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 BD Announces Results For 2016 Fourth Fiscal Quarter And Full Year; Provides Fiscal 2017 Guidance
   Thursday, November 03, 2016 6:00:00 AM ET

BD (Becton, Dickinson and Company) (BDX ), a leading global medical technology company, today announced quarterly revenues of $3.231 billion, as reported, for the fourth fiscal quarter ended September 30, 2016, an increase of 5.6 percent over the prior-year period revenues. On a comparable, currency-neutral basis, fourth quarter organic adjusted revenues grew 6.4 percent. For the full fiscal year ended September 30, 2016, as reported, revenues of $12.483 billion increased 21.4 percent over the prior-year as reported. On a comparable, currency-neutral basis, full fiscal year organic adjusted revenues grew 4.3 percent.

"We are extremely proud of our accomplishments during our first fiscal year as the ’new’ BD," said Vincent A. Forlenza, Chairman, CEO and President. "Our solid revenue growth and continued margin expansion allow us to invest in innovation while delivering double-digit increases in earnings. We look forward to fiscal 2017 with confidence as we continue to focus on improving outcomes, expanding access to care, lowering costs and optimizing safety, which will ultimately enrich our purpose of advancing the world of health."

Fourth Quarter and Full Year Fiscal 2016 Operating Results As reported, diluted earnings per share for the fourth quarter were $0.09, compared with $0.84 as reported in the prior-year period. This represents a decrease of 89.3 percent and is primarily due to charges related to the attainment of cost synergies. Adjusted diluted earnings per share were $2.12, compared with $1.94 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 9.3 percent, or 16.5 percent on a currency-neutral basis.

For the full fiscal year ended September 30, 2016, as reported, diluted earnings per share were $4.49, compared with $3.35 as reported in the prior-year period. This represents an increase of 34.0 percent. Adjusted diluted earnings per share were $8.59, compared with $7.16 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 20.0 percent, or 29.1 percent on a currency-neutral basis.

Segment Results In the BD Medical segment, as reported, worldwide revenues for the quarter were $2.235 billion, an increase of 7.3 percent over the prior-year period revenues. As adjusted, BD Medical revenues of $2.237 billion grew 7.9 percent on a comparable, currency-neutral basis. The segment’s revenue growth reflects strong performance in the Medication Management Solutions and Medication and Procedural Solutions units, and solid results in the Pharmaceutical Systems and Diabetes Care units. Strong performance in the Respiratory Solutions unit was aided, in part, by a favorable comparison to the prior year, as expected.

For the twelve-month period ended September 30, 2016, BD Medical revenues were $8.654 billion as reported, an increase of 34.0 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $8.669 billion grew 4.7 percent on a comparable, currency-neutral basis.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $996 million, an increase of 2.1 percent over the prior-year period revenues, or an increase of 2.7 percent on a currency-neutral basis. The segment’s revenue growth reflects solid performance in the Preanalytical Systems and Biosciences units. Within the Biosciences unit, strong growth in the research platform in the U.S. was partially offset by continued declines in Africa, as previously communicated. Growth in the Diagnostic Systems unit was impacted, in part, by the timing of installations of the BD Kiestra(TM) lab automation system that benefited the third fiscal quarter of fiscal 2016, in conjunction with a tough comparison to the prior-year period.

For the twelve-month period ended September 30, 2016, BD Life Sciences revenues were $3.829 billion as reported, an increase of 0.2 percent over the prior-year period revenues as reported, and an increase of 3.4 percent on a currency-neutral basis.

Geographic Results As reported, fourth quarter revenues in the U.S. were $1.748 billion, an increase of 7.1 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $1.751 billion increased 7.2 percent on a comparable basis. Within the BD Medical segment, growth was driven by strong performance across the Medication Management Solutions, Medication and Procedural Solutions, and Pharmaceutical Systems units. Growth in BD Life Sciences was driven by strong performance across the segment.

As reported, revenues outside of the U.S. were $1.483 billion, representing an increase of 3.9 percent over the prior-year period revenues as reported, or an increase of 5.2 percent on a currency-neutral basis. International revenue growth reflects strong growth in the BD Medical segment. Within the BD Medical segment, results were driven by double-digit growth in China, strength in dispensing and infusion, and sales of safety-engineered products. Growth in the BD Medical segment was aided, in part, by the aforementioned favorable comparison to the prior year period in the Respiratory Solutions unit. BD Life Sciences segment revenues were about flat when compared with the prior-year period revenues. Results in the BD Life Sciences segment were impacted by the aforementioned tough comparison to the prior-year period related to the timing of installations of the BD Kiestra(TM) lab automation system, and continued declines in Africa within the Biosciences unit.

For the twelve-month period ended September 30, 2016, U.S. revenues were $6.893 billion as reported, an increase of 36.0 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $6.907 billion grew 4.4 percent on a comparable basis. As reported, revenues outside of the U.S. were $5.590 billion, an increase of 7.2 percent over the prior-year period revenues as reported. On a comparable, currency-neutral basis, revenues outside the U.S. grew 4.2 percent.

