Cover Page
Cover Page | 3 Months Ended |
Dec. 31, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2019 |
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 | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NJ |
Entity Tax Identification Number | 22-0760120 |
Entity Address, Address Line One | 1 Becton Drive, |
Entity Address, City or Town | Franklin Lakes, |
Entity Address, State or Province | NJ |
Entity Address, Postal Zip Code | 07417-1880 |
City Area Code | (201) |
Local Phone Number | 847-6800 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 271,173,148 |
Common Stock | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $1.00 |
Trading Symbol | BDX |
Security Exchange Name | NYSE |
Depositary shares | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing 1/20th of a share of 6.125% Cumulative Preferred Stock Series A |
Trading Symbol | BDXA |
Security Exchange Name | NYSE |
Notes 1.000% due December 15, 2022 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.000% Notes due December 15, 2022 |
Trading Symbol | BDX22A |
Security Exchange Name | NYSE |
Notes 1.900% due December 15, 2026 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.900% Notes due December 15, 2026 |
Trading Symbol | BDX26 |
Security Exchange Name | NYSE |
Notes 1.401% due May 24, 2023 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.401% Notes due May 24, 2023 |
Trading Symbol | BDX23A |
Security Exchange Name | NYSE |
Notes 3.020% due May 24, 2025 [Member] | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.020% Notes due May 24, 2025 |
Trading Symbol | BDX25 |
Security Exchange Name | NYSE |
Notes 0.174% due June 4, 2021 [Member] | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.174% Notes due June 4, 2021 |
Trading Symbol | BDX/21 |
Security Exchange Name | NYSE |
Notes 0.632% due June 4, 2023 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.632% Notes due June 4, 2023 |
Trading Symbol | BDX/23A |
Security Exchange Name | NYSE |
Notes 1.208% due June 4, 2026 | NEW YORK STOCK EXCHANGE, INC. | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.208% Notes due June 4, 2026 |
Trading Symbol | BDX/26A |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets: | ||
Cash and equivalents | $ 560 | $ 536 |
Restricted cash | 49 | 54 |
Short-term investments | 8 | 30 |
Trade receivables, net | 2,074 | 2,345 |
Inventories: | ||
Materials | 599 | 544 |
Work in process | 350 | 318 |
Finished products | 1,811 | 1,717 |
Inventories | 2,760 | 2,579 |
Prepaid expenses and other | 987 | 1,119 |
Total Current Assets | 6,438 | 6,664 |
Property, Plant and Equipment | 11,425 | 11,128 |
Less allowances for depreciation and amortization | 5,643 | 5,469 |
Property, Plant and Equipment, Net | 5,782 | 5,659 |
Goodwill | 23,435 | 23,376 |
Developed Technology, Net | 10,848 | 11,054 |
Customer Relationships, Net | 3,345 | 3,424 |
Other Intangibles, Net | 532 | 500 |
Other Assets | 1,573 | 1,088 |
Total Assets | 51,952 | 51,765 |
Current Liabilities: | ||
Short-term debt | 2,456 | 1,309 |
Payables, accrued expenses and other current liabilities | 4,269 | 4,345 |
Total Current Liabilities | 6,726 | 5,655 |
Long-Term Debt | 16,949 | 18,081 |
Long-Term Employee Benefit Obligations | 1,290 | 1,272 |
Deferred Income Taxes and Other Liabilities | 5,785 | 5,676 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock | 2 | 2 |
Common stock | 347 | 347 |
Capital in excess of par value | 16,320 | 16,270 |
Retained earnings | 12,938 | 12,913 |
Deferred compensation | 24 | 23 |
Common stock in treasury - at cost | (6,228) | (6,190) |
Accumulated other comprehensive loss | (2,202) | (2,283) |
Total Shareholders’ Equity | 21,202 | 21,081 |
Total Liabilities and Shareholders’ Equity | $ 51,952 | $ 51,765 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 4,225 | $ 4,160 |
Cost of products sold | 2,247 | 2,187 |
Selling and administrative expense | 1,121 | 1,073 |
Research and development expense | 270 | 258 |
Acquisitions and other restructurings | 86 | 91 |
Other operating income, net | 0 | (335) |
Total Operating Costs and Expenses | 3,724 | 3,273 |
Operating Income | 501 | 888 |
Interest expense | (136) | (171) |
Interest income, net | 1 | (12) |
Other income, net | 27 | 10 |
Income Before Income Taxes | 394 | 714 |
Income tax provision | 117 | 115 |
Net Income | 278 | 599 |
Preferred stock dividends | (38) | (38) |
Net income applicable to common shareholders | $ 240 | $ 562 |
Basic Earnings per Share (USD per share) | $ 0.88 | $ 2.09 |
Diluted Earnings per Share (USD per share) | 0.87 | 2.05 |
Dividends per Common Share (USD per share) | $ 0.79 | $ 0.77 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 278 | $ 599 |
Other Comprehensive Income (Loss), Net of Tax | ||
Foreign currency translation adjustments | 26 | (35) |
Defined benefit pension and postretirement plans | 17 | 15 |
Cash flow hedges | 39 | 1 |
Other Comprehensive Income (Loss), Net of Tax | 82 | (18) |
Comprehensive Income | $ 359 | $ 581 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | ||
Net income | $ 278 | $ 599 |
Adjustments to net income to derive net cash provided by operating activities: | ||
Depreciation and amortization | 530 | 563 |
Share-based compensation | 82 | 93 |
Deferred income taxes | (71) | (28) |
Change in operating assets and liabilities | 102 | (473) |
Pension obligation | 24 | (225) |
Gain on sale of business | 0 | 335 |
Other, net | (231) | 52 |
Net Cash Provided by Operating Activities | 713 | 245 |
Investing Activities | ||
Capital expenditures | (173) | (167) |
Proceeds from divestitures, net | 0 | 476 |
Other, net | (114) | (9) |
Net Cash (Used for) Provided by Investing Activities | (287) | 299 |
Financing Activities | ||
Change in credit facility borrowings | 210 | 50 |
Payments of debt and term loans | (303) | (453) |
Dividends paid | (252) | (245) |
