Cover Page
Cover Page | 3 Months Ended |
Dec. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-4802 |
Entity Registrant Name | Becton, Dickinson and Company |
Entity Central Index Key | 0000010795 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NJ |
Entity Tax Identification Number | 22-0760120 |
Entity Address, Address Line One | 1 Becton Drive, |
Entity Address, City or Town | Franklin Lakes, |
Entity Address, State or Province | NJ |
Entity Address, Postal Zip Code | 07417-1880 |
City Area Code | (201) |
Local Phone Number | 847-6800 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 290,559,991 |
Common Stock | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $1.00 |
Trading Symbol | BDX |
Security Exchange Name | NYSE |
Redeemable Preferred Stock [Member] | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a 1/20th interest in a share of 6.00% Mandatory Convertible Preferred Stock, Series B |
Trading Symbol | BDXB |
Security Exchange Name | NYSE |
Notes 1.000% due December 15, 2022 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.000% Notes due December 15, 2022 |
Trading Symbol | BDX22A |
Security Exchange Name | NYSE |
Notes 1.900% due December 15, 2026 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.900% Notes due December 15, 2026 |
Trading Symbol | BDX26 |
Security Exchange Name | NYSE |
Notes 1.401% due May 24, 2023 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.401% Notes due May 24, 2023 |
Trading Symbol | BDX23A |
Security Exchange Name | NYSE |
Notes 3.020% due May 24, 2025 [Member] | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.020% Notes due May 24, 2025 |
Trading Symbol | BDX25 |
Security Exchange Name | NYSE |
Notes 0.174% due June 4, 2021 [Member] | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.174% Notes due June 4, 2021 |
Trading Symbol | BDX/21 |
Security Exchange Name | NYSE |
Notes 0.632% due June 4, 2023 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.632% Notes due June 4, 2023 |
Trading Symbol | BDX/23A |
Security Exchange Name | NYSE |
Notes 1.208% due June 4, 2026 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.208% Notes due June 4, 2026 |
Trading Symbol | BDX/26A |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 |
Current Assets: | ||
Cash and equivalents | $ 3,248 | $ 2,825 |
Restricted cash | 199 | 92 |
Short-term investments | 17 | 20 |
Trade receivables, net | 2,370 | 2,398 |
Inventories: | ||
Materials | 651 | 602 |
Work in process | 366 | 335 |
Finished products | 1,798 | 1,806 |
Inventories | 2,814 | 2,743 |
Prepaid expenses and other | 889 | 891 |
Total Current Assets | 9,537 | 8,969 |
Property, Plant and Equipment | 12,273 | 11,919 |
Less allowances for depreciation and amortization | 6,177 | 5,996 |
Property, Plant and Equipment, Net | 6,096 | 5,923 |
Goodwill | 23,758 | 23,620 |
Developed Technology, Net | 9,940 | 10,146 |
Customer Relationships, Net | 3,053 | 3,107 |
Other Intangibles, Net | 564 | 560 |
Other Assets | 1,801 | 1,687 |
Total Assets | 54,748 | 54,012 |
Current Liabilities: | ||
Short-term debt | 1,737 | 707 |
Payables, accrued expenses and other current liabilities | 5,284 | 5,129 |
Total Current Liabilities | 7,021 | 5,836 |
Long-Term Debt | 16,082 | 17,224 |
Long-Term Employee Benefit Obligations | 1,434 | 1,435 |
Deferred Income Taxes and Other Liabilities | 5,549 | 5,753 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock | 2 | 2 |
Common stock | 365 | 365 |
Capital in excess of par value | 19,301 | 19,270 |
Retained earnings | 13,522 | 12,791 |
Deferred compensation | 23 | 23 |
Common stock in treasury - at cost | (6,136) | (6,138) |
Accumulated other comprehensive loss | (2,414) | (2,548) |
Total Shareholders’ Equity | 24,663 | 23,765 |
Total Liabilities and Shareholders’ Equity | $ 54,748 | $ 54,012 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 5,315 | $ 4,225 |
Cost of products sold | 2,583 | 2,247 |
Selling and administrative expense | 1,149 | 1,121 |
Research and development expense | 291 | 270 |
Acquisitions and other restructurings | 50 | 86 |
Total Operating Costs and Expenses | 4,074 | 3,724 |
Operating Income | 1,241 | 501 |
Interest expense | (118) | (136) |
Interest income | 2 | 1 |
Other income, net | 32 | 27 |
Income Before Income Taxes | 1,157 | 394 |
Income tax provision | 154 | 117 |
Net Income | 1,003 | 278 |
Preferred stock dividends | (23) | (38) |
Net income applicable to common shareholders | $ 981 | $ 240 |
Basic Earnings per Share (USD per share) | $ 3.38 | $ 0.88 |
Diluted Earnings per Share (USD per share) | 3.35 | 0.87 |
Dividends per Common Share (USD per share) | $ 0.83 | $ 0.79 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 1,003 | $ 278 |
Other Comprehensive Income, Net of Tax | ||
Foreign currency translation adjustments | 64 | 26 |
Defined benefit pension and postretirement plans | 42 | 17 |
Cash flow hedges | 28 | 39 |
Other Comprehensive Income, Net of Tax | 134 | 82 |
Comprehensive Income | $ 1,138 | $ 359 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | ||
Net income | $ 1,003 | $ 278 |
Adjustments to net income to derive net cash provided by operating activities: | ||
Depreciation and amortization | 555 | 530 |
Share-based compensation | 83 | 82 |
Deferred income taxes | (66) | (71) |
Change in operating assets and liabilities | 24 | 102 |
Pension obligation | 26 | 24 |
Other, net | (91) | (231) |
Net Cash Provided by Operating Activities | 1,533 | 713 |
Investing Activities | ||
Capital expenditures | (246) | (173) |
Payments to Acquire Businesses, Net of Cash Acquired | (67) | 0 |
Other, net | (116) | (114) |
Net Cash Used for Investing Activities | (430) | (287) |
Financing Activities | ||
Change in credit facility borrowings | 0 | 210 |
Payments of debt and term loans | (267) | (303) |
Dividends paid | (264) | (252) |
Other, net | (61) | (68) |
Net Cash Used for Financing Activities | (592) | (413) |
Effect of exchange rate changes on cash and equivalents and restricted cash | 18 | 6 |
Net increase in cash and equivalents and restricted cash | 530 | 18 |
Opening Cash and Equivalents and Restricted Cash | 2,917 | 590 |
Closing Cash and Equivalents and Restricted Cash | $ 3,447 | $ 609 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of the management of Becton, Dickinson and Company (the "Company" or "BD"), include all adjustments which are of a normal recurring nature, necessary for a fair presentation of the financial position and the results of operations and cash flows for the periods presented. However, the financial statements do not include all information and accompanying notes required for a presentation in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2020 Annual Report on Form 10-K. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. |
Accounting Changes