Fiscal 2017 Outlook for Full Year As reported, the Company expects full fiscal year 2017 revenues to decrease 3.0 to 3.5 percent, primarily due to the divestiture of the Respiratory Solutions business that was completed in October 2016. The Company estimates full fiscal year 2017 revenues will increase 4.5 to 5.0 percent on a comparable, currency-neutral basis that excludes Respiratory Solutions and other closed divestitures in fiscal years 2016 and 2017.

As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent. The Company expects adjusted diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent including an estimated 1.5 percentage points of dilution related to the Respiratory Solutions divestiture. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent over fiscal 2016 adjusted diluted earnings per share of $8.59. Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets.

Conference Call Information A conference call regarding BD’s fourth 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, November 3, 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, November 10, 2016, confirmation number 94169710.

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 relating to fiscal year 2016 presented throughout this release include the results of CareFusion Corporation ("CareFusion") in the current and prior-year periods. Adjusted revenues for the current and prior-year periods 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 each 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. Adjusted revenue growth rates presented on an "organic" comparable basis reflect the aforementioned adjustments and are further adjusted for closed acquisitions and divestitures. 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, restructuring and transaction costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing 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, 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 40,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2017 Outlook for Full Year", contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues and earnings per share. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to: 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 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.

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
                                                                   Three Months Ended September 30,
                                                                       2016         2015      % Change
REVENUES                                                           $   3,231    $   3,059     5.6
Cost of products sold                                                  1,679        1,630     3.0
Selling and administrative expense                                     796          756       5.3
Research and development expense                                       253          196       29.3
Acquisitions and other restructurings                                  407          182       NM
TOTAL OPERATING COSTS
AND EXPENSES                                                           3,135        2,764     13.4
OPERATING INCOME                                                       96           296       (67.5)
Interest expense                                                       (95)         (99)      (3.9)
Interest income                                                        7            (5)       NM
Other income (expense), net                                            1            (2)       NM
INCOME BEFORE INCOME TAXES                                             9            190       (95.2)
Income tax (benefit) provision                                         (10)         9         NM
NET INCOME                                                         $   19       $   181       (89.6)
EARNINGS PER SHARE
Basic Earnings per Share                                           $   0.09     $   0.86      (89.5)
Diluted Earnings per Share                                         $   0.09     $   0.84      (89.3)
AVERAGE SHARES OUTSTANDING (in thousands)
Basic                                                                  213,571      210,985
Diluted                                                                217,916      215,719
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
                                                                   Twelve Months Ended September 30,
                                                                       2016         2015      % Change
REVENUES                                                           $   12,483   $   10,282    21.4
Cost of products sold                                                  6,492        5,587     16.2
Selling and administrative expense                                     3,005        2,563     17.3
Research and development expense                                       828          632       31.2
Acquisitions and other restructurings                                  728          426       70.8
TOTAL OPERATING COSTS
AND EXPENSES                                                           11,053       9,207     20.0
OPERATING INCOME                                                       1,430        1,074     33.1
Interest expense                                                       (388)        (371)     4.5
Interest income                                                        21           15        36.0
Other income, net                                                      11           21        (44.5)
INCOME BEFORE INCOME TAXES                                             1,074        739       45.3
Income tax provision                                                   97           44        NM
NET INCOME                                                         $   976      $   695       40.5
EARNINGS PER SHARE
Basic Earnings per Share                                           $   4.59     $   3.43      33.8
Diluted Earnings per Share                                         $   4.49     $   3.35      34.0
AVERAGE SHARES OUTSTANDING (in thousands)
Basic                                                                  212,702      202,537
Diluted                                                                217,536      207,509
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended September 30,
(Unaudited; Amounts in millions)
                                                         A                          B                          C                                          D                           E=(A-B)/B              F=(C-D)/D
                                                              As Reported                                      Adjusted                                                               % Change
                                                         2016                       2015                       2016                                       2015                        Reported               Adjusted
BD MEDICAL
Medication and Procedural Solutions                      $    511                   $    481                   $                    511                   $    481                    6.2                    6.2
Medication Management Solutions                               430                        390                                        430                        390                    10.3                   10.3
Diabetes Care                                                 135                        130                                        135                        130                    3.8                    3.8
Pharmaceutical Systems                                        85                         78                                         85                         78                     10.1                   10.1
Respiratory Solutions                                         136                        133                                        136                        133                    2.1                    2.1
Deferred Revenue Adjustment *                                 (3)                        (8)                                        -                          -                      (64.1)                 -
TOTAL                                                    $    1,294                 $    1,203                 $                    1,297                 $    1,211                  7.6                    7.1
BD LIFE SCIENCES
Preanalytical Systems                                    $    182                   $    173                   $                    182                   $    173                    5.0                    5.0
Diagnostic Systems                                            153                        146                                        153                        146                    5.1                    5.1
Biosciences                                                   119                        110                                        119                        110                    8.0                    8.0
TOTAL                                                    $    454                   $    429                   $                    454                   $    429                    5.8                    5.8
TOTAL UNITED STATES                                      $    1,748                 $    1,632                 $                    1,751                 $    1,640                  7.1                    6.7
* 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                                         A         B         C          D=(A-B)/B   E=(A-B-C)/B
                                                         As Reported         FX         % Change
                                                         2016      2015      Impact     Reported    FXN
BD MEDICAL
Medication and Procedural Solutions                      $  372    $  356    $   (9)    4.5         7.1
Medication Management Solutions                             107       89         (3)    19.8        23.4
Diabetes Care                                               131       127        -      3.1         3.3
Pharmaceutical Systems                                      265       254        1      4.1         3.6
Respiratory Solutions                                       67        54         -      23.7        24.3
TOTAL                                                    $  941    $  880    $   (12)   6.9         8.2
BD LIFE SCIENCES
Preanalytical Systems                                    $  177    $  175    $   (4)    0.7         2.9
Diagnostic Systems                                          189       196        (1)    (3.8)       (3.1)
Biosciences                                                 177       176        (1)    0.8         1.5
TOTAL                                                    $  542    $  547    $   (6)    (0.9)       0.3
TOTAL INTERNATIONAL                                      $  1,483  $  1,427  $   (18)   3.9         5.2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                                 A                                          B                          C                                          D                          E                           F=(A-B)/B              G=(A-B-E)/B                                                                                                                                                                                                      H=(C-D)/D   I=(C-D-E)/D
