Cover Page
Cover Page | 9 Months Ended |
Jun. 30, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
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 | 2022 |
Document Fiscal Period Focus | Q3 |
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 | 285,195,112 |
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 | 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 | 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 0.632% 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 |
Notes 1.213% Notes due February 12, 2036 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.213% Notes due February 12, 2036 |
Trading Symbol | BDX/36 |
Security Exchange Name | NYSE |
Notes 0.000% due August 13, 2023 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.000% Notes due August 13, 2023 |
Trading Symbol | BDX23B |
Security Exchange Name | NYSE |
Notes 0.034% due August 13, 2025 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.034% Notes due August 13, 2025 |
Trading Symbol | BDX25A |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,641 | $ 4,607 | $ 14,109 | $ 14,282 |
Cost of products sold | 2,574 | 2,649 | 7,709 | 7,738 |
Selling and administrative expense | 1,149 | 1,200 | 3,527 | 3,434 |
Research and development expense | 315 | 330 | 956 | 911 |
Acquisition-related integration and restructuring expense | 55 | 24 | 118 | 121 |
Other operating expense (income), net | 11 | (88) | 7 | 208 |
Total Operating Costs and Expenses | 4,104 | 4,114 | 12,316 | 12,412 |
Operating Income | 537 | 492 | 1,793 | 1,870 |
Interest expense | (99) | (115) | (294) | (358) |
Interest income | 5 | 2 | 9 | 7 |
Other (expense) income, net | (21) | (1) | (45) | 22 |
Income from Continuing Operations Before Income Taxes | 421 | 378 | 1,463 | 1,541 |
Income tax provision (benefit) | 31 | (28) | 115 | 92 |
Net Income from Continuing Operations | 390 | 407 | 1,348 | 1,450 |
(Loss) Income from Discontinued Operations, Net of Tax | (30) | 118 | 144 | 378 |
Net Income | 360 | 525 | 1,491 | 1,827 |
Preferred stock dividends | (23) | (23) | (68) | (68) |
Net income applicable to common shareholders | $ 338 | $ 502 | $ 1,424 | $ 1,760 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.29 | $ 1.33 | $ 4.49 | $ 4.76 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | (0.10) | 0.41 | 0.50 | 1.30 |
Basic Earnings per Share (USD per share) | 1.18 | 1.73 | 4.99 | 6.06 |
Income (Loss) from Continuing Operations, Per Diluted Share | 1.28 | 1.32 | 4.45 | 4.72 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | (0.10) | 0.40 | 0.50 | 1.29 |
Diluted Earnings per Share (USD per share) | 1.18 | 1.72 | 4.95 | 6 |
Dividends per Common Share (USD per share) | $ 0.87 | $ 0.83 | $ 2.61 | $ 2.49 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 360 | $ 525 | $ 1,491 | $ 1,827 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Foreign currency translation adjustments | 203 | 19 | 322 | 68 |
Defined benefit pension and postretirement plans | 11 | 14 | 32 | 72 |
Cash flow hedges | 37 | (34) | 74 | 78 |
Other Comprehensive Income (Loss), Net of Tax | 250 | (1) | 428 | 218 |
Comprehensive Income | $ 610 | $ 524 | $ 1,919 | $ 2,045 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Current Assets: | ||
Cash and equivalents | $ 2,558 | $ 2,283 |
Restricted cash | 202 | 109 |
Short-term investments | 14 | 12 |
Trade receivables, net | 2,218 | 2,350 |
Inventories: | ||
Materials | 726 | 628 |
Work in process | 407 | 381 |
Finished products | 2,030 | 1,734 |
Inventories | 3,163 | 2,743 |
Prepaid expenses and other | 1,392 | 1,048 |
Current assets of discontinued operations | 0 | 293 |
Total Current Assets | 9,547 | 8,838 |
Property, Plant and Equipment | 12,405 | 12,093 |
Less allowances for depreciation and amortization | 6,399 | 6,090 |
Property, Plant and Equipment, Net | 6,005 | 6,003 |
Goodwill | 23,968 | 23,886 |
Developed Technology, Net | 8,764 | 9,417 |
Customer Relationships, Net | 2,592 | 2,815 |
Other Intangibles, Net | 531 | 541 |
Other Assets | 1,793 | 1,945 |
Noncurrent Assets of Discontinued Operations | 0 | 423 |
Total Assets | 53,199 | 53,866 |
Current Liabilities: | ||
Current debt obligations | 1,682 | 500 |
Payables, accrued expenses and other current liabilities | 5,398 | 5,969 |
Current liabilities of discontinued operations | 0 | 157 |
Total Current Liabilities | 7,080 | 6,626 |
Long-Term Debt | 14,683 | 17,110 |
Long-Term Employee Benefit Obligations | 1,009 | 1,228 |
Deferred Income Taxes and Other Liabilities | 4,934 | 5,209 |
Noncurrent Liabilities of Discontinued Operations | 0 | 17 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock | 2 | 2 |
Common stock | 365 | 365 |
Capital in excess of par value | 19,511 | 19,272 |
Retained earnings | 15,088 | 13,826 |
Deferred compensation | 24 | 23 |
Treasury stock | (7,836) | (7,723) |
Accumulated other comprehensive loss | (1,660) | (2,088) |
Total Shareholders’ Equity | 25,493 | 23,677 |
Total Liabilities and Shareholders’ Equity | $ 53,199 | $ 53,866 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income | $ 1,491 | $ 1,827 |
(Loss) Income from Discontinued Operations, Net of Tax | 144 | 378 |
Net Income from Continuing Operations | 1,348 | 1,450 |
Adjustments to net income from continuing operations to derive net cash provided by continuing operating activities: | ||
Depreciation and amortization | 1,648 | 1,648 |
Share-based compensation | 184 | 182 |
Deferred income taxes | (99) | (95) |
Change in operating assets and liabilities | (1,445) | 173 |
Pension obligation | (126) | 52 |
Product liability-related charge | 0 | 296 |
Other, net | (11) | (421) |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | 1,498 | 3,285 |
Investing Activities | ||
Capital expenditures | (658) | (742) |
Acquisitions, net of cash acquired | (450) | (283) |
Other, net | (107) | (137) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations, Total | (1,215) | (1,162) |
Financing Activities | ||
Proceeds from long-term debt | 0 | 1,715 |
Proceeds From Spinoff Transaction | 1,266 | 0 |
Net transfer of cash to Embecta upon spin-off | (265) | 0 |
Payments of debt | (305) | (1,999) |
Repurchases of common stock | 0 | (1,000) |
Dividends paid | (812) | (789) |
Other, net | (70) | (91) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total | (187) | (2,164) |
Net cash provided by operating activities | 163 | 411 |
Net cash used for investing activities | (11) | (24) |
Net cash provided by financing activities | 145 | 0 |
Net Cash Provided by Discontinued Operations | 298 | 387 |
Effect of exchange rate changes on cash and equivalents and restricted cash | (26) | 18 |
Net increase in cash and equivalents and restricted cash | 368 | 365 |
Opening Cash and Equivalents and Restricted Cash | 2,392 | 2,917 |
Closing Cash and Equivalents and Restricted Cash | $ 2,759 | $ 3,282 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The 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 2021 Annual Report on Form 10-K. On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company and the historical results of the Diabetes Care business that was contributed in the spin-off have been reflected as discontinued operations in the Company’s condensed consolidated financial statements for all periods prior to the spin-off date. Additional disclosures regarding the spin-off are provided in Note 2. 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. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 9 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Spin-Off of Embecta Corp. On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company named Embecta Corp. (“Embecta”) through a distribution of Embecta’s publicly traded common stock (listed on NASDAQ under the ticker symbol “EMBC”) to BD’s shareholders of record as of the close of business on March 22, 2022 (the “record date”). The Company distributed one share of Embecta common stock for every five common shares of BD outstanding as of the record date and shareholders received cash in lieu of fractional shares of Embecta common stock. BD retained no ownership interest in Embecta subsequent to the spin-off. The distribution is expected to qualify and has been treated as tax-free to the Company and its shareholders for U.S. federal income tax purposes. Embecta’s distributions on March 31, 2022 to the Company in connection with the spin-off included the issuance of $200 million of senior unsecured notes to the Company and a cash distribution of approximately $1.266 billion. Additional disclosures regarding the various financing transactions entered into by Embecta and related to the spin-off are provided in Note 13. The Company and Embecta entered into various agreements to effect the spin-off and provide a framework for the relationship between the Company and Embecta after the spin-off. Such agreements include the separation and distribution agreement, as well as the following ongoing agreements: a cannula supply agreement, an intellectual property matters agreement, a transition services agreement, manufacturing and supply agreements, a lease agreement, a distribution agreement to support commercial operations, a logistics services agreement and other agreements including an employee matters agreement and a tax matters agreement. Under these agreements, the Company will continue to provide certain products and services to Embecta following the spin-off. The agreements do not provide the Company with the ability to influence the operating or financial policies of Embecta subsequent to the spin-off date. Amounts included in the Company’s condensed consolidated statements of income during the three months ended June 30, 2022 as a result of these agreements were immaterial. The historical results of the Diabetes Care business (previously included in BD’s Medical segment) that was contributed to Embecta in the spin-off, as well as interest expense related to indebtedness incurred by Embecta prior to the spin-off date, have been reflected as discontinued operations in the Company’s condensed consolidated financial statements for all periods prior to the spin-off date of April 1, 2022. Details of Income from Discontinued Operations, Net of Tax are as follows: Three Months Ended Nine Months Ended Millions of dollars 2021 2022 2021 Revenues $ 284 $ 538 $ 831 Cost of products sold 80 143 235 Selling and administrative expense 