Other, net | (68) | (86) |
Net Cash Used for Financing Activities | (413) | (734) |
Effect of exchange rate changes on cash and equivalents and restricted cash | 6 | (5) |
Net increase (decrease) in cash and equivalents and restricted cash | 18 | (195) |
Opening Cash and Equivalents and Restricted Cash | 590 | 1,236 |
Closing Cash and Equivalents and Restricted Cash | $ 609 | $ 1,042 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
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 2019 Annual Report on Form 10-K. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. |
Accounting Changes
Accounting Changes | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting Changes New Accounting Principle Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet, as well as requires expanded disclosures regarding leasing arrangements. The Company adopted this standard on October 1, 2019 and elected certain practical expedients permitted under the transition guidance, including a transition method which allows application of the new standard at its adoption date, rather than at the earliest comparative period presented in the financial statements. The Company also elected not to perform any reassessments relative to its expired and existing leases upon its adoption of the new requirements. The Company's adoption of this standard did not materially impact its condensed consolidated financial statements. Additional disclosures regarding the Company’s lease arrangements are provided in Note 14 . New Accounting Principles Not Yet Adopted In June 2016, the FASB issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company is currently evaluating the impact that this new accounting standard will have on its consolidated financial statements upon its adoption on October 1, 2020. In August 2018, the FASB issued a new accounting standard to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The standard is effective for the Company on October 1, 2020, but early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the impact that this new accounting standard will have on its consolidated financial statements upon its adoption. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in certain components of shareholders' equity for the first quarters of fiscal years 2020 and 2019 were as follows: Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2019 $ 347 $ 16,270 $ 12,913 $ 23 (76,260 ) $ (6,190 ) Net income — — 278 — — — Common dividends ($0.79 per share) — — (215 ) — — — Preferred dividends — — (38 ) — — — Common stock issued for share-based compensation and other plans, net — (32 ) — 1 758 (38 ) Share-based compensation — 82 — — — — Common stock held in trusts, net (a) — — — — (12 ) — Balance at December 31, 2019 $ 347 $ 16,320 $ 12,938 $ 24 (75,514 ) $ (6,228 ) Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2018 $ 347 $ 16,179 $ 12,596 $ 22 (78,463 ) $ (6,243 ) Net income — — 599 — — — Common dividends ($0.77 per share) — — (207 ) — — — Preferred dividends — — (38 ) — — — Common stock issued for share-based compensation and other plans, net — (97 ) — 2 851 9 Share-based compensation — 92 — — — — Common stock held in trusts, net (a) — — — — (12 ) — Effect of change in accounting principles — — 68 — — — Balance at December 31, 2018 $ 347 $ 16,174 $ 13,018 $ 24 (77,624 ) $ (6,235 ) (a) Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2020 and 2019 were as follows: (Millions of dollars) Total Foreign Currency Translation Benefit Plans Cash Flow Hedges Balance at September 30, 2019 $ (2,283 ) $ (1,256 ) $ (1,005 ) $ (23 ) Other comprehensive income before reclassifications, net of taxes 63 26 — 37 Amounts reclassified into income, net of taxes 19 — 17 2 Balance at December 31, 2019 $ (2,202 ) $ (1,230 ) $ (988 ) $ 16 (Millions of dollars) Total Foreign Currency Translation Benefit Plans Cash Flow Hedges Balance at September 30, 2018 $ (1,909 ) $ (1,162 ) $ (729 ) $ (17 ) Other comprehensive (loss) income before reclassifications, net of taxes (32 ) (35 ) 3 (1 ) Amounts reclassified into income, net of taxes 14 — 13 1 Balance at December 31, 2018 $ (1,927 ) $ (1,197 ) $ (714 ) $ (16 ) The amounts of foreign currency translation recognized in other comprehensive income during the three months ended December 31, 2019 and 2018 included net (losses) gains relating to net investment hedges. The amount recognized in other comprehensive income relating to cash flow hedges during the three months ended December 31, 2019 related to forward starting interest rate swaps. Additional disclosures regarding the Company's derivatives are provided in Note 12 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Average common shares outstanding 271,102 269,035 Dilutive share equivalents from share-based plans 3,850 5,221 Average common and common equivalent shares outstanding – assuming dilution 274,952 274,256 Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive: Mandatory convertible preferred stock 11,685 11,685 |
Contingencies
Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the civil investigative demand served by the Department of Justice, as discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. Product Liability Matters The Company believes that certain settlements and judgments, as well as legal defense costs, relating to product liability matters are or may be covered in whole or in part under its product liability insurance policies with a limited number of insurance carriers, or, in some circumstances, indemnification obligations to the Company from other parties, which if disputed, the Company intends to vigorously contest. Amounts recovered under the Company’s product liability insurance policies or indemnification arrangements may be less than the stated coverage limits or less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers or other parties will pay claims or that coverage or indemnity will be otherwise available. Hernia Product Claims As of December 31, 2019 , the Company is defending approximately 14,330 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”). The majority of those claims are currently pending in a coordinated proceeding in Rhode Island State Court, but claims are also pending in other state and/or federal court jurisdictions. In addition, those claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. From time to time, the Company engages in resolution discussions with plaintiffs’ law firms regarding certain of the Hernia Product Claims, but the Company also intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. Trials are scheduled throughout 2020 in various state and/or federal courts. The Company expects additional trials of Hernia Product Claims to take place over the next 12 months. In August 2018, a new hernia multi-district litigation (“MDL”) was ordered to be established in the Southern District of Ohio. The Company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. Women’s Health Product Claims As of December 31, 2019 , the Company is defending approximately 750 product liability claims involving the Company’s line of pelvic mesh devices. The majority of those claims are currently pending in various federal court jurisdictions, and a coordinated proceeding in New Jersey State Court, but claims are also pending in other state court jurisdictions. In addition, those claims include putative class actions filed in the United States. Not included in the figures above are approximately 1,010 filed and unfiled claims that have been asserted or threatened against the Company but lack sufficient information to determine whether a pelvic mesh device of the Company is actually at issue. The claims identified above also include products manufactured by both the Company and two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the Company. Medtronic has an obligation to defend and indemnify the Company with respect to any product defect liability relating to products its subsidiaries had manufactured. In July 2015, the Company reached an agreement with Medtronic in which Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the Company under supply agreements with Medtronic. In June 2017, the Company amended the agreement with Medtronic to transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on terms similar to the July 2015 agreement, including with respect to the obligation to make payments to Medtronic towards these potential settlements. As of December 31, 2019, the Company has paid Medtronic $141 million towards these potential settlements. The Company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreements do not resolve the dispute between the Company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any. The foregoing lawsuits, unfiled claims, putative class actions, and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as the “Women’s Health Product Claims.” The Women’s Health Product Claims generally seek damages for personal injury allegedly resulting from use of the products. As of December 31, 2019 , the Company has reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 15,165 of the Women’s Health Product Claims. The Company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which are not included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The Company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements. Starting in 2014 in the MDL, the court entered certain pre-trial orders requiring trial work up and remand of a significant number of Women’s Health Product Claims, including an order entered in the MDL on January 30, 2018, that requires the work up and remand of all remaining unsettled cases (the “WHP Pre-Trial Orders”). The WHP Pre-Trial Orders may result in material additional costs or trial verdicts in future periods in defending Women’s Health Product Claims. Trials are anticipated throughout 2020 in state and federal courts. A trial in the New Jersey coordinated proceeding began in March 2018, and in April 2018 a jury entered a verdict against the Company in the total amount of $68 million ( $33 million compensatory; $35 million punitive). The Company is in the process of appealing that verdict. The Company expects additional trials of Women’s Health Product Claims to take place over the next 12 months, which may potentially include consolidated trials. During the course of engaging in settlement discussions with plaintiffs’ law firms, the Company has learned, and may in future periods learn, additional information regarding these and other unfiled claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. Filter Product Claims As of December 31, 2019 , the Company is defending approximately 2,650 product liability claims involving the Company’s line of inferior vena cava filters (collectively, the “Filter Product Claims”). The majority of those claims are currently pending in an MDL in the United States District Court for the District of Arizona, but those MDL claims either have been, or are in the process of being, remanded to various federal jurisdictions. Filter Product Claims are also pending in various state court jurisdictions, including a coordinated proceeding in Arizona State Court. In addition, those claims include putative class actions filed in the United States and Canada. The Filter Product Claims generally seek damages for personal injury allegedly resulting from use of the products. The Company has limited information regarding the nature and quantity of certain of the Filter Product Claims. The Company continues to receive claims and lawsuits and may in future periods learn additional information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the Company’s estimate of the number of claims or lawsuits against