                                                                                                                                                                                                                         % Change
                                                 As Reported                                                           Adjusted                                                              FX                                                                                                                                                                                                                                                                              Adjusted
                                                 2016                                       2015                       2016                                       2015                       Impact                      Reported               FXN                                                                                                                                                                                                              Adjusted    FXN
BD MEDICAL
Medication and Procedural Solutions              $                    882                   $    836                   $                    882                   $    836                   $                    (9)    5.5                    6.6                                                                                                                                                                                                              5.5         6.6
Medication Management Solutions                                       537                        479                                        537                        479                                        (3)    12.1                   12.8                                                                                                                                                                                                             12.1        12.8
Diabetes Care                                                         266                        257                                        266                        257                                        -      3.5                    3.6                                                                                                                                                                                                              3.5         3.6
Pharmaceutical Systems                                                350                        332                                        350                        332                                        1      5.5                    5.1                                                                                                                                                                                                              5.5         5.1
Respiratory Solutions                                                 203                        187                                        203                        187                                        -      8.3                    8.5                                                                                                                                                                                                              8.3         8.5
Deferred Revenue Adjustment *                                         (3)                        (8)                                        -                          -                                          -      (64.1)                 (64.1)                                                                                                                                                                                                           -           -
TOTAL                                            $                    2,235                 $    2,083                 $                    2,237                 $    2,091                 $                    (12)   7.3                    7.8                                                                                                                                                                                                              7.0         7.6
BD LIFE SCIENCES
Preanalytical Systems                            $                    359                   $    349                   $                    359                   $    349                   $                    (4)    2.8                    4.0                                                                                                                                                                                                              2.8         4.0
Diagnostic Systems                                                    342                        342                                        342                        342                                        (1)    -                      0.4                                                                                                                                                                                                              -           0.4
Biosciences                                                           296                        286                                        296                        286                                        (1)    3.6                    4.0                                                                                                                                                                                                              3.6         4.0
TOTAL                                            $                    996                   $    976                   $                    996                   $    976                   $                    (6)    2.1                    2.7                                                                                                                                                                                                              2.1         2.7
TOTAL REVENUES                                   $                    3,231                 $    3,059                 $                    3,234                 $    3,067                 $                    (18)   5.6                    6.2                                                                                                                                                                                                              5.4         6.0
* 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
                                                         A                          B                          C                                          D                           E=(A-B)/B              F=(C-D)/D
                                                              As Reported                                      Adjusted                                                               % Change
                                                         2016                       2015                       2016                                       2015                        Reported               Adjusted
BD MEDICAL
Medication and Procedural Solutions                      $    1,959                 $    1,483                 $                    1,959                 $    1,483                  32.1                   32.1
Medication Management Solutions                               1,791                      832                                        1,791                      832                    NM                     NM
Diabetes Care                                                 521                        491                                        521                        491                    6.0                    6.0
Pharmaceutical Systems                                        328                        304                                        328                        304                    7.8                    7.8
Respiratory Solutions                                         560                        297                                        560                        297                    88.6                   88.6
Deferred Revenue Adjustment *                                 (14)                       (20)                                       -                          -                      (29.3)                 -
TOTAL                                                    $    5,144                 $    3,386                 $                    5,159                 $    3,407                  51.9                   51.4
BD LIFE SCIENCES
Preanalytical Systems                                    $    715                   $    689                   $                    715                   $    689                    3.7                    3.7
Diagnostic Systems                                            600                        592                                        600                        592                    1.4                    1.4
Biosciences                                                   433                        402                                        433                        402                    7.9                    7.9
TOTAL                                                    $    1,748                 $    1,683                 $                    1,748                 $    1,683                  3.9                    3.9
TOTAL UNITED STATES                                      $    6,893                 $    5,069                 $                    6,907                 $    5,090                  36.0                   35.7
* 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.
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                                         A         B         C           D=(A-B)/B   E=(A-B-C)/B
                                                         As Reported         FX          % Change
                                                         2016      2015      Impact      Reported    FXN
BD MEDICAL
Medication and Procedural Solutions                      $  1,454  $  1,367  $   (104)   6.4         14.0
Medication Management Solutions                             419       201        (24)    NM          NM
Diabetes Care                                               502       521        (34)    (3.6)       2.9
Pharmaceutical Systems                                      872       863        (28)    0.9         4.2
Respiratory Solutions                                       263       122        (10)    NM          NM
TOTAL                                                    $  3,510  $  3,074  $   (199)   14.2        20.7
BD LIFE SCIENCES
Preanalytical Systems                                    $  694    $  701    $   (53)    (1.0)       6.6
Diagnostic Systems                                          701       708        (41)    (1.0)       4.8
Biosciences                                                 685       730        (30)    (6.1)       (2.1)
TOTAL                                                    $  2,080  $  2,139  $   (123)   (2.7)       3.0
TOTAL INTERNATIONAL                                      $  5,590  $  5,213  $   (322)   7.2         13.4