37 78 101 Research and development expense 15 32 41 Acquisition-related integration and restructuring expense — — 6 Other operating expense, net 16 95 16 Total Operating Costs and Expenses 148 348 398 Operating Income 136 190 434 Interest expense — (4) — Other income, net — — 2 Income from Discontinued Operations Before Income Taxes 136 186 435 Income tax provision 18 42 57 Income from Discontinued Operations, Net of Tax $ 118 $ 144 $ 378 During the three months ended June 30, 2022, the Company incurred $30 million of expense which included costs to execute the spin-off and other costs for related residual activities. These costs are recorded within (Loss) Income from Discontinued Operations, Net of Tax for the three and nine months ended June 30, 2022. Separation costs incurred by the Company prior to the spin-off date, including those for consulting, legal, tax and other advisory services associated with the spin-off, were previously recorded within Other operating expense (income), net and are now included as a component of (Loss) Income from Discontinued Operations, Net of Tax. The Company’s Revenues and Cost of products sold from continuing operations were recast to reflect previously eliminated intercompany transactions that occurred between BD and Embecta and that resulted in a third-party sale in the same period. The impacts of these transactions to Embecta are also reflected as a component of (Loss) Income from Discontinued Operations, Net of Tax . The following amounts associated with the Diabetes Care business are classified as assets and liabilities of discontinued operations in the Company’s condensed consolidated balance sheet at September 30, 2021: Millions of dollars September 30, Assets Trade receivables, net $ 147 Inventories 123 Prepaid expenses and other 23 Current Assets of Discontinued Operations 293 Property, Plant and Equipment, Net 390 Goodwill and Other Intangibles, Net 27 Other Assets 6 Noncurrent Assets of Discontinued Operations $ 423 Liabilities Accounts payable $ 54 Accrued expenses 75 Salaries, wages and related items 28 Current Liabilities of Discontinued Operations 157 Deferred Income Taxes and Other Liabilities 16 Noncurrent Liabilities of Discontinued Operations $ 17 The Company recorded its distribution of net liabilities to Embecta as an increase in Retained earnings . The amount recorded reflected the carrying amounts, as of April 1, 2022, of the net liabilities distributed and included $1.650 billion of debt issued by Embecta, as further discussed above and in Note 13, as well as $265 million of cash. The Company also recorded a net decrease to Accumulated other comprehensive loss of $251 million to derecognize foreign currency translation losses which were attributable to Embecta. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in certain components of shareholders' equity for the first three quarters of fiscal years 2022 and 2021 were as follows: Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2021 $ 365 $ 19,272 $ 13,826 $ 23 (80,164) $ (7,723) Net income — — 677 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (71) — — 762 19 Share-based compensation — 83 — — — — Common stock held in trusts, net (a) — — — — (5) — Repurchase of common stock (b) — 150 — — (462) (150) Balance at December 31, 2021 $ 365 $ 19,435 $ 14,233 $ 24 (79,869) $ (7,855) Net income — — 454 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (21) — 1 284 14 Share-based compensation — 56 — — — — Common stock held in trusts, net (a) — 24 — — 9 (24) Balance at March 31, 2022 $ 365 $ 19,495 $ 14,416 $ 24 (79,575) $ (7,866) Net income — — 360 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (9) — — 122 5 Share-based compensation — 50 — — — — Common stock held in trusts, net (a) — (24) — — 9 24 Spin-off of Embecta (See Note 2) — — 583 — — — Balance at June 30, 2022 $ 365 $ 19,511 $ 15,088 $ 24 (79,445) $ (7,836) 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 — — (9) — — — Balance at December 31, 2020 $ 365 $ 19,301 $ 13,522 $ 23 (74,080) $ (6,136) Net income — — 299 — — — Common dividends ($0.83 per share) — — (242) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (15) — — 234 4 Share-based compensation — 55 — — — — Common stock held in trusts, net (a) — — — — 23 — Balance at March 31, 2021 $ 365 $ 19,341 $ 13,557 $ 23 (73,821) $ (6,132) Net income — — 525 — — — Common dividends ($0.83 per share) — — (239) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (9) — — 87 5 Share-based compensation — 50 — — — — Common stock held in trusts, net (a) — — — — 8 — Repurchase of common stock — (100) — — (3,724) (900) Balance at June 30, 2021 $ 365 $ 19,282 $ 13,821 $ 23 (77,450) $ (7,027) (a) Common stock held in trusts consists of the Company’s shares held in rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. During the second quarter of fiscal year 2022, the common stock held in trusts was temporarily replaced with the Company’s Series C preferred shares to adhere to trust requirements until the Company’s spin-off of its Diabetes Care business was completed on April 1, 2022. (b) Represents shares received upon final settlement of an accelerated share repurchase agreement, and the related forward sale contract, entered into during the fourth quarter of fiscal year 2021. T he share repurchases were made pursuant to the repurchase program authorized by the Board of Directors on September 24, 2013 for 10 million shares, for which there is no expiration date. In November 2021, the Board of Directors authorized the Company to repurchase up to an additional 10 million shares of BD common stock, for which there is also no expiration date. The components and changes of Accumulated other comprehensive income (loss) for the first three quarters of fiscal years 2022 and 2021 were as follows: (Millions of dollars) Total Foreign Currency Benefit Plans Cash Flow Hedges Balance at September 30, 2021 $ (2,088) $ (1,292) $ (784) $ (10) Other comprehensive income (loss) before reclassifications, net of taxes 34 41 — (7) Amounts reclassified into income, net of taxes 11 — 11 — Balance at December 31, 2021 $ (2,043) $ (1,251) $ (774) $ (17) Other comprehensive income before reclassifications, net of taxes 122 78 — 44 Amounts reclassified into income, net of taxes 11 — 11 — Balance at March 31, 2022 $ (1,910) $ (1,173) $ (763) $ 28 Other comprehensive (loss) income before reclassifications, net of taxes (13) (48) — 35 Amounts reclassified into income, net of taxes 12 — 11 2 Spin-off of Embecta (see Note 2) 251 251 — — Balance at June 30, 2022 $ (1,660) $ (970) $ (752) $ 64 (Millions of dollars) Total Foreign Currency Benefit Plans Cash Flow Hedges 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) Other comprehensive income (loss) before reclassifications, net of taxes 64 (15) — 78 Amounts reclassified into income, net of taxes 21 — 16 5 Balance at March 31, 2021 $ (2,329) $ (1,367) $ (982) $ 21 Other comprehensive (loss) income before reclassifications, net of taxes (16) 19 — (34) Amounts reclassified into income, net of taxes 15 — 14 1 Balance at June 30, 2021 $ (2,330) $ (1,348) $ (967) $ (13) The amounts of foreign currency translation recognized in other comprehensive income during the three and nine months ended June 30, 2022 and 2021 included net gains (losses) relating to net investment hedges. Other comprehensive income relating to benefit plans during the three months ended December 31, 2020 represented a net gain recognized as a result of the Company’s remeasurement, as of October 31, 2020, of the legacy Bard U.S. defined pension benefit plan upon its merger with the BD defined benefit cash balance pension plan in the first quarter of fiscal year 2021. The amounts recognized in other comprehensive income relating to cash flow hedges during the three and nine months ended June 30, 2022 and 2021 are primarily related to forward starting interest rate swaps. Additional disclosures regarding amounts the Company recognized in other comprehensive income relating to cash flow hedges during the three and nine months ended June 30, 2022 and 2021 are provided in Note 11. The tax impacts for amounts recognized in other comprehensive income (loss) before reclassifications and for reclassifications out of Accumulated other comprehensive income (loss) relating to benefit plans and cash flow hedges during the three and nine months ended June 30, 2022 and 2021 were immaterial to the Company's consolidated financial results. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2022 | |
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 Nine Months Ended 2022 2021 2022 2021 Average common shares outstanding 285,441 289,522 285,121 290,401 Dilutive share equivalents from share-based plans 1,818 2,375 2,279 2,693 Dilutive share equivalents from Series C preferred shares (a) 38 — 31 — Average common and common equivalent shares outstanding – assuming dilution 287,297 291,897 287,431 293,094 Share equivalents excluded from the diluted shares outstanding calculation: Mandatory convertible preferred stock (b) 6,084 6,168 6,084 6,168 Share-based plans (c) — 763 — 755 (a) Represents dilutive share equivalents from Series C preferred shares that temporarily replaced shares of common stock held in trusts to adhere to trust requirements until the Company’s spin-off of its Diabetes Care business on April 1, 2022 was completed. (b) Excluded from the diluted shares outstanding calculation because the result would have been antidilutive. (c) Excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares. |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. 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 litigation in which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (and 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, 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 any class. With respect to the civil investigative demands (“CIDs”) served by the Department of Justice which are 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. Product Liability Matters As of June 30, 2022, the Company is defending approximately 30,290 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 (“RI”) and in a federal multi-district litigation (“MDL”) established in the Southern District of Ohio, 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 first bellwether trial in the hernia MDL resulted in a complete defense verdict in favor of the Company in September 2021 after five weeks of trial. • The second hernia MDL bellwether resulted in a $255 thousand verdict in April 2022 after four weeks of trial. Trials are currently scheduled in various state and/or federal courts, including one that began in July 2022 in RI. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. The Company also continues to be a defendant in certain other mass tort litigation. As of June 30, 2022, the Company is defending product liability claims involving the Company’s line of pelvic mesh products, the majority of which are pending in various federal court jurisdictions and in a coordinated proceeding in New Jersey Superior Court. Also, as of June 30, 2022, the Company is defending product liability claims involving the Company’s line of inferior vena cava (“IVC”) filter products. The majority of those claims are pending in various federal court jurisdictions after having been remanded from the MDL in the United States District Court for the District of Arizona. 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. Other Legal Matters 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), now captioned Industriens Pensionsforsikring v. Becton, Dickinson and Company, et al., 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 Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, and seeks, among other things, damages and costs. The complaint alleges that defendants concealed certain material information regarding Alaris TM infusion pumps, allegedly rendering certain public statements about the Company’s business, operations and prospects false or misleading, thereby allegedly causing investors to purchase stock at an inflated price. The plaintiff filed a second amended complaint to add certain additional factual allegations on February 3, 2021. This complaint was dismissed on the Company’s motion on September 15, 2021. The court’s dismissal order, however, gave plaintiff an opportunity to replead, which it did on October 29, 2021. The Company moved to dismiss the newly amended pleading on December 16, 2021. That motion is fully briefed and pending. The Company believes that these allegations are without merit and it intends to defend itself vigorously. 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, including sections 10(b), 14(a) and 21D; and insider trading. In general, the complaint also alleges, among other things, that various directors and/or officers caused the Company to issue purportedly misleading statements and SEC filings regarding Alaris TM infusion pumps, and issue a purportedly misleading proxy statement. 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. A second derivative action, Schranz v. Polen, et al., Civ. No 2:21-cv-01081 (D. N.J.), was filed on January 24, 2021, and the two actions were consolidated. In March 2021, the Company received letters from two additional shareholders which, in general, mirrored the allegations in the Jankowski and Schranz consolidated actions, and demanded, among other things, that the Board of Directors pursue civil action against members of management for claimed breaches of fiduciary duties. Consistent with New Jersey law, the Board appointed a special committee to review the allegations and demands in the derivative actions and demand letters. Following an investigation, the special committee determined that no action was warranted, and rejected the shareholders’ demands. The special committee’s determination has been communicated to counsel for the shareholders. Should the shareholders continue to pursue their claims in court, the Company will take appropriate steps to seek dismissal of the complaints. In May 2017, the Company was sued by a competitor in the Northern District of New York, alleging antitrust violations related to certain aspects of the Company’s medical delivery solutions business in a case captioned AngioDynamics, Inc. v. C. R. Bard, Inc. et al., Civ. No. 1:17-CV-0598. Pretrial activity in the case is ongoing. The Company believes it has meritorious defenses and is vigorously defending the case, which has been set for trial on September 19, 2022. In February 2021, the Company received a subpoena from the Enforcement Division of the SEC requesting information from the Company relating to, among other things, Alaris TM infusion pumps. The Company is cooperating with the SEC and responding to these requests. The Company cannot anticipate the timing, scope, outcome or possible impact of the investigation, financial or otherwise. 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. In September 2021, the Company received a CID related to an inquiry initiated by the Northern District of Georgia in 2018. The requests concern sales and marketing practices with respect to certain aspects of the Company’s urology business. The government has made requests for documents and has interviewed employees. The inquiry is ongoing and the Company is cooperating with the government and responding to its requests. In September 2021, the Company was served with a complaint from the New Mexico Attorney General, alleging violations of the state’s consumer protection laws in connection with the sales and marketing of its IVC filters. The Company’s motion to dismiss certain of the claims was granted on May 10, 2022, and discovery is proceeding. The Company intends to vigorously defend itself in the litigation. As the case is in its early stages, the Company cannot anticipate the timing, scope, outcome or possible impact at present. In July 2021, the Company became aware of lawsuits that had been filed against it in state and federal courts in Georgia. The suits were filed by plaintiffs who reside near Company facilities in Covington, GA, where ethylene oxide (“EtO”) sterilization activities take place. There are currently approximately 210 of such suits involving approximately 310 plaintiffs. The claims allege a variety of injuries, including but not limited to multiple types of cancer, allegedly attributable to exposure to EtO in the ambient air. The Company has meritorious defenses and intends to defend itself vigorously. 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. The Company cannot predict the outcome of these other legal matters discussed above, nor can it predict whether any outcome will have a material adverse effect on the Company’s consolidated results of operations and/or consolidated cash flows. Accordingly, the Company has made no provisions for these other legal matters in its consolidated results of operations. 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. We also are subject to administrative proceedings under environmental laws in jurisdictions outside the U.S. 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 consolidated results of operations and/or consolidated cash flows. 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 $2.2 billion and $2.5 billion at June 30, 2022 and September 30, 2021, respectively. These accruals are largely recorded within Deferred Income Taxes and Other Liabilities on the Company's condensed consolidated balance sheets. In view of the uncertainties discussed above, 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/or consolidated cash flows. |
Revenues
Revenues | 9 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | RevenuesThe Company’s policies for recognizing sales have not changed from those described in the Company’s 2021 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 Company’s rebate liability at June 30, 2022 and September 30, 2021 was $526 million and $500 million, respectively. 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 $2.2 billion at June 30, 2022. 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 $2.1 billion at June 30, 2022. 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 | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data The 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. Prior to its spin-off on April 1, 2022, the Company reported the Diabetes Care business as an organizational unit within the Medical segment. As such, historical financial information of the Medical segment has been recast in the tables below to reflect the total segment revenues from continuing operations. Revenues and operating income from the Diabetes Care business prior to its spin-off are included in (Loss) Income from Discontinued Operations, Net of Tax. See Note 2 for further information. Revenues by segment, organizational unit and geographical areas for the three and nine-month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended June 30, (Millions of dollars) 2022 2021 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 621 $ 439 $ 1,061 $ 562 $ 456 $ 1,019 Medication Management Solutions 463 144 607 459 139 597 Pharmaceutical Systems (a) 135 388 523 112 363 475 Total segment revenues $ 1,219 $ 971 $ 2,191 $ 1,133 $ 958 $ 2,091 Life Sciences Integrated Diagnostic Solutions $ 499 $ 461 $ 961 $ 435 $ 682 $ 1,117 Biosciences 147 201 348 124 192 316 Total segment revenues $ 646 $ 663 $ 1,309 $ 559 $ 874 $ 1,433 Interventional Surgery $ 274 $ 77 $ 352 $ 267 $ 69 $ 336 Peripheral Intervention 255 208 463 238 198 436 Urology and Critical Care 248 79 326 227 83 310 Total segment revenues $ 777 $ 364 $ 1,142 $ 732 $ 350 $ 1,082 Total Company revenues from continuing operations $ 2,643 $ 1,998 $ 4,641 $ 2,424 $ 2,182 $ 4,607 (a) Certain prior-period amounts were recast to reflect former intercompany transactions with Embecta. Nine Months Ended June 30, (Millions of dollars) 2022 2021 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 1,831 $ 1,375 $ 3,207 $ 1,665 $ 1,382 $ 3,046 Medication Management Solutions 1,408 430 1,838 1,376 417 1,793 Pharmaceutical Systems (a) 363 1,057 1,420 292 984 1,276 Total segment revenues $ 3,602 $ 2,863 $ 6,465 $ 3,333 $ 2,783 $ 6,116 Life Sciences Integrated Diagnostic Solutions $ 1,732 $ 1,524 $ 3,255 $ 1,904 $ 2,141 $ 4,045 Biosciences 405 617 1,022 365 588 953 Total segment revenues $ 2,136 $ 2,140 $ 4,277 $ 2,269 $ 2,729 $ 4,998 Interventional Surgery $ 824 $ 229 $ 1,053 $ 757 $ 203 $ 960 Peripheral Intervention 712 615 1,327 692 590 1,282 Urology and Critical Care 740 247 987 672 255 926 Total segment revenues $ 2,276 $ 1,091 $ 3,367 $ 2,120 $ 1,047 $ 3,168 Total Company revenues from continuing operations $ 8,014 $ 6,095 $ 14,109 $ 7,722 $ 6,560 $ 14,282 (a) Certain prior-period amounts were recast to reflect former intercompany transactions with Embecta. Segment income for the three and nine-month periods was as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Income from Continuing Operations Before Income Taxes Medical (a) $ 573 $ 486 $ 1,587 $ 1,474 Life Sciences 414 432 1,366 1,953 Interventional 293 214 826 725 Total Segment Operating Income 1,280 1,132 3,778 4,152 Unallocated acquisition-related integration and restructuring expense (36) (24) (99) (121) Net interest expense (94) (113) (285) (351) Other unallocated items (b) (728) (618) (1,932) (2,141) Total Income from Continuing Operations Before Income Taxes $ 421 $ 378 $ 1,463 $ 1,541 (a) The amount for the nine months ended June 30, 2022 includes a non-cash asset impairment charge of $54 million recorded to Cost of products sold in the Medical segment. (b) Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the nine months ended June 30, 2021 also included pre-tax charges of $296 million recorded to Other operating expense (income), net |
