Exhibit 99.1

1 Becton Drive

Franklin Lakes, NJ 07417

www.bd.com

 

Contact:

Monique N. Dolecki, Investor Relations – 201-847-5453

Kristen Cardillo, Corporate Communications – 201-847-5657

BD ANNOUNCES RESULTS FOR 2016 SECOND FISCAL QUARTER

 

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Announces adjusted revenues of $3.071 billion, an increase of 49.7 percent, or 55.2 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 5.3 percent. As reported, revenues increased 49.6 percent to $3.067 billion.

•

Adjusted diluted earnings per share of $2.18 increased 35.4 percent, or 44.7 percent on a currency-neutral basis. As reported, diluted earnings per share were $1.56.

•

Raises fiscal year 2016 adjusted diluted earnings per share guidance to $8.50 to $8.57. On a currency-neutral basis, the Company continues to expect adjusted diluted earnings per share to be between $9.01 and $9.08. As reported, the Company expects full fiscal year diluted earnings per share to be between $6.14 and $6.21.

Franklin Lakes, NJ (May 5, 2016) – BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly adjusted revenues of $3.071 billion for the second fiscal quarter ended March 31, 2016, an increase of 49.7 percent over the prior-year period reported revenues, or 55.2 percent on a currency-neutral basis. On a comparable, currency-neutral basis, second quarter adjusted revenues grew 5.3 percent. As reported, second quarter revenues were $3.067 billion, an increase of 49.6 percent over the prior-year period.

“We are pleased with our second quarter revenue growth and strong operating performance,” said Vincent A. Forlenza, Chairman, CEO and President. “Our results this quarter continue to demonstrate the breadth and diversity of the growth drivers within our portfolio. This performance enables us to continue to create value for shareholders and provides us with the capacity to invest for the future.”

 

Second Quarter and Six-Month Fiscal 2016 Operating Results

Adjusted diluted earnings per share were $2.18, compared with $1.61 in the prior-year period. This represents an increase of 35.4 percent, or 44.7 percent on a currency-neutral basis. On a reported basis, diluted earnings per share for the second quarter were $1.56 compared with $1.08 in the prior-year period.

For the six-month period ended March 31, 2016, adjusted diluted earnings per share were $4.13, compared with $3.14 in the prior-year period. This represents an increase of 31.5 percent, or 44.9 percent on a currency-neutral basis. On a reported basis, diluted earnings per share were $2.62 compared with $2.28 in the prior-year period.

Segment Results

In the BD Medical segment, worldwide adjusted revenues for the quarter were $2.135 billion, an increase of 93.1 percent over the prior-year period reported revenues, or 99.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted Medical revenues grew 6.1 percent. The segment’s revenue growth reflects solid performance across the Medication and Procedural Solutions, Medication Management Solutions, and Diabetes Care units. Strong performance in the Pharmaceutical Systems and Respiratory Solutions units was aided, in part, by volume increases driven by customer ordering patterns and capital placements, respectively. On a reported basis, Medical revenues were $2.131 billion, an increase of 92.8 percent over the prior-year period.

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For the six-month period ended March 31, 2016, BD Medical adjusted revenues of $4.194 billion increased 92.6 percent over the prior-year period reported revenues, or 100.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 4.0 percent. On a reported basis, revenues were $4.185 billion, an increase of 92.2 percent over the prior-year period.

In the BD Life Sciences segment, reported worldwide revenues for the quarter were $936 million, a decrease of 1.0 percent from the prior-year period, or an increase of 3.4 percent on a currency-neutral basis. The segment’s results reflect solid growth in the Preanalytical Systems and Diagnostic Systems units, and Biosciences unit revenues that were about flat when compared with the prior-year period revenues. Growth in the Diagnostic Systems unit was driven by strong core microbiology sales, and was aided, in part, by a late flu season in comparison to the prior year which experienced a strong flu season in the first fiscal quarter. Within the Biosciences unit, strong growth in research instruments and reagents in the U.S. was offset by tender delays in Africa and a difficult comparison to the prior year in Europe.

For the six-month period ended March 31, 2016, BD Life Sciences revenues of $1.869 billion decreased 2.9 percent, and increased 2.5 percent on a currency-neutral basis.

Geographic Results

Second quarter adjusted revenues in the U.S. of $1.722 billion represent an increase of 99.6 percent over the prior-year period reported revenues. On a comparable basis, adjusted U.S. revenues increased 5.7 percent, with notable growth across both segments. Within the BD Medical segment, strong performance across the segment was aided, in part, by the aforementioned timing of customer orders and capital placements in the Pharmaceutical Systems and Respiratory Solutions units, respectively. Growth in the BD Life Sciences segment was driven by strong reagent sales and instrument placements in the Biosciences unit and solid growth in the Diagnostic Systems and Preanalytical Systems units. Growth in the Diagnostic Systems unit was aided by the late peak in the flu season. On a reported basis, U.S. revenues were $1.719 billion, an increase of 99.2 percent over the prior-year period.

