New Jersey | 22-0760120 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
1 Becton Drive, | Franklin Lakes, | New Jersey | 07417-1880 | |||||||||||
(Address of principal executive offices) | (Zip code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common stock, par value $1.00 | BDX | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/20th interest in a share of 6.00% Mandatory Convertible Preferred Stock, Series B | BDXB | New York Stock Exchange | ||||||||||||
1.000% Notes due December 15, 2022 | BDX22A | New York Stock Exchange | ||||||||||||
1.900% Notes due December 15, 2026 | BDX26 | New York Stock Exchange | ||||||||||||
1.401% Notes due May 24, 2023 | BDX23A | New York Stock Exchange | ||||||||||||
3.020% Notes due May 24, 2025 | BDX25 | New York Stock Exchange | ||||||||||||
0.174% Notes due June 4, 2021 | BDX/21 | New York Stock Exchange | ||||||||||||
0.632% Notes due June 4, 2023 | BDX/23A | New York Stock Exchange | ||||||||||||
1.208% Notes due June 4, 2026 | BDX/26A | New York Stock Exchange |
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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. |
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Organizational Unit
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Principal Product Lines
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Medication Delivery
Solutions |
Peripheral intravenous ("IV") catheters (conventional, safety); advanced peripheral catheters (guidewire assisted peripherally inserted venous catheters, midline catheters, port access); central lines (peripherally inserted central catheters); acute dialysis catheters; vascular access technology (ultrasonic imaging); vascular care (lock solutions, prefilled flush syringes, disinfecting caps); vascular preparation (skin antiseptics, dressings, securement); needle-free IV connectors and extensions sets; closed-system drug transfer devices; hazardous drug detection; conventional and safety hypodermic syringes and needles, anesthesia needles (spinal, epidural) and trays; enteral syringes; and sharps disposal systems.
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Medication Management
Solutions |
IV medication safety and infusion therapy delivery systems, including infusion pumps, dedicated disposables, and IV fluids; medication compounding workflow systems; automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and informatics and analytics solutions for enterprise medication management.
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Diabetes Care
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Syringes, pen needles and other products related to the injection or infusion of insulin and other drugs used in the treatment of diabetes.
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Pharmaceutical
Systems
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Prefillable drug delivery systems - prefillable syringes, safety, shielding and self-injection systems and support services - provided to pharmaceutical companies for use as containers for injectable pharmaceutical products, which are then placed on the market as drug/device combinations.
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Organizational Unit | Principal Product Lines | ||||
Integrated Diagnostic Solutions |
Integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays for testing of respiratory infections; microbiology laboratory automation; and plated media for clinical and industrial applications.
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Biosciences |
Fluorescence-activated cell sorters and analyzers; antibodies and kits for performing cell analysis; reagent systems for life science research; solutions for high-throughput single-cell gene expression analysis; and clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers.
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Organizational Unit | Principal Product Lines | ||||
Surgery | Hernia and soft tissue repair, biological grafts, bioresorbable grafts, biosurgery, and other surgical products; BD ChloraPrep™ surgical infection prevention products; and V. Mueller™ surgical and laparoscopic instrumentation products. | ||||
Peripheral Intervention |
Percutaneous transluminal angioplasty (“PTA”) balloon catheters, peripheral vascular stents, self-expanding and balloon-expandable stent grafts, vascular grafts, drug coated balloons, ports, biopsy, chronic dialysis, feeding, inferior vena catheter filters, endovascular fistula creation devices and drainage products, and atherectomy and thrombectomy system.
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Urology and Critical Care | Urine management devices, urological drainage products, intermittent catheters, kidney stone management devices, Targeted Temperature Management, and fecal management devices. |
BD 2020 Workforce Diversity Representation | ||||||||||||||
Gender (Global) | Year-Over-Year Improvement | Race (U.S. Only) | Year-Over-Year Improvement | |||||||||||
Executive | 28% | +3% | 20% | +2% | ||||||||||
Management | 39% | — | 28% | +2% | ||||||||||
All associates | 49% | — | 38% | +1% |
Name | Age | Position | ||||||
Vincent A. Forlenza | 67 | Chairman since July 2012; Chief Executive Officer from October 2011 to January 2020; and President from January 2009 to April 2017. | ||||||
Thomas E. Polen | 47 | Chief Executive Officer since January 2020; President since April 2017; Chief Operating Officer from October 2018 to January 2020; and Executive Vice President and President - Medical Segment from October 2014 to April 2017. | ||||||
Simon D. Campion | 49 |
Executive Vice President and President, Interventional Segment since September 2018; Worldwide President, BD Interventional - Surgery from December 2017 to September 2018; President, Davol (now part of our Surgery business), C.R. Bard, Inc. from July 2015 to December 2017; and prior thereto, Vice President and General Manager, Davol.
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Alexandre Conroy | 57 | Executive Vice President and Chief Integrated Supply Chain Officer since February 2019; Worldwide President, Medication and Procedural Solutions from May 2017 to February 2019; and Executive Vice President and President, Europe, EMA and the Americas from June 2012 to May 2017. | ||||||
Antoine Ezell | 51 |
President, North America since October 2020; Executive Vice President and Chief Marketing Officer since January 2020; Vice President, Connected Care and Insulins, Eli Lilly and Company from January 2019 to January 2020; and prior thereto, Vice President, Enterprise Capabilities and Solutions, Eli Lilly; Chief Marketing Officer, Elanco Animal Health; and Chief Customer Officer, Eli Lilly.
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Roland Goette | 58 | Executive Vice President and President, EMEA since May 2017; and President, Europe from October 2014 to May 2017. | ||||||
Patrick K. Kaltenbach | 57 | Executive Vice President and President, Life Sciences Segment since May 2018; and Senior Vice President and President, Life Sciences and Applied Markets Group, Agilent Technologies, Inc. from November 2014 to April 2018. As previously announced, Mr. Kaltenbach will be leaving BD in January 2021. | ||||||
Samrat S. Khichi | 53 | Executive Vice President, Public Policy and Regulatory Affairs since May 2019; Executive Vice President and General Counsel from December 2017 to May 2019; and Senior Vice President, General Counsel and Corporate Secretary, C.R. Bard, Inc. from July 2014 to December 2017. | ||||||
Betty D. Larson | 44 | Executive Vice President, Human Resources, and Chief Human Resources Officer since July 2018; Senior Vice President of Human Resources, Interventional Segment from December 2017 to July 2018; and Vice President, Human Resources, C.R. Bard, Inc. from September 2014 to December 2017. | ||||||
James Lim | 56 | Executive Vice President and President, Greater Asia since June 2012. | ||||||
Alberto Mas | 59 | Executive Vice President and President - Medical Segment since June 2018; Executive Vice President and President - Life Sciences Segment from October 2016 to June 2018; and Worldwide President - Diagnostic Systems from October 2013 to October 2016. | ||||||
Christopher R. Reidy | 63 | Executive Vice President, Chief Financial Officer and Chief Administrative Officer since July 2013. |
Period |
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) |
|||||||||||||||||||
July 1-31, 2020 | 1,144 | $273.36 | — | 7,857,742 | |||||||||||||||||||
August 1-31, 2020 | 114 | $261.53 | — | 7,857,742 | |||||||||||||||||||
September 1-30, 2020 | — | — | — | 7,857,742 | |||||||||||||||||||
Total | 1,258 | $272.29 | — | 7,857,742 |
Years Ended September 30 | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Dollars in millions, except share and per share amounts | |||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||
Revenues | $ | 17,117 | $ | 17,290 | $ | 15,983 | $ | 12,093 | $ | 12,483 | |||||||||||||||||||
Gross Profit | 7,577 | 8,288 | 7,269 | 5,965 | 6,018 | ||||||||||||||||||||||||
Operating Income | 1,484 | 1,760 | 1,509 | 1,522 | 1,481 | ||||||||||||||||||||||||
Income Before Income Taxes | 985 | 1,176 | 1,173 | 976 | 1,074 | ||||||||||||||||||||||||
Income Tax Provision (Benefit) | 111 | (57) | 862 | (124) | 97 | ||||||||||||||||||||||||
Net Income | 874 | 1,233 | 311 | 1,100 | 976 | ||||||||||||||||||||||||
Basic Earnings Per Share | 2.75 | 4.01 | 0.62 | 4.70 | 4.59 | ||||||||||||||||||||||||
Diluted Earnings Per Share | 2.71 | 3.94 | 0.60 | 4.60 | 4.49 | ||||||||||||||||||||||||
Dividends Per Common Share | 3.16 | 3.08 | 3.00 | 2.92 | 2.64 | ||||||||||||||||||||||||
Financial Position | |||||||||||||||||||||||||||||
Total Assets | 54,012 | 51,765 | 53,904 | 37,734 | 25,586 | ||||||||||||||||||||||||
Total Long-Term Debt | 17,224 | 18,081 | 18,894 | 18,667 | 10,550 | ||||||||||||||||||||||||
Total Shareholders’ Equity | 23,765 | 21,081 | 20,994 | 12,948 | 7,633 | ||||||||||||||||||||||||
Additional Data | |||||||||||||||||||||||||||||
Average Common and Common Equivalent Shares Outstanding — Assuming Dilution (millions) | 282.4 | 274.8 | 264.6 | 223.6 | 217.5 |
Years Ended September 30 | |||||||||||||||||||||||||||||
Millions of dollars, except per share amounts | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Total specified items | $ | 2,510 | $ | 2,749 | $ | 2,409 | $ | 1,466 | $ | 1,261 | |||||||||||||||||||
After-tax impact of specified items | $ | 2,114 | $ | 2,127 | $ | 2,674 | $ | 971 | $ | 892 | |||||||||||||||||||
Impact of specified items on diluted earnings per share | $ | (7.49) | $ | (7.74) | $ | (10.11) | $ | (4.34) | $ | (4.10) | |||||||||||||||||||
Dilutive impact from share issuances | $ | — | $ | — | $ | (0.30) | $ | (0.54) | $ | — |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2018 |
Total
Change |
Estimated
FX Impact |
FXN Change |
Total
Change |
Estimated
FX Impact |
FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 3,555 | $ | 3,848 | $ | 3,627 | (7.6) | % | (1.4) | % | (6.2) | % | 6.1 | % | (2.7) | % | 8.8 | % | |||||||||||||||||||||||||||||||||||
Medication Management Solutions (a) | 2,454 | 2,640 | 2,487 | (7.1) | % | (0.5) | % | (6.6) | % | 6.2 | % | (1.0) | % | 7.2 | % | ||||||||||||||||||||||||||||||||||||||
Diabetes Care | 1,084 | 1,110 | 1,105 | (2.4) | % | (1.4) | % | (1.0) | % | 0.5 | % | (2.4) | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 1,588 | 1,465 | 1,397 | 8.4 | % | (1.0) | % | 9.4 | % | 4.8 | % | (3.4) | % | 8.2 | % | ||||||||||||||||||||||||||||||||||||||
Total Medical revenues | $ | 8,680 | $ | 9,064 | $ | 8,616 | (4.2) | % | (1.0) | % | (3.2) | % | 5.2 | % | (2.3) | % | 7.5 | % |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Medical segment operating income | $ | 2,274 | $ | 2,824 | $ | 2,624 | |||||||||||
Segment operating income as % of Medical revenues | 26.2 | % | 31.2 | % | 30.5 | % |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars)
|
2020 | 2019 | 2018 |
Total
Change |
Estimated
FX Impact |
FXN Change |
Total
Change |
Estimated
FX Impact |
FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Integrated Diagnostic Solutions (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 1,487 | $ | 1,558 | $ | 1,553 | (4.6) | % | (1.5) | % | (3.1) | % | 0.3 | % | (3.0) | % | 3.3 | % | |||||||||||||||||||||||||||||||||||
Diagnostic Systems | $ | 2,045 | $ | 1,547 | $ | 1,536 | 32.1 | % | (1.3) | % | 33.4 | % | 0.7 | % | (2.6) | % | 3.3 | % | |||||||||||||||||||||||||||||||||||
Total Integrated Diagnostic Solutions | $ | 3,532 | $ | 3,106 | $ | 3,089 | 13.7 | % | (1.4) | % | 15.1 | % | 0.5 | % | (2.8) | % | 3.3 | % | |||||||||||||||||||||||||||||||||||
Biosciences | $ | 1,143 | $ | 1,194 | $ | 1,241 | (4.3) | % | (0.8) | % | (3.5) | % | (3.8) | % | (2.2) | % | (1.6) | % | |||||||||||||||||||||||||||||||||||
Total Life Sciences revenues | $ | 4,675 | $ | 4,300 | $ | 4,330 | 8.7 | % | (1.2) | % | 9.9 | % | (0.7) | % | (2.6) | % | 1.9 | % |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Life Sciences segment operating income | $ | 1,405 | $ | 1,248 | $ | 1,207 | |||||||||||
Segment operating income as % of Life Sciences revenues | 30.0 | % | 29.0 | % | 27.9 | % |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars)
|
2020 | 2019 | 2018 |
Total
Change |
Estimated
FX Impact |
FXN Change |
Total
Change |
Estimated
FX Impact |
FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
Surgery (a) | $ | 1,121 | $ | 1,242 | $ | 1,022 | (9.7) | % | (0.3) | % | (9.4) | % | 21.5 | % | (1.2) | % | 22.7 | % | |||||||||||||||||||||||||||||||||||
Peripheral Intervention (a) | 1,511 | 1,574 | 1,239 | (4.0) | % | (0.9) | % | (3.1) | % | 27.1 | % | (2.6) | % | 29.7 | % | ||||||||||||||||||||||||||||||||||||||