the Company. On May 31, 2019, the MDL Court ceased accepting direct filings or transfers into the Filter Product Claims MDL and, as noted above, remands for non-settled cases have begun and are expected to continue over the next three months. Federal and state court trials are scheduled throughout 2020. As of December 31, 2019 , the Company entered into settlement agreements and/or settlement agreements in principle for approximately 6,400 cases. On March 30, 2018, a jury in the first MDL trial found the Company liable for negligent failure to warn and entered a verdict in favor of plaintiffs. The jury found the Company was not liable for (a) strict liability design defect; (b) strict liability failure to warn; and (c) negligent design. The Company has appealed that verdict. On June 1, 2018, a jury in the second MDL trial unanimously found in favor of the Company on all claims. On August 17, 2018, the Court entered summary judgment in favor of the Company on all claims in the third MDL trial. On October 5, 2018, a jury in the fourth MDL trial unanimously found in favor of the Company on all claims. The Company expects additional trials of Filter Product Claims may take place over the next 12 months. In most product liability litigations (like those described above), plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters. In connection with the settlement of a prior litigation with certain of the Company's insurance carriers, an agreement with the Company's insurance carriers was reached to reimburse the Company for certain future costs incurred in connection with Filter Product Claims up to an agreed amount. For certain product liability claims or lawsuits, the Company does not maintain or has limited remaining insurance coverage. Other Legal Matters Since early 2013, the Company has received subpoenas or Civil Investigative Demands from a number of State Attorneys General seeking information related to the sales and marketing of certain of the Company’s products that are the subject of the Hernia Product Claims and the Women’s Health Product Claims. The Company is cooperating with these requests. Although the Company has had, and continues to have, discussions with the State Attorneys General with respect to overall potential resolution of this matter, there can be no assurance that a resolution will be reached or what the terms of any such resolution may be. In July 2017, a civil investigative demand was served by the Department of Justice seeking documents and information relating to an investigation into possible violations of the False Claims Act in connection with the sales and marketing of FloChec ® and QuantaFlo TM devices. The Company is cooperating with these requests. Since it is not feasible to predict the outcome of these matters, the Company cannot give any assurances that the resolution of these matters will not have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity. The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. However, one or more of the proceedings could be material to the Company’s business and/or results of operations. The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses to these suits pending against the Company and is engaged in a vigorous defense of each of these matters. Litigation Reserves 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. In the second and fourth quarters of fiscal year 2019, the Company recorded pre-tax charges to Other operating expense, net , of approximately $331 million and $582 million , respectively, related to certain of the product liability matters discussed above under the heading “Product Liability Matters,” including the related legal defense costs. The Company recorded these charges based on additional information obtained during the second and fourth quarters of fiscal year 2019, including but not limited to: the nature and quantity of unfiled and filed claims and the continued rate of claims being filed in certain product liability matters; the status of certain settlement discussions with plaintiffs’ counsel; the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the Company; and the stage of litigation. Accruals for the Company's product liability claims which are discussed above, as well as the related legal defense costs, amounted to approximately $2.4 billion at December 31, 2019 and $2.5 billion at September 30, 2019 . These accruals, which are generally long-term in nature, are largely recorded within Deferred Income Taxes and Other Liabilities on the Company's condensed consolidated balance sheets. As of December 31, 2019 and September 30, 2019 , the Company had $48 million and $53 million , respectively, in qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain product liability matters. Payments to QSFs are recorded as a component of Restricted cash . The Company's expected recoveries related to product liability claims and related legal defense costs were approximately $152 million and $150 million at December 31, 2019 and September 30, 2019 , respectively. A substantial amount of these expected recoveries at December 31, 2019 and September 30, 2019 related to the Company’s agreements with Medtronic related to certain Women’s Health Product Claims. The expected recoveries at December 31, 2019 |
Revenues