Revenues outside of the U.S. were $1.349 billion, representing an increase of 13.5 percent over the prior-year period reported revenues, or an increase of 23.0 percent on a currency-neutral basis. On a comparable, currency-neutral basis, international revenues grew 4.8 percent. Within the BD Medical segment, growth was driven by continued strength in Europe and sales of safety-engineered products, particularly in China. Growth in the Medical Segment was aided, in part, by the aforementioned timing of customer orders and capital placements in the Pharmaceutical Systems and Respiratory Solutions units, respectively. Growth in the Life Sciences segment was driven by Preanalytical Systems and strong microbiology sales, partially offset by the aforementioned tender delays in Africa.

For the six-month period ended March 31, 2016, adjusted revenues in the U.S. were $3.419 billion, representing an increase of 96.1 percent compared with the prior-year period reported revenues. On a comparable basis, adjusted U.S. revenues grew 3.6 percent. On a reported basis, U.S. revenues were $3.410 billion, an increase of 95.5 percent over the prior-year period. Revenues outside of the U.S. were $2.644 billion, representing an increase of 12.1 percent over the prior-year period reported revenues, or an increase of 23.8 percent on a foreign currency-neutral basis. On a comparable, currency-neutral basis, revenues outside the U.S. grew 3.5 percent.

Fiscal 2016 Outlook for Full Year

The Company continues to estimate that currency-neutral adjusted revenues for the full fiscal year 2016, including the accretion from the acquisition of CareFusion, will increase 24.5 to 25.0 percent. Including the impact of foreign currency, as adjusted and as reported revenues are now expected to increase 21.5 to 22.0 percent. This is an increase from previously issued guidance of 20.0 to 20.5 percent growth. On a comparable, currency-neutral basis, the Company continues to estimate organic adjusted revenues will increase 4.5 to 5.0 percent when adjusting for the impact of closed acquisitions and divestitures.

The Company has raised its fiscal 2016 adjusted diluted earnings per share guidance to be between $8.50 and $8.57 which represents growth of approximately 19.0 to 20.0 percent. This is an increase from previously issued guidance of $8.37 to $8.44 which represented approximately 17.0 to 18.0 percent growth. On a currency-neutral basis, the Company continues to expect full-year fiscal 2016 adjusted diluted earnings per share to be between $9.01 and $9.08, which represents growth of approximately 26.0 to 27.0 percent over fiscal 2015 adjusted diluted earnings per share of $7.16. Adjusted diluted earnings per share exclude, among other specified items, the non-cash amortization of intangible assets, and include approximately 22.0 percentage points of accretion from the CareFusion acquisition. As reported, the Company expects full fiscal year diluted earnings per share to be between $6.14 and $6.21.

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Conference Call Information

A conference call regarding BD’s second quarter results will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, May 5, 2016. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, May 12, 2016, confirmation number 83710101.

Non-GAAP Financial Measures/Financial Tables

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

All “comparable” basis revenue growth rates presented throughout this release include the results of

CareFusion Corporation (“CareFusion”) in the current and prior-year periods. Adjusted revenues for the current period for the Company and the Medical segment in the U.S. exclude the amortization of a write down of deferred revenue made in connection with our acquisition of CareFusion, which served to lower reported revenues for the period. Adjusted revenue growth rates presented on a comparable basis reflect the aforementioned adjustments and further exclude the impact of a distribution agreement change in the Respiratory Solutions unit. Current and prior-year adjusted diluted earnings per share results exclude the impact of purchase accounting adjustments, including the non-cash amortization of acquisition-related intangible assets; and integration and restructuring costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing and transaction costs; a litigation-related charge and the dilutive impact of shares issued in the CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD

BD is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. BD leads in patient and health care worker safety and the technologies that enable medical research and clinical laboratories. The company provides innovative solutions that help advance medical research and genomics, enhance the diagnosis of infectious disease and cancer, improve medication management, promote infection prevention, equip surgical and interventional procedures, optimize respiratory care and support the management of diabetes. The company partners with organizations around the world to address some of the most challenging global health issues. BD has more than 45,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit www.bd.com.