Accounting Changes | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting ChangesNew Accounting Principle AdoptedIn June 2016, the FASB issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s adoption of this accounting standard on October 1, 2020, using the modified retrospective method, did not have a material impact on the Company's condensed consolidated financial statements. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in certain components of shareholders' equity for the first quarters of fiscal years 2021 and 2020 were as follows: Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2020 $ 365 $ 19,270 $ 12,791 $ 23 (74,623) $ (6,138) Net income — — 1,003 — — — Common dividends ($0.83 per share) — — (242) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (53) — — 549 2 Share-based compensation — 83 — — — — Common stock held in trusts, net (a) — — — — (7) — Effect of change in accounting principles (see Note 2) — — (9) — — — Balance at December 31, 2020 $ 365 $ 19,301 $ 13,522 $ 23 (74,080) $ (6,136) Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2019 $ 347 $ 16,270 $ 12,913 $ 23 (76,260) $ (6,190) Net income — — 278 — — — Common dividends ($0.79 per share) — — (215) — — — Preferred dividends — — (38) — — — Common stock issued for share-based compensation and other plans, net — (32) — 1 758 (38) Share-based compensation — 82 — — — — Common stock held in trusts, net (a) — — — — (12) — Balance at December 31, 2019 $ 347 $ 16,320 $ 12,938 $ 24 (75,514) $ (6,228) (a) Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2021 and 2020 were as follows: (Millions of dollars) Total Foreign Currency Benefit Plans Balance at September 30, 2020 $ (2,548) $ (1,416) $ (1,040) $ (91) Other comprehensive income before reclassifications, net of taxes 115 64 24 27 Amounts reclassified into income, net of taxes 19 — 18 2 Balance at December 31, 2020 $ (2,414) $ (1,352) $ (998) $ (62) (Millions of dollars) Total Foreign Currency Benefit Plans Balance at September 30, 2019 $ (2,283) $ (1,256) $ (1,005) $ (23) Other comprehensive income before reclassifications, net of taxes 63 26 — 37 Amounts reclassified into income, net of taxes 19 — 17 2 Balance at December 31, 2019 $ (2,202) $ (1,230) $ (988) $ 16 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) were as follows: Three Months Ended 2020 2019 Average common shares outstanding 290,590 271,102 Dilutive share equivalents from share-based plans 2,522 3,850 Average common and common equivalent shares outstanding – assuming dilution 293,112 274,952 Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive: Mandatory convertible preferred stock 5,995 11,685 |
Contingencies
Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the civil investigative demand (“CID”) served by the Department of Justice, discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. Product Liability Matters The Company believes that certain settlements and judgments, as well as legal defense costs, relating to product liability matters are, or may be, covered in whole or in part under its product liability insurance policies. In some circumstances, the Company is covered under indemnification obligations from other parties, which if disputed, the Company intends to vigorously contest. Amounts recovered under the Company’s product liability insurance policies or indemnification arrangements may be less than the stated coverage limits or less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers or other parties will pay claims or that coverage or indemnity will be otherwise available. Hernia Product Claims As of December 31, 2020, the Company is defending approximately 23,260 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The majority of those claims are currently pending in a coordinated proceeding in Rhode Island State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. From time to time, the Company engages in resolution discussions with plaintiffs’ law firms regarding certain of the Hernia Product Claims, but the Company also intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. In August 2018, a hernia multi-district litigation (“MDL”) was ordered to be established in the Southern District of Ohio. Trials are scheduled throughout fiscal year 2021 in various state and/or federal courts, with the first trial currently scheduled for April 2021 in the Rhode Island State Court. A second trial is scheduled for April 2021 in the MDL. The Company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Women’s Health Product Claims As of December 31, 2020, the Company is defending approximately 465 product liability claims involving the Company’s line of pelvic mesh devices. The majority of those claims are currently pending in various federal court jurisdictions, and a coordinated proceeding in New Jersey State Court, but claims are also pending in other state court jurisdictions. In addition, those claims include putative class actions filed in the United States. Not included in the figures above are approximately 980 filed and unfiled claims that have been asserted or threatened against the Company but lack sufficient information to determine whether a pelvic mesh device of the Company is actually at issue. The claims identified above also include products manufactured by both the Company and two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the Company. Medtronic has an obligation to defend and indemnify the Company with respect to any product defect liability relating to products its subsidiaries had manufactured. In July 2015, the Company reached an agreement with Medtronic in which Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the Company under supply agreements with Medtronic. In June 2017, the Company amended the agreement with Medtronic to transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on terms similar to the July 2015 agreement, including with respect to the obligation to make payments to Medtronic toward these potential settlements. As of December 31, 2020, the Company has paid Medtronic $148 million towards these potential settlements. The Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any. The foregoing lawsuits, unfiled claims, putative class actions, and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as the “Women’s Health Product Claims.” The Women’s Health Product Claims generally seek damages for personal injury allegedly resulting from use of the products. As of December 31, 2020, the Company has reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 15,280 of the Women’s Health Product Claims. The Company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which are not included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The Company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements. Starting in 2014 in the MDL, the court entered certain pre-trial orders requiring trial work up and remand of a significant number of Women’s Health Product Claims, including an order entered in the MDL on January 30, 2018, that requires the work up and remand of all remaining unsettled cases (the “WHP Pre-Trial Orders”). The WHP Pre-Trial Orders may result in material additional costs or trial verdicts in future periods in defending Women’s Health Product Claims. Trials are anticipated throughout 2021 in state and federal courts. A trial in the New Jersey coordinated proceeding began in March 2018, and in April 2018 a jury entered a verdict against the Company in the total amount of $68 million ($33 million compensatory; $35 million punitive). The Company is in the process of appealing that verdict and a hearing before the appellate court was held on January 25, 2021. The Company expects additional trials of Women’s Health Product Claims to take place over the next 12 months, which may potentially include consolidated trials. During the course of engaging in settlement discussions with plaintiffs’ law firms, the Company has learned, and may in future periods learn, additional information regarding these and other unfiled claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. Filter Product Claims As of December 31, 2020, the Company is defending approximately 