Urology and Critical Care (a) | 1,130 | 1,110 | 777 | 1.8 | % | (0.2) | % | 2.0 | % | 43.0 | % | (1.4) | % | 44.4 | % | ||||||||||||||||||||||||||||||||||||||
Total Interventional revenues | $ | 3,762 | $ | 3,926 | $ | 3,037 | (4.2) | % | (0.5) | % | (3.7) | % | 29.3 | % | (1.8) | % | 31.1 | % |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Interventional segment operating income | $ | 724 | $ | 903 | $ | 306 | |||||||||||
Segment operating income as % of Interventional revenues | 19.2 | % | 23.0 | % | 10.1 | % |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2018 |
Total
Change |
Estimated
FX Impact |
FXN Change |
Total
Change |
Estimated
FX Impact |
FXN Change | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 9,716 | $ | 9,730 | $ | 8,768 | (0.1) | % | — | (0.1) | % | 11.0 | % | — | 11.0 | % | |||||||||||||||||||||||||||||||||||||
International | 7,401 | 7,560 | 7,215 | (2.1) | % | (2.2) | % | 0.1 | % | 4.8 | % | (5.0) | % | 9.8 | % | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 17,117 | $ | 17,290 | $ | 15,983 | (1.0) | % | (1.0) | % | — | % | 8.2 | % | (2.3) | % | 10.5 | % |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Integration costs (a)
|
$ | 214 | $ | 323 | $ | 344 | |||||||||||
Restructuring costs (a)
|
95 | 180 | 344 | ||||||||||||||
Transaction costs (a)
|
1 | 1 | 56 | ||||||||||||||
Financing costs (b)
|
— | — | 49 | ||||||||||||||
Purchase accounting adjustments (c)
|
1,356 | 1,499 | 1,733 | ||||||||||||||
Transaction gain/loss, product and other litigation-related matters (d)
|
631 | 646 | — | ||||||||||||||
Investment gains/losses and asset impairments (e)
|
100 | 17 | (151) | ||||||||||||||
European regulatory initiative-related costs (f)
|
106 | 51 | — | ||||||||||||||
Impacts of debt extinguishment | 8 | 54 | 16 | ||||||||||||||
Hurricane recovery-related impacts | — | (24) | 17 | ||||||||||||||
Total specified items | 2,510 | 2,749 | 2,409 | ||||||||||||||
Less: tax impact of specified items and tax reform (g)
|
395 | 622 | (265) | ||||||||||||||
After-tax impact of specified items | $ | 2,114 | $ | 2,127 | $ | 2,674 |
2020 | 2019 | ||||||||||||||||||||||
Gross profit margin % prior-year period | 47.9 | % | 45.5 | % | |||||||||||||||||||
Impact of purchase accounting adjustments, asset write-downs and other specified items | (2.0) | % | 2.9 | % | |||||||||||||||||||
Operating performance | (1.5) | % | 0.1 | % | |||||||||||||||||||
Foreign currency translation | (0.1) | % | (0.6) | % | |||||||||||||||||||
Gross profit margin % current-year period | 44.3 | % | 47.9 | % |
Increase (decrease) in basis points | ||||||||||||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2018 | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Selling and administrative expense | $ | 4,325 | $ | 4,332 | $ | 4,016 | ||||||||||||||||||||||||||
% of revenues | 25.3 | % | 25.1 | % | 25.1 | % | 20 | — | ||||||||||||||||||||||||
Research and development expense | $ | 1,096 | $ | 1,062 | $ | 1,004 | ||||||||||||||||||||||||||
% of revenues | 6.4 | % | 6.1 | % | 6.3 | % | 30 | (20) | ||||||||||||||||||||||||
Acquisitions and other restructurings | $ | 309 | $ | 480 | $ | 740 | ||||||||||||||||||||||||||
Other operating expense, net | $ | 363 | $ | 654 | $ | — |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Interest expense | $ | (528) | $ | (639) | $ | (706) | |||||||||||
Interest income | 7 | 12 | 65 | ||||||||||||||
Net interest expense | $ | (521) | $ | (627) | $ | (641) |
2020 | 2019 | 2018 | |||||||||||||||
Effective income tax rate | 11.3 | % | (4.8) | % | 73.5 | % | |||||||||||
Impact, in basis points, from specified items and tax reform | (320) | (1,920) | 5,680 |
2020 | 2019 | 2018 | |||||||||||||||
Net income (Millions of dollars) | $ | 874 | $ | 1,233 | $ | 311 | |||||||||||
Diluted Earnings per Share | $ | 2.71 | $ | 3.94 | $ | 0.60 | |||||||||||
Unfavorable impact-specified items | $ | (7.49) | $ | (7.74) | $ | (10.11) | |||||||||||
(Unfavorable) favorable impact-foreign currency translation | $ | (0.15) | $ | (0.62) | $ | 0.32 | |||||||||||
Dilutive impact from share issuances | $ | — | $ | — | $ | (0.30) |
Increase (decrease) | |||||||||||
(Millions of dollars) | 2020 | 2019 | |||||||||
10% appreciation in U.S. dollar | $ | (52) | $ | (16) | |||||||
10% depreciation in U.S. dollar | $ | 52 | $ | 16 |
Increase (decrease) to fair value of interest rate derivatives outstanding | Increase (decrease) to earnings or cash flows | ||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
10% increase in interest rates | $ | 13 | $ | 19 | $ | — | $ | (4) | |||||||||||||||
10% decrease in interest rates | $ | (14) | $ | (19) | $ | — | $ | 4 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net cash provided by (used for) | |||||||||||||||||
Operating activities | $ | 3,539 | $ | 3,330 | $ | 2,865 | |||||||||||
Investing activities | $ | (1,232) | $ | (741) | $ | (15,733) | |||||||||||
Financing activities | $ | 22 | $ | (3,223) | $ | (58) |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
Change in credit facility borrowings | $ | (485) | $ | 485 | $ | — | |||||||||||
Proceeds from long-term debt and term loans | $ | 3,389 | $ | 2,224 | $ | 5,086 | |||||||||||
Payments of debt and term loans | $ | (4,664) | $ | (4,744) | $ | (3,996) | |||||||||||
Proceeds from issuances of equity securities | $ | 2,917 | $ | — | $ | — | |||||||||||
Dividends paid | $ | (1,026) | $ | (984) | $ | (927) |
2020 | 2019 | 2018 | |||||||||||||||
Total debt (Millions of dollars) | $ | 17,931 | $ | 19,390 | $ | 21,496 | |||||||||||
Short-term debt as a percentage of total debt | 3.9 | % | 6.8 | % | 12.1 | % | |||||||||||
Weighted average cost of total debt | 2.8 | % | 2.9 | % | 3.2 | % | |||||||||||
Total debt as a percentage of total capital (a) | 41.3 | % | 45.6 | % | 47.8 | % |
S&P | Moody’s | Fitch | ||||||||||||||||||
Ratings: | ||||||||||||||||||||
Senior Unsecured Debt | BBB | Ba1 | BBB- | |||||||||||||||||
Commercial Paper | A-2 | NP | ||||||||||||||||||
Outlook | Negative | Positive | Stable |
Total | 2021 |
2022 to
2023 |
2024 to
2025 |
2026 and
Thereafter |
|||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||
Short-term debt | $ | 708 | $ | 708 | $ | — | $ | — | $ | — | |||||||||||||||||||
Long-term debt (a) | 23,303 | 491 | 6,385 | 4,369 | 12,057 | ||||||||||||||||||||||||
Operating leases | 489 | 115 | 159 | 73 | 142 | ||||||||||||||||||||||||
Purchase obligations (b) | 1,436 | 1,248 | 183 | 5 | — | ||||||||||||||||||||||||
Unrecognized tax benefits (c) | — | — | — | — | — | ||||||||||||||||||||||||
Total (d) | $ | 25,936 | $ | 2,562 | $ | 6,727 | $ | 4,446 | $ | 12,200 |
/s/ Thomas E. Polen | /s/ Christopher Reidy | /s/ Thomas J. Spoerel | ||||||||||||
Thomas E. Polen | Christopher Reidy | Thomas J. Spoerel | ||||||||||||
Chief Executive Officer and President | Executive Vice President, Chief Financial Officer and Chief Administrative Officer | Vice President, Controller and Chief Accounting Officer |
Estimation of Product Liability Reserves | ||||||||
Description of the Matter |
As described in Note 5 to the consolidated financial statements, the Company is a defendant in various product liability matters in which the plaintiffs allege a wide variety of claims associated with the use of certain Company devices. At September 30, 2020, the Company’s product liability reserves totaled approximately $2.5 billion. The Company engaged an actuarial specialist to perform an analysis to estimate the outstanding liability for indemnity costs related to claims arising from these product liability matters. The methods used by the Company to estimate these reserves are based on reported claims, historical settlement amounts, and stage of litigation, among other items.
Auditing management’s estimate of certain of the Company’s product liability reserves and the related disclosure was challenging due to the significant judgment required to determine the methods used to estimate the amount of unreported product liability claims and the indemnity costs and the key assumptions utilized in those methods given the stages of these matters and the amount of claims history.
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How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s evaluation of the product liability reserve. For example, we tested controls over management's review of the methods, significant assumptions and the underlying data used by the actuary to estimate the product liability reserve.
To evaluate management’s estimate of the product liability reserves, our audit procedures included, among others, testing the completeness and accuracy of the underlying data used by management's actuarial specialist to estimate the amount of unreported claims and the indemnity cost. For example, we compared filed and settled claims data to legal letters obtained from external counsel, and, on a sample basis, compared settlement amounts to the underlying agreements. In addition, we involved our actuarial specialists to assist us in evaluating the methods used to estimate the unreported claims and the indemnity cost used in the calculation of the product liability reserves. We have also assessed the adequacy of the Company’s disclosures in relation to these matters.
|
Income taxes - Uncertain tax positions | ||||||||
Description of the Matter |
As discussed in Notes 1 and 17 of the consolidated financial statements, the Company has recorded a liability of $719 million related to uncertain tax positions as of September 30, 2020. The Company conducts business in numerous countries and is therefore subject to income taxes in multiple jurisdictions, which impacts the provision for income taxes. Due to the multinational operations of the Company, changes in global income tax laws and regulation result in complexity in the accounting for and monitoring of income taxes including the provision for uncertain tax positions.
Auditing the completeness of management’s identification of uncertain tax positions involved complex analysis and auditor judgment related to the evaluation of the income tax consequences of significant transactions, including internal restructurings, and changes in income tax law and regulations in various jurisdictions, which is often subject to interpretation.
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|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s income tax provision process, such as controls over management’s identification and assessment of changes to tax laws and income tax positions to account for uncertain tax positions, including management’s review of the related tax technical analyses.
We performed audit procedures, among others, to evaluate the Company’s assumptions used to develop its uncertain tax positions and related unrecognized income tax benefit amounts by jurisdiction. We obtained an understanding of the Company’s legal structure through our review of organizational charts and related legal documents. We further considered the income tax consequences of significant transactions, including internal restructurings, and assessed management’s interpretation of those changes under the relevant jurisdiction’s tax law. Due to the complexity of tax law, we involved our tax subject matter professionals to assess the Company’s interpretation of and compliance with tax laws in these jurisdictions, as well as to identify tax law changes. We also involved our tax subject matter professionals to evaluate the technical merits of the Company’s accounting for its tax positions, including assessing the Company’s correspondence with the relevant tax authorities and evaluating third-party advice obtained by the Company. We also evaluated the Company’s income tax disclosures included in Note 17 to the consolidated financial statements in relation to these matters.
|
Goodwill impairment - Interventional segment | ||||||||
Description of the Matter |
At September 30, 2020, the Company’s goodwill assigned to the Interventional segment was $12.7 billion. As discussed in Note 1 of the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level using quantitative models.
Auditing management’s annual goodwill impairment test was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting units. In particular, the fair value estimates were sensitive to significant assumptions such as the discount rate, revenue growth rate, operating margin, and terminal value, which are affected by expectations about future market or economic conditions, including the impact of the pandemic.
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How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of the inputs and assumptions to the goodwill impairment analysis.
To test the estimated fair value of the Company’s reporting units, our audit procedures included, among others, assessing fair value methodology, evaluating the prospective financial information used by the Company in its valuation analysis and involving our valuation specialists to assist in testing the significant assumptions discussed above. We compared the significant assumptions used by management to current industry and economic trends, historical financial results, and other relevant factors that would affect the significant assumptions. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units. In addition, we tested the reconciliation of the fair value of the reporting units to the market capitalization of the Company.
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/s/ ERNST & YOUNG LLP
|
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We have served as the Company's auditor since 1959.