Benefit Plans
Benefit Plans | 9 Months Ended |
Jun. 30, 2022 | |
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 and nine-month periods: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Service cost $ 38 $ 35 $ 106 $ 113 Interest cost 21 16 59 53 Expected return on plan assets (52) (40) (146) (129) Amortization of prior service credit (4) (3) (12) (10) Amortization of loss 17 22 48 73 Curtailment/Settlement (Gain) Loss (1) 6 5 6 Net pension cost $ 19 $ 36 $ 61 $ 106 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 and postretirement benefit costs, aside from service cost, are recorded to Other (expense) income, net on its consolidated statements of income. Net pension costs related to employees transferred to Embecta and reflected in (Loss) Income from Discontinued Operations, Net of Tax were immaterial. Additionally, the Company’s transfer of employees to Embecta did not materially impact the Company’s benefit obligations. |
Business Restructuring Charges
Business Restructuring Charges | 9 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring Charges | Business Restructuring Charges The Company incurred restructuring costs during the nine months ended June 30, 2022, primarily in connection with the Company's simplification and other cost saving initiatives, which were largely recorded within Acquisition-related integration and restructuring expense . These simplification and other costs saving initiatives are focused on reducing complexity, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Company’s segments. Restructuring liability activity for the nine months ended June 30, 2022 was as follows: (Millions of dollars) Employee Other Total Balance at September 30, 2021 $ 14 $ 5 $ 19 Charged to expense 7 65 72 Cash payments (9) (45) (54) Non-cash settlements — (20) (20) Balance at June 30, 2022 $ 12 $ 5 $ 17 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets At September 30, 2021, goodwill and other intangible assets related to the Diabetes Care business were classified as Noncurrent Assets of Discontinued Operations. For additional information, see Note 2. Intangible assets consisted of: June 30, 2022 September 30, 2021 (Millions of dollars) Gross Accumulated Net Carrying Amount Gross Accumulated Net Carrying Amount Amortized intangible assets Developed technology $ 14,498 $ (5,733) $ 8,764 $ 14,399 $ (4,983) $ 9,417 Customer relationships 4,677 (2,085) 2,592 4,653 (1,838) 2,815 Product rights 107 (78) 29 123 (83) 40 Trademarks 408 (151) 257 409 (137) 271 Patents and other 542 (344) 198 523 (339) 184 Amortized intangible assets $ 20,231 $ (8,391) $ 11,840 $ 20,106 $ (7,381) $ 12,726 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 June 30, 2022 and 2021 was $357 million and $351 million, respectively. Intangible amortization expense for the nine months ended June 30, 2022 and 2021 was $1.064 billion and $1.049 billion, respectively. The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Life Sciences Interventional Total Goodwill as of September 30, 2021 $ 10,240 $ 836 $ 12,810 $ 23,886 Acquisitions (a) — 71 205 276 Purchase price allocation adjustments — (1) (2) (3) Currency translation (81) (11) (98) (191) Goodwill as of June 30, 2022 $ 10,158 $ 895 $ 12,915 $ 23,968 (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 | 9 Months Ended |
Jun. 30, 2022 | |
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 had on the Company’s balance sheets and the fair values of the derivatives outstanding at June 30, 2022 and September 30, 2021 were not material. The effects on the Company’s 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 certain instruments, such as foreign currency-denominated debt and cross-currency swaps, which are designated as net investment hedges, as well as currency exchange contracts. The notional amounts of the Company’s foreign currency-related derivative instruments as of June 30, 2022 and September 30, 2021 were as follows: (Millions of dollars) Hedge Designation June 30, 2022 September 30, 2021 Foreign exchange contracts (a) Undesignated $ 1,698 $ 2,735 Foreign currency-denominated debt (b) Net investment hedges 2,309 2,543 Cross-currency swaps (c) Net investment hedges 910 1,958 (a) Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and 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. Net amounts recognized in Other (expense) income, net , during the three and nine months ended June 30, 2022 and 2021 were immaterial to the Company's consolidated financial results. (b) Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (c) Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. 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 gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three and nine-month periods were as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Foreign currency-denominated debt $ 99 $ (4) $ 193 $ (25) Cross-currency swaps 84 (16) $ 129 $ (100) Interest Rate Risks and Related Strategies The Company uses a mix of fixed and variable rate debt to manage its interest rate exposure, and 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 cash flow or fair value hedges. 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, within Interest expense, over the remaining life of the hedged debt. The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during the three and nine months ended June 30, 2022 and 2021, as well as the amounts expected to be reclassified within the next 12 months, are not material to the Company's consolidated financial results. The Company recorded net after-tax gains (losses) of $37 million and $(34) million during the three months ended June 30, 2022 and 2021, respectively, and net after-tax gains of $77 million and $71 million during the nine months ended June 30, 2022 and 2021, respectively, in Other comprehensive income relating to interest rate hedges. The gains recorded during the current three and nine-month periods were driven by a net after-tax gain of $41 million that was realized upon the Company’s termination of $500 million of forward starting interest rate swaps. 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. Amounts recorded during the three and nine months ended June 30, 2022 and 2021 were immaterial to the Company's consolidated financial results. The notional amounts of the Company’s interest rate-related derivative instruments as of June 30, 2022 and September 30, 2021 were as follows: (Millions of dollars) Hedge Designation June 30, 2022 September 30, 2021 Interest rate swaps (a) Fair value hedges $ 700 $ 700 Forward starting interest rate swaps (b) Cash flow hedges 500 1,000 (a) Represents 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. (b) Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances. Other Risk Exposures |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and September 30, 2021 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) June 30, 2022 September 30, 2021 Cash and equivalents $ 2,558 $ 2,283 Restricted cash 202 109 Cash and equivalents and restricted cash $ 2,759 $ 2,392 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 fair values of the Company’s financial instruments are as follows: (Millions of dollars) Basis of fair value measurement June 30, 2022 September 30, 2021 Institutional money market accounts and ultra-short bond fund (a) Level 1 $ 650 $ 200 Current portion of long-term debt (b) Level 2 1,678 503 Long-term debt (b) Level 2 13,390 18,537 (a) These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. (b) 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. 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. 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 third quarter of fiscal year 2022, the Company recorded non-cash asset impairment charges of $11 million to Cost of products sold in the Life Sciences segment and $19 million to Acquisition-related integration and restructuring expense in the Medical segment. In the second quarter of fiscal year 2022, the Company recorded a non-cash asset impairment charge of $54 million to Cost of products sold in the Medical segment. In the first quarter of fiscal year 2021, the Company recorded charges to Cost of products sold of $29 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. The costs incurred by the Company in connection with factoring activities were not material to its consolidated financial results. The amounts transferred and yet to be remitted under factoring arrangements are provided below. Three Months Ended June 30, Nine Months Ended June 30, (Millions of dollars) 2022 2021 2022 2021 Trade receivables transferred to third parties under factoring arrangements $ 215 $ 284 $ 650 $ 1,071 June 30, 2022 September 30, 2021 Amounts yet to be collected and remitted to the third parties $ 215 $ 118 |
Debt