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                                 A                                          B                          C                                          D                          E                                           F=(A-B)/B              G=(A-B-E)/B                                                                                                                                                                                      H=(C-D)/D   I=(C-D-E)/D
                                                                                                                                                                                                                                         % Change
                                                 As Reported                                                           Adjusted                                                              FX                                                                                                                                                                                                                                                                              Adjusted
                                                 2016                                       2015                       2016                                       2015                       Impact                                      Reported               FXN                                                                                                                                                                                              Adjusted    FXN
BD MEDICAL
Medication and Procedural Solutions              $                    3,413                 $    2,850                 $                    3,413                 $    2,850                 $                    (104)                  19.8                   23.4                                                                                                                                                                                             19.8        23.4
Medication Management Solutions                                       2,210                      1,033                                      2,210                      1,033                                      (24)                   NM                     NM                                                                                                                                                                                               NM          NM
Diabetes Care                                                         1,023                      1,012                                      1,023                      1,012                                      (34)                   1.1                    4.4                                                                                                                                                                                              1.1         4.4
Pharmaceutical Systems                                                1,199                      1,167                                      1,199                      1,167                                      (28)                   2.7                    5.1                                                                                                                                                                                              2.7         5.1
Respiratory Solutions                                                 824                        419                                        824                        419                                        (10)                   96.8                   99.1                                                                                                                                                                                             96.8        99.1
Deferred Revenue Adjustment *                                         (14)                       (20)                                       -                          -                                          -                      (29.3)                 (29.3)                                                                                                                                                                                           -           -
TOTAL                                            $                    8,654                 $    6,460                 $                    8,669                 $    6,480                 $                    (199)                  34.0                   37.0                                                                                                                                                                                             33.8        36.8
BD LIFE SCIENCES
Preanalytical Systems                            $                    1,409                 $    1,391                 $                    1,409                 $    1,391                 $                    (53)                   1.3                    5.2                                                                                                                                                                                              1.3         5.2
Diagnostic Systems                                                    1,301                      1,299                                      1,301                      1,299                                      (41)                   0.1                    3.3                                                                                                                                                                                              0.1         3.3
Biosciences                                                           1,119                      1,132                                      1,119                      1,132                                      (30)                   (1.2)                  1.5                                                                                                                                                                                              (1.2)       1.5
TOTAL                                            $                    3,829                 $    3,822                 $                    3,829                 $    3,822                 $                    (123)                  0.2                    3.4                                                                                                                                                                                              0.2         3.4
TOTAL REVENUES                                   $                    12,483                $    10,282                $                    12,497                $    10,302                $                    (322)                  21.4                   24.5                                                                                                                                                                                             21.3        24.4
* 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
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES
Three Months Ended September 30,
(Unaudited; Amounts in millions)
                                     A                                          B                       C=A+B                                      D                                          E                       F=D+E                                      G                                                                                                                                                                                              H=F+G             I=(C-H)/H
                                                                                Deferred                                                                                                      Deferred                                                                                                                                                                                                                                                          Comparable        Comparable
                                     Reported                                   Revenue                 Adjusted                                   Reported                                   Revenue                 Adjusted                                   Respiratory                                                                                                                                                                                    Historical        Adjusted
                                     2016                                       Adjustment              2016                                       2015                                       Adjustment              2015                                       Adjustment **                                                                                                                                                                                          2015      % Change
BD MEDICAL
Medication and Procedural Solutions  $                    511                   $                    -  $                    511                   $                    481                   $                    -  $                    481                   $                    -                                                                                                                                                                         $       481       6.2
Medication Management Solutions                           430                                        -                       430                                        390                                        -                       390                                        -                                                                                                                                                                                 390       10.3
Diabetes Care                                             135                                        -                       135                                        130                                        -                       130                                        -                                                                                                                                                                                 130       3.8
Pharmaceutical Systems                                    85                                         -                       85                                         78                                         -                       78                                         -                                                                                                                                                                                 78        10.1
Respiratory Solutions                                     136                                        -                       136                                        133                                        -                       133                                        (7)                                                                                                                                                                               126       7.7