520 product liability claims involving the Company’s line of inferior vena cava filters (collectively, the “Filter Product Claims”). The majority of those claims were previously pending in an MDL in the United States District Court for the District of Arizona, but those MDL claims either have been, or are in the process of being, remanded to various federal jurisdictions. Filter Product Claims are also pending in various state court jurisdictions, including a coordinated proceeding in Arizona State Court. In addition, those claims include putative class actions filed in the United States and Canada. The Filter Product Claims generally seek damages for personal injury allegedly resulting from use of the products. The Company has limited information regarding the nature and quantity of certain of the Filter Product Claims. The Company continues to receive claims and lawsuits and may in future periods learn additional information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. On May 31, 2019, the MDL Court ceased accepting direct filings or transfers into the Filter Product Claims MDL and, as noted above, remands for non-settled cases have begun and are expected to continue over the next three months. Federal and state court trials are scheduled throughout fiscal year 2021. As of December 31, 2020, the Company entered into settlement agreements and/or settlement agreements in principle for approximately 9,280 cases. On March 30, 2018, a jury in the first MDL trial found the Company liable for negligent failure to warn and entered a verdict in favor of plaintiffs. The jury found the Company was not liable for (a) strict liability design defect; (b) strict liability failure to warn; and (c) negligent design. In August 2020, the Ninth Circuit affirmed that verdict on appeal. On June 1, 2018, a jury in the second MDL trial unanimously found in favor of the Company on all claims. On August 17, 2018, the Court entered summary judgment in favor of the Company on all claims in the third MDL trial. On October 5, 2018, a jury in the fourth MDL trial unanimously found in favor of the Company on all claims. The Company expects additional trials of Filter Product Claims may take place over the next 12 months. In most product liability litigations (like those described above), plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters. In connection with the settlement of a prior litigation with certain of the Company's insurance carriers, an agreement with the Company's insurance carriers was reached to reimburse the Company for certain future costs incurred in connection with Filter Product Claims up to an agreed amount. For certain product liability claims or lawsuits, the Company does not maintain or has limited remaining insurance coverage. Other Legal Matters The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. On February 27, 2020, a putative class action captioned Kabak v. Becton, Dickinson and Company, et al., Civ. No. 2:20-cv-02155 (SRC) (CLW), was filed in the U.S. District Court for the District of New Jersey against the Company and certain of its officers. The complaint, which purports to be brought on behalf of all persons (other than defendants) who purchased or otherwise acquired the Company's common stock from November 5, 2019 through February 5, 2020, asserts claims for purported violations of Sections 10 and 20 of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, and seeks, among other things, damages and costs. The complaint alleges that defendants concealed material information regarding Alaris TM infusion pumps, including that (1) certain pumps exhibited software errors, (2) the Company was investing in remediation efforts as opposed to other enhancements and (3) the Company was thus reasonably likely to recall certain pumps and/or experience regulatory delays. These alleged omissions, the complaint asserts, rendered certain public statements about the Company’s business, operations and prospects false or misleading, causing investors to purchase stock at an inflated price. The plaintiff filed a motion to amend the complaint to add certain additional factual allegations on January 14, 2021. The Company believes the claims are without merit and intends to vigorously defend this action. On November 2, 2020, a civil action captioned Jankowski v. Forlenza, et al., Civ. No. 2:20-cv-15474, was filed in the U.S. District Court for the District of New Jersey by a shareholder, Ronald Jankowski, derivatively on behalf of the Company, against its individual directors and certain of its officers. The complaint seeks recovery for breach of fiduciary duties by directors and various officers; violations of the Securities Exchange Act of 1934; and insider trading. In general, the complaint alleges, among other things, that various directors and/or officers (1) caused the Company to issue purportedly misleading statements and SEC filings regarding Alaris TM infusion pumps (2) issued a misleading proxy statement (3) engaged in improper insider trading and (4) caused or contributed to various violations of the Securities Exchange Act of 1934, including sections 10(b), 14(a) and 21D. The complaint seeks damages, including restitution and disgorgement of profits, and an injunction requiring the Company to undertake remedial measures with respect to certain corporate governance and internal procedures. The Company believes these claims are without merit and intends to vigorously defend this action. Consistent with New Jersey law, this action will be stayed pending a formal response by a special committee of the Board of Directors to the shareholder’s presuit demand for an investigation of his claims. On January 24, 2021, a civil action captioned Schranz v. Polen, et al., Civ. No 2:21-cv-01081, was filed in the U.S. District Court for the District of New Jersey by a shareholder, Jeff Schranz, derivatively on behalf of the Company. The Complaint largely advances claims, and seeks recovery of damages and other relief, similar to those set forth in the Jankowski action. In April 2019, the Department of Justice served the Company and CareFusion with CIDs seeking information regarding certain of CareFusion’s contracts with the Department of Veteran’s Affairs for certain products, including Alaris TM and Pyxis TM devices, in connection with a civil investigation of possible violations of the False Claims Act, and the government recently expanded the investigation to include several additional contracts. The government has made several requests for documents and interviews or depositions of Company personnel. The Company is cooperating with the government and responding to these requests. The Company cannot predict the outcome of these matters, nor can it predict whether any outcome will have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Accordingly, the Company has made no provisions for these other legal matters in its consolidated results of operations. The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to these suits pending against the Company and is engaged in a vigorous defense of each of these matters. Litigation Accruals The Company regularly monitors and evaluates the status of product liability and other legal matters, and may, from time-to-time, engage in settlement and mediation discussions taking into consideration developments in the matters and the risks and uncertainties surrounding litigation. These discussions could result in settlements of one or more of these claims at any time. Accruals for the Company's product liability claims which are discussed above, as well as the related legal defense costs, amounted to approximately $2.4 billion at December 31, 2020 and $2.5 billion at September 30, 2020. These accruals, which are generally long-term in nature, are largely recorded within Deferred Income Taxes and Other Liabilities on the Company's condensed consolidated balance sheets. As of December 31, 2020 and September 30, 2020, the Company had $198 million and $92 million, respectively, in qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain product liability matters. Payments to QSFs are recorded as a component of Restricted cash |
