351

3.8

Diabetes Care

400

386

386

3.6

Pharmaceutical Systems

231

242

242

(4.5)

Respiratory Solutions *

423

(423)

TOTAL

$

3,504

$

3,850

$

(440)

$

3,410

2.8

BD LIFE SCIENCES

Preanalytical Systems

$

552

$

533

$

$

533

3.7

Diagnostic Systems

471

447

447

5.5

Biosciences

331

314

314

5.4

TOTAL

$

1,355

$

1,294

$

$

1,294

4.7

TOTAL UNITED STATES

$

4,859

$

5,145

$

(440)

$

4,705

3.3

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

C

Divestiture

Revenue

Adjustment **

D=B+C

F=(A-D-E)/D

A

B

Comparable

E

FXN %
Change

2017

2016

2016

FX Impact

BD MEDICAL

Medication and Procedural Solutions

$

1,133

$

1,082

$

$

1,082

$

(24)

6.9

Medication Management Solutions

321

312

312

(13)

6.8

Diabetes Care

374

371

371

(3)

1.5

Pharmaceutical Systems

658

607

607

(11)

10.3

Respiratory Solutions

196

(196)

TOTAL

$

2,485

$

2,569

$

(196)

$

2,373

$

(52)

6.9

BD LIFE SCIENCES

Preanalytical Systems

$

541

$

517

$

$

517

$

(11)

6.8

Diagnostic Systems

548

512

512

(6)

8.1

Biosciences

494

508

508

(7)

(1.5)

TOTAL

$

1,582

$

1,538

$

$

1,538

$

(25)

4.5

TOTAL INTERNATIONAL

$

4,068

$

4,107

$

(196)

$

3,911

$

(76)

6.0

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL

Nine Months Ended June 30, (continued)

(Unaudited; Amounts in millions)

C

F=(A-D-E)/D

A

B

Divestiture

Revenue

Adjustment **

D=B+C

E

Comparable

FXN

% Change

Comparable

Comparable

FX Impact

2017

2016

2016

BD MEDICAL

Medication and Procedural Solutions

$

2,604

$

2,531

$

(17)

$

2,514

$

(24)

4.5

Medication Management Solutions *

1,723

1,663

1,663

(13)

4.4

Diabetes Care

773

757

757

(3)

2.6

Pharmaceutical Systems

889

849

849

(11)

6.1

Respiratory Solutions *

620

(620)

TOTAL

$

5,989

$

6,420

$

(637)

$

5,783

$

(52)

4.5

BD LIFE SCIENCES

Preanalytical Systems

$

1,094

$

1,050

$

$

1,050

$

(11)

5.2

Diagnostic Systems

1,019

959

959

(6)

6.9

Biosciences

825

823

823

(7)

1.1

TOTAL

$

2,937

$

2,832

$

$

2,832

$

(25)

4.6

TOTAL REVENUES

$

8,927

$

9,252

$

(637)

$

8,615

$

(76)

4.5

*The presentation of prior-period amounts has been revised to conform with the presentation of current-period amounts, which does not separately present an immaterial adjustment for the amortization of a deferred revenue balance write-down relating to the CareFusion acquisition.

**Excludes the impact from the following divestitures:  Respiratory, Simplist and Spine.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

Three Months Ended June 30,

2017

2016

Growth

Foreign

Currency

Translation

Foreign

Currency

Neutral

Growth

Growth %

Foreign

Currency

Neutral

Growth %

Reported Diluted Earnings per Share

$

(0.75)

$

1.80

$

(2.55)

$

(0.07)

$

(2.48)

(141.7)

%

(137.8)

%

Purchase accounting adjustments ($106 million
and $127 million pre-tax, respectively) (1)

0.48

0.58

Restructuring costs ($8 million and $49 million
pre-tax, respectively) (2)

0.04

0.23

Integration costs ($50 million and $40 million
pre-tax, respectively) (2)

0.23

0.18

Transaction costs ($23 million and $7 million
pre-tax, respectively) (2)

0.10

0.03

Financing costs ($87 million pre-tax) (3)

0.39

Losses on debt extinguishment ($31 million pre-
tax)  (4)

0.14

Lease contract modification-related charge ($741
million pre-tax) (5)

3.36

Dilutive impact (6)

0.18

Pension settlement charges ($3 million pre-tax) (7)

0.01

Income tax benefit of special items ($(377)
million and $(106) million, respectively)

(1.71)

(0.49)

Adjusted Diluted Earnings per Share

$

2.46

$

2.35

$

0.11

$

(0.07)

$

0.18

4.7

%

7.7

%

(1)

Includes adjustments related to the purchase accounting for acquisitions, primarily CareFusion, impacting identified intangible assets and valuation of fixed assets and debt.

(2)

Represents integration and restructuring costs which are associated with the acquisition of CareFusion and other portfolio rationalization initiatives, as well as transaction costs which relate to the pending agreement to acquire Bard as well as other portfolio rationalization initiatives.

(3)

Represents financing costs, primarily fees paid to enter into a bridge facility, incurred in connection with the pending agreement to acquire Bard.

(4)

Represents losses recognized upon the extinguishment of certain long-term senior notes.