***

This press release, including the section entitled “Fiscal 2016 Outlook for Full Year”, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues and earnings per share. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to: risks relating to the integration of CareFusion’s operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers’ ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD’s products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD’s ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); future healthcare reform, including changes in

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government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed in BD’s filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

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BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

 

		Three Months Ended March 31,
		2016				2015				% Change
REVENUES		$	3,067			$	2,051				49.6
Cost of products sold			1,584				1,005				57.6
Selling and administrative expense			732				511				43.2
Research and development expense			182				129				40.4
Acquisitions and other restructurings			104				113				(7.9	)
TOTAL OPERATING COSTS AND EXPENSES			2,601				1,758				47.9
OPERATING INCOME			466				293				59.3
Interest expense			(99	)			(91	)			8.5
Interest income			3				8				(63.8	)
Other income, net			6				15				(62.7	)
INCOME BEFORE INCOME TAXES			376				225				67.1
Income tax provision			38				9				NM
NET INCOME		$	338			$	216				56.4
EARNINGS PER SHARE
Basic Earnings per Share		$	1.59			$	1.10				44.5
Diluted Earnings per Share		$	1.56			$	1.08				44.4
AVERAGE SHARES OUTSTANDING (in thousands)
Basic			212,469				196,085
Diluted			216,538				199,938

NM - Not Meaningful

 

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BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

 

		Six Months Ended March 31,
		2016				2015				% Change
REVENUES		$	6,054			$	4,102				47.6
Cost of products sold			3,162				2,011				57.2
Selling and administrative expense			1,480				1,055				40.3
Research and development expense			369				258				42.8
Acquisitions and other restructurings			225				136				65.2
TOTAL OPERATING COSTS AND EXPENSES			5,236				3,460				51.3
OPERATING INCOME			818				642				27.5
Interest expense			(196	)			(167	)			17.1
Interest income			9				19				(51.5	)
Other income, net			11				17				(35.5	)
INCOME BEFORE INCOME TAXES			642				510				25.8
Income tax provision			75				58				28.4
NET INCOME		$	567			$	452				25.5
EARNINGS PER SHARE
Basic Earnings per Share		$	2.67			$	2.32				15.1
Diluted Earnings per Share		$	2.62			$	2.28				14.9
AVERAGE SHARES OUTSTANDING (in thousands)
Basic			212,077				194,447
Diluted			216,695				198,493

 

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Three Months Ended March 31,

(Unaudited; Amounts in millions)

 

		A				B				C				D=(A-B)/B				E=(C-B)/B
		As Reported								Adjusted 2016				% Change
		2016				2015								Reported				Adjusted
BD MEDICAL
Medication and Procedural Solutions		$	484			$	256			$	484				89.3				89.3
Medication Management Solutions			442				—				442				NM				NM
Diabetes Care			125				120				125				4.3				4.3
Pharmaceutical Systems			81				72				81				13.5				13.5
Respiratory Solutions			149				—				149				NM				NM
Deferred Revenue Adjustment *			(4	)			—				—				NM				—
TOTAL		$	1,278			$	447			$	1,281				185.8				186.6
BD LIFE SCIENCES
Preanalytical Systems		$	175			$	170			$	175				3.0				3.0
Diagnostic Systems			156				149				156				4.9				4.9
Biosciences			110				97				110				13.2				13.2
TOTAL		$	441			$	416			$	441				6.1				6.1
TOTAL UNITED STATES		$	1,719			$	863			$	1,722				99.2				99.6

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C				D=(A-B)/B				E=(A-B-C)/B
		As Reported								FX Impact				% Change
		2016				2015								Reported				FXN
BD MEDICAL
Medication and Procedural Solutions		$	348			$	309			$	(34	)			12.5				23.4
Medication Management Solutions			94				—				(6	)			NM				NM
Diabetes Care			118				127				(12	)			(6.6	)			3.0
Pharmaceutical Systems			229				223				(16	)			3.1				10.2
Respiratory Solutions			64				—				(3	)			NM				NM
TOTAL		$	853			$	658			$	(71	)			29.6				40.4
BD LIFE SCIENCES
Preanalytical Systems		$	165			$	169			$	(18	)			(2.2	)			8.4
Diagnostic Systems			163				169				(13	)			(3.6	)			4.3
Biosciences			167				192				(10	)			(12.8	)			(7.5	)
TOTAL		$	495			$	530			$	(42	)			(6.5	)			1.4
TOTAL INTERNATIONAL		$	1,349			$	1,188			$	(113	)			13.5				23.0