Deferred Revenue Adjustment *                             (3)                                        3                       -                                          (8)                                        8                       -                                          -                                                                                                                                                                                 -         -
TOTAL                                $                    1,294                 $                    3  $                    1,297                 $                    1,203                 $                    8  $                    1,211                 $                    (7)                                                                                                                                                                       $       1,204     7.7
BD LIFE SCIENCES
Preanalytical Systems                $                    182                   $                    -  $                    182                   $                    173                   $                    -  $                    173                   $                    -                                                                                                                                                                         $       173       5.0
Diagnostic Systems                                        153                                        -                       153                                        146                                        -                       146                                        -                                                                                                                                                                                 146       5.1
Biosciences                                               119                                        -                       119                                        110                                        -                       110                                        -                                                                                                                                                                                 110       8.0
TOTAL                                $                    454                   $                    -  $                    454                   $                    429                   $                    -  $                    429                   $                    -                                                                                                                                                                         $       429       5.8
TOTAL UNITED STATES                  $                    1,748                 $                    3  $                    1,751                 $                    1,632                 $                    8  $                    1,640                 $                    (7)                                                                                                                                                                       $       1,633     7.2
* 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.
** 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO FXN REVENUE CHANGE - INTERNATIONAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                              A                        B                        C          D=(A-B-C)/B
                                              Reported                 Reported                 FX         FXN
                                              2016                     2015                     Impact     % Change
BD MEDICAL
Medication and Procedural Solutions           $           372          $           356          $   (9)    7.1
Medication Management Solutions                           107                      89               (3)    23.4
Diabetes Care                                             131                      127              -      3.3
Pharmaceutical Systems                                    265                      254              1      3.6
Respiratory Solutions                                     67                       54               -      24.3
TOTAL                                         $           941          $           880          $   (12)   8.2
BD LIFE SCIENCES
Preanalytical Systems                         $           177          $           175          $   (4)    2.9
Diagnostic Systems                                        189                      196              (1)    (3.1)
Biosciences                                               177                      176              (1)    1.5
TOTAL                                         $           542          $           547          $   (6)    0.3
TOTAL INTERNATIONAL                           $           1,483        $           1,427        $   (18)   5.2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                     A                                          B                       C=A+B                                      D                                          E                       F=D+E                                      G                                                                                                                                                                                              H=F+G            I             J=(C-H-I)/H
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Comparable
                                                                                Deferred                                                                                                      Deferred                                                                                                                                                                                                                                                          Comparable       Comparable    Adjusted
                                     Reported                                   Revenue                 Adjusted                                   Reported                                   Revenue                 Adjusted                                   Respiratory                                                                                                                                                                                    Historical       FX            FXN
                                     2016                                       Adjustment              2016                                       2015                                       Adjustment              2015                                       Adjustment **                                                                                                                                                                                  2015             Impact        % Change
BD MEDICAL
Medication and Procedural Solutions  $                    882                   $                    -  $                    882                   $                    836                   $                    -  $                    836                   $                    -                                                                                                                                                                         $       836      $     (9)     6.6
Medication Management Solutions                           537                                        -                       537                                        479                                        -                       479                                        -                                                                                                                                                                                 479            (3)     12.8
Diabetes Care                                             266                                        -                       266                                        257                                        -                       257                                        -                                                                                                                                                                                 257            -       3.6
Pharmaceutical Systems                                    350                                        -                       350                                        332                                        -                       332                                        -                                                                                                                                                                                 332            1       5.1
Respiratory Solutions                                     203                                        -                       203                                        187                                        -                       187                                        (7)                                                                                                                                                                               180            -       12.7
Deferred Revenue Adjustment *                             (3)                                        3                       -                                          (8)                                        8                       -                                          -                                                                                                                                                                                 -              -       -
TOTAL                                $                    2,235                 $                    3  $                    2,237                 $                    2,083                 $                    8  $                    2,091                 $                    (7)                                                                                                                                                                       $       2,084    $     (12)    7.9
BD LIFE SCIENCES
Preanalytical Systems                $                    359                   $                    -  $                    359                   $                    349                   $                    -  $                    349                   $                    -                                                                                                                                                                         $       349      $     (4)     4.0
Diagnostic Systems                                        342                                        -                       342                                        342                                        -                       342                                        -                                                                                                                                                                                 342            (1)     0.4