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New York, New York
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November 25, 2020 |
/s/ ERNST & YOUNG LLP
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New York, New York
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November 25, 2020 |
Millions of dollars, except per share amounts | 2020 | 2019 | 2018 | ||||||||||||||
Revenues | $ | 17,117 | $ | 17,290 | $ | 15,983 | |||||||||||
Cost of products sold | 9,540 | 9,002 | 8,714 | ||||||||||||||
Selling and administrative expense | 4,325 | 4,332 | 4,016 | ||||||||||||||
Research and development expense | 1,096 | 1,062 | 1,004 | ||||||||||||||
Acquisitions and other restructurings | 309 | 480 | 740 | ||||||||||||||
Other operating expense, net | 363 | 654 | — | ||||||||||||||
Total Operating Costs and Expenses | 15,633 | 15,530 | 14,474 | ||||||||||||||
Operating Income | 1,484 | 1,760 | 1,509 | ||||||||||||||
Interest expense | (528) | (639) | (706) | ||||||||||||||
Interest income | 7 | 12 | 65 | ||||||||||||||
Other income, net | 23 | 43 | 305 | ||||||||||||||
Income Before Income Taxes | 985 | 1,176 | 1,173 | ||||||||||||||
Income tax provision (benefit) | 111 | (57) | 862 | ||||||||||||||
Net Income | 874 | 1,233 | 311 | ||||||||||||||
Preferred stock dividends | (107) | (152) | (152) | ||||||||||||||
Net income applicable to common shareholders | $ | 767 | $ | 1,082 | $ | 159 | |||||||||||
Basic Earnings per Share | $ | 2.75 | $ | 4.01 | $ | 0.62 | |||||||||||
Diluted Earnings per Share | $ | 2.71 | $ | 3.94 | $ | 0.60 |
Millions of dollars | 2020 | 2019 | 2018 | ||||||||||||||
Net Income | $ | 874 | $ | 1,233 | $ | 311 | |||||||||||
Other Comprehensive (Loss) Income, Net of Tax | |||||||||||||||||
Foreign currency translation adjustments | (161) | (93) | (161) | ||||||||||||||
Defined benefit pension and postretirement plans | (35) | (275) | (26) | ||||||||||||||
Cash flow hedges | (67) | (6) | 1 | ||||||||||||||
Other Comprehensive Loss, Net of Tax | (265) | (374) | (186) | ||||||||||||||
Comprehensive Income | $ | 609 | $ | 859 | $ | 125 |
Millions of dollars, except per share amounts and numbers of shares | 2020 | 2019 | |||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and equivalents | $ | 2,825 | $ | 536 | |||||||
Restricted cash | 92 | 54 | |||||||||
Short-term investments | 20 | 30 | |||||||||
Trade receivables, net | 2,398 | 2,345 | |||||||||
Inventories | 2,743 | 2,579 | |||||||||
Prepaid expenses and other | 891 | 1,119 | |||||||||
Total Current Assets | 8,969 | 6,664 | |||||||||
Property, Plant and Equipment, Net | 5,923 | 5,659 | |||||||||
Goodwill | 23,620 | 23,376 | |||||||||
Developed Technology, Net | 10,146 | 11,054 | |||||||||
Customer Relationships, Net | 3,107 | 3,424 | |||||||||
Other Intangibles, Net | 560 | 500 | |||||||||
Other Assets | 1,687 | 1,088 | |||||||||
Total Assets | $ | 54,012 | $ | 51,765 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Short-term debt | $ | 707 | $ | 1,309 | |||||||
Accounts payable | 1,355 | 1,092 | |||||||||
Accrued expenses | 2,638 | 2,127 | |||||||||
Salaries, wages and related items | 993 | 987 | |||||||||
Income taxes | 144 | 140 | |||||||||
Total Current Liabilities | 5,836 | 5,655 | |||||||||
Long-Term Debt | 17,224 | 18,081 | |||||||||
Long-Term Employee Benefit Obligations | 1,435 | 1,272 | |||||||||
Deferred Income Taxes and Other Liabilities | 5,753 | 5,676 | |||||||||
Commitments and Contingencies (See Note 5) | |||||||||||
Shareholders’ Equity | |||||||||||
Preferred stock | 2 | 2 | |||||||||
Common stock — $1 par value: authorized — 640,000,000 shares; issued — 364,639,901 shares in 2020 and 346,687,160 shares in 2019.
|
365 | 347 | |||||||||
Capital in excess of par value | 19,270 | 16,270 | |||||||||
Retained earnings | 12,791 | 12,913 | |||||||||
Deferred compensation | 23 | 23 | |||||||||
Common stock in treasury — at cost — 74,622,657 shares in 2020 and 76,259,835 shares in 2019.
|
(6,138) | (6,190) | |||||||||
Accumulated other comprehensive loss | (2,548) | (2,283) | |||||||||
Total Shareholders’ Equity | 23,765 | 21,081 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 54,012 | $ | 51,765 |
Millions of dollars | 2020 | 2019 | 2018 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 874 | $ | 1,233 | $ | 311 | |||||||||||
Adjustments to net income to derive net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 2,154 | 2,253 | 1,978 | ||||||||||||||
Share-based compensation | 244 | 261 | 322 | ||||||||||||||
Deferred income taxes | (302) | (381) | (240) | ||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Trade receivables, net | (48) | (51) | (170) | ||||||||||||||
Inventories | (125) | (149) | 246 | ||||||||||||||
Prepaid expenses and other | 81 | 299 | (46) | ||||||||||||||
Accounts payable, income taxes and other liabilities | 205 | (470) | 867 | ||||||||||||||
Pension obligation | 95 | (123) | (263) | ||||||||||||||
Excess tax benefits from payments under share-based compensation plans | 52 | 55 | 78 | ||||||||||||||
Gain on sale of Vyaire interest | — | — | (303) | ||||||||||||||
Gain on sale of business | — | (336) | — | ||||||||||||||
Product liability-related charges | 378 | 914 | — | ||||||||||||||
Other, net | (68) | (177) | 85 | ||||||||||||||
Net Cash Provided by Operating Activities | 3,539 | 3,330 | 2,865 | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital expenditures | (810) | (957) | (895) | ||||||||||||||
Acquisitions, net of cash acquired | (164) | — | (15,155) | ||||||||||||||
Proceeds from divestitures, net | — | 477 | 534 | ||||||||||||||
Other, net | (257) | (261) | (217) | ||||||||||||||
Net Cash Used for Investing Activities | (1,232) | (741) | (15,733) | ||||||||||||||
Financing Activities | |||||||||||||||||
Change in credit facility borrowings | (485) | 485 | — | ||||||||||||||
Proceeds from long-term debt and term loans | 3,389 | 2,224 | 5,086 | ||||||||||||||
Payments of debt and term loans | (4,664) | (4,744) | (3,996) | ||||||||||||||
Proceeds from issuance of equity securities | 2,917 | — | — | ||||||||||||||
Dividends paid | (1,026) | (984) | (927) | ||||||||||||||
Other, net | (109) | (205) | (220) | ||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 22 | (3,223) | (58) | ||||||||||||||
Effect of exchange rate changes on cash and equivalents and restricted cash | (3) | (12) | (17) | ||||||||||||||
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash | 2,326 | (646) | (12,943) | ||||||||||||||
Opening Cash and Equivalents and Restricted Cash | 590 | 1,236 | 14,179 | ||||||||||||||
Closing Cash and Equivalents and Restricted Cash | $ | 2,917 | $ | 590 | $ | 1,236 | |||||||||||
Non-Cash Investing Activities | |||||||||||||||||
Fair value of shares issued as acquisition consideration (See Note 10) | $ | — | $ | — | $ | 8,004 | |||||||||||
Fair value of equity awards issued as acquisition consideration (See Note 10) | $ | — | $ | — | $ | 613 |
Common
Stock Issued at Par Value |
Capital in
Excess of Par Value |
Retained
Earnings |
Deferred
Compensation |
Treasury Stock | |||||||||||||||||||||||||||||||
(Millions of dollars) |
Shares (in
thousands) |
Amount | |||||||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | 347 | $ | 9,619 | $ | 13,111 | $ | 19 | (118,745) | $ | (8,427) | ||||||||||||||||||||||||
Net income | — | — | 311 | — | — | — | |||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($3.00 per share)
|
— | — | (775) | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | (152) | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||||||||||
Acquisition (see Note 10) | — | 6,478 | — | — | 37,306 | 2,121 | |||||||||||||||||||||||||||||
Share-based compensation and other plans, net | — | (246) | (2) | 3 | 2,982 | 62 | |||||||||||||||||||||||||||||
Share-based compensation | — | 328 | — | — | — | — | |||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | (6) | — | |||||||||||||||||||||||||||||
Effect of change in accounting principle (see Note 2 and further discussion below) | — | — | 103 | — | — | — | |||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 347 | $ | 16,179 | $ | 12,596 | $ | 22 | (78,463) | $ | (6,243) | ||||||||||||||||||||||||
Net income | — | — | 1,233 | — | — | — | |||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($3.08 per share)
|
— | — | (832) | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | (152) | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for share-based compensation and other plans, net | — | (170) | (1) | 1 | 2,155 | 53 | |||||||||||||||||||||||||||||
Share-based compensation | — | 261 | — | — | — | — | |||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | 48 | — | |||||||||||||||||||||||||||||
Effect of change in accounting principle (see Note 2) | — | — | 68 | — | — | — | |||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 347 | $ | 16,270 | $ | 12,913 | $ | 23 | (76,260) | $ | (6,190) | ||||||||||||||||||||||||
Net income | — | — | 874 | — | — | — | |||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($3.16 per share)
|
— | — | (888) | — | — | — | |||||||||||||||||||||||||||||
Preferred | — | — | (107) | — | — | — | |||||||||||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||||||||||
Preferred shares converted to common shares | 12 | (9) | — | — | — | — | |||||||||||||||||||||||||||||
Public equity offerings | 6 | 2,909 | — | — | — | — | |||||||||||||||||||||||||||||
Share-based compensation and other plans, net | — | (143) | — | — | 1,597 | 52 | |||||||||||||||||||||||||||||
Share-based compensation | — | 244 | — | — | — | — | |||||||||||||||||||||||||||||
Common stock held in trusts, net (a) | — | — | — | — | 41 | — | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 365 | $ | 19,270 | $ | 12,791 | $ | 23 | (74,623) | $ | (6,138) |
(Millions of dollars) | Total |
Foreign
Currency Translation |
Benefit Plans |
Cash Flow
Hedges |
|||||||||||||||||||
Balance at September 30, 2017 | $ | (1,723) | $ | (1,001) | $ | (703) | $ | (18) | |||||||||||||||
Other comprehensive (loss) income before reclassifications, net of taxes | (142) | (161) | 19 | — | |||||||||||||||||||
Amounts reclassified into income, net of
taxes |
57 | — | 52 | 5 | |||||||||||||||||||
Tax effects reclassified to retained earnings | (103) | — | (99) | (4) | |||||||||||||||||||
Balance at September 30, 2018 | $ | (1,909) | $ | (1,162) | $ | (729) | $ | (17) | |||||||||||||||
Other comprehensive loss before reclassifications, net of taxes | (427) | (93) | (325) | (9) | |||||||||||||||||||
Amounts reclassified into income, net of
taxes |
52 | — | 49 | 3 | |||||||||||||||||||
Balance at September 30, 2019 | $ | (2,283) | $ | (1,256) | $ | (1,005) | $ | (23) | |||||||||||||||
Other comprehensive loss before reclassifications, net of taxes | (338) | (161) | (101) | (76) | |||||||||||||||||||
Amounts reclassified into income, net of
taxes |
74 | — | 66 | 8 | |||||||||||||||||||
Balance at September 30, 2020 | $ | (2,548) | $ | (1,416) | $ | (1,040) | $ | (91) |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Benefit Plans | |||||||||||||||||
Income tax benefit (provision) for net (losses) gains recorded in other comprehensive income | $ | 30 | $ | 91 | $ | (19) |
2020 | 2019 | 2018 | |||||||||||||||
Average common shares outstanding | 278,971 | 269,943 | 258,354 | ||||||||||||||
Dilutive share equivalents from share-based plans (a) | 3,431 | 4,832 | 6,267 | ||||||||||||||
Average common and common equivalent shares outstanding — assuming dilution | 282,402 | 274,775 | 264,621 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