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C				D				E=(A-B)/B				F=(A-B-D)/B				G=(C-B)/B				H=(C-B-D)/B
																		% Change
		As Reported								Adjusted 2016				FX Impact																Adjusted FXN
		2016				2015												Reported				FXN				Adjusted
BD MEDICAL
Medication and Procedural Solutions		$	831			$	565			$	831			$	(34	)			47.2				53.2				47.2				53.2
Medication Management Solutions			536				—				536				(6	)			NM				NM				NM				NM
Diabetes Care			243				247				243				(12	)			(1.3	)			3.6				(1.3	)			3.6
Pharmaceutical Systems			311				294				311				(16	)			5.6				11.0				5.6				11.0
Respiratory Solutions			213				—				213				(3	)			NM				NM				NM				NM
Deferred Revenue Adjustment *			(4	)			—				—				—				NM				NM				—				—
TOTAL		$	2,131			$	1,106			$	2,135			$	(71	)			92.8				99.2				93.1				99.5
BD LIFE SCIENCES
Preanalytical Systems		$	340			$	339			$	340			$	(18	)			0.4				5.7				0.4				5.7
Diagnostic Systems			319				318				319				(13	)			0.4				4.6				0.4				4.6
Biosciences			277				289				277				(10	)			(4.1	)			(0.5	)			(4.1	)			(0.5	)
TOTAL		$	936			$	945			$	936			$	(42	)			(1.0	)			3.4				(1.0	)			3.4
TOTAL REVENUES		$	3,067			$	2,051			$	3,071			$	(113	)			49.6				55.1				49.7				55.2

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES

Six Months Ended March 31,

(Unaudited; Amounts in millions)

 

		A				B				C				D=(A-B)/B				E=(C-B)/B
		As Reported								Adjusted 2016				% Change
		2016				2015								Reported				Adjusted
BD MEDICAL
Medication and Procedural Solutions		$	975			$	524			$	975				86.1				86.1
Medication Management Solutions			886				—				886				NM				NM
Diabetes Care			259				243				259				6.8				6.8
Pharmaceutical Systems			144				138				144				4.6				4.6
Respiratory Solutions			288				—				288				NM				NM
Deferred Revenue Adjustment *			(9	)			—				—				NM				—
TOTAL		$	2,544			$	904			$	2,553				181.2				182.3
BD LIFE SCIENCES
Preanalytical Systems		$	353			$	342			$	353				3.2				3.2
Diagnostic Systems			305				308				305				(0.9	)			(0.9	)
Biosciences			208				190				208				9.7				9.7
TOTAL		$	866			$	839			$	866				3.2				3.2
TOTAL UNITED STATES		$	3,410			$	1,744			$	3,419				95.5				96.1

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C				D=(A-B)/B				E=(A-B-C)/B
		As Reported								FX Impact				% Change
		2016				2015								Reported				FXN
BD MEDICAL
Medication and Procedural Solutions		$	705			$	642			$	(80	)			9.9				22.3
Medication Management Solutions			200				—				(19	)			NM				NM
Diabetes Care			240				267				(31	)			(10.3	)			1.1
Pharmaceutical Systems			363				364				(33	)			(0.3	)			8.6
Respiratory Solutions			134				—				(9	)			NM				NM
TOTAL		$	1,641			$	1,273			$	(171	)			28.9				42.3
BD LIFE SCIENCES
Preanalytical Systems		$	331			$	351			$	(43	)			(5.5	)			6.8
Diagnostic Systems			327				347				(35	)			(5.8	)			4.3
Biosciences			344				387				(26	)			(11.1	)			(4.3	)
TOTAL		$	1,003			$	1,085			$	(105	)			(7.6	)			2.0
TOTAL INTERNATIONAL		$	2,644			$	2,358			$	(275	)			12.1				23.8

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C				D				E=(A-B)/B				F=(A-B-D)/B				G=(C-B)/B				H=(C-B-D)/B
																		% Change
		As Reported								Adjusted 2016				FX Impact				Reported				FXN				Adjusted				Adjusted FXN
		2016				2015
BD MEDICAL
Medication and Procedural Solutions		$	1,680			$	1,165			$	1,680			$	(80	)			44.1				51.0				44.1				51.0
Medication Management Solutions			1,087				—				1,087				(19	)			NM				NM				NM				NM
Diabetes Care			499				510				499				(31	)			(2.2	)			3.8				(2.2	)			3.8
Pharmaceutical Systems			507				502				507				(33	)			1.0				7.5				1.0				7.5
Respiratory Solutions			422				—				422				(9	)			NM				NM				NM				NM
Deferred Revenue Adjustment *			(9	)			—				—				—				NM				NM				—				—
TOTAL		$	4,185			$	2,177			$	4,194			$	(171	)			92.2				100.0				92.6				100.5
BD LIFE SCIENCES
Preanalytical Systems		$	684			$	692			$	684			$	(43	)			(1.2	)			5.0				(1.2	)			5.0
Diagnostic Systems			632				655				632				(35	)			(3.5	)			1.8				(3.5	)			1.8
Biosciences			552				577				552				(26	)			(4.2	)			0.3				(4.2	)			0.3
TOTAL		$	1,869			$	1,925			$	1,869			$	(105	)			(2.9	)			2.5				(2.9	)			2.5
TOTAL REVENUES		$	6,054			$	4,102			$	6,063			$	(275	)			47.6				54.3				47.8				54.5