Biosciences                                               296                                        -                       296                                        286                                        -                       286                                        -                                                                                                                                                                                 286            (1)     4.0
TOTAL                                $                    996                   $                    -  $                    996                   $                    976                   $                    -  $                    976                   $                    -                                                                                                                                                                         $       976      $     (6)     2.7
TOTAL REVENUES                       $                    3,231                 $                    3  $                    3,234                 $                    3,059                 $                    8  $                    3,067                 $                    (7)                                                                                                                                                                       $       3,060    $     (18)    6.3
* 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED ORGANIC FXN REVENUE CHANGE - TOTAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                              A                          B                          C=(A-B)/B
                                              2016                       2015                       % Change
Reported                                      $    3,231                 $    3,059                                      5.6
Deferred Revenue Adjustment *                      3                          8
Acquisitions & Divestitures Impact **              (3)                        (7)
Respiratory Adjustment ***                         -                          (7)
Comparable Adjusted Organic                   $    3,231                 $    3,053
FX Impact                                          (18)
Comparable Adjusted Organic FXN               $    3,249                 $    3,053                                      6.4
* 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.
** Excludes the impact from non-annualized acquisitions and the following closed divestitures: Simplist and Spine.
*** 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
                                     A                                          B                        C=A+B                                      D                                          E                        F=D+E                                      G                                                                                                                                                                                            H                I=F+G+H       J=(C-I)/I
                                                                                Deferred                                                            BD                                         Deferred                                                            CFN                                                                                                                                                                                                           Comparable    Comparable
                                     Reported                                   Revenue                  Adjusted                                   Reported                                   Revenue                  Adjusted                                   Reported                                                                                                                                                                                     Respiratory      Historical    Adjusted
                                     2016                                       Adjustment               2016                                       2015                                       Adjustment                                                          1st Half 2015***                                                                                                                                                                             Adjustment **    2015          % Change
BD MEDICAL
Medication and Procedural Solutions  $                    1,959                 $                    -   $                    1,959                 $                    1,483                 $                    -   $                    1,483                 $                    427                                                                                                                                                                     $       -        $     1,910   2.5
Medication Management Solutions                           1,791                                      -                        1,791                                      832                                        -                        832                                        843                                                                                                                                                                             -              1,675   6.9
Diabetes Care                                             521                                        -                        521                                        491                                        -                        491                                        -                                                                                                                                                                               -              491     6.0
Pharmaceutical Systems                                    328                                        -                        328                                        304                                        -                        304                                        -                                                                                                                                                                               -              304     7.8
Respiratory Solutions                                     560                                        -                        560                                        297                                        -                        297                                        333                                                                                                                                                                             (78)           552     1.6
Deferred Revenue Adjustment *                             (14)                                       14                       -                                          (20)                                       20                       -                                          -                                                                                                                                                                               -              -       -
TOTAL                                $                    5,144                 $                    14  $                    5,159                 $                    3,386                 $                    20  $                    3,407                 $                    1,603                                                                                                                                                                   $       (78)     $     4,932   4.6
BD LIFE SCIENCES
Preanalytical Systems                $                    715                   $                    -   $                    715                   $                    689                   $                    -   $                    689                   $                    -                                                                                                                                                                       $       -        $     689     3.7
Diagnostic Systems                                        600                                        -                        600                                        592                                        -                        592                                        -                                                                                                                                                                               -              592     1.4
Biosciences                                               433                                        -                        433                                        402                                        -                        402                                        -                                                                                                                                                                               -              402     7.9
TOTAL                                $                    1,748                 $                    -   $                    1,748                 $                    1,683                 $                    -   $                    1,683                 $                    -                                                                                                                                                                       $       -        $     1,683   3.9
TOTAL UNITED STATES                  $                    6,893                 $                    14  $                    6,907                 $                    5,069                 $                    20  $                    5,090                 $                    1,603                                                                                                                                                                   $       (78)     $     6,615   4.4
* 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.
*** For the quarters ended December 31, 2014 and March 31, 2015.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                               A                      B                      C                   D=B+C        E             F=(A-D-E)/D
                                                                      BD                     CFN                 Comparable   Comparable    Comparable
                                               Reported               Reported               Reported            Historical   FX            FXN
                                               2016                   2015                   1st Half 2015*      2015         Impact        % Change
BD MEDICAL
Medication and Procedural Solutions            $          1,454       $          1,367       $          117      $     1,483  $     (104)   5.0
Medication Management Solutions                           419                    201                    208            409          (24)    8.2