(5)

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

(6)

Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the pending acquisition of Bard, and of preferred share dividends payable on mandatory convertible preferred stock outstanding. The quarter-to-date adjusted diluted average shares outstanding (in thousands) is 218,184.

(7)

Represents pension settlement charges associated with lump sum benefit payments made from the Company's U.S. supplemental pension plan, as such payments
exceeded the service and interest components of the plan's pension cost.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

Nine Months Ended June 30,

2017

2016

Growth

Foreign

Currency

Translation

Foreign

Currency

Neutral

Growth

Growth %

Foreign

Currency

Neutral

Growth %

Reported Diluted Earnings per Share

$

3.36

$

4.41

$

(1.05)

$

(0.24)

$

(0.81)

(23.8)

%

(18.4)

%

Purchase accounting adjustments ($361 million and
$395 million pre-tax, respectively) (1)

1.64

1.82

Restructuring costs ($54 million and $198 million pre-
tax, respectively) (2)

0.25

0.91

Integration costs ($159 million and $115 million pre-
tax, respectively) (2)

0.72

0.53

Transaction costs ($37 million and $7 million pre-tax,
respectively) (2)

0.17

0.03

Financing costs ($87 million pre-tax) (3)

0.40

Losses on debt extinguishment ($73 million pre-tax) (4)

0.33

Lease contract modification-related charge ($741
million pre-tax) (5)

3.36

Litigation-related item ($(336) million pre-tax) (6)

(1.52)

Dilutive Impact (7)

0.22

Pension settlement charges ($3 million pre-tax) (8)

0.01

Income tax benefit of special items ($(404) million and
$(270) million, respectively)

(1.83)

(1.24)

Adjusted Diluted Earnings per Share

$

7.09

$

6.48

$

0.61

$

(0.24)

$

0.85

9.4

%

13.1

%

(1)

Includes adjustments related to the purchase accounting for acquisitions, primarily CareFusion, impacting identified intangible assets and valuation of fixed assets and debt.

(2)

Represents integration and restructuring costs which are associated with the acquisition of CareFusion and other portfolio rationalization initiatives, as well as transaction costs which relate to the pending agreement to acquire Bard as well as other portfolio rationalization initiatives.

(3)

Represents financing costs, primarily fees paid to enter into a bridge facility, incurred in connection with the pending agreement to acquire Bard.

(4)

Represents losses recognized upon the extinguishment of certain long-term senior notes.

(5)

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

(6)

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

(7)

Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the pending acquisition of Bard, and of preferred share dividends payable on mandatory convertible preferred stock outstanding. The year-to-date adjusted diluted average shares outstanding (in thousands) is 218,094.

(8)

Represents pension settlement charges associated with lump sum benefit payments made from the Company's U.S. supplemental pension plan, as such payments
exceeded the service and interest components of the plan's pension cost.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY2017 OUTLOOK RECONCILIATION

FY2016

FY2017 Outlook

Revenues

% Change

FX Impact

% Change FXN

BDX As Reported Revenue

$

12,483

(3.0% - 3.5%)

~(1.0%)

(2.0% - 2.5%)

Divestitures Revenue (1)

(843)

BDX Comparable Revenue

$

11,639

3.5% - 4.0%

~(1.0%)

4.5% - 5.0%

BD Medical As Reported Revenue

$

8,654

(6.0% - 6.5%)

~(1.0%)

(5.0% - 5.5%)

Divestitures Revenue (1)

(843)

BD Medical Comparable Revenue

$

7,811

3.5% - 4.0%

~(1.0%)

4.5% - 5.0%

BD Life Sciences As Reported Revenue

$

3,829

3.0% - 4.0%

~(1.0%)

4.0% - 5.0%

FY2017 Outlook

Full Year
FY2017
Outlook

Full Year
FY2016

% Increase

(estimated)

Reported Fully Diluted Earnings per Share

 5.10 - 5.15

$

4.49

~ 14.0% - 15.0%

Purchase Accounting Adjustments

2.22

2.42

Restructuring Costs

0.25

(2)

2.42

Integration Costs

0.72

(2)

0.88

Transaction Costs

0.17

(2)

0.04

Financing Costs

0.40

(2)

Losses on Debt Extinguishment

0.33

(2)

Lease Contract Modification Charge

3.36

(2)

Litigation-related Item

(1.52)

(2)

Dilutive Impact

0.22

(3)

Pension Settlement Charges

0.03

Income Tax Benefit of Special Items

(1.83)

(2)

(1.70)

Adjusted Fully Diluted Earnings per Share

9.42 - 9.47

$

8.59

~10.0%

Estimated FX Impact

~(0.30)

~(3.5%)

Adjusted FXN Growth

9.70 - 9.80

~ 13.0% - 14.0%

(1)

Excludes the impact from the following divestitures: Respiratory, Simplist and Spine.

(2)

FY2017 restructuring, integration, transaction and financing costs, losses on debt extinguishment, lease contract modification charge, litigation-related item, and income tax benefit of special items reflect year-to-date realized costs.

(3)

Represents the dilutive impact of BD shares issued in May 2017, in anticipation of the pending acquisition of Bard, and of preferred share dividends payable on mandatory convertible preferred stock outstanding.

FXN - Foreign Currency Neutral

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

View original content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2017-third-fiscal-quarter-300498834.html

SOURCE BD (Becton, Dickinson and Company)

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