Revenues
Revenues | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues The Company’s policies for recognizing sales have not changed from those described in the Company’s 2020 Annual Report on Form 10-K. The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. Measurement of Revenues The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Effects of Revenue Arrangements on Consolidated Balance Sheets Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's condensed consolidated balance sheets. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's condensed consolidated balance sheets. Contract liabilities for unearned revenue that is allocable to performance obligations, such as extended warranty and software maintenance contracts, which are performed over time are immaterial to the Company's consolidated financial results. The Company's liability for product warranties provided under its agreements with customers is not material to its condensed consolidated balance sheets. Remaining Performance Obligations The Company's obligations relative to service contracts and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing contracts with original expected durations of more than one year, which are attributable to products and/or services that have not yet been installed or provided are estimated to be approximately $1.9 billion at December 31, 2020. The Company expects to recognize the majority of this revenue over the next three years. Within the Company's Medication Management Solutions, Medication Delivery Solutions, Integrated Diagnostic Solutions, and Biosciences units, some contracts also contain minimum purchase commitments of reagents or other consumables and the future sales of these consumables represent additional unsatisfied performance obligations of the Company. The revenue attributable to the unsatisfied minimum purchase commitment-related performance obligations, for contracts with original expected durations of more than one year, is estimated to be approximately $2.6 billion at December 31, 2020. This revenue will be recognized over the customer relationship periods. Disaggregation of Revenues A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 7. |
Segment Data
Segment Data | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data | Segment DataThe Company's organizational structure is based upon three worldwide business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Company's segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon segment operating income, which represents revenues reduced by product costs and operating expenses. Revenues by segment, organizational unit and geographical areas for the three-month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended December 31, (Millions of dollars) 2020 2019 United States International Total United States International Total Medical Medication Delivery Solutions $ 568 $ 440 $ 1,008 $ 520 $ 428 $ 948 Medication Management Solutions 477 152 630 462 113 575 Diabetes Care 150 136 285 139 129 268 Pharmaceutical Systems 79 260 339 84 215 299 Total segment revenues $ 1,274 $ 988 $ 2,261 $ 1,204 $ 886 $ 2,090 Life Sciences Integrated Diagnostic Solutions $ 1,014 $ 653 $ 1,667 $ 386 $ 414 $ 800 Biosciences 120 192 312 152 171 323 Total segment revenues $ 1,134 $ 845 $ 1,979 $ 538 $ 585 $ 1,123 Interventional Surgery $ 262 $ 70 $ 332 $ 256 $ 70 $ 326 Peripheral Intervention 232 193 426 225 170 395 Urology and Critical Care 228 89 317 206 85 291 Total segment revenues $ 722 $ 353 $ 1,075 $ 688 $ 325 $ 1,012 Total Company revenues $ 3,130 $ 2,186 $ 5,315 $ 2,430 $ 1,795 $ 4,225 Segment income for the three-month periods was as follows: Three Months Ended (Millions of dollars) 2020 2019 Income Before Income Taxes Medical (a) $ 666 $ 564 Life Sciences 972 361 Interventional 302 243 Total Segment Operating Income 1,940 1,167 Acquisitions and other restructurings (50) (86) Net interest expense (116) (134) Other unallocated items (b) (616) (553) Total Income Before Income Taxes $ 1,157 $ 394 (a) The amount for the three months ended December 31, 2019 included a $59 million charge recorded to Cost of products sold , related to the estimate of costs associated with remediation efforts for Alaris TM infusion pumps in the Medication Management Solutions unit. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and certain international locations. The measurement date used for these plans is September 30. Net pension cost included the following components for the three-month periods: Three Months Ended (Millions of dollars) 2020 2019 Service cost $ 43 $ 40 Interest cost 20 22 Expected return on plan assets (48) (49) Amortization of prior service credit (4) (3) Amortization of loss 27 25 Net pension cost $ 38 $ 35 The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods. All components of the Company’s net periodic pension cost, aside from service cost, are recorded to Other income, net on its condensed consolidated statements of income. |
Business Restructuring Charges
Business Restructuring Charges | 3 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring Charges | Business Restructuring Charges The Company incurred restructuring costs during the three months ended December 31, 2020, primarily in connection with the Company's simplification and other cost saving initiatives, which were largely recorded within Acquisitions and other restructurings . Restructuring liability activity for the three months ended December 31, 2020 was as follows: (Millions of dollars) Employee Other Total Bard Other Initiatives Bard Other Initiatives Bard Other Initiatives Balance at September 30, 2020 $ 15 $ 17 $ 1 $ 3 $ 16 $ 20 Charged to expense — 6 1 10 1 16 Cash payments (2) (10) (2) (10) (4) (20) Balance at December 31, 2020 $ 13 $ 13 $ — $ 3 $ 13 $ 16 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of: December 31, 2020 September 30, 2020 (Millions of dollars) Gross Accumulated Gross Accumulated Amortized intangible assets Developed technology $ 14,164 $ 4,223 $ 14,105 $ 3,959 Customer relationships 4,645 1,592 4,616 1,509 Product rights 128 80 119 73 Trademarks 408 125 408 120 Patents and other 515 329 500 320 Amortized intangible assets $ 19,860 $ 6,349 $ 19,748 $ 5,981 Unamortized intangible assets Acquired in-process research and development $ 44 $ 44 Trademarks 2 2 Unamortized intangible assets $ 46 $ 46 Intangible amortization expense for the three months ended December 31, 2020 and 2019 was $348 million and $345 million, respectively. The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Life Sciences Interventional Total Goodwill as of September 30, 2020 $ 10,044 $ 837 $ 12,739 $ 23,620 Acquisitions (a) 50 — — 50 Purchase price allocation adjustments — — 1 1 Currency translation 41 4 42 87 Goodwill as of December 31, 2020 $ 10,135 $ 841 $ 12,782 $ 23,758 (a) Represents goodwill recognized relative to certain acquisitions which were not material individually or in the aggregate. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below. Foreign Currency Risks and Related Strategies The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts. In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has hedged the currency risk associated with those investments with instruments, such as foreign currency-denominated debt, cross-currency swaps and currency exchange contracts, which are designated as net investment hedges. Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. As such, the gains or losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. The net amounts recognized in Other income, net , during the three months ended December 31, 2020 and 2019 were immaterial to the Company's consolidated financial results. The total notional amounts of the Company’s outstanding foreign exchange contracts as of December 31, 2020 and September 30, 2020 were $1.5 billion and $2.5 billion, respectively. Certain of the Company's foreign currency-denominated long-term notes outstanding, which had a total carrying value of $1.6 billion and $1.5 billion as of December 31, 2020 and September 30, 2020, respectively, were designated as, and were effective as, economic hedges of net investments in certain of the Company's foreign subsidiaries. The Company has entered into cross-currency swaps, all of which are designated and effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. The notional amount of the cross-currency swaps was $3.0 billion as of December 31, 2020 and September 30, 2020. Net gains or losses relating to the net investment hedges, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as accumulated foreign currency translation in Other comprehensive income (loss) . Upon the termination of a net investment hedge, any net gain or loss included in Accumulated other comprehensive income (loss) relative to the investment hedge remains until the foreign subsidiary investment is disposed of or is substantially liquidated. Net losses recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows: Three Months Ended (Millions of dollars) 2020 2019 Foreign currency-denominated debt $ (56) $ (34) Cross-currency swaps $ (124) $ (52) Interest Rate Risks and Related Strategies The Company’s policy is to manage interest rate exposure using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $375 million at December 31, 2020 and September 30, 2020. The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The amounts recorded during the three months ended December 31, 2020 and 2019 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss) . If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings over the remaining life of the hedged debt. The net realized loss related to terminated interest rate swaps expected to be reclassified and recorded in Interest expense within the next 12 months is $5 million, net of tax. The total notional amount of the Company's outstanding forward starting interest rate swaps was $1.5 billion at December 31, 2020 and September 30, 2020. The Company entered into these contracts to mitigate its exposure to interest rate risk. The Company recorded after-tax gains of $27 million and $37 million in Other comprehensive income relating to these interest rate hedges during the three months ended December 31, 2020 and 2019, respectively. Financial Statement Effects The fair values of derivative instruments outstanding at December 31, 2020 and September 30, 2020 were not material to the Company's consolidated balance sheets. The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during the three months ended December 31, 2020 and 2019 were not material to the Company's consolidated financial results. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at December 31, 2020 and September 30, 2020 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) December 31, 2020 September 30, 2020 Cash and equivalents $ 3,248 $ 2,825 Restricted cash 199 92 Cash and equivalents and restricted cash $ 3,447 $ 2,917 Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. The Company’s cash and equivalents include institutional money market accounts, which permit daily redemption, and an ultra-short bond fund. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. The fair values of these accounts were $1.1 billion and $1.5 billion at December 31, 2020 and September 30, 2020, respectively. The Company’s remaining cash and equivalents, excluding restricted cash, were $2.2 billion and $1.3 billion at December 31, 2020 and September 30, 2020, respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year. Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $18.2 billion and $19.0 billion at December 31, 2020 and September 30, 2020, respectively. The fair value of the current portion of long-term debt was $1.752 billion and $702 million at December 31, 2020 and September 30, 2020, respectively. All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets. Nonrecurring Fair Value Measurements In the first quarter of fiscal year 2021, the Company recorded charges to Cost of products sold of $34 million to write down the carrying value of certain fixed assets. The amounts recognized were recorded to adjust the carrying amount of assets to the assets' fair values, which were estimated, based upon a market participant's perspective, using Level 3 inputs, including values estimated using the income approach. Transfers of trade receivables Over the normal course of its business activities, the Company transfers certain trade receivable assets to third parties under factoring agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer. Accordingly, the Company accounts for the transfers as sales of trade receivables by recognizing an increase to Cash and equivalents and a decrease to Trade receivables, net when proceeds from the transactions are received. During the three months ended December 31, 2020 and 2019, the Company transferred $492 million and $816 million, respectively, of its trade receivables to third parties under factoring arrangements. The Company’s balance of Trade receivables, net |
Debt
Debt | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt In December 2020, the Company redeemed $265 million of the aggregate principal outstanding on the 2.894% notes due June 6, 2022, as well as accrued interest, related premiums, fees and expenses related to these redeemed amounts. Based upon the aggregate $265 million carrying value of the notes redeemed and the $275 million the Company paid to redeem the aggregate principal amount of the notes, the Company recorded a loss on this debt extinguishment transaction in the first quarter of fiscal year 2021 of $10 million within Other income, net , on its condensed consolidated statements of income. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principles Adopted | New Accounting Principle AdoptedIn June 2016, the FASB issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s adoption of this accounting standard on October 1, 2020, using the modified retrospective method, did not have a material impact on the Company's condensed consolidated financial statements. |
Commitments and Contingencies | Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the civil investigative demand (“CID”) served by the Department of Justice, discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. |