Diabetes Care                                             502                    521                    -              521          (34)    2.9
Pharmaceutical Systems                                    872                    863                    -              863          (28)    4.2
Respiratory Solutions                                     263                    122                    138            260          (10)    5.0
TOTAL                                          $          3,510       $          3,074       $          463      $     3,536  $     (199)   4.9
BD LIFE SCIENCES
Preanalytical Systems                          $          694         $          701         $          -        $     701    $     (53)    6.6
Diagnostic Systems                                        701                    708                    -              708          (41)    4.8
Biosciences                                               685                    730                    -              730          (30)    (2.1)
TOTAL                                          $          2,080       $          2,139       $          -        $     2,139  $     (123)   3.0
TOTAL INTERNATIONAL                            $          5,590       $          5,213       $          463      $     5,675  $     (322)   4.2
* For the quarters ended December 31, 2014 and March 31, 2015.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
                                               A                                          B                        C=A+B                                      D                                          E                        F=D+E                                      G                                                                                                                                                                                  H                I=F+G+H       J            K=(C-I-J)/I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Comparable
                                                                                          Deferred                                                            BD                                         Deferred                                                            CFN                                                                                                                                                                                                 Comparable    Comparable   Adjusted
                                               Reported                                   Revenue                  Adjusted                                   Reported                                   Revenue                  Adjusted                                   Reported                                                                                                                                                                           Respiratory      Historical    FX           FXN
                                               2016                                       Adjustment               2016                                       2015                                       Adjustment               2015                                       1st Half 2015***                                                                                                                                                                   Adjustment **    2015          Impact       % Change
BD MEDICAL
Medication and Procedural Solutions            $                    3,413                 $                    -   $                    3,413                 $                    2,850                 $                    -   $                    2,850                 $                    544                                                                                                                                                           $       -        $     3,394   $     (104)  3.6
Medication Management Solutions                                     2,210                                      -                        2,210                                      1,033                                      -                        1,033                                      1,051                                                                                                                                                                 -              2,084         (24)   7.2
Diabetes Care                                                       1,023                                      -                        1,023                                      1,012                                      -                        1,012                                      -                                                                                                                                                                     -              1,012         (34)   4.4
Pharmaceutical Systems                                              1,199                                      -                        1,199                                      1,167                                      -                        1,167                                      -                                                                                                                                                                     -              1,167         (28)   5.1
Respiratory Solutions                                               824                                        -                        824                                        419                                        -                        419                                        471                                                                                                                                                                   (78)           812           (10)   2.7
Deferred Revenue Adjustment *                                       (14)                                       14                       -                                          (20)                                       20                       -                                          -                                                                                                                                                                     -              -             -      -
TOTAL                                          $                    8,654                 $                    14  $                    8,669                 $                    6,460                 $                    20  $                    6,480                 $                    2,066                                                                                                                                                         $       (78)     $     8,469   $     (199)  4.7
BD LIFE SCIENCES
Preanalytical Systems                          $                    1,409                 $                    -   $                    1,409                 $                    1,391                 $                    -   $                    1,391                 $                    -                                                                                                                                                             $       -        $     1,391   $     (53)   5.2
Diagnostic Systems                                                  1,301                                      -                        1,301                                      1,299                                      -                        1,299                                      -                                                                                                                                                                     -              1,299         (41)   3.2
Biosciences                                                         1,119                                      -                        1,119                                      1,132                                      -                        1,132                                      -                                                                                                                                                                     -              1,132         (30)   1.5
TOTAL                                          $                    3,829                 $                    -   $                    3,829                 $                    3,822                 $                    -   $                    3,822                 $                    -                                                                                                                                                             $       -        $     3,822   $     (123)  3.4
TOTAL REVENUES                                 $                    12,483                $                    14  $                    12,497                $                    10,282                $                    20  $                    10,302                $                    2,066                                                                                                                                                         $       (78)     $     12,290  $     (322)  4.3
* 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.
*** For the quarters ended December 31, 2014 and March 31, 2015.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED ORGANIC FXN REVENUE CHANGE - TOTAL
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
                                                  A                          B                           C=(A-B)/B
                                                  2016                       2015                        % Change
Reported                                          $    12,483                $    10,282                 21.4
Deferred Revenue Adjustment *                          14                         20
CareFusion Reported First Half FY2015 Revenue **       -                          2,066
Acquisitions & Divestitures Impact ***                 (34)                       (27)
Respiratory Adjustment ****                            -                          (78)
Comparable Adjusted Organic                       $    12,463                $    12,263
FX Impact                                              (322)
Comparable Adjusted Organic FXN                   $    12,786                $    12,263                 4.3
* 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.
** For the quarters ended December 31, 2014 and March 31, 2015.
*** Excludes the impact from non-annualized acquisitions and the following closed divestitures: Simplist and Spine.
**** 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
                                                                                      Three Months Ended September 30,
                                                                                                                                                                                                                                                                                    Foreign                                                                        Foreign