Debt | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt In February 2022, Embecta, as a wholly-owned subsidiary of the Company, issued $500 million of 5.000% senior secured notes due February 15, 2030, in advance of the Company’s spin-off of Embecta, which is further discussed in Note 2. On March 31, 2022, Embecta entered into an indenture dated April 1, 2022 to issue $200 million of 6.750% senior secured notes due February 15, 2030. These notes were issued to the Company as part of the consideration for assets transferred to Embecta in connection with the spin-off. After the spin-off was effective on April 1, 2022, the Company exchanged these notes for $199 million of the aggregate principal amount outstanding on the Company’s Floating Rate Notes due June 6, 2022, which were purchased through a tender offer. The carrying value of the long-term notes tendered was $199 million, and the Company recognized a loss on this debt extinguishment of $2 million, which was recorded in the third quarter of fiscal year 2022 within Other (expense) income, net , on the Company’s condensed consolidated statements of income. Also in connection with the spin-off, on March 31, 2022, Embecta issued a senior secured term loan facility with an aggregate principal amount of $950 million and a senior secured revolving credit facility providing borrowings of up to $500 million that was undrawn at March 31, 2022 and at the spin-off date. The borrowings from the 5.000% senior secured notes due February 15, 2030 and the senior secured term loan facility were included within the Company's condensed consolidated balance sheet at March 31, 2022. The senior secured notes and credit agreement for the term loan and revolving credit facilities were guaranteed on an unsecured, unsubordinated basis solely by the Company prior to the spin-off date. The Company’s guarantees automatically and unconditionally terminated upon the consummation of the spin-off on April 1, 2022. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Acquisition of Parata Systems On July 18, 2022, the Company completed the acquisition of Parata Systems, an innovative provider of pharmacy automation solutions, for total cash consideration of $1.525 billion. Due to the recent timing of the acquisition, the Company is in the process of identifying and measuring the assets acquired and liabilities assumed. The preliminary purchase price allocation estimates and other related information will be disclosed in the Company’s Annual Report on Form 10-K for the period ending September 30, 2022. |
Contingencies (Policies)
Contingencies (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. 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 litigation in which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (and 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, 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 any class. With respect to the civil investigative demands (“CIDs”) served by the Department of Justice which are 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 above, 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/or 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. |
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 Company uses a mix of fixed and variable rate debt to manage its interest rate exposure, and 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 cash flow or fair value hedges. 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, within Interest expense, |
Cash and Cash Equivalents | Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. |
Fair Value of Financial Instruments | The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions.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.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. |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Details of Income from Discontinued Operations, Net of Tax are as follows: Three Months Ended Nine Months Ended Millions of dollars 2021 2022 2021 Revenues $ 284 $ 538 $ 831 Cost of products sold 80 143 235 Selling and administrative expense 37 78 101 Research and development expense 15 32 41 Acquisition-related integration and restructuring expense — — 6 Other operating expense, net 16 95 16 Total Operating Costs and Expenses 148 348 398 Operating Income 136 190 434 Interest expense — (4) — Other income, net — — 2 Income from Discontinued Operations Before Income Taxes 136 186 435 Income tax provision 18 42 57 Income from Discontinued Operations, Net of Tax $ 118 $ 144 $ 378 The following amounts associated with the Diabetes Care business are classified as assets and liabilities of discontinued operations in the Company’s condensed consolidated balance sheet at September 30, 2021: Millions of dollars September 30, Assets Trade receivables, net $ 147 Inventories 123 Prepaid expenses and other 23 Current Assets of Discontinued Operations 293 Property, Plant and Equipment, Net 390 Goodwill and Other Intangibles, Net 27 Other Assets 6 Noncurrent Assets of Discontinued Operations $ 423 Liabilities Accounts payable $ 54 Accrued expenses 75 Salaries, wages and related items 28 Current Liabilities of Discontinued Operations 157 Deferred Income Taxes and Other Liabilities 16 Noncurrent Liabilities of Discontinued Operations $ 17 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders Equity | Changes in certain components of shareholders' equity for the first three quarters of fiscal years 2022 and 2021 were as follows: Common Capital in Retained Deferred Treasury Stock (Millions of dollars) Shares (in Amount Balance at September 30, 2021 $ 365 $ 19,272 $ 13,826 $ 23 (80,164) $ (7,723) Net income — — 677 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (71) — — 762 19 Share-based compensation — 83 — — — — Common stock held in trusts, net (a) — — — — (5) — Repurchase of common stock (b) — 150 — — (462) (150) Balance at December 31, 2021 $ 365 $ 19,435 $ 14,233 $ 24 (79,869) $ (7,855) Net income — — 454 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (21) — 1 284 14 Share-based compensation — 56 — — — — Common stock held in trusts, net (a) — 24 — — 9 (24) Balance at March 31, 2022 $ 365 $ 19,495 $ 14,416 $ 24 (79,575) $ (7,866) Net income — — 360 — — — Common dividends ($0.87 per share) — — (248) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (9) — — 122 5 Share-based compensation — 50 — — — — Common stock held in trusts, net (a) — (24) — — 9 24 Spin-off of Embecta (See Note 2) — — 583 — — — Balance at June 30, 2022 $ 365 $ 19,511 $ 15,088 $ 24 (79,445) $ (7,836) 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 — — (9) — — — Balance at December 31, 2020 $ 365 $ 19,301 $ 13,522 $ 23 (74,080) $ (6,136) Net income — — 299 — — — Common dividends ($0.83 per share) — — (242) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (15) — — 234 4 Share-based compensation — 55 — — — — Common stock held in trusts, net (a) — — — — 23 — Balance at March 31, 2021 $ 365 $ 19,341 $ 13,557 $ 23 (73,821) $ (6,132) Net income — — 525 — — — Common dividends ($0.83 per share) — — (239) — — — Preferred dividends — — (23) — — — Common stock issued for share-based compensation and other plans, net — (9) — — 87 5 Share-based compensation — 50 — — — — Common stock held in trusts, net (a) — — — — 8 — Repurchase of common stock — (100) — — (3,724) (900) Balance at June 30, 2021 $ 365 $ 19,282 $ 13,821 $ 23 (77,450) $ (7,027) (a) Common stock held in trusts consists of the Company’s shares held in rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. During the second quarter of fiscal year 2022, the common stock held in trusts was temporarily replaced with the Company’s Series C preferred shares to adhere to trust requirements until the Company’s spin-off of its Diabetes Care business was completed on April 1, 2022. (b) Represents shares received upon final settlement of an accelerated share repurchase agreement, and the related forward sale contract, entered into during the fourth quarter of fiscal year 2021. T he share repurchases were made pursuant to the repurchase program authorized by the Board of Directors on September 24, 2013 for 10 million shares, for which there is no expiration date. In November 2021, the Board of Directors authorized the Company to repurchase up to an additional 10 million shares of BD common stock, for which there is also no expiration date. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components and changes of Accumulated other comprehensive income (loss) for the first three quarters of fiscal years 2022 and 2021 were as follows: (Millions of dollars) Total Foreign Currency Benefit Plans Cash Flow Hedges Balance at September 30, 2021 $ (2,088) $ (1,292) $ (784) $ (10) Other comprehensive income (loss) before reclassifications, net of taxes 34 41 — (7) Amounts reclassified into income, net of taxes 11 — 11 — Balance at December 31, 2021 $ (2,043) $ (1,251) $ (774) $ (17) Other comprehensive income before reclassifications, net of taxes 122 78 — 44 Amounts reclassified into income, net of taxes 11 — 11 — Balance at March 31, 2022 $ (1,910) $ (1,173) $ (763) $ 28 Other comprehensive (loss) income before reclassifications, net of taxes (13) (48) — 35 Amounts reclassified into income, net of taxes 12 — 11 2 Spin-off of Embecta (see Note 2) 251 251 — — Balance at June 30, 2022 $ (1,660) $ (970) $ (752) $ 64 (Millions of dollars) Total Foreign Currency Benefit Plans Cash Flow Hedges 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) Other comprehensive income (loss) before reclassifications, net of taxes 64 (15) — 78 Amounts reclassified into income, net of taxes 21 — 16 5 Balance at March 31, 2021 $ (2,329) $ (1,367) $ (982) $ 21 Other comprehensive (loss) income before reclassifications, net of taxes (16) 19 — (34) Amounts reclassified into income, net of taxes 15 — 14 1 Balance at June 30, 2021 $ (2,330) $ (1,348) $ (967) $ (13) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 Nine Months Ended 2022 2021 2022 2021 Average common shares outstanding 285,441 289,522 285,121 290,401 Dilutive share equivalents from share-based plans 1,818 2,375 2,279 2,693 Dilutive share equivalents from Series C preferred shares (a) 38 — 31 — Average common and common equivalent shares outstanding – assuming dilution 287,297 291,897 287,431 293,094 Share equivalents excluded from the diluted shares outstanding calculation: Mandatory convertible preferred stock (b) 6,084 6,168 6,084 6,168 Share-based plans (c) — 763 — 755 (a) Represents dilutive share equivalents from Series C preferred shares that temporarily replaced shares of common stock held in trusts to adhere to trust requirements until the Company’s spin-off of its Diabetes Care business on April 1, 2022 was completed. (b) Excluded from the diluted shares outstanding