Revenue | Measurement of Revenues The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. |
Derivatives | The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below.Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. The Company’s policy is to manage interest rate exposure using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $375 million at December 31, 2020 and September 30, 2020. The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The amounts recorded during the three months ended December 31, 2020 and 2019 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss) . If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) |
Fair Value of Financial Instruments | The Company’s cash and equivalents include institutional money market accounts, which permit daily redemption, and an ultra-short bond fund. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. The fair values of these accounts were $1.1 billion and $1.5 billion at December 31, 2020 and September 30, 2020, respectively. The Company’s remaining cash and equivalents, excluding restricted cash, were $2.2 billion and $1.3 billion at December 31, 2020 and September 30, 2020, respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year. Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $18.2 billion and $19.0 billion at December 31, 2020 and September 30, 2020, respectively. The fair value of the current portion of long-term debt was $1.752 billion and $702 million at December 31, 2020 and September 30, 2020, respectively. All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders Equity | Changes in certain components of shareholders' equity for the first quarters of fiscal years 2021 and 2020 were as follows: Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2020 $ 365 $ 19,270 $ 12,791 $ 23 (74,623) $ (6,138) Net income — — 1,003 — — — Common dividends ($0.83 per share) — — (242) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (53) — — 549 2 Share-based compensation — 83 — — — — Common stock held in trusts, net (a) — — — — (7) — Effect of change in accounting principles (see Note 2) — — (9) — — — Balance at December 31, 2020 $ 365 $ 19,301 $ 13,522 $ 23 (74,080) $ (6,136) Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2019 $ 347 $ 16,270 $ 12,913 $ 23 (76,260) $ (6,190) Net income — — 278 — — — Common dividends ($0.79 per share) — — (215) — — — Preferred dividends — — (38) — — — Common stock issued for share-based compensation and other plans, net — (32) — 1 758 (38) Share-based compensation — 82 — — — — Common stock held in trusts, net (a) — — — — (12) — Balance at December 31, 2019 $ 347 $ 16,320 $ 12,938 $ 24 (75,514) $ (6,228) (a) Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2021 and 2020 were as follows: (Millions of dollars) Total Foreign Currency Benefit Plans Balance at September 30, 2020 $ (2,548) $ (1,416) $ (1,040) $ (91) Other comprehensive income before reclassifications, net of taxes 115 64 24 27 Amounts reclassified into income, net of taxes 19 — 18 2 Balance at December 31, 2020 $ (2,414) $ (1,352) $ (998) $ (62) (Millions of dollars) Total Foreign Currency Benefit Plans Balance at September 30, 2019 $ (2,283) $ (1,256) $ (1,005) $ (23) Other comprehensive income before reclassifications, net of taxes 63 26 — 37 Amounts reclassified into income, net of taxes 19 — 17 2 Balance at December 31, 2019 $ (2,202) $ (1,230) $ (988) $ 16 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share | The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) were as follows: Three Months Ended 2020 2019 Average common shares outstanding 290,590 271,102 Dilutive share equivalents from share-based plans 2,522 3,850 Average common and common equivalent shares outstanding – assuming dilution 293,112 274,952 Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive: Mandatory convertible preferred stock 5,995 11,685 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Area | Revenues by segment, organizational unit and geographical areas for the three-month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended December 31, (Millions of dollars) 2020 2019 United States International Total United States International Total Medical Medication Delivery Solutions $ 568 $ 440 $ 1,008 $ 520 $ 428 $ 948 Medication Management Solutions 477 152 630 462 113 575 Diabetes Care 150 136 285 139 129 268 Pharmaceutical Systems 79 260 339 84 215 299 Total segment revenues $ 1,274 $ 988 $ 2,261 $ 1,204 $ 886 $ 2,090 Life Sciences Integrated Diagnostic Solutions $ 1,014 $ 653 $ 1,667 $ 386 $ 414 $ 800 Biosciences 120 192 312 152 171 323 Total segment revenues $ 1,134 $ 845 $ 1,979 $ 538 $ 585 $ 1,123 Interventional Surgery $ 262 $ 70 $ 332 $ 256 $ 70 $ 326 Peripheral Intervention 232 193 426 225 170 395 Urology and Critical Care 228 89 317 206 85 291 Total segment revenues $ 722 $ 353 $ 1,075 $ 688 $ 325 $ 1,012 Total Company revenues $ 3,130 $ 2,186 $ 5,315 $ 2,430 $ 1,795 $ 4,225 |
Financial Information for Company's Segments | Segment income for the three-month periods was as follows: Three Months Ended (Millions of dollars) 2020 2019 Income Before Income Taxes Medical (a) $ 666 $ 564 Life Sciences 972 361 Interventional 302 243 Total Segment Operating Income 1,940 1,167 Acquisitions and other restructurings (50) (86) Net interest expense (116) (134) Other unallocated items (b) (616) (553) Total Income Before Income Taxes $ 1,157 $ 394 (a) The amount for the three months ended December 31, 2019 included a $59 million charge recorded to Cost of products sold , related to the estimate of costs associated with remediation efforts for Alaris TM infusion pumps in the Medication Management Solutions unit. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Net Pension and Postretirement Cost | Net pension cost included the following components for the three-month periods: Three Months Ended (Millions of dollars) 2020 2019 Service cost $ 43 $ 40 Interest cost 20 22 Expected return on plan assets (48) (49) Amortization of prior service credit (4) (3) Amortization of loss 27 25 Net pension cost $ 38 $ 35 |
Business Restructuring Charges
Business Restructuring Charges (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Accrual Activity | Restructuring liability activity for the three months ended December 31, 2020 was as follows: (Millions of dollars) Employee Other Total Bard Other Initiatives Bard Other Initiatives Bard Other Initiatives Balance at September 30, 2020 $ 15 $ 17 $ 1 $ 3 $ 16 $ 20 Charged to expense — 6 1 10 1 16 Cash payments (2) (10) (2) (10) (4) (20) Balance at December 31, 2020 $ 13 $ 13 $ — $ 3 $ 13 $ 16 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets consisted of: December 31, 2020 September 30, 2020 (Millions of dollars) Gross Accumulated Gross Accumulated Amortized intangible assets Developed technology $ 14,164 $ 4,223 $ 14,105 $ 3,959 Customer relationships 4,645 1,592 4,616 1,509 Product rights 128 80 119 73 Trademarks 408 125 408 120 Patents and other 515 329 500 320 Amortized intangible assets $ 19,860 $ 6,349 $ 19,748 $ 5,981 Unamortized intangible assets Acquired in-process research and development $ 44 $ 44 Trademarks 2 2 Unamortized intangible assets $ 46 $ 46 |