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Three Months Ended March 31,

(Unaudited; Amounts in millions)

 

		A				B				C=A+B				D				E				F				G=D+E+F				H=(C-G)/G
		Reported 2016				Deferred Revenue Adjustment				Adjusted 2016				BD Reported 2015				CFN Reported 2015				Respiratory Adjustment ** 2015				Comparable Historical 2015				Comparable Adjusted % Change
BD MEDICAL
Medication and Procedural Solutions		$	484			$	—			$	484			$	256			$	212			$	—			$	467				3.5
Medication Management Solutions			442				—				442				—				418				—				418				5.9
Diabetes Care			125				—				125				120				—				—				120				4.3
Pharmaceutical Systems			81				—				81				72				—				—				72				13.5
Respiratory Solutions			149				—				149				—				161				(23	)			138				8.3
Deferred Revenue Adjustment *			(4	)			4				—				—				—				—				—				—
TOTAL		$	1,278			$	4			$	1,281			$	447			$	790			$	(23	)		$	1,214				5.5
BD LIFE SCIENCES
Preanalytical Systems		$	175			$	—			$	175			$	170			$	—			$	—			$	170				3.0
Diagnostic Systems			156				—				156				149				—				—				149				4.9
Biosciences			110				—				110				97				—				—				97				13.2
TOTAL		$	441			$	—			$	441			$	416			$	—			$	—			$	416				6.1
TOTAL UNITED STATES		$	1,719			$	4			$	1,722			$	863			$	790			$	(23	)		$	1,630				5.7

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

 

Page 9

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A						B				C				D=B+C						E				F=(A-D-E)/D
		Reported 2016						BD Reported 2015				CFN Reported 2015				Comparable Historical 2015						Comparable FX Impact				Comparable FXN % Change
BD MEDICAL
Medication and Procedural Solutions		$	348					$	309			$	56			$	365					$	(34	)			4.6
Medication Management Solutions			94						—				94				94						(6	)			6.6
Diabetes Care			118						127				—				127						(12	)			3.0
Pharmaceutical Systems			229						223				—				223						(16	)			10.2
Respiratory Solutions			64						—				57				57						(3	)			17.1
TOTAL		$	853					$	658			$	207			$	865					$	(71	)			6.9
BD LIFE SCIENCES
Preanalytical Systems		$	165					$	169			$	—			$	169					$	(18	)			8.4
Diagnostic Systems			163						169				—				169						(13	)			4.3
Biosciences			167						192				—				192						(10	)			(7.5	)
TOTAL		$	495					$	530			$	—			$	530					$	(42	)			1.4
TOTAL INTERNATIONAL		$	1,349					$	1,188			$	207			$	1,395					$	(113	)			4.8

 

Page 10

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Three Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C=A+B						D				E				F				G=D+E+F						H				I=(C-G-H)/G
		Reported 2016				Deferred Revenue Adjustment				Adjusted 2016						BD Reported 2015				CFN Reported 2015				Respiratory Adjustment ** 2015				Comparable Historical 2015						Comparable FX Impact				Comparable Adjusted FXN % Change
BD MEDICAL
Medication and Procedural Solutions		$	831			$	—			$	831					$	565			$	267			$	—			$	832					$	(34	)			4.0
Medication Management Solutions			536				—				536						—				512				—				512						(6	)			6.0
Diabetes Care			243				—				243						247				—				—				247						(12	)			3.6
Pharmaceutical Systems			311				—				311						294				—				—				294						(16	)			11.0
Respiratory Solutions			213				—				213						—				218				(23	)			195						(3	)			10.9
Deferred Revenue Adjustment *			(4	)			4				—						—				—				—				—						—				—
TOTAL		$	2,131			$	4			$	2,135					$	1,106			$	997			$	(23	)		$	2,079					$	(71	)			6.1
BD LIFE SCIENCES
Preanalytical Systems		$	340			$	—			$	340					$	339			$	—			$	—			$	339					$	(18	)			5.7
Diagnostic Systems			319				—				319						318				—				—				318						(13	)			4.6
Biosciences			277				—				277						289				—				—				289						(10	)			(0.5	)
TOTAL		$	936			$	—			$	936					$	945			$	—			$	—			$	945					$	(42	)			3.4
TOTAL REVENUES		$	3,067			$	4			$	3,071					$	2,051			$	997			$	(23	)		$	3,025					$	(113	)			5.3