calculation because the result would have been antidilutive. (c) Excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares. |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Area | Revenues by segment, organizational unit and geographical areas for the three and nine-month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended June 30, (Millions of dollars) 2022 2021 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 621 $ 439 $ 1,061 $ 562 $ 456 $ 1,019 Medication Management Solutions 463 144 607 459 139 597 Pharmaceutical Systems (a) 135 388 523 112 363 475 Total segment revenues $ 1,219 $ 971 $ 2,191 $ 1,133 $ 958 $ 2,091 Life Sciences Integrated Diagnostic Solutions $ 499 $ 461 $ 961 $ 435 $ 682 $ 1,117 Biosciences 147 201 348 124 192 316 Total segment revenues $ 646 $ 663 $ 1,309 $ 559 $ 874 $ 1,433 Interventional Surgery $ 274 $ 77 $ 352 $ 267 $ 69 $ 336 Peripheral Intervention 255 208 463 238 198 436 Urology and Critical Care 248 79 326 227 83 310 Total segment revenues $ 777 $ 364 $ 1,142 $ 732 $ 350 $ 1,082 Total Company revenues from continuing operations $ 2,643 $ 1,998 $ 4,641 $ 2,424 $ 2,182 $ 4,607 (a) Certain prior-period amounts were recast to reflect former intercompany transactions with Embecta. Nine Months Ended June 30, (Millions of dollars) 2022 2021 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 1,831 $ 1,375 $ 3,207 $ 1,665 $ 1,382 $ 3,046 Medication Management Solutions 1,408 430 1,838 1,376 417 1,793 Pharmaceutical Systems (a) 363 1,057 1,420 292 984 1,276 Total segment revenues $ 3,602 $ 2,863 $ 6,465 $ 3,333 $ 2,783 $ 6,116 Life Sciences Integrated Diagnostic Solutions $ 1,732 $ 1,524 $ 3,255 $ 1,904 $ 2,141 $ 4,045 Biosciences 405 617 1,022 365 588 953 Total segment revenues $ 2,136 $ 2,140 $ 4,277 $ 2,269 $ 2,729 $ 4,998 Interventional Surgery $ 824 $ 229 $ 1,053 $ 757 $ 203 $ 960 Peripheral Intervention 712 615 1,327 692 590 1,282 Urology and Critical Care 740 247 987 672 255 926 Total segment revenues $ 2,276 $ 1,091 $ 3,367 $ 2,120 $ 1,047 $ 3,168 Total Company revenues from continuing operations $ 8,014 $ 6,095 $ 14,109 $ 7,722 $ 6,560 $ 14,282 (a) Certain prior-period amounts were recast to reflect former intercompany transactions with Embecta. |
Financial Information for Company's Segments | Segment income for the three and nine-month periods was as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Income from Continuing Operations Before Income Taxes Medical (a) $ 573 $ 486 $ 1,587 $ 1,474 Life Sciences 414 432 1,366 1,953 Interventional 293 214 826 725 Total Segment Operating Income 1,280 1,132 3,778 4,152 Unallocated acquisition-related integration and restructuring expense (36) (24) (99) (121) Net interest expense (94) (113) (285) (351) Other unallocated items (b) (728) (618) (1,932) (2,141) Total Income from Continuing Operations Before Income Taxes $ 421 $ 378 $ 1,463 $ 1,541 (a) The amount for the nine months ended June 30, 2022 includes a non-cash asset impairment charge of $54 million recorded to Cost of products sold in the Medical segment. (b) Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the nine months ended June 30, 2021 also included pre-tax charges of $296 million recorded to Other operating expense (income), net |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Net Pension and Postretirement Cost | Net pension cost included the following components for the three and nine-month periods: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Service cost $ 38 $ 35 $ 106 $ 113 Interest cost 21 16 59 53 Expected return on plan assets (52) (40) (146) (129) Amortization of prior service credit (4) (3) (12) (10) Amortization of loss 17 22 48 73 Curtailment/Settlement (Gain) Loss (1) 6 5 6 Net pension cost $ 19 $ 36 $ 61 $ 106 |
Business Restructuring Charges
Business Restructuring Charges (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Accrual Activity | Restructuring liability activity for the nine months ended June 30, 2022 was as follows: (Millions of dollars) Employee Other Total Balance at September 30, 2021 $ 14 $ 5 $ 19 Charged to expense 7 65 72 Cash payments (9) (45) (54) Non-cash settlements — (20) (20) Balance at June 30, 2022 $ 12 $ 5 $ 17 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets consisted of: June 30, 2022 September 30, 2021 (Millions of dollars) Gross Accumulated Net Carrying Amount Gross Accumulated Net Carrying Amount Amortized intangible assets Developed technology $ 14,498 $ (5,733) $ 8,764 $ 14,399 $ (4,983) $ 9,417 Customer relationships 4,677 (2,085) 2,592 4,653 (1,838) 2,815 Product rights 107 (78) 29 123 (83) 40 Trademarks 408 (151) 257 409 (137) 271 Patents and other 542 (344) 198 523 (339) 184 Amortized intangible assets $ 20,231 $ (8,391) $ 11,840 $ 20,106 $ (7,381) $ 12,726 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, 2021 $ 10,240 $ 836 $ 12,810 $ 23,886 Acquisitions (a) — 71 205 276 Purchase price allocation adjustments — (1) (2) (3) Currency translation (81) (11) (98) (191) Goodwill as of June 30, 2022 $ 10,158 $ 895 $ 12,915 $ 23,968 (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) | 9 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of the Company’s foreign currency-related derivative instruments as of June 30, 2022 and September 30, 2021 were as follows: (Millions of dollars) Hedge Designation June 30, 2022 September 30, 2021 Foreign exchange contracts (a) Undesignated $ 1,698 $ 2,735 Foreign currency-denominated debt (b) Net investment hedges 2,309 2,543 Cross-currency swaps (c) Net investment hedges 910 1,958 (a) Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and 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. Net amounts recognized in Other (expense) income, net , during the three and nine months ended June 30, 2022 and 2021 were immaterial to the Company's consolidated financial results. (b) Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. (c) Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. The notional amounts of the Company’s interest rate-related derivative instruments as of June 30, 2022 and September 30, 2021 were as follows: (Millions of dollars) Hedge Designation June 30, 2022 September 30, 2021 Interest rate swaps (a) Fair value hedges $ 700 $ 700 Forward starting interest rate swaps (b) Cash flow hedges 500 1,000 (a) Represents 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. |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three and nine-month periods were as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2022 2021 2022 2021 Foreign currency-denominated debt $ 99 $ (4) $ 193 $ (25) Cross-currency swaps 84 (16) $ 129 $ (100) |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and September 30, 2021 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) June 30, 2022 September 30, 2021 Cash and equivalents $ 2,558 $ 2,283 Restricted cash 202 109 Cash and equivalents and restricted cash $ 2,759 $ 2,392 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of the Company’s financial instruments are as follows: (Millions of dollars) Basis of fair value measurement June 30, 2022 September 30, 2021 Institutional money market accounts and ultra-short bond fund (a) Level 1 $ 650 $ 200 Current portion of long-term debt (b) Level 2 1,678 503 Long-term debt (b) Level 2 13,390 18,537 (a) These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. (b) 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. |
Transfer of Financial Assets Accounted for as Sales | The amounts transferred and yet to be remitted under factoring arrangements are provided below. Three Months Ended June 30, Nine Months Ended June 30, (Millions of dollars) 2022 2021 2022 2021 Trade receivables transferred to third parties under factoring arrangements $ 215 $ 284 $ 650 $ 1,071 June 30, 2022 September 30, 2021 Amounts yet to be collected and remitted to the third parties $ 215 $ 118 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net transfer of cash to Embecta upon spin-off | $ 265 | $ 265 | $ 0 | ||
Stockholders' Equity Note, Spinoff Transaction | $ 251 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Distributions | $ 1,266 | ||||
Disposal Group, Including Discontinued Operation, Other Expense | 30 | ||||
Disposal Group, Including Discontinued Operation, Debt | 1,650 | ||||
Notes 6.750% due February 15, 2030 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Face amount of debt | 200 | $ 200 | |||
Foreign Currency Translation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Stockholders' Equity Note, Spinoff Transaction | $ 251 | $ 251 |
Discontinued Operations - Incom
Discontinued Operations - Income from Discontinued Operations, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) Income from Discontinued Operations, Net of Tax | $ (30) | $ 118 | $ 144 | $ 378 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Revenue | 284 | 538 | 831 | |
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 80 | 143 | 235 | |
Disposal Group, Including Discontinued Operation, Selling, General and Administrative Expense | 37 | 78 | 101 | |
Disposal Group, Including Discontinued Operations, Research and Development Expense | 15 | 32 | 41 | |
Disposal Groups, Including Discontinued Operation, Acquisition Related Costs and Restructuring Charges | 0 | 0 | 6 | |
Disposal Group, Including Discontinued Operation, Other Operating Income (Expense), Net | (16) | (95) | (16) | |
Disposal Group, Including Discontinued Operation, Operating Expense | 148 | 348 | 398 | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 136 | 190 | 434 | |
Disposal Group, Including Discontinued Operation, Interest Expense | 0 | 4 | 0 | |
Disposal Group, Including Discontinued Operation, Other Nonoperating Income (Expense) | 0 | 0 | 2 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 136 | 186 | 435 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 18 | 42 | 57 | |
(Loss) Income from Discontinued Operations, Net of Tax | $ 118 | $ 144 | $ 378 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets of discontinued operations | $ 0 | $ 293 |
Noncurrent Assets of Discontinued Operations | 0 | 423 |
Current liabilities of discontinued operations | 0 | 157 |
Noncurrent Liabilities of Discontinued Operations | $ 0 | 17 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 147 | |
Disposal Group, Including Discontinued Operation, Inventory, Current | 123 | |