United States | International | Total | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
Medical | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Medication Delivery Solutions (a) | $ | 1,972 | $ | 1,583 | $ | 3,555 | $ | 2,037 | $ | 1,811 | $ | 3,848 | $ | 1,875 | $ | 1,752 | $ | 3,627 | |||||||||||||||||||||||||||||||||||
Medication Management Solutions (a) | 1,865 | 589 | 2,454 | 2,115 | 525 | 2,640 | 1,974 | 513 | 2,487 | ||||||||||||||||||||||||||||||||||||||||||||
Diabetes Care | 562 | 522 | 1,084 | 573 | 538 | 1,110 | 564 | 541 | 1,105 | ||||||||||||||||||||||||||||||||||||||||||||
Pharmaceutical Systems | 404 | 1,184 | 1,588 | 392 | 1,073 | 1,465 | 357 | 1,040 | 1,397 | ||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 4,802 | $ | 3,878 | $ | 8,680 | $ | 5,116 | $ | 3,947 | $ | 9,064 | $ | 4,770 | $ | 3,846 | $ | 8,616 | |||||||||||||||||||||||||||||||||||
Life Sciences | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Integrated Diagnostic Solutions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preanalytical Systems | $ | 769 | $ | 718 | $ | 1,487 | $ | 774 | $ | 784 | $ | 1,558 | $ | 761 | $ | 792 | $ | 1,553 | |||||||||||||||||||||||||||||||||||
Diagnostic Systems | 1,103 | 941 | 2,045 | 672 | 875 | 1,547 | 678 | 858 | 1,536 | ||||||||||||||||||||||||||||||||||||||||||||
Total Integrated Diagnostic Solutions | 1,872 | 1,659 | 3,532 | 1,446 | 1,659 | 3,106 | 1,438 | 1,651 | 3,089 | ||||||||||||||||||||||||||||||||||||||||||||
Biosciences | 465 | 678 | 1,143 | 485 | 709 | 1,194 | 475 | 766 | 1,241 | ||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 2,337 | $ | 2,337 | $ | 4,675 | $ | 1,931 | $ | 2,368 | $ | 4,300 | $ | 1,914 | $ | 2,416 | $ | 4,330 | |||||||||||||||||||||||||||||||||||
Interventional | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Surgery (b) | $ | 891 | $ | 230 | $ | 1,121 | $ | 977 | $ | 264 | $ | 1,242 | $ | 820 | $ | 202 | $ | 1,022 | |||||||||||||||||||||||||||||||||||
Peripheral Intervention (b) | 871 | 640 | 1,511 | 917 | 657 | 1,574 | 728 | 511 | 1,239 | ||||||||||||||||||||||||||||||||||||||||||||
Urology and Critical Care (b) | 815 | 315 | 1,130 | 787 | 323 | 1,110 | 536 | 240 | 777 | ||||||||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 2,577 | $ | 1,186 | $ | 3,762 | $ | 2,682 | $ | 1,244 | $ | 3,926 | $ | 2,084 | $ | 953 | $ | 3,037 | |||||||||||||||||||||||||||||||||||
Total Company revenues | $ | 9,716 | $ | 7,401 | $ | 17,117 | $ | 9,730 | $ | 7,560 | $ | 17,290 | $ | 8,768 | $ | 7,215 | $ | 15,983 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Income Before Income Taxes | |||||||||||||||||
Medical (a) (b) (c) (d) | $ | 2,274 | $ | 2,824 | $ | 2,624 | |||||||||||
Life Sciences (e) | 1,405 | 1,248 | 1,207 | ||||||||||||||
Interventional (c) (f) | 724 | 903 | 306 | ||||||||||||||
Total Segment Operating Income
|
4,403 | 4,976 | 4,137 | ||||||||||||||
Acquisitions and other restructurings | (309) | (480) | (740) | ||||||||||||||
Net interest expense | (521) | (627) | (641) | ||||||||||||||
Other unallocated items (g) | (2,587) | (2,693) | (1,583) | ||||||||||||||
Total Income Before Income Taxes | $ | 985 | $ | 1,176 | $ | 1,173 | |||||||||||
Assets | |||||||||||||||||
Medical | $ | 23,007 | $ | 22,925 | $ | 23,493 | |||||||||||
Life Sciences | 4,713 | 4,135 | 4,225 | ||||||||||||||
Interventional | 21,619 | 22,157 | 23,219 | ||||||||||||||
Total Segment Assets | 49,339 | 49,217 | 50,938 | ||||||||||||||
Corporate and All Other (h) | 4,673 | 2,548 | 2,966 | ||||||||||||||
Total Assets | $ | 54,012 | $ | 51,765 | $ | 53,904 | |||||||||||
Capital Expenditures | |||||||||||||||||
Medical | $ | 477 | $ | 577 | $ | 560 | |||||||||||
Life Sciences | 192 | 230 | 255 | ||||||||||||||
Interventional | 119 | 120 | 65 | ||||||||||||||
Corporate and All Other | 22 | 30 | 14 | ||||||||||||||
Total Capital Expenditures | $ | 810 | $ | 957 | $ | 895 | |||||||||||
Depreciation and Amortization | |||||||||||||||||
Medical | $ | 1,104 | $ | 1,073 | $ | 1,028 | |||||||||||
Life Sciences | 286 | 284 | 275 | ||||||||||||||
Interventional | 750 | 881 | 658 | ||||||||||||||
Corporate and All Other | 14 | 14 | 17 | ||||||||||||||
Total Depreciation and Amortization | $ | 2,154 | $ | 2,253 | $ | 1,978 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Revenues | |||||||||||||||||
United States | $ | 9,716 | $ | 9,730 | $ | 8,768 | |||||||||||
Europe | 3,480 | 3,359 | 3,298 | ||||||||||||||
Greater Asia | 2,568 | 2,726 | 2,460 | ||||||||||||||
Other | 1,353 | 1,476 | 1,457 | ||||||||||||||
$ | 17,117 | $ | 17,290 | $ | 15,983 | ||||||||||||
Long-Lived Assets | |||||||||||||||||
United States | $ | 36,468 | $ | 37,053 | $ | 38,982 | |||||||||||
Europe | 5,835 | 5,483 | 5,640 | ||||||||||||||
Greater Asia | 1,521 | 1,328 | 851 | ||||||||||||||
Other | 808 | 861 | 645 | ||||||||||||||
Corporate | 411 | 377 | 375 | ||||||||||||||
$ | 45,043 | $ | 45,101 | $ | 46,494 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Cost of products sold | $ | 40 | $ | 37 | $ | 36 | |||||||||||
Selling and administrative expense | 150 | 145 | 136 | ||||||||||||||
Research and development expense | 34 | 32 | 29 | ||||||||||||||
Acquisitions and other restructurings | 20 | 50 | 130 | ||||||||||||||
$ | 245 | $ | 265 | $ | 332 | ||||||||||||
Tax benefit associated with share-based compensation costs recognized | $ | 57 | $ | 62 | $ | 79 |
2020 | 2019 | 2018 | |||||||||||||||
Risk-free interest rate | 1.69% | 3.05% | 2.32% | ||||||||||||||
Expected volatility | 19.0% | 18.0% | 19.0% | ||||||||||||||
Expected dividend yield | 1.24% | 1.27% | 1.33% | ||||||||||||||
Expected life | 7.4 years | 7.2 years | 7.4 years | ||||||||||||||
Fair value derived | $48.82 | $51.86 | $46.10 |
SARs (in
thousands) |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value (Millions of dollars) |
||||||||||||||||||||
Balance at October 1 | 6,899 | $ | 144.84 | ||||||||||||||||||||
Granted | 874 | 255.22 | |||||||||||||||||||||
Exercised | (1,295) | 101.81 | |||||||||||||||||||||
Forfeited, canceled or expired | (140) | 220.82 | |||||||||||||||||||||
Balance at September 30 | 6,337 | $ | 167.17 | 5.66 | $ | 441 | |||||||||||||||||
Vested and expected to vest at September 30 | 6,152 | $ | 165.02 | 5.58 | $ | 440 | |||||||||||||||||
Exercisable at September 30 | 4,483 | $ | 137.60 | 4.59 | $ | 429 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Total intrinsic value of SARs exercised | $ | 212 | $ | 260 | $ | 333 | |||||||||||
Total fair value of SARs vested | $ | 46 | $ | 66 | $ | 107 |
Performance-Based | Time-Vested | |||||||||||||||||||||||||
Stock Units (in
thousands) |
Weighted
Average Grant Date Fair Value |
Stock Units (in
thousands) |
Weighted
Average Grant Date Fair Value |
|||||||||||||||||||||||
Balance at October 1 | 955 | $ | 221.73 | 2,068 | $ | 210.48 | ||||||||||||||||||||
Granted | 371 | 245.06 | 736 | 249.94 | ||||||||||||||||||||||
Distributed | (77) | 174.92 | (676) | 211.19 | ||||||||||||||||||||||
Forfeited or canceled | (286) | 188.32 | (431) | 215.56 | ||||||||||||||||||||||
Balance at September 30 | 962 | (a) | $ | 244.42 | 1,697 | $ | 226.01 | |||||||||||||||||||
Expected to vest at September 30 | 241 | (b) | $ | 244.82 | 1,622 | $ | 225.22 |
Performance-Based | Time-Vested | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Weighted average grant date fair value of units granted | $ | 245.06 | $ | 237.55 | $ | 251.75 | $ | 249.94 | $ | 235.50 | $ | 216.06 | |||||||||||||||||||||||
Performance-Based | Time-Vested | ||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Total fair value of units vested | $ | 27 | $ | 33 | $ | 31 | $ | 211 | $ | 254 | $ | 362 |
Pension Plans | |||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | $ | 153 | $ | 134 | $ | 136 | |||||||||||
Interest cost | 84 | 107 | 90 | ||||||||||||||
Expected return on plan assets | (188) | (180) | (154) | ||||||||||||||
Amortization of prior service credit | (13) | (13) | (13) | ||||||||||||||
Amortization of loss | 97 | 78 | 78 | ||||||||||||||
Settlements | 4 | 10 | 2 | ||||||||||||||
Net pension cost | $ | 137 | $ | 135 | $ | 137 | |||||||||||
Net pension cost included in the preceding table that is attributable to international plans | $ | 41 | $ | 32 | $ | 34 |
Pension Plans | |||||||||||
(Millions of dollars) | 2020 | 2019 | |||||||||
Change in benefit obligation: | |||||||||||
Beginning obligation | $ | 3,731 | $ | 3,246 | |||||||
Service cost | 153 | 134 | |||||||||
Interest cost | 84 | 107 | |||||||||
Plan amendments | — | 3 | |||||||||
Benefits paid | (186) | (153) | |||||||||
Impact of acquisitions (divestitures) | 10 | (9) | |||||||||
Actuarial loss | 104 | 514 | |||||||||
Settlements | (17) | (63) | |||||||||
Other, includes translation | 74 | (49) | |||||||||
Benefit obligation at September 30 | $ | 3,953 | $ | 3,731 | |||||||
Change in fair value of plan assets: | |||||||||||
Beginning fair value | $ | 2,926 | $ | 2,642 | |||||||
Actual return on plan assets | 222 | 279 | |||||||||
Employer contribution | 42 | 258 | |||||||||
Benefits paid | (186) | (153) | |||||||||
Impact of acquisitions (divestitures) | 7 | (7) | |||||||||
Settlements | (17) | (63) | |||||||||
Other, includes translation | 51 | (30) | |||||||||
Plan assets at September 30 | $ | 3,045 | $ | 2,926 | |||||||
Funded Status at September 30: | |||||||||||
Unfunded benefit obligation | $ | (908) | $ | (804) | |||||||
Amounts recognized in the Consolidated Balance
Sheets at September 30: |
|||||||||||
Other | $ | 16 | $ | 11 | |||||||
Salaries, wages and related items | (23) | (22) | |||||||||
Long-term Employee Benefit Obligations | (901) | (793) | |||||||||
Net amount recognized | $ | (908) | $ | (804) | |||||||
Amounts recognized in Accumulated other
comprehensive income (loss) before income taxes at September 30: |
|||||||||||
Prior service credit | $ | 31 | $ | 44 | |||||||
Net actuarial loss | (1,281) | (1,289) | |||||||||
Net amount recognized | $ | (1,250) | $ | (1,246) |
Accumulated Benefit
Obligation Exceeds the Fair Value of Plan Assets |
Projected Benefit
Obligation Exceeds the Fair Value of Plan Assets |
||||||||||||||||||||||
(Millions of dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Projected benefit obligation | $ | 3,844 | $ | 3,623 | $ | 3,920 | $ | 3,698 | |||||||||||||||
Accumulated benefit obligation | $ | 3,703 | $ | 3,476 | |||||||||||||||||||
Fair value of plan assets | $ | 2,936 | $ | 2,821 | $ | 2,996 | $ | 2,882 |
2020 | 2019 | 2018 | |||||||||||||||
Net Cost | |||||||||||||||||
Discount rate: | |||||||||||||||||
U.S. plans (a) | 3.21 | % | 4.26 | % | 3.71 | % | |||||||||||
International plans | 1.39 | 2.30 | 2.30 | ||||||||||||||
Expected return on plan assets: | |||||||||||||||||
U.S. plans | 7.25 | 7.25 | 7.20 | ||||||||||||||
International plans | 5.05 | 4.98 | 4.95 | ||||||||||||||
Rate of compensation increase: | |||||||||||||||||
U.S. plans | 4.29 | 4.29 | 4.51 | ||||||||||||||
International plans | 2.35 | 2.36 | 2.31 | ||||||||||||||
Benefit Obligation | |||||||||||||||||
Discount rate: | |||||||||||||||||
U.S. plans | 2.80 | 3.21 | 4.26 | ||||||||||||||
International plans | 1.44 | 1.39 | 2.30 | ||||||||||||||
Rate of compensation increase: | |||||||||||||||||
U.S. plans | 4.30 | 4.29 | 4.29 | ||||||||||||||
International plans | 2.20 | 2.35 | 2.36 |
(Millions of dollars) |
Pension
Plans |
||||
2021 | $ | 209 | |||
2022 | 162 | ||||
2023 | 171 | ||||
2024 | 176 | ||||
2025 | 186 | ||||
2026-2030 | 1,068 |
(Millions of dollars) |
Total U.S.