Reconciliation of Goodwill by Business Segment | The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Life Sciences Interventional Total Goodwill as of September 30, 2020 $ 10,044 $ 837 $ 12,739 $ 23,620 Acquisitions (a) 50 — — 50 Purchase price allocation adjustments — — 1 1 Currency translation 41 4 42 87 Goodwill as of December 31, 2020 $ 10,135 $ 841 $ 12,782 $ 23,758 (a) Represents goodwill recognized relative to certain acquisitions which were not material individually or in the aggregate. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Net losses recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows: Three Months Ended (Millions of dollars) 2020 2019 Foreign currency-denominated debt $ (56) $ (34) Cross-currency swaps $ (124) $ (52) |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at December 31, 2020 and September 30, 2020 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) December 31, 2020 September 30, 2020 Cash and equivalents $ 3,248 $ 2,825 Restricted cash 199 92 Cash and equivalents and restricted cash $ 3,447 $ 2,917 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Certain Components of Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | $ 23,765 | |
Net income | 1,003 | $ 278 |
Ending balance | $ 24,663 | |
Dividends per Common Share (USD per share) | $ 0.83 | $ 0.79 |
Common Stock Issued at Par Value | ||
Beginning balance | $ 365 | $ 347 |
Ending balance | 365 | 347 |
Capital in Excess of Par Value | ||
Beginning balance | 19,270 | 16,270 |
Common stock issued for share-based compensation and other plans, net | (53) | (32) |
Share-based compensation | 83 | 82 |
Ending balance | 19,301 | 16,320 |
Retained Earnings | ||
Beginning balance | 12,791 | 12,913 |
Net income | 1,003 | 278 |
Common dividends | (242) | (215) |
Preferred dividends | (23) | (38) |
Ending balance | 13,522 | 12,938 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||
Stockholders' Equity, Other | (9) | |
Deferred Compensation | ||
Beginning balance | 23 | 23 |
Common stock issued for share-based compensation and other plans, net | 0 | 1 |
Ending balance | 23 | 24 |
Treasury Stock | ||
Beginning balance | $ (6,138) | $ (6,190) |
Beginning balance (shares) | (74,623) | (76,260) |
Common stock issued for share-based compensation and other plans, net | $ 2 | $ (38) |
Common stock issued for share-based compensation and other plans, net (in shares) | 549 | 758 |
Common stock held in trusts, net (in shares) | (7) | (12) |
Ending balance | $ (6,136) | $ (6,228) |
Ending balance (shares) | (74,080) | (75,514) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) - Components and Changes of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | $ (2,548) | $ (2,283) |
Other comprehensive income before reclassifications, net of taxes | 115 | 63 |
Amounts reclassified into income, net of taxes | 19 | 19 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (2,414) | (2,202) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (1,416) | (1,256) |
Other comprehensive income before reclassifications, net of taxes | 64 | 26 |
Amounts reclassified into income, net of taxes | 0 | 0 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (1,352) | (1,230) |
Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (1,040) | (1,005) |
Other comprehensive income before reclassifications, net of taxes | 24 | 0 |
Amounts reclassified into income, net of taxes | 18 | 17 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (998) | (988) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (91) | (23) |
Other comprehensive income before reclassifications, net of taxes | 27 | 37 |
Amounts reclassified into income, net of taxes | 2 | 2 |
Accumulated other comprehensive income (loss), net of tax, ending balance | $ (62) | $ 16 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Average common shares outstanding (shares) | 290,590 | 271,102 |
Dilutive share equivalents from share-based plans (shares) | 2,522 | 3,850 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 293,112 | 274,952 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded (in shares) | 5,995 | 11,685 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Loss contingency accrual | $ 2,400 | $ 2,500 | |
Qualified settlement funds | 198 | 92 | |
Loss contingency, receivable | $ 111 | $ 139 | |
Hernia Product Claims | |||
Loss Contingencies [Line Items] | |||
Pending claims | 23,260 | ||
Womens Health Product Claims | |||
Loss Contingencies [Line Items] | |||
Pending claims | 465 | ||
Claims lacking sufficient information | 980 | ||
PaymentstoSupplier | $ 148 | ||
Number of claims in settlement agreement | 15,280 | ||
Damages awarded | $ 68 | ||
Womens Health Product Claims | Compensatory | |||
Loss Contingencies [Line Items] | |||
Damages awarded | 33 | ||
Womens Health Product Claims | Punitive | |||
Loss Contingencies [Line Items] | |||
Damages awarded | $ 35 | ||
Filter Product Claims | |||
Loss Contingencies [Line Items] | |||
Pending claims | 520 | ||
Loss Contingency, Claims Settled, Number | 9,280 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 $ in Billions | Dec. 31, 2020USD ($) |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 3 years |
Products and/or Services | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1.9 |
Consumables | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2.6 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of principal business segments (segment) | 3 |
Segment Data - Revenues by Geog
Segment Data - Revenues by Geographic Areas (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 5,315 | $ 4,225 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,261 | 2,090 |
Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,979 | 1,123 |
Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,075 | 1,012 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,130 | 2,430 |
United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,274 | 1,204 |
United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,134 | 538 |
United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 722 | 688 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,186 | 1,795 |
International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 988 | 886 |
International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 845 | 585 |
International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 353 | 325 |
Medication Delivery Solutions | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,008 | 948 |
Medication Delivery Solutions | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 568 | 520 |
Medication Delivery Solutions | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 440 | 428 |
Medication Management Solutions | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 630 | 575 |
Medication Management Solutions | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 477 | 462 |
Medication Management Solutions | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 152 | 113 |
Diabetes Care | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 285 | 268 |
Diabetes Care | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 150 | 139 |
Diabetes Care | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 136 | 129 |
Pharmaceutical Systems | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 339 | 299 |
Pharmaceutical Systems | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 79 | 84 |
Pharmaceutical Systems | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 260 | 215 |
Integrated Diagnostic Solutions | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,667 | 800 |
Integrated Diagnostic Solutions | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,014 | 386 |