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

 

Page 11

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

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

Six Months Ended March 31,

(Unaudited; Amounts in millions)

 

		A				B				C=A+B						D				E				F				G=D+E+F						H=(C-G)/G
		Reported 2016				Deferred Revenue Adjustment				Adjusted 2016						BD Reported 2015				CFN Reported 2015				Respiratory Adjustment ** 2015				Comparable Historical 2015						Comparable Adjusted % Change
BD MEDICAL
Medication and Procedural Solutions		$	975			$	—			$	975					$	524			$	427			$	—			$	951						2.5
Medication Management Solutions			886				—				886						—				843				—				843						5.1
Diabetes Care			259				—				259						243				—				—				243						6.8
Pharmaceutical Systems			144				—				144						138				—				—				138						4.6
Respiratory Solutions			288				—				288						—				333				(46	)			287						0.6
Deferred Revenue Adjustment *			(9	)			9				—						—				—				—				—						—
TOTAL		$	2,544			$	9			$	2,553					$	904			$	1,603			$	(46	)		$	2,462						3.7
BD LIFE SCIENCES
Preanalytical Systems		$	353			$	—			$	353					$	342			$	—			$	—			$	342						3.2
Diagnostic Systems			305				—				305						308				—				—				308						(0.9	)
Biosciences			208				—				208						190				—				—				190						9.7
TOTAL		$	866			$	—			$	866					$	839			$	—			$	—			$	839						3.2
TOTAL UNITED STATES		$	3,410			$	9			$	3,419					$	1,744			$	1,603			$	(46	)		$	3,301						3.6

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

 

Page 12

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C				D=B+C				E				F=(A-D-E)/D
		Reported 2016				BD Reported 2015				CFN Reported 2015				Comparable Historical 2015				Comparable FX Impact				Comparable FXN % Change
BD MEDICAL
Medication and Procedural Solutions		$	705			$	642			$	117			$	758			$	(80	)			3.5
Medication Management Solutions			200				—				208				208				(19	)			5.2
Diabetes Care			240				267				—				267				(31	)			1.1
Pharmaceutical Systems			363				364				—				364				(33	)			8.6
Respiratory Solutions			134				—				138				138				(9	)			2.8
TOTAL		$	1,641			$	1,273			$	463			$	1,736			$	(171	)			4.4
BD LIFE SCIENCES
Preanalytical Systems		$	331			$	351			$	—			$	351			$	(43	)			6.8
Diagnostic Systems			327				347				—				347				(35	)			4.3
Biosciences			344				387				—				387				(26	)			(4.3	)
TOTAL		$	1,003			$	1,085			$	—			$	1,085			$	(105	)			2.0
TOTAL INTERNATIONAL		$	2,644			$	2,358			$	463			$	2,821			$	(275	)			3.5

 

Page 13

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Six Months Ended March 31, (continued)

(Unaudited; Amounts in millions)

 

		A				B				C=A+B				D				E				F				G=D+E+F				H				I=(C-G-H)/G
		Reported 2016				Deferred Revenue Adjustment				Adjusted 2016				BD Reported 2015				CFN Reported 2015				Respiratory Adjustment ** 2015				Comparable Historical 2015				Comparable FX Impact				Comparable Adjusted FXN % Change
BD MEDICAL
Medication and Procedural Solutions		$	1,680			$	—			$	1,680			$	1,165			$	544			$	—			$	1,709			$	(80	)			3.0
Medication Management Solutions			1,087				—				1,087				—				1,051				—				1,051				(19	)			5.1
Diabetes Care			499				—				499				510				—				—				510				(31	)			3.8
Pharmaceutical Systems			507				—				507				502				—				—				502				(33	)			7.5
Respiratory Solutions			422				—				422				—				471				(46	)			425				(9	)			1.3
Deferred Revenue Adjustment *			(9	)			9				—				—				—				—				—				—				—
TOTAL		$	4,185			$	9			$	4,194			$	2,177			$	2,066			$	(46	)		$	4,198			$	(171	)			4.0
BD LIFE SCIENCES
Preanalytical Systems		$	684			$	—			$	684			$	692			$	—			$	—			$	692			$	(43	)			5.0
Diagnostic Systems			632				—				632				655				—				—				655				(35	)			1.8
Biosciences			552				—				552				577				—				—				577				(26	)			0.3
TOTAL		$	1,869			$	—			$	1,869			$	1,925			$	—			$	—			$	1,925			$	(105	)			2.5
TOTAL REVENUES		$	6,054			$	9			$	6,063			$	4,102			$	2,066			$	(46	)		$	6,122			$	(275	)			3.5