Plan Asset Balances |
Investments Measured at Net Asset Value (a) |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 656 | 401 | — | — | 273 | 48 | 383 | 353 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-U.S. | 95 | 108 | — | — | 74 | 85 | 21 | 23 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-Foreign | 40 | 85 | — | — | — | 69 | 40 | 16 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other fixed income | 141 | 37 | — | — | — | — | 141 | 37 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 737 | 922 | 43 | 782 | 694 | 140 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 147 | 254 | — | — | 147 | 254 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 291 | 261 | 151 | 124 | 141 | 138 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 2,108 | $ | 2,068 | $ | 193 | $ | 906 | $ | 1,330 | $ | 733 | $ | 584 | $ | 429 | $ | — | $ | — |
(Millions of dollars) |
Total International
Plan Asset Balances |
Investments Measured at Net Asset Value (a) |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) (b) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 34 | $ | 33 | $ | — | $ | — | $ | 15 | $ | 15 | $ | 19 | $ | 18 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Government and agency-U.S. | 3 | 3 | — | — | — | — | 3 | 3 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency-Foreign | 212 | 199 | — | — | 115 | 105 | 97 | 94 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other fixed income | 102 | 100 | — | — | 63 | 63 | 39 | 37 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 335 | 319 | — | 14 | 335 | 305 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 12 | 8 | — | — | 12 | 8 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | 34 | 30 | — | — | — | — | 24 | 30 | 10 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 131 | 113 | — | — | — | — | — | — | 131 | 113 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 72 | 53 | — | — | 70 | 52 | 1 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 935 | $ | 859 | $ | — | $ | 14 | $ | 611 | $ | 549 | $ | 183 | $ | 182 | $ | 141 | $ | 113 |
(Millions of dollars, except per share data) | |||||||||||
2018 | |||||||||||
Revenues | $ | 16,947 | |||||||||
Net Income | $ | 390 | |||||||||
Diluted Earnings per Share | $ | 0.90 |
Employee Termination | Other | Total | |||||||||||||||||||||||||||||||||
(Millions of dollars) | Bard | Other Initiatives (a) | Bard (b) | Other Initiatives (a) | Bard | Other Initiatives (a) | |||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | — | $ | 49 | $ | — | $ | 6 | $ | — | $ | 55 | |||||||||||||||||||||||
Charged to expense | 136 | 30 | 156 | 22 | 292 | 52 | |||||||||||||||||||||||||||||
Cash payments | (103) | (56) | (3) | (23) | (106) | (79) | |||||||||||||||||||||||||||||
Non-cash settlements | — | — | (153) | (1) | (153) | (1) | |||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 33 | $ | 23 | $ | — | $ | 4 | $ | 33 | $ | 27 | |||||||||||||||||||||||
Charged to expense | 23 | 29 | 95 | 33 | 118 | 62 | |||||||||||||||||||||||||||||
Cash payments | (34) | (21) | (5) | (31) | (39) | (52) | |||||||||||||||||||||||||||||
Non-cash settlements | — | — | (89) | (3) | (89) | (3) | |||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 22 | $ | 31 | $ | 1 | $ | 3 | $ | 23 | $ | 34 | |||||||||||||||||||||||
Charged to expense | 7 | 13 | 42 | 33 | 49 | 46 | |||||||||||||||||||||||||||||
Cash payments | (14) | (27) | (18) | (31) | (32) | (58) | |||||||||||||||||||||||||||||
Non-cash settlements | — | — | (24) | (2) | (24) | (2) | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 15 | $ | 17 | $ | 1 | $ | 3 | $ | 16 | $ | 20 |
2020 | 2019 | ||||||||||||||||||||||
(Millions of dollars) |
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
|||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||
Developed technology | $ | 14,105 | $ | 3,959 | $ | 13,960 | $ | 2,906 | |||||||||||||||
Customer relationships | 4,616 | 1,509 | 4,608 | 1,183 | |||||||||||||||||||
Product rights | 119 | 73 | 110 | 60 | |||||||||||||||||||
Trademarks | 408 | 120 | 407 | 102 | |||||||||||||||||||
Patents and other | 500 | 320 | 445 | 305 | |||||||||||||||||||
Amortized intangible assets | $ | 19,748 | $ | 5,981 | $ | 19,530 | $ | 4,555 | |||||||||||||||
Unamortized intangible assets | |||||||||||||||||||||||
Acquired in-process research and development (a) | $ | 44 | $ | 1 | |||||||||||||||||||
Trademarks | 2 | 2 | |||||||||||||||||||||
Unamortized intangible assets | $ | 46 | $ | 3 |
(Millions of dollars) | Medical | Life Sciences | Interventional | Total | |||||||||||||||||||
Goodwill as of September 30, 2018 | $ | 10,054 | $ | 775 | $ | 12,771 | $ | 23,600 | |||||||||||||||
Divestitures and related adjustments (a) | — | 3 | — | 3 | |||||||||||||||||||
Purchase price allocation adjustments (b) | (15) | — | (75) | (90) | |||||||||||||||||||
Currency translation | (50) | (6) | (81) | (137) | |||||||||||||||||||
Goodwill as of September 30, 2019 | $ | 9,989 | $ | 772 | $ | 12,615 | $ | 23,376 | |||||||||||||||
Acquisitions (c) | 10 | 58 | 49 | 117 | |||||||||||||||||||
Purchase price allocation adjustments | — | 1 | 4 | 5 | |||||||||||||||||||
Currency translation | 44 | 7 | 71 | 122 | |||||||||||||||||||
Goodwill as of September 30, 2020 | $ | 10,044 | $ | 837 | $ | 12,739 | $ | 23,620 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Foreign currency-denominated debt | $ | (106) | $ | 138 | 81 | ||||||||||||
Cross-currency swaps | $ | (109) | $ | 73 | — | ||||||||||||
Foreign currency forward contract (a) | $ | — | $ | (9) | — |
(Millions of dollars) | September 30, 2020 | September 30, 2019 | |||||||||
Cash and equivalents | $ | 2,825 | $ | 536 | |||||||
Restricted cash | 92 | 54 | |||||||||
Cash and equivalents and restricted cash | $ | 2,917 | $ | 590 |
(Millions of dollars) | 2020 | 2019 | |||||||||||||||
Current portion of long-term debt | |||||||||||||||||
0.174% Notes due June 4, 2021
|
701 | — | |||||||||||||||
2.404% Notes due June 5, 2020
|
— | 999 | |||||||||||||||
2.675% Notes due December 15, 2019
|
— | 300 | |||||||||||||||
Other | 5 | 10 | |||||||||||||||
Total short-term debt | $ | 707 | $ | 1,309 |
(Millions of dollars) | 2020 | 2019 | |||||||||||||||
3.250% Notes due November 12, 2020
|
(a) | — | 699 | ||||||||||||||
Floating Rate Notes due December 29, 2020 | (a) | — | 748 | ||||||||||||||
0.174% Notes due June 4, 2021
|
— | 651 | |||||||||||||||
3.125% Notes due November 8, 2021
|
1,008 | 1,004 | |||||||||||||||
2.894% Notes due June 6, 2022
|
1,797 | 1,795 | |||||||||||||||
Floating Rate Notes due June 6, 2022 | 499 | 498 | |||||||||||||||
1.000% Notes due December 15, 2022
|
584 | 542 | |||||||||||||||
Revolving Credit Facility due December 29, 2022 | — | 480 | |||||||||||||||
3.300% Notes due March 1, 2023
|
295 | 295 | |||||||||||||||
1.401% Notes due May 24, 2023
|
350 | 325 | |||||||||||||||
0.632% Notes due June 4, 2023
|
933 | 867 | |||||||||||||||
3.875% Notes due May 15, 2024
|
180 | 181 | |||||||||||||||
3.363% Notes due June 6, 2024
|
1,742 | 1,740 | |||||||||||||||
3.734% Notes due December 15, 2024
|
1,370 | 1,369 | |||||||||||||||
3.020% Notes due May 24, 2025
|
320 | 306 | |||||||||||||||
1.208% Notes due June 4, 2026
|
699 | 649 | |||||||||||||||
6.700% Notes due December 1, 2026
|
172 | 174 | |||||||||||||||
1.900% Notes due December 15, 2026
|
582 | 541 | |||||||||||||||
3.700% Notes due June 6, 2027
|
1,715 | 1,714 | |||||||||||||||
7.000% Debentures due August 1, 2027
|
175 | 175 | |||||||||||||||
6.700% Debentures due August 1, 2028
|
174 | 175 | |||||||||||||||
2.823% Notes due May 20, 2030
|
(b) | 743 | — | ||||||||||||||
6.000% Notes due May 15, 2039
|
246 | 246 | |||||||||||||||
5.000% Notes due November 12, 2040
|
124 | 124 | |||||||||||||||
4.875% Notes due May 15, 2044
|
247 | 248 | |||||||||||||||
4.685% Notes due December 15, 2044
|
1,044 | 1,045 | |||||||||||||||
4.669% Notes due June 6, 2047
|
1,485 | 1,485 | |||||||||||||||
3.794% Notes due May 20, 2050
|
(b) | 742 | — | ||||||||||||||
Other long-term debt | — | 5 | |||||||||||||||
Total Long-Term Debt | $ | 17,224 | $ | 18,081 |
Interest Rate and Maturity |
Aggregate
Principal Amount (Millions of dollars) |
|||||||
3.700% Notes due June 6, 2027
|
$ | 675 | ||||||
5.000% Notes due November 12, 2040
|
175 | |||||||
4.875% Notes due May 15, 2044
|
75 | |||||||
4.685% Notes due December 15, 2044
|
175 | |||||||
Total notes purchased | $ | 1,100 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Charged to operations | $ | 528 | $ | 639 | $ | 706 | |||||||||||
Capitalized | 43 | 44 | 42 | ||||||||||||||
Total interest costs | $ | 571 | $ | 683 | $ | 748 | |||||||||||
Interest paid, net of amounts capitalized | $ | 515 | $ | 658 | $ | 674 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | (50) | $ | 235 | $ | 665 | |||||||||||
State and local, including Puerto Rico | 47 | 41 | 73 | ||||||||||||||
Foreign | 400 | 300 | 387 | ||||||||||||||
$ | 397 | $ | 576 | $ | 1,124 | ||||||||||||
Deferred: | |||||||||||||||||
Domestic | $ | (184) | $ | (577) | $ | (201) | |||||||||||
Foreign | (101) | (56) | (61) | ||||||||||||||
(286) | (633) | (262) | |||||||||||||||
Income tax provision (benefit) | $ | 111 | $ | (57) | $ | 862 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Domestic, including Puerto Rico | $ | (489) | $ | 799 | $ | (135) | |||||||||||
Foreign | 1,474 | 377 | 1,308 | ||||||||||||||
Income Before Income Taxes | $ | 985 | $ | 1,176 | $ | 1,173 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Balance at October 1 | $ | 577 | $ | 601 | $ | 407 | |||||||||||
Increase due to acquisitions | 1 | 3 | 140 | ||||||||||||||
Increase due to current year tax positions | 35 | 11 | 43 | ||||||||||||||
Increase due to prior year tax positions | 76 | 6 | 43 | ||||||||||||||
Decreases due to prior year tax positions | (49) | (39) | — | ||||||||||||||
Decrease due to settlements with tax authorities | (4) | — | (29) | ||||||||||||||
Decrease due to lapse of statute of limitations | (16) | (5) | (3) | ||||||||||||||
Balance at September 30 | $ | 620 | $ | 577 | $ | 601 |
2020 | 2019 | ||||||||||||||||||||||
(Millions of dollars) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Compensation and benefits | $ | 554 | $ | — | $ | 513 | $ | — | |||||||||||||||
Property and equipment | — | 361 | — | 312 | |||||||||||||||||||
Intangibles | — | 2,408 | — | 2,624 | |||||||||||||||||||
Loss and credit carryforwards | 1,900 | — | 1,327 | — | |||||||||||||||||||
Product recall and liability reserves | 241 | — | 182 | — | |||||||||||||||||||
Other | 501 | 137 | 396 | 74 | |||||||||||||||||||
3,196 | 2,906 | 2,417 | 3,011 | ||||||||||||||||||||
Valuation allowance | (1,820) | — | (1,240) | — | |||||||||||||||||||
Net (a) | $ | 1,376 | $ | 2,906 | $ | 1,177 | $ | 3,011 |
2020 | 2019 | 2018 | |||||||||||||||
Federal statutory tax rate | 21.0 | % | 21.0 | % | 24.5 | % | |||||||||||
New U.S. tax legislation (see discussion above) | — | (4.3) | 54.6 | ||||||||||||||
State and local income taxes, net of federal tax benefit | (1.9) | 0.1 | 0.8 | ||||||||||||||
Foreign income tax at rates other than 21% | (14.8) | (6.6) | (11.7) | ||||||||||||||
Effect of foreign operations | 19.1 | (5.5) | 19.0 | ||||||||||||||
Effect of Research Credits and FDII/Domestic Production Activities | (5.0) | (3.3) | (2.8) | ||||||||||||||
Effect of tax benefit relating to share-based compensation | (4.5) | (3.9) | (6.1) | ||||||||||||||
Effect of gain on divestitures | (4.5) | (2.0) | 1.3 | ||||||||||||||
Effect of uncertain tax position | — | — | 3.3 | ||||||||||||||
Effect of valuation allowance release | — | — | (4.8) | ||||||||||||||
Effect of application for change in accounting method | — | — | (4.5) | ||||||||||||||
Effect of nondeductible compensation | — | — | 1.6 | ||||||||||||||
Other, net | 1.9 | (0.3) | (1.7) | ||||||||||||||
Effective income tax rate | 11.3 | % | (4.8) | % | 73.5 | % |
(Millions of dollars) | September 30, 2020 | ||||
Right-of-use assets recorded in Other Assets
|
$ | 418 | |||
Current lease liabilities recorded in Accrued expenses
|
$ | 106 | |||
Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities
|
$ | 336 |
(Millions of dollars) | |||||
2021 | $ | 115 | |||
2022 | 96 | ||||
2023 | 63 | ||||
2024 | 41 | ||||
2025 | 32 | ||||
Thereafter | 142 | ||||
Total payments due | 489 | ||||
Less: imputed interest | 47 | ||||
Total | $ | 442 |
(Millions of dollars) | |||||
2020 | $ | 122 | |||
2021 | 103 | ||||
2022 | 83 | ||||
2023 | 57 | ||||
2024 | 56 | ||||
Thereafter | 123 | ||||
Total | $ | 546 |
(Millions of dollars) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Royalty and licensing income (a) | $ | 17 | $ | 64 | $ | 51 | |||||||||||||||||||||||||||||||||||
Other investment gains, net | 13 | 18 | 8 | ||||||||||||||||||||||||||||||||||||||
Deferred compensation | 24 | 6 | 3 | ||||||||||||||||||||||||||||||||||||||
Net pension and postretirement benefit cost (b) | 7 | (2) | (13) | ||||||||||||||||||||||||||||||||||||||
Losses on undesignated foreign exchange derivatives, net | (17) | (23) | (14) | ||||||||||||||||||||||||||||||||||||||
Losses on debt extinguishment (c) | (8) | (59) | (16) | ||||||||||||||||||||||||||||||||||||||
Product related matters | (9) | — | — | ||||||||||||||||||||||||||||||||||||||
Hurricane-related insurance proceeds | — | 35 | — | ||||||||||||||||||||||||||||||||||||||
Vyaire Medical-related amounts and other income from divestitures (d) | — | 6 | 288 | ||||||||||||||||||||||||||||||||||||||
Other | (3) | (2) | (3) | ||||||||||||||||||||||||||||||||||||||
Other income, net | $ | 23 | $ | 43 | $ | 305 |
(Millions of dollars) |
Allowance for
Doubtful Accounts |
Allowance for
Cash Discounts |