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 23 | |
Current assets of discontinued operations | 293 | |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 390 | |
Disposal Group, Including Discontinued Operation, Goodwill | 27 | |
Disposal Group, Including Discontinued Operation, Other Assets | 6 | |
Noncurrent Assets of Discontinued Operations | 423 | |
Disposal Group, Including Discontinued Operation, Accounts Payable | 54 | |
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 75 | |
Disposal Group, Including Discontinued Operation, Employee-related Liabilities, Current | 28 | |
Current liabilities of discontinued operations | 157 | |
Disposal Group, Including Discontinued Operation, Other Liabilities | 16 | |
Noncurrent Liabilities of Discontinued Operations | $ 17 |
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 | 9 Months Ended | ||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Nov. 30, 2021 | Sep. 24, 2013 | |
Beginning balance | $ 23,677 | $ 23,677 | ||||||||
Net income | $ 360 | $ 525 | 1,491 | $ 1,827 | ||||||
Stockholders' Equity Note, Spinoff Transaction | 251 | |||||||||
Ending balance | $ 25,493 | $ 25,493 | ||||||||
Dividends per Common Share (USD per share) | $ 0.87 | $ 0.87 | $ 0.87 | $ 0.83 | $ 0.83 | $ 0.83 | $ 2.61 | $ 2.49 | ||
Number of shares authorized to be repurchased (in shares) | 10,000 | |||||||||
Number of additional shares authorized to be repurchased (in shares) | 10,000 | |||||||||
Common Stock Issued at Par Value | ||||||||||
Beginning balance | $ 365 | $ 365 | $ 365 | $ 365 | $ 365 | $ 365 | $ 365 | $ 365 | ||
Ending balance | 365 | 365 | 365 | 365 | 365 | 365 | 365 | 365 | ||
Capital in Excess of Par Value | ||||||||||
Beginning balance | 19,495 | 19,435 | 19,272 | 19,341 | 19,301 | 19,270 | 19,272 | 19,270 | ||
Common stock issued for share-based compensation and other plans, net | (9) | (21) | (71) | (9) | (15) | (53) | ||||
Share-based compensation | 50 | 56 | 83 | 50 | 55 | 83 | ||||
Repurchase of common stock | (150) | (100) | ||||||||
Common stock held in trusts, net | 24 | (24) | ||||||||
Ending balance | 19,511 | 19,495 | 19,435 | 19,282 | 19,341 | 19,301 | 19,511 | 19,282 | ||
Retained Earnings | ||||||||||
Beginning balance | 14,416 | 14,233 | 13,826 | 13,557 | 13,522 | 12,791 | 13,826 | 12,791 | ||
Net income | 360 | 454 | 677 | 525 | 299 | 1,003 | ||||
Common dividends | (248) | (248) | (248) | (239) | (242) | (242) | ||||
Preferred dividends | (23) | (23) | (23) | (23) | (23) | (23) | ||||
Stockholders' Equity Note, Spinoff Transaction | 583 | |||||||||
Ending balance | 15,088 | 14,416 | 14,233 | 13,821 | 13,557 | 13,522 | 15,088 | 13,821 | ||
Retained Earnings | Effect of change in accounting principles | ||||||||||
Effect of change in accounting principles | (9) | |||||||||
Deferred Compensation | ||||||||||
Beginning balance | 24 | 24 | 23 | 23 | 23 | 23 | 23 | 23 | ||
Common stock issued for share-based compensation and other plans, net | 1 | |||||||||
Ending balance | 24 | 24 | 24 | 23 | 23 | 23 | 24 | 23 | ||
Treasury Stock | ||||||||||
Beginning balance | $ (7,866) | $ (7,855) | $ (7,723) | $ (6,132) | $ (6,136) | $ (6,138) | $ (7,723) | $ (6,138) | ||
Beginning balance (shares) | (79,575) | (79,869) | (80,164) | (73,821) | (74,080) | (74,623) | (80,164) | (74,623) | ||
Common stock issued for share-based compensation and other plans, net | $ 5 | $ 14 | $ 19 | $ 5 | $ 4 | $ 2 | ||||
Common stock issued for share-based compensation and other plans, net (in shares) | 122 | 284 | 762 | 87 | 234 | 549 | ||||
Common stock held in trusts, net (in shares) | 9 | 9 | (5) | 8 | 23 | (7) | ||||
Repurchase of common stock | $ 150 | $ (900) | ||||||||
Repurchase of common stock (in shares) | 462 | (3,724) | ||||||||
Common stock held in trusts, net | $ (24) | $ (24) | ||||||||
Ending balance | $ (7,836) | $ (7,866) | $ (7,855) | $ (7,027) | $ (6,132) | $ (6,136) | $ (7,836) | $ (7,027) | ||
Ending balance (shares) | (79,445) | (79,575) | (79,869) | (77,450) | (73,821) | (74,080) | (79,445) | (77,450) |
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 | ||||||
Apr. 01, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ (1,910) | $ (1,910) | $ (2,043) | $ (2,088) | $ (2,329) | $ (2,414) | $ (2,548) |
Other comprehensive income (loss) before reclassifications, net of taxes | (13) | 122 | 34 | (16) | 64 | 115 | |
Amounts reclassified into income, net of taxes | 12 | 11 | 11 | 15 | 21 | 19 | |
Stockholders' Equity Note, Spinoff Transaction | 251 | ||||||
Ending balance | (1,660) | (1,910) | (2,043) | (2,330) | (2,329) | (2,414) | |
Foreign Currency Translation | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (1,173) | (1,173) | (1,251) | (1,292) | (1,367) | (1,352) | (1,416) |
Other comprehensive income (loss) before reclassifications, net of taxes | (48) | 78 | 41 | 19 | (15) | 64 | |
Amounts reclassified into income, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | |
Stockholders' Equity Note, Spinoff Transaction | 251 | 251 | |||||
Ending balance | (970) | (1,173) | (1,251) | (1,348) | (1,367) | (1,352) | |
Benefit Plans | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (763) | (763) | (774) | (784) | (982) | (998) | (1,040) |
Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | 0 | 0 | 0 | 24 | |
Amounts reclassified into income, net of taxes | 11 | 11 | 11 | 14 | 16 | 18 | |
Stockholders' Equity Note, Spinoff Transaction | 0 | ||||||
Ending balance | (752) | (763) | (774) | (967) | (982) | (998) | |
Cash Flow Hedges | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 28 | 28 | (17) | (10) | 21 | (62) | (91) |
Other comprehensive income (loss) before reclassifications, net of taxes | 35 | 44 | (7) | (34) | 78 | 27 | |
Amounts reclassified into income, net of taxes | 2 | 0 | 0 | 1 | 5 | 2 | |
Stockholders' Equity Note, Spinoff Transaction | 0 | ||||||
Ending balance | $ 64 | $ 28 | $ (17) | $ (13) | $ 21 | $ (62) |
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 | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Average common shares outstanding (shares) | 285,441 | 289,522 | 285,121 | 290,401 |
Dilutive share equivalents from share-based plans (shares) | 1,818 | 2,375 | 2,279 | 2,693 |
Dilutive share equivalents from Series C preferred shares (shares) | 38 | 0 | 31 | 0 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 287,297 | 291,897 | 287,431 | 293,094 |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from the diluted shares outstanding calculation (shares) | 6,084 | 6,168 | 6,084 | 6,168 |
Share Based Compensation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from the diluted shares outstanding calculation (shares) | 0 | 763 | 0 | 755 |
Contingencies (Detail)
Contingencies (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) lawsuit plaintiff claim | Sep. 30, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||
Damages awarded | $ 255 | ||
Loss contingency accrual | $ 2,200,000 | $ 2,500,000 | |
GEORGIA | |||
Loss Contingencies [Line Items] | |||
Number of EtO lawsuits filed | lawsuit | 210 | ||
Loss Contingency, Number of Plaintiffs | plaintiff | 310 | ||
Hernia Product Claims | |||
Loss Contingencies [Line Items] | |||
Pending claims | claim | 30,290 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||
Rebate liability | $ 526 | $ 500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction (in years) | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Products and/or Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 2,200 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 2,100 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2022 segment | |
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 | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,641 | $ 4,607 | $ 14,109 | $ 14,282 |
Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,191 | 2,091 | 6,465 | 6,116 |
Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,309 | 1,433 | 4,277 | 4,998 |
Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,142 | 1,082 | 3,367 | 3,168 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,643 | 2,424 | 8,014 | 7,722 |
United States | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,219 | 1,133 | 3,602 | 3,333 |
United States | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 646 | 559 | 2,136 | 2,269 |
United States | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 777 | 732 | 2,276 | 2,120 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,998 | 2,182 | 6,095 | 6,560 |
International | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 971 | 958 | 2,863 | 2,783 |
International | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 663 | 874 | 2,140 | 2,729 |
International | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 364 | 350 | 1,091 | 1,047 |
Medication Delivery Solutions (a) | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,061 | 1,019 | 3,207 | 3,046 |
Medication Delivery Solutions (a) | United States | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 621 | 562 | 1,831 | 1,665 |
Medication Delivery Solutions (a) | International | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 439 | 456 | 1,375 | 1,382 |
Medication Management Solutions | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 607 | 597 | 1,838 | 1,793 |
Medication Management Solutions | United States | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 463 | 459 | 1,408 | 1,376 |
Medication Management Solutions | International | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 144 | 139 | 430 | 417 |
Pharmaceutical Systems (a) | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 523 | 475 | 1,420 | 1,276 |
Pharmaceutical Systems (a) | United States | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 135 | 112 | 363 | 292 |
Pharmaceutical Systems (a) | International | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 388 | 363 | 1,057 | 984 |
Integrated Diagnostic Solutions | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 961 | 1,117 | 3,255 | 4,045 |
Integrated Diagnostic Solutions | United States | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 499 | 435 | 1,732 | 1,904 |
Integrated Diagnostic Solutions | International | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 461 | 682 | 1,524 | 2,141 |
Biosciences | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 348 | 316 | 1,022 | 953 |