 

*

In accordance with U.S. GAAP business combination accounting rules, CareFusion’s deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

**	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

 

Page 14

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

SAFETY REVENUES

(Unaudited; Amounts in millions)

 

 

 

		Three Months Ended March 31,
		A				B				C				D=(A-B)/B				E=(A-B-C)/B
		As Reported								FX Impact				% Change
		2016				2015								Reported				FXN
TOTAL SAFETY REVENUES
United States		$	443			$	294			$	—				50.7				50.7
International			290				256				(31	)			13.1				25.1
TOTAL		$	733			$	550			$	(31	)			33.2				38.8
BY SEGMENT
BD Medical		$	465			$	281			$	(17	)			65.5				71.6
BD Life Sciences			268				269				(14	)			(0.5	)			4.6
TOTAL		$	733			$	550			$	(31	)			33.2				38.8
		Six Months Ended March 31,
		A				B				C				D=(A-B)/B				E=(A-B-C)/B
		As Reported								FX Impact				% Change
		2016				2015								Reported				FXN
TOTAL SAFETY REVENUES
United States		$	890			$	602			$	—				47.7				47.7
International			580				521				(69	)			11.3				24.6
TOTAL		$	1,470			$	1,123			$	(69	)			30.8				37.0
BY SEGMENT
BD Medical		$	932			$	577			$	(37	)			61.6				68.0
BD Life Sciences			538				547				(33	)			(1.6	)			4.3
TOTAL		$	1,470			$	1,123			$	(69	)			30.8				37.0

 

 

Page 15

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF SAFETY REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE

(Unaudited; Amounts in millions)

 

		Three Months Ended March 31,
		A				B				C				D=B+C				E				F=(A-D-E)/D
		BD Reported 2016				BD Reported 2015				CFN Reported 2015				Comparable Historical 2015				Comparable FX Impact				Comparable FXN % Change
TOTAL SAFETY REVENUES
United States		$	443			$	294			$	130			$	424			$	—				4.5
International			290				256				36				292				(31	)			9.9
TOTAL		$	733			$	550			$	165			$	715			$	(31	)			6.7
BY SEGMENT
BD Medical		$	465			$	281			$	165			$	446			$	(17	)			8.0
BD Life Sciences			268				269				—				269				(14	)			4.6
TOTAL		$	733			$	550			$	165			$	715			$	(31	)			6.7
		Six Months Ended March 31,
		A				B				C				D=B+C				E				F=(A-D-E)/D
		BD Reported 2016				BD Reported 2015				CFN Reported 2015				Comparable Historical 2015				Comparable FX Impact				Comparable FXN % Change
TOTAL SAFETY REVENUES
United States		$	890			$	602			$	252			$	854			$	—				4.2
International			580				521				79				600				(69	)			8.1
TOTAL		$	1,470			$	1,123			$	331			$	1,454			$	(69	)			5.8
BY SEGMENT
BD Medical		$	932			$	577			$	331			$	908			$	(37	)			6.7
BD Life Sciences			538				547				—				547				(33	)			4.3
TOTAL		$	1,470			$	1,123			$	331			$	1,454			$	(69	)			5.8

 

 

Page 16

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

 

		Three Months Ended March 31,
		2016				2015				Growth				Foreign Currency Translation				Foreign Currency Neutral Growth				Growth %				Foreign Currency Neutral Growth %
Reported Diluted Earnings per Share		$	1.56			$	1.08			$	0.48			$	(0.14	)		$	0.62				44.4	%			57.4	%
Purchase Accounting Adjustments ($115 million or $73 million after-tax and $9 million or $3 million after-tax, respectively)			0.34	(1)			0.01	(2)
Restructuring Costs ($64 million or $35 million after-tax and $62 million or $36 million after-tax, respectively) (3)			0.16				0.18
Integration Costs ($40 million or $25 million after-tax and $18 million or $10 million after-tax, respectively) (3)			0.12				0.05
Transaction Costs ($33 million or $19 million after-tax) (3)			—				0.10
Financing Costs ($58 million or $34 million after-tax) (3)			—				0.17
Dilutive Share Impact (4)			—				0.02
Adjusted Diluted Earnings per Share		$	2.18			$	1.61			$	0.57			$	(0.15	)		$	0.72				35.4	%			44.7	%

 

(1)

Includes non-cash amortization expense of $136 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $1 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $22 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

(2)	Represents non-cash amortization expense associated with acquisition related identifiable intangible assets of $18 million pre-tax, partially offset by an acquisition-date accounting gain of $9 million pre-tax related to a previously held equity investment.