Total | ||||||||||||||
Balance at September 30, 2017 | $ | 54 | $ | 4 | $ | 58 | |||||||||||
Additions charged to costs and expenses | 31 | 58 | 89 | ||||||||||||||
Deductions and other | (11) | (a) | (50) | (61) | |||||||||||||
Balance at September 30, 2018 | $ | 75 | $ | 12 | $ | 86 | |||||||||||
Additions charged to costs and expenses | 31 | 94 | 125 | ||||||||||||||
Deductions and other | (31) | (a) | (92) | (123) | |||||||||||||
Balance at September 30, 2019 | $ | 75 | $ | 13 | $ | 88 | |||||||||||
Additions charged to costs and expenses | 40 | 39 | 78 | ||||||||||||||
Deductions and other | (35) | (a) | (38) | (73) | |||||||||||||
Balance at September 30, 2020 | $ | 80 | $ | 14 | $ | 94 |
(Millions of dollars) | 2020 | 2019 | |||||||||
Materials | $ | 602 | $ | 544 | |||||||
Work in process | 335 | 318 | |||||||||
Finished products | 1,806 | 1,717 | |||||||||
$ | 2,743 | $ | 2,579 |
(Millions of dollars) | 2020 | 2019 | |||||||||
Land | $ | 166 | $ | 164 | |||||||
Buildings | 3,082 | 2,842 | |||||||||
Machinery, equipment and fixtures | 8,454 | 7,932 | |||||||||
Leasehold improvements | 216 | 190 | |||||||||
11,919 | 11,128 | ||||||||||
Less accumulated depreciation and amortization | 5,996 | 5,469 | |||||||||
$ | 5,923 | $ | 5,659 |
Millions of dollars, except per share amounts | 2020 | |||||||||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Year (a) | ||||||||||||||||||||||||||||
Revenues | $ | 4,225 | $ | 4,253 | $ | 3,855 | $ | 4,784 | $ | 17,117 | ||||||||||||||||||||||
Gross Profit | 1,978 | 1,734 | 1,659 | 2,206 | 7,577 | |||||||||||||||||||||||||||
Net Income | 278 | 183 | 286 | 128 | 874 | |||||||||||||||||||||||||||
Earnings per Share: (b) | ||||||||||||||||||||||||||||||||
Basic | 0.88 | 0.53 | 0.98 | 0.36 | 2.75 | |||||||||||||||||||||||||||
Diluted | 0.87 | 0.53 | 0.97 | 0.36 | 2.71 |
2019 | ||||||||||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Year (a) | ||||||||||||||||||||||||||||
Revenues | $ | 4,160 | $ | 4,195 | $ | 4,350 | $ | 4,584 | $ | 17,290 | ||||||||||||||||||||||
Gross Profit | 1,974 | 1,974 | 2,074 | 2,266 | 8,288 | |||||||||||||||||||||||||||
Net Income | 599 | 20 | 451 | 163 | 1,233 | |||||||||||||||||||||||||||
Earnings (loss) per Share: | ||||||||||||||||||||||||||||||||
Basic | 2.09 | (0.07) | 1.53 | 0.46 | 4.01 | |||||||||||||||||||||||||||
Diluted | 2.05 | (0.07) | 1.51 | 0.45 | 3.94 |
Exhibit
Number
|
Description | Method of Filing | ||||||||||||
Agreement and Plan of Merger, dated as of April 23, 2017, among C.R. Bard, Inc., Becton, Dickinson and Company and Lambda Corp. + | Incorporated by reference to Exhibit 2.1 to the registrant’s Current Report on Form 8-K filed on April 24, 2017. | |||||||||||||
Amendment No. 1, dated July 28, 2017, to the Agreement and Plan of Merger, dated as of April 23, 2017, among C.R. Bard, Inc., Becton, Dickinson and Company and Lambda Corp. | Incorporated by reference to Exhibit 2.1 to the registrant’s Current Report on Form 8-K filed on July 28, 2017. | |||||||||||||
Restated Certificate of Incorporation, dated as of January 30, 2019. | Incorporated by reference to Exhibit 3 to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2018. | |||||||||||||
Certificate of Amendment to the Company’s Restated Certificate of Incorporation, filed with the New Jersey Secretary of State and effective May 21, 2020. | Incorporated by reference to Exhibit 4.1 to the registration statement on Form 8-A filed by the Company on May 26, 2020. | |||||||||||||
By-Laws, as amended and restated as of September 29, 2020. | Incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on October 5, 2020. | |||||||||||||
Indenture, dated as of March 1, 1997, between the registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank). | Incorporated by reference to Exhibit 4(a) to Form 8-K filed by the registrant on July 31, 1997. | |||||||||||||
Form of 7.000% Debentures due August 1, 2027. | Incorporated by reference to Exhibit 4(d) to the registrant’s Current Report on Form 8-K filed on July 31, 1997. | |||||||||||||
Form of 6.700% Debentures due August 1, 2028. | Incorporated by reference to Exhibit 4(d) to the registrant’s Current Report on Form 8-K filed on July 29, 1999. | |||||||||||||
Form of 6.000% Notes due May 15, 2039. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on May 13, 2009. | |||||||||||||
Form of 3.250% Notes due November 12, 2020. | Incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed on November 12, 2010. | |||||||||||||
Form of 5.000% Notes due November 12, 2040. | Incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed on November 12, 2010. | |||||||||||||
Form of 3.125% Notes due November 8, 2021. | Incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed on November 8, 2011. | |||||||||||||
Form of 3.734% Notes due December 15, 2024. | Incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on December 15, 2014. | |||||||||||||
Form of 4.685% Notes due December 15, 2044. | Incorporated by reference to Exhibit 4.5 to the registrant’s Current Report on Form 8-K filed on December 15, 2014. |
Exhibit
Number
|
Description | Method of Filing | ||||||||||||
Form of 3.300% Senior Notes due March 1, 2023. | Incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||||||||||||
Form of 3.875% Senior Notes due May 15, 2024. | Incorporated by reference to Exhibit 4.5 to the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||||||||||||
Form of 4.875% Senior Notes due May 15, 2044. | Incorporated by reference to Exhibit 4.6 to the registrant’s Current Report on Form 8-K filed on April 29, 2015. | |||||||||||||
Form of 1.000% Notes due December 15, 2022. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on December 9, 2016. | |||||||||||||
Form of 1.900% Notes due December 15, 2026. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on December 9, 2016. | |||||||||||||
Form of 2.894% Notes due June 6, 2022. | Incorporated by reference to Exhibit 4.3 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of Floating Rate Notes due June 6, 2022. | Incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 3.363% Notes due June 6, 2024. | Incorporated by reference to Exhibit 4.5 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 3.700% Notes due June 6, 2027. | Incorporated by reference to Exhibit 4.6 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of 4.669% Notes due June 6, 2047. | Incorporated by reference to Exhibit 4.7 to the registrant’s Current Report on Form 8-K filed on June 6, 2017. | |||||||||||||
Form of Certificate for the 6.000% Mandatory Convertible Preferred Stock, Series B. | Incorporated by reference to Exhibit 4.2 to the registrant’s registration statement on Form 8-A filed on May 26, 2020. | |||||||||||||
Deposit Agreement, dated as of May 26, 2020, among Becton, Dickinson and Company and Computershare Inc. and Computershare Trust Company, N.A., acting jointly as depositary and Computershare Trust Company, N.A., acting as Registrar and Transfer Agent, on behalf of the holders from time to time of the depositary receipts described therein. | Incorporated by reference to Exhibit 4.3 to the registrant’s registration statement on Form 8-A filed on May 26, 2020. | |||||||||||||
Form of Depositary Receipt for the Depositary Shares. | Incorporated by reference to Exhibit 4.4 to the registrant’s registration statement on Form 8-A filed on May 26, 2020. | |||||||||||||
Registration Rights Agreement, dated as of December 29, 2017, between Becton, Dickinson and Company and Citigroup Global Markets Inc. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on December 29, 2017. | |||||||||||||
Form of 6.700% Notes due December 1, 2026. | Incorporated by reference to Exhibit 4.4 to the registrant's Current Report on Form 8-K filed on December 29, 2017. |
Exhibit
Number
|
Description | Method of Filing | ||||||||||||
Indenture, dated as of December 1, 1996 between C.R. Bard, Inc. and The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee. | Incorporated by reference to Exhibit 4.1 to C.R. Bard, Inc.'s Registration Statement on Form S-3 (File No. 333-05997). | |||||||||||||
First Supplemental Indenture, dated May 18, 2017, between C. R. Bard, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of C.R. Bard, Inc. filed on May 23, 2017. | |||||||||||||
Form of Floating Rate Notes due December 29, 2020. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on March 1, 2018. | |||||||||||||
Form of 1.401% Notes due May 24, 2023. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on May 24, 2018. | |||||||||||||
Form of 3.020% Notes due May 24, 2025. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on May 24, 2018. | |||||||||||||
First Supplemental Indenture, dated as of June 4, 2019, among Becton Finance, as issuer, Becton, Dickinson and Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee. | Incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of 0.174% Note due June 4, 2021. | Incorporated by reference to Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of 0.632% Note due June 4, 2023. | Incorporated by reference to Exhibit 4.3 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of 1.208% Note due June 4, 2026. | Incorporated by reference to Exhibit 4.4 to the registrant's Current Report on Form 8-K filed on June 4, 2019. | |||||||||||||
Form of Employment Agreement with executive officers relating to employment following a change of control of the registrant (with tax reimbursement provisions).* | Incorporated by reference to Exhibit 10(a) to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2008. | |||||||||||||
Form of Employment Agreement with executive officers relating to employment following a change of control of the registrant (without tax reimbursement provisions).* | Incorporated by reference to Exhibit 10(a)(ii) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. | |||||||||||||
Stock Award Plan, as amended and restated as of January 31, 2006.* | Incorporated by reference to Exhibit 10(a) to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2005. | |||||||||||||
Performance Incentive Plan, as amended and restated January 24, 2017.* | Incorporated by reference to Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the period ended March 31, 2017. | |||||||||||||
Deferred Compensation and Retirement Benefit Restoration Plan, as amended as of May 1, 2020. * | Incorporated by reference to Exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2018. |
Exhibit
Number
|
Description | Method of Filing | ||||||||||||
1996 Directors’ Deferral Plan, as amended and restated as of November 25, 2014.* | Incorporated by reference to Exhibit 10 to the registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2020. | |||||||||||||
Amended and Restated Aircraft Time Sharing Agreement between Becton, Dickinson and Company and Vincent A. Forlenza dated as of March 21, 2012.* | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on March 27, 2012. | |||||||||||||
Aircraft Time Sharing Agreement dated June 5, 2020, between the registrant and Thomas E. Polen.* | Incorporated by reference to Exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2020. | |||||||||||||
2004 Employee and Director Equity-Based Compensation Plan, as amended and restated as of November 24, 2020.* | Filed with this report. | |||||||||||||
French Addendum to the 2004 Employee and Director Equity-Based Compensation Plan dated January 21, 2019.* | Incorporated by reference to Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on January 31, 2020. | |||||||||||||
Terms of Awards under 2004 Employee and Director Equity-Based Compensation Plan and Stock Award Plan.* | Filed with this report. | |||||||||||||
Form of Commercial Paper Dealer Agreement. | Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on January 6, 2015. | |||||||||||||
Tax Matters Agreement, dated August 31, 2009, by and between Cardinal Health, Inc. and CareFusion Corporation. | Incorporated by reference to Exhibit 10.3 to Cardinal Health, Inc.’s Current Report on Form 8-K filed on September 4, 2009. | |||||||||||||
Credit Agreement, dated as of May 12, 2017, by and among Becton, Dickinson and Company, the banks and issuers of letters of credit party thereto and Citibank, N.A., as administrative agent. | Incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed May 16, 2017. | |||||||||||||
Term sheet, dated August 25, 2017, between the registrant and Samrat Khichi.* | Incorporated by reference to Exhibit 10(o) to the registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018. | |||||||||||||
C. R. Bard, Inc. Supplemental Executive Retirement Plan, dated as of July 13, 1988.* | Incorporated by reference to Exhibit 10p to the C.R. Bard, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 1993. | |||||||||||||
Supplemental Insurance/Retirement Plan Agreement (as Amended and Restated) between C.R. Bard, Inc. and its executive officers.* | Incorporated by reference to Exhibit 10be to the C.R. Bard, Inc. Quarterly Report on Form 10-Q for the period ended September 30, 2005. | |||||||||||||
2005 Directors’ Stock Award Plan of C. R. Bard, Inc. (as Amended and Restated).*
|
Incorporated by reference to Exhibit 10bw to the C.R. Bard, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |||||||||||||
Offer letter of Patrick Kaltenbach, dated March 29, 2018. | Incorporated by reference to Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the period ended March 31, 2019. |
Exhibit
Number
|
Description | Method of Filing | ||||||||||||
Joinder Agreement, dated as of March 31, 2020, among Becton, Dickinson and Company, the bank named therein and Wells Fargo Bank, National Association, as administrative agent.
