BECTON DICKINSON AND : CONDENSED CONSOLIDATED INCOME STATEMENTS - Form 8-K
May 31, 2022 at 05:02 pm EDT
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BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Three Months Ended March 31,
2022
2021
REVENUES
$
4,750
$
4,634
Cost of products sold
2,637
2,584
Selling and administrative expense
1,192
1,115
Research and development expense
327
304
Acquisition-related integration and restructuring expense
28
47
Other operating expense, net
-
296
TOTAL OPERATING COSTS AND EXPENSES
4,185
4,345
OPERATING INCOME
564
289
Interest expense
(97)
(124)
Interest income
2
2
Other expense, net
(27)
(10)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
442
158
Income tax provision (benefit)
52
(15)
NET INCOME FROM CONTINUING OPERATIONS
390
173
Income from discontinued operations, net of tax
64
127
NET INCOME
454
299
Preferred stock dividends
(23)
(23)
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS
$
431
$
277
BASIC EARNINGS PER SHARE
Income from Continuing Operations
$
1.29
$
0.52
Income from Discontinued Operations
0.22
0.43
Basic Earnings per Share
$
1.51
$
0.95
DILUTED EARNINGS PER SHARE
Income from Continuing Operations
$
1.28
$
0.51
Income from Discontinued Operations
0.22
0.43
Diluted Earnings per Share
$
1.50
$
0.94
AVERAGE SHARES OUTSTANDING (in thousands)
Basic
285,243
291,095
Diluted
287,299
293,547
Columns may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
Page 1
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS
(Unaudited; Amounts in millions, except per share data)
Three Months Ended March 31, 2022
Reported (GAAP)
Purchase accounting adjustments (A)
Integration costs (B)
Restructuring costs (B)
Transaction gain/loss, product and other litigation-related matters (C)
European regulatory initiative-related costs (D)
Investment gains/losses and asset impairments (E)
Income tax benefit of special items
Adjusted (Non-GAAP)
See Footnotes on Page 4
REVENUES
$
4,750
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
4,750
Gross margin
2,112
355
-
-
36
11
54
-
2,568
Selling and administrative expense
1,192
(3)
-
-
-
-
-
-
1,189
Research and development expense
327
-
-
-
-
(23)
-
-
304
OPERATING INCOME
564
357
11
17
36
35
54
-
1,075
Net interest expense
(95)
(1)
-
-
-
-
-
-
(97)
Other (expense) income, net
(27)
-
-
-
-
-
19
-
(8)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
442
356
11
17
36
35
73
-
970
Income tax provision
52
-
-
-
-
-
-
96
148
NET INCOME FROM CONTINUING OPERATIONS
$
390
$
356
$
11
$
17
$
36
$
35
$
73
$
(96)
$
822
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
$
1.28
$
1.24
$
0.04
$
0.06
$
0.13
$
0.12
$
0.25
$
(0.34)
$
2.78
Rows may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
Page 2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS
(Unaudited; Amounts in millions, except per share data)
Three Months Ended March 31, 2021
Reported (GAAP)
Purchase accounting adjustments (A)
Integration costs (B)
Restructuring costs (B)
Transaction gain/loss, product and other litigation-related matters (C)
European regulatory initiative-related costs (D)
Impacts of debt extinguishment (F)
Income tax benefit of special items
Adjusted
(Non-GAAP)
See Footnotes on Page 4
REVENUES
$
4,634
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
4,634
Gross margin
2,050
348
-
-
37
11
-
-
2,446
Selling and administrative expense
1,115
(1)
-
-
-
-
-
-
1,113
Research and development expense
304
-
-
-
-
(21)
-
-
282
OPERATING INCOME
289
349
33
14
333
32
-
-
1,050
Net interest expense
(122)
(1)
-
-
-
-
4
-
(119)
Other (expense) income, net
(10)
-
-
-
-
-
15
-
6
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
158
348
33
14
333
32
20
-
937
Income tax provision
(15)
-
-
-
-
-
-
124
110
NET INCOME FROM CONTINUING OPERATIONS
$
173
$
348
$
33
$
14
$
333
$
32
$
20
$
(124)
$
827
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
$
0.51
$
1.18
$
0.11
$
0.05
$
1.13
$
0.11
$
0.07
$
(0.42)
$
2.74
Rows may not add due to the use of rounded numbers. Earnings per share amounts presented are calculated from the underlying amounts.
Page 3
The reconciliations of reported results to adjusted results on the previous pages reflect the following adjustments that are considered by management to be outside of BD's underlying operational results or that affect period to period comparability:
(A)Purchase accounting adjustments-Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and the valuation of fixed assets and debt. BD's amortization expense is primarily recorded in Cost of products sold.
(B)Integration and restructuring costs-Includes amounts associated with integration and restructuring activities resulting from acquisitions, as well as simplification and other cost saving initiatives. These costs are recorded to Acquisition-related integration and restructuring expense.
(C)Transaction gain/loss, product and other litigation-related matters-The amounts in 2022 and 2021 include charges of $35 million and $37 million, respectively, recorded to Cost of products sold to adjust the estimate of future product remediation costs. The amount in 2021 also includes charges recorded to Other operating expense, net to record product liability reserves, including related legal defense costs, of $296 million.
(D)European regulatory initiative-related costs-Represents costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation, which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. These expenses, which are recorded in Cost of products sold and Research and development expense, include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs.
(E)Investment gains/losses and asset impairments-Includes a noncash asset impairment charge recorded in Cost of products sold of $54 million in the Medical segment. Also includes losses recorded within Other expense, net relating to certain investments.
(F)Impacts of debt extinguishment-Represents the impacts, which are recorded in Other expense, net and Interest expense, of our extinguishment of certain long-term senior notes.
Page 4
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BD - Becton, Dickinson and Company published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 21:01:10 UTC.
Becton, Dickinson and Company specializes in the development, manufacturing and marketing of medical and diagnostic equipment and materials. Net sales break down by family of products as follows:
- medical equipment (73.5%): surgical instruments, urological care products, pharmaceutical systems, etc.;
- diagnostic materials (18.7%): automated systems for blood testing, mycobacteria detection, and molecular biology, medical biology devices, etc.;
- clinical research and development tools (7.8%): tools for discovering drugs and vaccines, studying genes, culturing cells, and manipulating liquids, instruments for sorting and analyzing cells, monoclonal antibodies, etc.
Net sales are distributed geographically as follows: the United States (57.4%), Europe/Middle East/Africa (21.9%), Asia (15%) and other (5.7%).