Revenues | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues The Company’s policies for recognizing sales have not changed from those described in the Company’s 2019 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 estimate of probable credit losses relating to trade receivables is determined based on historical experience and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectible. Such amounts are not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. The impact of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Effects of Revenue Arrangements on Consolidated Balance Sheets Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's condensed consolidated balance sheets. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's condensed consolidated balance sheets. Contract liabilities for unearned revenue that is allocable to performance obligations, such as extended warranty and software maintenance contracts, which are performed over time are immaterial to the Company's consolidated financial results. The Company's liability for product warranties provided under its agreements with customers is not material to its condensed consolidated balance sheets. Remaining Performance Obligations The Company's obligations relative to service contracts and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing contracts with original expected durations of more than one year, which are attributable to products and/or services that have not yet been installed or provided are estimated to be approximately $1.8 billion at December 31, 2019 . 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 $2.7 billion at December 31, 2019 . This revenue will be recognized over the customer relationship period. Disaggregation of Revenues A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 7 . |
Segment Data
Segment Data | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data The Company's organizational structure is based upon three principal 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. Effective October 1, 2019, Life Sciences joined its former Preanalytical Systems and Diagnostic Systems organizational units to create a new Integrated Diagnostic Solutions organizational unit which focuses on driving growth and innovation around integrated specimen management to diagnostic solutions. The Integrated Diagnostic Solutions organizational unit consists of the following principal product lines: Organizational Unit Principal Product Lines Integrated Diagnostic Solutions Integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays for testing of respiratory infections; microbiology laboratory automation and plated media for clinical and industrial applications. Revenues by segment, organizational unit and geographical areas for the three -month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended December 31, (Millions of dollars) 2019 2018 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 520 $ 428 $ 948 $ 519 $ 438 $ 956 Medication Management Solutions (a) 462 113 575 508 118 625 Diabetes Care 139 129 268 145 129 274 Pharmaceutical Systems 84 215 299 68 212 280 Total segment revenues $ 1,204 $ 886 $ 2,090 $ 1,239 $ 896 $ 2,135 Life Sciences Integrated Diagnostic Solutions Preanalytical Systems $ 202 $ 196 $ 398 $ 201 $ 192 $ 393 Diagnostic Systems 184 218 402 175 207 382 Total Integrated Diagnostic Solutions 386 414 800 376 399 774 Biosciences 152 171 323 108 173 281 Total segment revenues $ 538 $ 585 $ 1,123 $ 484 $ 572 $ 1,056 Interventional Surgery (b) $ 256 $ 70 $ 326 $ 246 $ 64 $ 310 Peripheral Intervention (b) 225 170 395 223 160 382 Urology and Critical Care (b) 206 85 291 195 83 277 Total segment revenues $ 688 $ 325 $ 1,012 $ 664 $ 306 $ 970 Total Company revenues $ 2,430 $ 1,795 $ 4,225 $ 2,387 $ 1,773 $ 4,160 (a) Prior-period amounts reflect the reclassification of U.S. revenues of $2 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. (b) Prior-period amounts reflect the total reclassifications of $31 million of U.S. revenues and $14 million of international revenues associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. Segment income for the three -month periods was as follows: Three Months Ended (Millions of dollars) 2019 2018 Income Before Income Taxes Medical (a) $ 564 $ 665 Life Sciences 361 305 Interventional 243 209 Total Segment Operating Income 1,167 1,180 Acquisitions and other restructurings (86 ) (91 ) Net interest expense (134 ) (183 ) Other unallocated items (b) (553 ) (192 ) Total Income Before Income Taxes $ 394 $ 714 (a) The amount for the three months ended December 31, 2019 included the estimated cost of a product recall of $59 million which was recorded to Cost of products sold and is further discussed in Note 15. (b) Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the three months ended December 31, 2018 included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $335 million , which is further discussed in Note 9 . |
Benefit Plans
Benefit Plans | 3 Months Ended |
Dec. 31, 2019 | |
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 months ended December 31 : Three Months Ended (Millions of dollars) 2019 2018 Service cost $ 40 $ 35 Interest cost 22 28 Expected return on plan assets (49 ) (47 ) Amortization of prior service credit (3 ) (3 ) Amortization of loss 25 20 Net pension cost $ 35 $ 32 The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods. All components of the Company’s net periodic pension cost, aside from service cost, are recorded to Other income (expense), net on its condensed consolidated statements of income. |
Divestiture
Divestiture | 3 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture The Company completed the sale of its Life Sciences segment's Advanced Bioprocessing business in October 2018 pursuant to a definitive agreement that was signed in September 2018. The Company recognized a pre-tax gain on the sale of approximately $335 million which was recorded as a component of Other operating income, net |
Business Restructuring Charges