|
Incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed on April 2, 2020. | |||||||||||||
364-Day Term Loan Agreement, dated as of March 20, 2020, among Becton, Dickinson and Company, the banks named therein and Wells Fargo Bank, National Association, as administrative agent.
|
Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on March 23, 2020. | |||||||||||||
First Amendment to 364-Day Term Loan Agreement and Joinder Agreement, dated as of March 27, 2020, among Becton, Dickinson and Company, the banks named therein and Wells Fargo Bank, National Association, as administrative agent.
|
Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on April 2, 2020. | |||||||||||||
Commitment Increase Supplement to Credit Agreement, dated as of April 1, 2020, among Becton, Dickinson and Company, the banks named therein and Citibank, N.A., as administrative agent. | Incorporated by reference to Exhibit 10.3 to the registrant’s Current Report on Form 8-K filed on April 2, 2020. | |||||||||||||
Form of 2.823% Notes due May 20, 2030. | Incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed on May 20, 2020. | |||||||||||||
Form of 3.794% Notes due May 20, 2050. | Incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed on May 20, 2020. | |||||||||||||
Subsidiaries of the registrant. | Filed with this report. | |||||||||||||
Consent of independent registered public accounting firm. | Filed with this report. | |||||||||||||
Power of Attorney. | Included on signature page. | |||||||||||||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to SEC Rule 13(a)-14(a). | Filed with this report. | |||||||||||||
Certifications of Chief Executive Officer and Chief Financial Officer, pursuant to Section 1350 of Chapter 63 of Title 18 of the U.S. Code. | Filed with this report. | |||||||||||||
101 | The following materials from this report, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. | Filed with this report. | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
By: |
/s/ GARY DEFAZIO
|
||||||||||
Gary DeFazio | |||||||||||
Senior Vice President and Corporate Secretary |
Name | Capacity | |||||||
/S/ THOMAS E. POLEN
|
Chief Executive Officer | |||||||
Thomas E. Polen | (Principal Executive Officer) | |||||||
/S/ CHRISTOPHER R. REIDY | Executive Vice President, Chief Financial Officer | |||||||
Christopher R. Reidy | and Chief Administrative Officer | |||||||
(Principal Financial Officer) | ||||||||
/S/ THOMAS J. SPOEREL | Vice President, Controller, | |||||||
Thomas J. Spoerel | and Chief Accounting Officer | |||||||
(Principal Accounting Officer) | ||||||||
Name | Capacity | |||||||
/S/ CATHERINE M. BURZIK | ||||||||
Catherine M. Burzik | Director | |||||||
/S/ R. ANDREW ECKERT | ||||||||
R. Andrew Eckert | Director | |||||||
/S/ VINCENT A. FORLENZA | ||||||||
Vincent A. Forlenza | Director | |||||||
/S/ CLAIRE M. FRASER | ||||||||
Claire M. Fraser | Director | |||||||
/S/ JEFFREY W. HENDERSON | ||||||||
Jeffrey W. Henderson | Director | |||||||
/S/ CHRISTOPHER JONES | ||||||||
Christopher Jones | Director | |||||||
/S/ MARSHALL O. LARSEN | ||||||||
Marshall O. Larsen | Director | |||||||
/S/ DAVID F. MELCHER | ||||||||
David F. Melcher | Director | |||||||
/S/ CLAIRE POMEROY | ||||||||
Claire Pomeroy | Director | |||||||
/S/ REBECCA W. RIMEL | ||||||||
Rebecca W. Rimel | Director | |||||||
/S/ TIMOTHY M. RING | ||||||||
Timothy M. Ring | Director | |||||||
/S/ BERTRAM L. SCOTT | ||||||||
Bertram L. Scott | Director |
US SUBSIDIARIES OF BECTON, DICKINSON AND COMPANY
|
||||||||
Name of Subsidiary | Where Incorporated | |||||||
Accuri Cytometers, Inc. | Delaware | |||||||
Alverix, Inc. | Delaware | |||||||
Bard Access Systems, Inc. | Utah | |||||||
Bard Acquisition Sub, Inc. | Delaware | |||||||
Bard ASDI, Inc. | New Jersey | |||||||
Bard Brachytherapy, Inc. | Delaware | |||||||
Bard Devices, Inc. | Delaware | |||||||
Bard Global Holdings I LLC | Delaware | |||||||
Bard Global Holdings II LLC | Delaware | |||||||
Bard Global Holdings III LLC | Delaware | |||||||
Bard IP Holdings Inc. | Delaware | |||||||
Bard Healthcare, Inc. | Texas | |||||||
Bard International, Inc. | Delaware | |||||||
Bard MRL Acquisition Corp. | Delaware | |||||||
Bard Peripheral Vascular, Inc. | Arizona | |||||||
BD Ventures LLC | New Jersey | |||||||
BDX INO LLC | Delaware | |||||||
Becton Dickinson Biosciences, Systems and Reagents Inc. | California | |||||||
Becton Dickinson Global Holdings I Inc. | Delaware | |||||||
Becton Dickinson Global Holdings II LLC | Delaware | |||||||
Becton Dickinson Global Holdings IV LLC | Delaware | |||||||
Becton Dickinson Global Holdings V LLC | Delaware | |||||||
Becton Dickinson Global Holdings VI LLC | Delaware | |||||||
Becton Dickinson Global Holdings VII LLC | Delaware | |||||||
Becton Dickinson Infusion Therapy Systems Inc. | Delaware | |||||||
Becton Dickinson Korea Holding, Inc. | Delaware | |||||||
Becton Dickinson Malaysia, Inc. | Oregon | |||||||
Becton Dickinson Matrex Holdings, Inc. | Delaware | |||||||
Becton Dickinson Overseas Services Ltd. | Nevada | |||||||
Becton Dickinson Venture LLC | Delaware | |||||||
Bridger Biomed, Inc. | Montana | |||||||
C. R. Bard, Inc. | New Jersey | |||||||
Cardal II, LLC | Delaware | |||||||
CareFusion 213, LLC | Delaware | |||||||
CareFusion 2200, Inc. | Delaware | |||||||
CareFusion 2201, Inc. | Delaware | |||||||
CareFusion 302, LLC | Delaware | |||||||
CareFusion 303, Inc. | Delaware |
CareFusion Corporation | Delaware | |||||||
CareFusion Manufacturing, LLC | Delaware | |||||||
CareFusion Resources, LLC | Delaware | |||||||
CareFusion Solutions, LLC | Delaware | |||||||
Cell Analysis Systems, Inc | Illinois | |||||||
Cellular Research, Inc. | Delaware | |||||||
CME America LLC | Delaware | |||||||
CRISI Medical Systems, Inc. | Delaware | |||||||
Davol Inc. | Delaware | |||||||
DVL Acquisition Sub, Inc. | Delaware | |||||||
Dymax Corporation | Pennsylvania | |||||||
Enturican, Inc. | Kansas | |||||||
FJ International, Inc. | Oregon | |||||||
FlowCardia, Inc. | Delaware | |||||||
FlowCardia, LLC | Delaware | |||||||
FlowJo LLC | Oregon | |||||||
Franklin Lakes Enterprises, L.L.C. | New Jersey | |||||||
Gesco International, Inc. | Massachusetts | |||||||
Gesco International, LLC | Massachusetts | |||||||
HandyLab, Inc. | Delaware | |||||||
IBD Holdings LLC | Delaware | |||||||
Ionotophoretics Corporation | Utah | |||||||
JoHome LLC | Oregon | |||||||
Liberator Health and Education Services, Inc. | Florida | |||||||
Liberator Health and Wellness, Inc. | Florida | |||||||
Liberator Medical Holdings, Inc. | Nevada | |||||||
Liberator Medical Supply, Inc. | Florida | |||||||
Loma Vista Medical, Inc. | Delaware | |||||||
Loma Vista Medical, LLC | Delaware | |||||||
Lutonix, Inc. | Delaware | |||||||
Medafor, Inc. | Minnesota | |||||||
MedChem Products, Inc. | Massachusetts | |||||||
Medegen, LLC | California | |||||||
Medivance, Inc. | Delaware | |||||||
Med-Design Corporation | Delaware | |||||||
Med-Design Investment Holdings, Inc. | Delaware | |||||||
Medinservice.com, Inc. | Utah | |||||||
Med-Safe Systems, Inc. | California | |||||||
NAT Diagnostics Inc. | Delaware | |||||||
Navarre Biomedical, LLC | Minnesota | |||||||
Navarre Biomedical, Ltd. | Minnesota | |||||||
Neomend, Inc. | Delaware | |||||||
NOW Medical Distribution, Inc. | Delaware |
Bard Czech Republic s.r.o. | Czech Republic, Prague | |||||||
Bard de Espana, S.A. | Spain | |||||||
Bard Dublin ITC Limited | Ireland | |||||||
Bard EMEA Finance Center Sp.z o.o. | Poland | |||||||
Bard European Distribution Center N.V. | Belgium | |||||||
Bard Finance B.V. & Co. KG. | Netherlands | |||||||
Bard Financial Services Ltd. | England | |||||||
Bard Finland OY | Finland | |||||||
Bard France S.A.S. | France | |||||||
Bard Healthcare Science (Shanghai) Limited | China, Shanghai | |||||||
Bard Hellas S.A. | Greece | |||||||
Bard Holding SAS | France | |||||||
Bard Holdings Limited | England | |||||||
Bard Holdings Netherlands B.V. | Netherlands | |||||||
Bard Hong Kong Limited | Hong Kong | |||||||
Bard India Healthcare Pvt. Ltd. | India, Maharashtra | |||||||
Bard International Holdings, B.V. | Netherlands | |||||||
(Bard Istanbul Healthcare Limited Company) | Turkey, Istanbul | |||||||
Bard Korea Ltd. | Korea, Republic | |||||||
Bard Limited | England | |||||||
Bard Malaysia Healthcare Sdn. Bhd. | Malaysia | |||||||
Bard Medica SA | Switzerland, Geneva | |||||||
Bard Medical Devices (Beijing) Co., Ltd. | China | |||||||
Bard Medical R&D (Shanghai) Co., Ltd. | China, Shanghai | |||||||
Bard Medical SA (Proprietary) Limited | South Africa, Johannesburg, Gauteng | |||||||
Bard Mexico Realty, S. de R.L. de C.V. | Mexico, Chihuahua | |||||||
Bard Norden AB | Sweden | |||||||
Bard Norway AS | Norway | |||||||
Bard Pacific Health Care Company Ltd. | Taiwan | |||||||
Bard Poland Sp. z.o.o. | Poland | |||||||
Bard Productos Plasticos e Medicos Ltda. | Brazil | |||||||
Bard Reynosa, S.A. de C.V. | Mexico, Tamaulipas | |||||||
Bard S.r.l. | Italy | |||||||
Bard Sdn. Bhd. | Malaysia | |||||||
Bard Shannon Limited | Ireland | |||||||
Bard Singapore Private Limited | Singapore | |||||||
Bard Sourcing Office Singapore Pte. Ltd. | Singapore | |||||||
Bard Sweden AB | Sweden | |||||||
Bard UK Newco Limited | England | |||||||
BD Holding S. de R.L. de C.V. | Mexico | |||||||
BD Infection Prevention BV | Belgium | |||||||
BD Kiestra BV | Netherlands | |||||||
BD Rapid Diagnostic (Suzhou) Co., Ltd. | China |
BD San Luis Potosi, S.A. de C.V. | Mexico, San Luis | |||||||
BD Switzerland Sarl | Switzerland | |||||||
BD West Africa Limited | Ghana | |||||||
Becton Dickinson A.G. | Switzerland | |||||||
Becton Dickinson A/S | Denmark | |||||||