Biosciences | United States | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 147 | 124 | 405 | 365 |
Biosciences | International | Operating Segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 201 | 192 | 617 | 588 |
Surgery | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 352 | 336 | 1,053 | 960 |
Surgery | United States | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 274 | 267 | 824 | 757 |
Surgery | International | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 77 | 69 | 229 | 203 |
Peripheral Intervention | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 463 | 436 | 1,327 | 1,282 |
Peripheral Intervention | United States | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 255 | 238 | 712 | 692 |
Peripheral Intervention | International | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 208 | 198 | 615 | 590 |
Urology and Critical Care | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 326 | 310 | 987 | 926 |
Urology and Critical Care | United States | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 248 | 227 | 740 | 672 |
Urology and Critical Care | International | Operating Segments | Interventional | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 79 | $ 83 | $ 247 | $ 255 |
Segment Data - Financial Inform
Segment Data - Financial Information for Company's Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Unallocated acquisition-related integration and restructuring expense | $ (55) | $ (24) | $ (118) | $ (121) | ||
Income from Continuing Operations Before Income Taxes | 421 | 378 | 1,463 | 1,541 | ||
Cost of Sales | ||||||
Segment Reporting Information [Line Items] | ||||||
Asset Impairment Charges | 11 | $ 54 | $ 29 | 54 | ||
Other Operating Income (Expense) | ||||||
Segment Reporting Information [Line Items] | ||||||
Product liability accrual, period expense | 296 | |||||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (Loss) Before Income Taxes | 1,280 | 1,132 | 3,778 | 4,152 | ||
Operating Segments | Medical | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (Loss) Before Income Taxes | 573 | 486 | 1,587 | 1,474 | ||
Operating Segments | Life Sciences | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (Loss) Before Income Taxes | 414 | 432 | 1,366 | 1,953 | ||
Operating Segments | Interventional | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (Loss) Before Income Taxes | 293 | 214 | 826 | 725 | ||
Segment Reconciling Items | ||||||
Segment Reporting Information [Line Items] | ||||||
Unallocated acquisition-related integration and restructuring expense | (36) | (24) | (99) | (121) | ||
Net interest expense | (94) | (113) | (285) | (351) | ||
Corporate, Non-Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (Loss) Before Income Taxes | $ (728) | $ (618) | $ (1,932) | $ (2,141) |
Benefit Plans (Detail)
Benefit Plans (Detail) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 38 | $ 35 | $ 106 | $ 113 |
Interest cost | 21 | 16 | 59 | 53 |
Expected return on plan assets | (52) | (40) | (146) | (129) |
Amortization of prior service credit | (4) | (3) | (12) | (10) |
Amortization of loss | 17 | 22 | 48 | 73 |
Curtailment/Settlement (Gain) Loss | (1) | 6 | 5 | 6 |
Net pension cost | $ 19 | $ 36 | $ 61 | $ 106 |
Business Restructuring Charge_2
Business Restructuring Charges (Detail) $ in Millions | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 19 |
Charged to expense | 72 |
Cash payments | (54) |
Ending Balance | 17 |
Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | (20) |
Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 14 |
Charged to expense | 7 |
Cash payments | (9) |
Ending Balance | 12 |
Employee Termination | Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | 0 |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 5 |
Charged to expense | 65 |
Cash payments | (45) |
Ending Balance | 5 |
Other | Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Non-cash settlements | $ (20) |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,231 | $ 20,106 |
Accumulated Amortization | (8,391) | (7,381) |
Net Carrying Amount | 11,840 | 12,726 |
Unamortized intangible assets | 46 | 46 |
Acquired in-process research and development | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 44 | 44 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 2 | 2 |
Developed technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,498 | 14,399 |
Accumulated Amortization | (5,733) | (4,983) |
Net Carrying Amount | 8,764 | 9,417 |
Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,677 | 4,653 |
Accumulated Amortization | (2,085) | (1,838) |
Net Carrying Amount | 2,592 | 2,815 |
Product rights | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 107 | 123 |
Accumulated Amortization | (78) | (83) |
Net Carrying Amount | 29 | 40 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 408 | 409 |
Accumulated Amortization | (151) | (137) |
Net Carrying Amount | 257 | 271 |
Patents and other | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 542 | 523 |
Accumulated Amortization | (344) | (339) |
Net Carrying Amount | $ 198 | $ 184 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible amortization expense | $ 357 | $ 351 | $ 1,064 | $ 1,049 |
Intangible Assets - Reconciliat
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) $ in Millions | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 23,886 |
Acquisitions | 276 |
Purchase price allocation adjustments | (3) |
Currency translation | (191) |
Goodwill, ending balance | 23,968 |
Medical | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 10,240 |
Acquisitions | 0 |
Purchase price allocation adjustments | 0 |
Currency translation | (81) |
Goodwill, ending balance | 10,158 |
Life Sciences | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 836 |
Acquisitions | 71 |
Purchase price allocation adjustments | (1) |
Currency translation | (11) |
Goodwill, ending balance | 895 |
Interventional | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 12,810 |
Acquisitions | 205 |
Purchase price allocation adjustments | (2) |
Currency translation | (98) |
Goodwill, ending balance | $ 12,915 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of Notional Amounts of Outstanding Derivative Positions (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Foreign Exchange Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 1,698 | $ 2,735 |
Cross-Currency Swaps | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 910 | 1,958 |
Interest Rate Swaps | Fair value hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 700 | 700 |
Forward Starting Interest Rate Swaps | Cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 500 | 1,000 |
Foreign Currency-Denominated Debt | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 2,309 | $ 2,543 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Disclosure - Gains (Losses) on Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | $ 203 | $ 19 | $ 322 | $ 68 |
Foreign Currency-Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | 99 | 193 | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), gross | (4) | (25) | ||
Cross-Currency Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), net of tax | $ 84 | $ 129 | ||
Net gains (losses) recorded to Accumulated other comprehensive income (loss), gross | $ (16) | $ (100) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cash flow hedges | $ 37,000,000 | $ (34,000,000) | $ 74,000,000 | $ 78,000,000 | |
Interest Rate Swap | Cash flow hedges | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cash flow hedges | 37,000,000 | $ (34,000,000) | 77,000,000 | $ 71,000,000 | |
Derivative Notional Amount Terminated | 500,000,000 | 500,000,000 | |||
Notional amount of derivative | 500,000,000 | 500,000,000 | $ 1,000,000,000 | ||
Terminated Interest Rate Swap | Cash flow hedges | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cash flow hedges | $ 41,000,000 | $ 41,000,000 | |||
Commodity Contract | Cash flow hedges | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount of derivative | $ 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 |
Fair Value Disclosures [Abstract] | ||||
Cash and equivalents | $ 2,558 | $ 2,283 | ||
Restricted cash | 202 | 109 | ||
Cash and equivalents and restricted cash | $ 2,759 | $ 2,392 | $ 3,282 | $ 2,917 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Fair Value Disclosures [Abstract] | ||
Institutional money market accounts and ultra-short bond fund | $ 650 | $ 200 |
Current portion of long-term debt | 1,678 | 503 |
Long-term debt | $ 13,390 | $ 18,537 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2020 | Jun. 30, 2022 | |
Cost of Sales | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairment charge | $ 11 | $ 54 | $ 29 | $ 54 |
Acquisition-Related Integration and Restructuring Expense | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairment charge | $ 19 | |||
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 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Transfer of Financial Assets Accounted for as Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |||||
Trade receivables transferred to third parties under factoring arrangements | $ 215 | $ 284 | $ 650 | $ 1,071 | |
Amounts yet to be collected and remitted to the third parties | $ 215 | $ 215 | $ 118 |
Debt (Detail)
Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2022 | Apr. 01, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Carrying value of long-term notes | $ 14,683 | $ 17,110 | |||
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 950 | ||||
Maximum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity of credit facility | 500 | ||||
Notes 5.000% due February 15, 2030 | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 500 | ||||
Interest rate | 5% | ||||
Notes 6.750% due February 15, 2030 | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 200 | $ 200 | |||
Interest rate | 6.75% | ||||
Floating Rate Notes Due June62022 | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount of debt | $ 199 | ||||
Loss on debt extinguishment | $ (2) | ||||
Floating Rate Notes Due June62022 | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Carrying value of long-term notes | $ 199 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Jul. 18, 2022 USD ($) |
Subsequent Event | Parata Systems | |
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred | $ 1,525 |