Business Restructuring Charges | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring Charges | Business Restructuring Charges The Company incurred restructuring costs during the three months ended December 31, 2019 , in connection with the Company's acquisition of C.R. Bard, Inc. ("Bard") and portfolio rationalization initiatives, which were largely recorded within Acquisitions and other restructurings . Restructuring liability activity for the three months ended December 31, 2019 was as follows: (Millions of dollars) Employee Termination Other Total Bard Other Initiatives Bard (a) Other Initiatives Bard Other Initiatives Balance at September 30, 2019 $ 22 $ 31 $ 1 $ 3 $ 23 $ 34 Charged to expense 4 2 13 4 17 6 Cash payments (7 ) (12 ) (6 ) (4 ) (13 ) (16 ) Non-cash settlements — — (7 ) — (7 ) — Balance at December 31, 2019 $ 19 $ 21 1 $ 3 $ 20 $ 24 (a) |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of: December 31, 2019 September 30, 2019 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Developed technology $ 14,010 $ 3,161 $ 13,960 $ 2,906 Customer relationships 4,610 1,265 4,608 1,183 Product rights 115 65 110 60 Trademarks 407 106 407 102 Patents and other 488 311 445 305 Amortized intangible assets $ 19,630 $ 4,908 $ 19,530 $ 4,555 Unamortized intangible assets Acquired in-process research and development $ 1 $ 1 Trademarks 2 2 Unamortized intangible assets $ 3 $ 3 Intangible amortization expense for the three months ended December 31, 2019 and 2018 was $345 million and $378 million , respectively. The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Life Sciences Interventional Total Goodwill as of September 30, 2019 $ 9,989 $ 772 $ 12,615 $ 23,376 Acquisitions (a) 10 — — 10 Currency translation 17 2 30 49 Goodwill as of December 31, 2019 $ 10,016 $ 774 $ 12,645 $ 23,435 (a) Represents goodwill recognized relative to certain acquisitions which were not material individually or in the aggregate. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below. Foreign Currency Risks and Related Strategies The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts. In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has hedged the currency risk associated with those investments with instruments, such as foreign currency-denominated debt, cross-currency swaps and currency exchange contracts, which are designated as net investment hedges. Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. As such, the gains or losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. The net amounts recognized in Other income, net , during the three months ended December 31, 2019 and 2018 were immaterial to the Company's consolidated financial results. The total notional amounts of the Company’s outstanding foreign exchange contracts as of December 31, 2019 and September 30, 2019 were $1.2 billion and $2.3 billion , respectively. Certain of the Company's foreign currency-denominated long-term notes outstanding, which had a total carrying value of $1.4 billion as of December 31, 2019 and September 30, 2019 , were designated as, and were effective as, economic hedges of net investments in certain of the Company's foreign subsidiaries. The Company has entered into cross-currency swaps, all of which are designated and effective as economic hedges of net investments in certain of the Company's foreign subsidiaries. The notional amounts of the cross-currency swaps were $3.0 billion and $2.3 billion as of December 31, 2019 and September 30, 2019 , respectively. Net gains or losses relating to the net investment hedges, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as accumulated foreign currency translation in Other comprehensive income (loss) . Upon the termination of a net investment hedge, any net gain or loss included in Accumulated other comprehensive income (loss) relative to the investment hedge remains until the foreign subsidiary investment is disposed of or is substantially liquidated. Net (losses) gains recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows: Three Months Ended (Millions of dollars) 2019 2018 Foreign currency-denominated debt $ (34 ) $ 59 Cross-currency swaps $ (52 ) $ — Interest Rate Risks and Related Strategies The Company’s policy is to manage interest rate exposure using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $375 million at December 31, 2019 and September 30, 2019 . The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The amounts recorded during the three months ended December 31, 2019 and 2018 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss) . If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings over the remaining life of the hedged debt. The net realized loss related to terminated interest rate swaps expected to be reclassified and recorded in Interest expense within the next 12 months is $6 million , net of tax. The total notional amount of the Company's outstanding forward starting interest rate swaps was $1.5 billion at December 31, 2019 and September 30, 2019 . The Company entered into these contracts in the fourth quarter of fiscal year 2019 to mitigate its exposure to interest rate risk. The Company recognized an after-tax gain of $37 million in other comprehensive income relating to these interest rate hedges during the three months ended December 31, 2019 . Other Risk Exposures The Company purchases resins, which are oil-based components used in the manufacture of certain products. Significant increases in world oil prices that lead to increases in resin purchase costs could impact future operating results. From time to time, the Company has managed price risks associated with these commodity purchases through commodity derivative forward contracts. The Company's outstanding commodity derivative forward contracts at December 31, 2019 and September 30, 2019 were immaterial to the Company's consolidated financial results. Financial Statement Effects The fair values of derivative instruments outstanding at December 31, 2019 and September 30, 2019 were not material to the Company's consolidated balance sheets. The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during the three months ended December 31, 2019 and 2018 were not material to the Company's consolidated financial results. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at December 31, 2019 and September 30, 2019 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) December 31, 2019 September 30, 2019 Cash and equivalents $ 560 $ 536 Restricted cash 49 54 Cash and equivalents and restricted cash $ 609 $ 590 Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. The Company’s cash and equivalents include institutional money market accounts which permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. The fair value of these accounts was immaterial at December 31, 2019 and the fair value of these accounts at September 30, 2019 was $39 million . The Company’s remaining cash and equivalents, excluding restricted cash, were $560 million and $497 million at December 31, 2019 and September 30, 2019 , respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year . Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $18.1 billion and $19.2 billion at December 31, 2019 and September 30, 2019 , respectively. The fair value of the current portion of long-term debt was $2.5 billion and $1.3 billion at December 31, 2019 and September 30, 2019 , respectively. All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets. 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 Company’s balance of Trade receivables, net at December 31, 2019 excludes trade receivables of $328 million that have been transferred to third parties under factoring arrangements. The costs incurred by the Company in connection with factoring activities were not material to its consolidated financial results. The Company’s transfers of trade receivables during the three months ended December 31, 2018 were not material to its consolidated financial results. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company leases real estate, vehicles and other equipment which are used in the Company’s manufacturing, administrative and research and development activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Company’s lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Company’s leases is approximately 7.5 years . An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option. The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. For the longer-term lease arrangements that are recognized on the Company’s consolidated balance sheet, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Company’s short-term leases, as well as variable costs relating to the Company’s lease arrangements, are not material to its consolidated financial results. The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under an arrangement. The weighted-average incremental borrowing rate that has been applied to measure the Company’s lease liabilities is 2.3% . The Company’s lease costs recorded in its consolidated statement of income for the three months ended December 31, 2019 were $34 million . Cash payments arising from the Company’s lease arrangements are reflected on its condensed consolidated statement of cash flows as outflows used for operating activities. The right-of-use assets and lease liabilities recognized on the Company’s condensed consolidated balance sheet as of December 31, 2019 were as follows: (Millions of dollars) December 31, 2019 Right-use-assets recorded in Other Assets $ 426 Current lease liabilities recorded in Payables, accrued expenses and other current liabilities $ 105 Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities $ 340 The Company’s payments due under its operating leases are as follows: (Millions of dollars) Remaining for 2020 $ 86 2021 95 2022 74 2023 49 2024 33 Thereafter 158 Total payments due 494 Less: imputed interest 49 Total $ 445 The Company’s future minimum rental commitments on non-cancelable leases at September 30, 2019 , as disclosed in the Company’s 2019 Annual Report on Form 10-K, were as follows: (Millions of dollars) 2020 $ 122 2021 103 2022 83 2023 57 2024 56 Thereafter 123 Total $ 546 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On February 4, 2020, the Company initiated a voluntary recall of certain Alaris TM pump systems in order to address software errors and other alarm prioritization matters. The estimated cost of this recall of $59 million was recorded to Cost of products sold during the three months ended December 31, 2019 . The Company may record incremental charges in future periods associated with this recall. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principles Adopted | New Accounting Principle Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued a new lease accounting standard which requires lessees to recognize lease assets and lease liabilities on the balance sheet, as well as requires expanded disclosures regarding leasing arrangements. The Company adopted this standard on October 1, 2019 and elected certain practical expedients permitted under the transition guidance, including a transition method which allows application of the new standard at its adoption date, rather than at the earliest comparative period presented in the financial statements. The Company also elected not to perform any reassessments relative to its expired and existing leases upon its adoption of the new requirements. The Company's adoption of this standard did not materially impact its condensed consolidated financial statements. Additional disclosures regarding the Company’s lease arrangements are provided in Note 14 . New Accounting Principles Not Yet Adopted In June 2016, the FASB issued a new accounting standard which requires earlier recognition of credit losses on loans and other financial instruments held by entities, including trade receivables. The new standard requires entities to measure all expected credit losses for financial assets held at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company is currently evaluating the impact that this new accounting standard will have on its consolidated financial statements upon its adoption on October 1, 2020. In August 2018, the FASB issued a new accounting standard to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The standard is effective for the Company on October 1, 2020, but early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the impact that this new accounting standard will have on its consolidated financial statements upon its adoption. |