Becton, Dickinson and Company, Ltd. | Ireland | |||||||
Becton Dickinson Argentina S.R.L. | Argentina | |||||||
Becton Dickinson Asia Holdings Ltd. | Gibraltar | |||||||
Becton Dickinson Asia Limited | Hong Kong | |||||||
Becton Dickinson Austria GmbH | Austria | |||||||
Becton Dickinson Austria Holdings GmbH | Austria | |||||||
Becton Dickinson Benelux N.V. | Belgium | |||||||
Becton, Dickinson B.V. | Netherlands | |||||||
Becton Dickinson B.V. Saudi Limited Company | Saudi Arabia | |||||||
Becton Dickinson Canada Inc. | Canada | |||||||
Becton Dickinson Caribe Ltd. | Cayman Islands | |||||||
Becton Dickinson Croatia d.o.o. | Croatia | |||||||
Becton Dickinson Czechia s.r.o. | Czech Republic | |||||||
Becton Dickinson de Colombia Ltda. | Colombia | |||||||
Becton Dickinson de Mexico, S.A. de C.V. | Mexico | |||||||
Becton Dickinson del Uruguay S.A. | Uruguay | |||||||
Becton Dickinson Dispensing Belgium BVBA | Belgium | |||||||
Becton Dickinson Dispensing Denmark A/S | Denmark | |||||||
Becton Dickinson Dispensing France SAS | France | |||||||
Becton Dickinson Dispensing Ireland Limited | Ireland | |||||||
Becton Dickinson Dispensing Norway | Norway | |||||||
Becton Dickinson Dispensing Spain S.L.U. | Spain | |||||||
Becton Dickinson Dispensing UK Ltd. | United Kingdom | |||||||
Becton Dickinson Distribution Center N.V. | Belgium | |||||||
Becton Dickinson East Africa Ltd. | Kenya | |||||||
Becton Dickinson Euro Finance Sarl | Luxembourg | |||||||
Becton Dickinson Europe Holdings S.A.S. | France | |||||||
Becton Dickinson France S.A.S. | France | |||||||
Becton Dickinson (Gibraltar) Holdings Ltd. | Gibraltar | |||||||
Becton Dickinson (Gibraltar) Limited | Gibraltar | |||||||
Becton Dickinson (Gibraltar) Management Limited | Gibraltar | |||||||
Becton Dickinson Global Services Centre Sdn. Bdn. | Malaysia | |||||||
Becton Dickinson GmbH | Germany | |||||||
Becton Dickinson GSA Beteilgungs GmbH | Germany | |||||||
Becton Dickinson Guatemala S.A. | Guatemala | |||||||
Becton Dickinson Hellas S.A. | Greece | |||||||
Becton Dickinson Holdings Limited | Ireland | |||||||
Becton Dickinson Holdings Pte Ltd. | Singapore |
Becton Dickinson Hungary Kft. | Hungary | |||||||
Becton Dickinson India Private Limited | India, Maharashtra | |||||||
Becton, Dickinson Industrias Cirurgicas, Ltda. | Brazil | |||||||
Becton Dickinson Infusion Therapy AB | Sweden | |||||||
Becton Dickinson Infusion Therapy Holdings UK Limited | United Kingdom | |||||||
Becton Dickinson Infusion Therapy Systems Inc., S.A. de C.V. | Mexico, Sonora | |||||||
Becton Dickinson Infusion Therapy UK | United Kingdom | |||||||
Becton Dickinson Insulin Syringe, Ltd. | Cayman Islands | |||||||
Becton Dickinson International Holdings Pte Ltd. | Singapore | |||||||
Becton Dickinson International Holdings II Pte Ltd. | Singapore | |||||||
Becton Dickinson International Holdings III Pte Ltd. | Singapore | |||||||
Becton Dickinson Israel Ltd. | Israel | |||||||
Becton Dickinson Italia S.p.A. | Italy | |||||||
Becton Dickinson Ithalat Ihracat Limited Sirketi | Turkey | |||||||
Becton Dickinson Korea Ltd. | Korea | |||||||
Becton Dickinson Ltd. | New Zealand | |||||||
Becton Dickinson Luxembourg Finance S.a.r.L. | Luxembourg | |||||||
Becton Dickinson Luxembourg Global Holdings Sarl | Luxembourg | |||||||
Becton Dickinson Luxembourg Holdings II S.a.r.L | Luxembourg | |||||||
Becton Dickinson Luxembourg Holdings III S.a.r.L | Luxembourg | |||||||
Becton Dickinson Management GmbH & Co. KG | Germany | |||||||
Becton Dickinson (Mauritius) Limited | Mauritius | |||||||
Becton Dickinson Medical (S) Pte Ltd. | Singapore | |||||||
Becton Dickinson Medical Devices (Shanghai) Co., Ltd. | China | |||||||
Becton Dickinson Medical Devices (Suzhou) Co., Ltd. | China | |||||||
Becton Dickinson Medical Products Pte. Ltd. | Singapore | |||||||
Becton Dickinson Medical Technology (Jiangsu) Co. Ltd. | China | |||||||
Becton Dickinson Netherlands Global Holdings II C.V. | Netherlands | |||||||
Becton Dickinson Netherlands Holdings B.V. | Netherlands | |||||||
Becton Dickinson Netherlands Holdings II B.V. | Netherlands | |||||||
Becton Dickinson Norway AS | Norway | |||||||
Becton Dickinson O.Y. | Finland | |||||||
Becton Dickinson Pakistan (Pvt) Ltd. | Pakistan | |||||||
Becton Dickinson Penel Limited | Cayman Islands | |||||||
Becton Dickinson Philippines, Inc. | Philippines | |||||||
Becton Dickinson Polska Sp.z.o.o. | Poland | |||||||
Becton Dickinson Portugal, Unipessoal, Lda. | Portugal | |||||||
Becton Dickinson Pty. Ltd. | Australia | |||||||
Becton Dickinson (Pty) Ltd. | South Africa | |||||||
Becton Dickinson Research Centre Ireland Limited | Ireland | |||||||
Becton Dickinson Rowa Germany GmbH | Germany | |||||||
Becton Dickinson Rowa Italy Srl | Italy | |||||||
Becton Dickinson S.A. | Spain |
Becton Dickinson Sample Collection GmbH | Switzerland | |||||||
Becton Dickinson Scot Financing L.P. | Scotland | |||||||
Becton Dickinson Scot Financing L.L.P. | Scotland | |||||||
Becton Dickinson Sdn. Bhd. | Malaysia | |||||||
Becton Dickinson Slovakia s.r.o. | Slovakia | |||||||
Becton Dickinson Sweden AB | Switzerland | |||||||
Becton Dickinson Sweden Holdings AB | Sweden | |||||||
Becton Dickinson Switzerland Global Holdings Sarl | Switzerland | |||||||
Becton Dickinson Technology Campus India | India | |||||||
Becton Dickinson (Thailand) Limited | Thailand | |||||||
Becton Dickinson UK Financing I Ltd. | United Kingdom | |||||||
Becton Dickinson UK Financing II Ltd. | United Kingdom | |||||||
Becton Dickinson U.K. Limited | United Kingdom | |||||||
Becton Dickinson Venezuela, C.A. | Venezuela | |||||||
Becton Dickinson Verwaltungs GmbH | Germany | |||||||
Becton Dickinson Vostok LLC | Russia | |||||||
Becton Dickinson Worldwide Investments Sa.r.L. | Luxembourg | |||||||
Becton Dickinson Zambia Limited | Zambia | |||||||
Benex Ltd. | Ireland | |||||||
C. R. Bard Do Brazil Productos Medicos Ltds. | Brazil | |||||||
C. R. Bard (Portugal)-Produtos e Artigos Medicos e Farmaceuticos | Portugal, Lisbon | |||||||
C. R. Bard GmbH | Germany | |||||||
C. R. Bard Netherlands Sales B.V. | Netherlands | |||||||
CareFusion Asia (HK) Limited | Hong Kong | |||||||
CareFusion (Barbados) SrL | Barbados | |||||||
CareFusion BH 335 d.o.o. Cazin | Bosnia | |||||||
Care Fusion Development Private Limited | India | |||||||
CareFusion D.R. 203 Ltd. | Bermuda | |||||||
CareFusion (Shanghai) Commercial and Trading Co. Limited | Portugal | |||||||
CareFusion France 309 S.A.S. | France | |||||||
CareFusion Germany 318 GmbH | Germany | |||||||
CareFusion Iberia 308 S.L. | Spain | |||||||
CareFusion Israel 330 Ltd. | Israel | |||||||
CareFusion Italy 312 S.p.A. | Italy | |||||||
CareFusion Mexico 215 S.A. de C.V. | Mexico | |||||||
CareFusion Netherlands 328 B.V. | Netherlands | |||||||
CareFusion Netherlands 503 B.V. | Netherlands | |||||||
CareFusion Netherlands 504 B.V. | Netherlands | |||||||
CareFusion Netherlands Financing 283 C.V. | Netherlands | |||||||
CareFusion S.A. 319 (Proprietary) Limited | South Africa | |||||||
CareFusion U.K. 244 Limited | United Kingdom | |||||||
CareFusion U.K. 305 Limited | United Kingdom | |||||||
CareFusion U.K. 306 Limited | United Kingdom |
Carmel Pharma AB | Sweden | |||||||
Clearstream Technologies Group Limited | Ireland | |||||||
Clearstream Technologies Limited | Ireland | |||||||
CME Ltd. | Israel | |||||||
CME Medical (UK) Limited | United Kingdom | |||||||
CME UK (Holdings) Limited | United Kingdom | |||||||
Corporativo BD de Mexico, S. de R.L. de C.V. | Mexico | |||||||
DLD (Bermuda) Ltd. | Bermuda | |||||||
Davol International Limited | England | |||||||
Davol Surgical Innovations, S.A. de C.V. | Mexico, Chihuahua | |||||||
Distribuidora BD Mexico, S.A. de C.V. | Mexico | |||||||
Dutch American Manufacturers (D.A.M.) B.V. | Netherlands | |||||||
Embo Medical Limited | Ireland | |||||||
Enturia de Mexico S. de R.L. de C.V. | Mexico | |||||||
Gamer Lasertechnik GmbH | Germany | |||||||
GenCell Biosystems Ltd. | Ireland | |||||||
GeneOhm Sciences Canada Inc. | Canada | |||||||
Kabushiki Kaisha Medicon (Medicon, Inc.) | Japan | |||||||
Limited Liability Company Bard Rus | Russian Federation | |||||||
Nippon Becton Dickinson Company, Ltd. | Japan | |||||||
PreAnalytiX GmbH | Switzerland | |||||||
Pristine Access Technologies, Inc. | Israel | |||||||
P.R.C.(Isialys)Societe a responsabilitie limitee(Societe a associe unique) | France | |||||||
Procesos para Esterilizacion, S.A. de C.V. | Mexico | |||||||
Productos Bard de Mexico, S.A. de C.V. | Mexico, Mexico City | |||||||
Productos Para el Cuidado de la Salud, S.A. de C.V. | Mexico, Sonora | |||||||
PT Becton Dickinson Indonesia | Indonesia | |||||||
Puls Medical Devices AS LC | Norway | |||||||
Rochester Medical Ltd. | United Kingdom | |||||||
Sendal, S.L.U. | Spain | |||||||
Sirigen II Limited | United Kingdom | |||||||
Sistemas Médicos ALARIS, S.A. de C.V. | Mexico, Baja | |||||||
Straub Medical AG | Switzerland | |||||||
Straub Medical France | France | |||||||
Straub Medical (United Kingdom) Ltd. | United Kingdom | |||||||
Touchstone Medical Limited | United Kingdom | |||||||
TVA Medical GmbH | Germany | |||||||
Vas-Cath Incorporated | Canada, Ontario |
Date: November 25, 2020 | ||
/s/ Thomas E. Polen | ||
Thomas E. Polen | ||
President and Chief Executive Officer |
Date: November 25, 2020 | ||
/s/ Christopher R. Reidy | ||
Christopher R. Reidy | ||
Executive Vice President, Chief Financial Officer and Chief Administrative Officer |
Date: November 25, 2020 | ||
/s/ Thomas E. Polen | ||
Thomas E. Polen | ||
Chief Executive Officer |
Date: November 25, 2020 | ||
/s/ Christopher R. Reidy | ||
Christopher R. Reidy | ||
Chief Financial Officer |