(3)	Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

(4)	Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The quarter-to-date adjusted diluted average shares outstanding (in thousands) is 197,436.

 

Page 17

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

 

		Six Months Ended March 31,
		2016				2015				Growth				Foreign Currency Translation				Foreign Currency Neutral Growth				Growth %				Foreign Currency Neutral Growth %
Reported Diluted Earnings per Share		$	2.62			$	2.28			$	0.34			$	(0.40	)		$	0.74				14.9	%			32.5	%
Purchase Accounting Adjustments ($268 million or $193 million after-tax and $27 million or $15 million after-tax, respectively)			0.89	(1)			0.08	(2)
Restructuring Costs ($149 million or $89 million after-tax and $62 million or $36 million after-tax, respectively) (3)			0.41				0.18								(0.01	)
Integration Costs ($75 million or $47 million after-tax and $31 million or $19 million after-tax, respectively) (3)			0.22				0.10
Transaction Costs ($43 million or $29 million after-tax) (3)			—				0.15
Financing Costs ($102 million or $62 million after-tax) (3)			—				0.31
Litigation-related Charge ($12 million or $7 million after-tax) (4)			—				0.04
Dilutive Share Impact (5)			—				0.02
Adjusted Diluted Earnings per Share		$	4.13			$	3.14			$	0.99			$	(0.42	)		$	1.41				31.5	%			44.9	%

 

(1)

Includes non-cash amortization expense of $285 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $5 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes $22 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.

(2)	Represents non-cash amortization expense associated with acquisition related identifiable intangible assets of $35 million pre-tax, partially offset by an acquisition-date accounting gain of $9 million pre-tax related to a previously held equity investment.

(3)	Represents restructuring, integration, transaction and financing costs associated with the CareFusion acquisition and portfolio rationalization.

(4)	Represents a charge for plaintiff’s attorneys’ fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI.

(5)	Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The year-to-date adjusted diluted average shares outstanding (in thousands) is 197,390.

 

Page 18

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BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY2016 OUTLOOK RECONCILIATION

(Amounts in millions, except per share data)

 

		FY2015				FY2016 Outlook
		Revenues				% Increase				FX Impact				% Increase FXN
BDX As Reported Revenue		$	10,282				21.5% - 22.0%				~(3.0%)				24.5% - 25.0%
Deferred Revenue Adjustment			20				NM				NM				NM
BDX As Adjusted Revenue			10,302				21.5% - 22.0%				~(3.0%)				24.5% - 25.0%
CareFusion First Half Revenue			2,066
Respiratory Solution Adjustment (1)			(78	)
							% Increase FXN
							Comparable
BDX Comparable Revenue			12,290				4.5% - 5.0%
Inorganic Revenue (2)			(27	)			Comparable Organic
BDX Comparable Organic Revenue		$	12,263				4.5% - 5.0%
BD Medical Revenue		$	6,460
Deferred Revenue Adjustment			20
BD Medical As Adjusted Revenue			6,480
CareFusion First Half Revenue			2,066
Respiratory Solution Adjustment (1)			(78	)
							% Increase FXN
							Comparable
BD Medical Comparable Revenue		$	8,469				4.5% - 5.0%

 

		FY2016 Outlook
		Full Year FY2016				Full Year FY2015				% Increase
		(estimated)
Reported Fully Diluted Earnings per Share		$	6.14 - 6.21			$	3.35				NM
Purchase Accounting Adjustments			1.73				2.17
Restructuring Costs			0.41	(3)			0.80
Integration Costs			0.22	(3)			0.29
Transaction Costs			—				0.19
Financing Costs			—				0.31
Litigation-related Charge			—				0.04
Employee Termination Cost-related Amounts			—				(0.01	)
Dilutive Share Impact			—				0.02
Adjusted Fully Diluted Earnings per Share		$	8.50 - 8.57			$	7.16				19.0% - 20.0%
FX Impact		$	(0.51	)							~(7.0%	)
Adjusted FXN Growth		$	9.01 - 9.08								26.0% - 27.0%

 

(1)	To reflect the impact of a distribution agreement change in the Respiratory Solutions unit that occurred toward the end of fiscal 2015, as if it had occurred as of October 1, 2014.

(2)	Adjusts FY2015 revenues for the following closed divestitures: Simplist and Spine.

(3)	FY2016 restructuring and integration cost reflect year-to-date realized costs.

NM - Not Meaningful

FXN - Foreign Currency Neutral

 

Page 19