Integrated Diagnostic Solutions | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 653 | 414 |
Biosciences | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 312 | 323 |
Biosciences | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 120 | 152 |
Biosciences | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 192 | 171 |
Surgery | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 332 | 326 |
Surgery | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 262 | 256 |
Surgery | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 70 | 70 |
Peripheral Intervention | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 426 | 395 |
Peripheral Intervention | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 232 | 225 |
Peripheral Intervention | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 193 | 170 |
Urology and Critical Care | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 317 | 291 |
Urology and Critical Care | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 228 | 206 |
Urology and Critical Care | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 89 | $ 85 |
Segment Data - Financial Inform
Segment Data - Financial Information for Company's Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | $ 1,157 | $ 394 |
Acquisitions and other restructurings | (50) | (86) |
Inventory Recall Expense | 59 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 1,940 | 1,167 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 666 | 564 |
Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 972 | 361 |
Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 302 | 243 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Acquisitions and other restructurings | (50) | (86) |
Net interest expense | (116) | (134) |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | $ (616) | $ (553) |
Benefit Plans - Net Pension and
Benefit Plans - Net Pension and Postretirement Cost (Detail) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 43 | $ 40 |
Interest cost | 20 | 22 |
Expected return on plan assets | (48) | (49) |
Amortization of prior service credit | (4) | (3) |
Amortization of loss | 27 | 25 |
Net pension cost | $ 38 | $ 35 |
Business Restructuring Charge_2
Business Restructuring Charges - Summary of Restructuring Accrual Activity (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
CR Bard Inc | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | $ 16 |
Charged to expense | 1 |
Cash payments | (4) |
Balance at December 31, 2020 | 13 |
CR Bard Inc | Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | 15 |
Charged to expense | 0 |
Cash payments | (2) |
Balance at December 31, 2020 | 13 |
CR Bard Inc | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | 1 |
Charged to expense | 1 |
Cash payments | (2) |
Balance at December 31, 2020 | 0 |
Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | 20 |
Charged to expense | 16 |
Cash payments | (20) |
Balance at December 31, 2020 | 16 |
Other Initiatives | Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | 17 |
Charged to expense | 6 |
Cash payments | (10) |
Balance at December 31, 2020 | 13 |
Other Initiatives | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2020 | 3 |
Charged to expense | 10 |
Cash payments | (10) |
Balance at December 31, 2020 | $ 3 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 19,860 | $ 19,748 |
Accumulated Amortization | 6,349 | 5,981 |
Unamortized intangible assets | 46 | 46 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 2 | 2 |
Acquired in-process research and development | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 44 | 44 |
Developed technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,164 | 14,105 |
Accumulated Amortization | 4,223 | 3,959 |
Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,645 | 4,616 |
Accumulated Amortization | 1,592 | 1,509 |
Product rights | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 128 | 119 |
Accumulated Amortization | 80 | 73 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 408 | 408 |
Accumulated Amortization | 125 | 120 |
Patents and other | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 515 | 500 |
Accumulated Amortization | $ 329 | $ 320 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 348 | $ 345 |
Intangible Assets - Reconciliat
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2020 | $ 23,620 |
Goodwill, Acquired During Period | 50 |
Goodwill, Purchase Accounting Adjustments | 1 |
Currency translation | 87 |
Goodwill as of December 31, 2020 | 23,758 |
Medical | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2020 | 10,044 |
Goodwill, Acquired During Period | 50 |
Goodwill, Purchase Accounting Adjustments | 0 |
Currency translation | 41 |
Goodwill as of December 31, 2020 | 10,135 |
Life Sciences | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2020 | 837 |
Goodwill, Acquired During Period | 0 |
Goodwill, Purchase Accounting Adjustments | 0 |
Currency translation | 4 |
Goodwill as of December 31, 2020 | 841 |
Interventional | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2020 | 12,739 |
Goodwill, Acquired During Period | 0 |
Goodwill, Purchase Accounting Adjustments | 1 |
Currency translation | 42 |
Goodwill as of December 31, 2020 | $ 12,782 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification of terminated interest rate swaps to interest expense within the next 12 months | $ (5) | ||
Cash flow hedges | 28 | $ 39 | |
Debt | Net Investment Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 1,600 | $ 1,500 | |
Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 1,500 | 2,500 | |
Currency Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 3,000 | 3,000 | |
Fixed to Floating | Fair Value Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 375 | 375 | |
Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 1,500 | $ 1,500 | |
Cash flow hedges | $ 27 | $ 37 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Disclosure - Gains (Losses) on Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency-Denominated Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (56) | $ (34) |
Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (124) | $ (52) |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||||
Cash and equivalents | $ 3,248 | $ 2,825 | ||
Restricted cash | 199 | 92 | ||
Cash and equivalents and restricted cash | $ 3,447 | $ 2,917 | $ 609 | $ 590 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, fair value | $ 1,100 | $ 1,500 | |
Remaining cash equivalents | 2,200 | 1,300 | |
Fair value of long-term debt | 18,200 | 19,000 | |
Fair value of debt reclassified from long term to short term | 1,752 | 702 | |
Transfers of financial assets during the period. | 492 | $ 816 | |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 284 | $ 256 | |
Asset Impairment Charges | $ 34 | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Maturity period of short-term investments at the time of purchase | 3 months | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Maturity period of short-term investments at the time of purchase | 1 year |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Excluding Current Maturities | $ 16,082 | $ 17,224 |
Notes 2.894% due June 6, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Repurchased Face Amount | $ 265 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.894% | |
Long-term Debt, Excluding Current Maturities | $ 265 | |
Debt Instrument, Repurchase Amount | 275 | |
Extinguishment of Debt, Gain (Loss), Net of Tax | $ (10) |