                                                                                                                                                                                                                                 Foreign                                            Currency                                                                       Currency
                                                                                                                                                                                                                                 Currency                                           Neutral                                                                        Neutral
                                                                                      2016                                                  2015                              Growth                                             Translation                                        Growth                                              Growth %                   Growth %
Reported Diluted Earnings per Share                                                   $                        0.09                         $    0.84                         $                        (0.75)                    $                        (0.14)                    $                        (0.61)                     (89.3%)                    (72.6%)
Purchase Accounting Adjustments ($132 million and $179 million pre-tax,                                        0.61                     (1)      0.83                     (2)
respectively)
Restructuring Costs ($328 million and $135 million pre-tax, respectively) (3)                                  1.50                              0.63
Integration Costs ($77 million and $40 million pre-tax, respectively) (3)                                      0.35                              0.19
Transaction Costs ($2 million and $7 million pre-tax, respectively) (3)                                        0.01                              0.03
Pension Settlement Charges ($3 million pre-tax) (4)                                                            0.01                              -
Income Tax Benefit of Special Items ($(99) million and $(123) million, respectively)                           (0.46)                            (0.57)
Adjusted Diluted Earnings per Share                                                   $                        2.12                         $    1.94                         $                        0.18                      $                        (0.14)                    $                        0.32                       9.3%                       16.5%
(1) Includes adjustments for non-cash amortization expense of $128 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $3 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $2 million of pre-tax expense related to a net unfavorable change in the fair value of contingent consideration payments associated with certain acquisitions.
(2) Includes adjustments for non-cash amortization expense of $152 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $27 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations.
(3) Represents restructuring, integration, and transaction costs associated with the CareFusion acquisition and portfolio rationalization.
(4) Represents pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
                                                                                       Twelve Months Ended September 30,
                                                                                                                                                                                                                                                                 Foreign                                                    Foreign
                                                                                                                                                                                                              Foreign                                            Currency                                                   Currency
                                                                                                                                                                                                              Currency                                           Neutral                                                    Neutral
                                                                                       2016                                                  2015                              Growth                         Translation                                        Growth                          Growth %                   Growth %
Reported Diluted Earnings per Share                                                    $                        4.49                         $    3.35                         $                        1.14  $                        (0.64)                    $                        1.78   34.0%                      53.1%
Purchase Accounting Adjustments ($527 million and $645 million pre-tax,                                         2.42                     (1)      3.11                     (2)
respectively)
Restructuring Costs ($526 million and $271 million pre-tax, respectively) (3)                                   2.42                              1.31
Integration Costs ($192 million and $95 million pre-tax, respectively) (3)                                      0.88                              0.46
Transaction Costs ($10 million and $59 million pre-tax, respectively) (3)                                       0.04                              0.29
Pension Settlement Charges ($6 million pre-tax) (4)                                                             0.03                              -
Financing Costs ($107 million pre-tax) (3)                                                                      -                                 0.52
Employee Termination Cost-related Amounts ($(5) million pre-tax) (5)                                            -                                 (0.02)
Litigation-related Charge ($12 million pre-tax) (6)                                                             -                                 0.06
Income Tax Benefit of Special Items ($(369) million and $(400) million, respectively)                           (1.70)                            (1.93)
Dilutive Share Impact (7)                                                                                       -                                 0.02
Adjusted Diluted Earnings per Share                                                    $                        8.59                         $    7.16                         $                        1.43  $                        (0.65)                    $                        2.08   20.0%                      29.1%
(1) Includes adjustments for non-cash amortization expense of $545 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $7 million pre-tax to reflect CareFusion’s fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes $25 million of pre-tax income related to a net favorable change in the fair value of contingent consideration payments associated with certain acquisitions.
(2) Includes adjustments for non-cash amortization expense of $336 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $318 million pre-tax to reflect CareFusion’s inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date recorded in accordance with ASC 805-Business Combinations. Also includes 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 pension settlement charges associated with lump sum benefit payments made from the Company’s U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan’s pension cost.
(5) Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.
(6) 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.
(7) 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.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY2017 OUTLOOK RECONCILIATION
                                                      FY2016                                          FY2017 Outlook
                                                      Revenues                                        % Change         FX Impact    % Change FXN
BDX As Reported Revenue                   $                       12,483                              (3.0% - 3.5%)     (1.0%)      (2.0% - 2.5%)
                                                                                                      % Increase FXN
                                                                                                      Comparable
BDX As Reported Revenue                   $                       12,483
Closed Divestitures Revenue (1)                                   (843)
BDX Comparable Revenue                    $                       11,639                              4.5% - 5.0%
BD Medical Revenue                        $                       8,654
Closed Divestitures Revenue (1)                                   (843)
BD Medical Comparable Revenue             $                       7,811                               4.5% - 5.0%
                                          FY2017 Outlook
                                          Full Year                                       Full Year
                                          FY2017 Outlook                                  FY2016                       % Increase
                                          (estimated)
Reported Fully Diluted Earnings per Share $           7.23 - 7.33                         $           4.49             NM
Purchase Accounting Adjustments                                   2.22                                2.42
Restructuring Costs                                               -           (2)                     2.42
Integration Costs                                                 -           (2)                     0.88
Transaction Costs                                                 -           (2)                     0.04
Pension Settlement Charges                                        -           (2)                     0.03
Income Tax Benefit of Special Items                               -           (2)                     (1.70)
Adjusted Fully Diluted Earnings per Share $           9.45 - 9.55                         $           8.59             10% - 11%
FX Impact                                 $                       (0.17)                                                (2.0%)
Adjusted FXN Growth                       $           9.62 - 9.72                                                      12% - 13%
(1) Excludes the impact from the following closed divestitures: Respiratory, Simplist and Spine.
(2) FY2017 restructuring, integration and transaction costs, pension settlement charges, and income tax benefit of special items reflect year-to-date realized costs.
NM - Not Meaningful
FXN- Foreign Currency Neutral

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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bd-announces-results-for-2016-fourth-fiscal-quarter-and-full-year-provides-fiscal-2017-guidance-300356538.html

SOURCE BD (Becton, Dickinson and Company)

http://rt.prnewswire.com/rt.gif?NewsItemId=NY31767&Transmission_Id=201611030600PR_NEWS_USPR_____NY31767&DateId=20161103



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