Commitments and Contingencies | Given the uncertain nature of litigation generally, the Company is not able, in all cases, to estimate the amount or range of loss that could result from an unfavorable outcome of the litigation to which the Company is a party. In accordance with U.S. GAAP, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). With respect to putative class action lawsuits in the United States and certain of the Canadian lawsuits described below relating to product liability matters, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. With respect to the civil investigative demand served by the Department of Justice, as discussed below, the Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved. In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations and consolidated cash flows. |
Revenue | Measurement of Revenues The Company’s estimate of probable credit losses relating to trade receivables is determined based on historical experience and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectible. Such amounts are not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. The impact of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. |
Derivatives | Hedges of the transactional foreign exchange exposures resulting primarily from intercompany payables and receivables are undesignated hedges. The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items have on financial position, financial performance, and cash flows are provided below. The Company’s policy is to manage interest rate exposure using a mix of fixed and variable rate debt. The Company periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either fair value or cash flow hedges. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. The total notional amount of the Company’s outstanding interest rate swaps designated as fair value hedges was $375 million at December 31, 2019 and September 30, 2019 . The outstanding swaps represent fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt. The amounts recorded during the three months ended December 31, 2019 and 2018 for changes in the fair value of these hedges were immaterial to the Company's consolidated financial results. Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss) . If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) |
Fair Value of Financial Instruments | The Company’s cash and equivalents include institutional money market accounts which permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. The fair value of these accounts was immaterial at December 31, 2019 and the fair value of these accounts at September 30, 2019 was $39 million . The Company’s remaining cash and equivalents, excluding restricted cash, were $560 million and $497 million at December 31, 2019 and September 30, 2019 , respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments consist of instruments with maturities greater than three months and less than one year . Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments, which are considered Level 2 inputs in the fair value hierarchy. The fair value of long-term debt was $18.1 billion and $19.2 billion at December 31, 2019 and September 30, 2019 , respectively. The fair value of the current portion of long-term debt was $2.5 billion and $1.3 billion at December 31, 2019 and September 30, 2019 , respectively. All other instruments measured by the Company at fair value, including derivatives and contingent consideration liabilities, are immaterial to the Company's consolidated balance sheets. |
Lessee, Leases | The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Company’s lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Company’s leases is approximately 7.5 years . An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option. |
Short-term Leases | The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders Equity | Changes in certain components of shareholders' equity for the first quarters of fiscal years 2020 and 2019 were as follows: Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2019 $ 347 $ 16,270 $ 12,913 $ 23 (76,260 ) $ (6,190 ) Net income — — 278 — — — Common dividends ($0.79 per share) — — (215 ) — — — Preferred dividends — — (38 ) — — — Common stock issued for share-based compensation and other plans, net — (32 ) — 1 758 (38 ) Share-based compensation — 82 — — — — Common stock held in trusts, net (a) — — — — (12 ) — Balance at December 31, 2019 $ 347 $ 16,320 $ 12,938 $ 24 (75,514 ) $ (6,228 ) Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2018 $ 347 $ 16,179 $ 12,596 $ 22 (78,463 ) $ (6,243 ) Net income — — 599 — — — Common dividends ($0.77 per share) — — (207 ) — — — Preferred dividends — — (38 ) — — — Common stock issued for share-based compensation and other plans, net — (97 ) — 2 851 9 Share-based compensation — 92 — — — — Common stock held in trusts, net (a) — — — — (12 ) — Effect of change in accounting principles — — 68 — — — Balance at December 31, 2018 $ 347 $ 16,174 $ 13,018 $ 24 (77,624 ) $ (6,235 ) (a) Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components and changes of Accumulated other comprehensive income (loss) for the first quarters of fiscal years 2020 and 2019 were as follows: (Millions of dollars) Total Foreign Currency Translation Benefit Plans Cash Flow Hedges Balance at September 30, 2019 $ (2,283 ) $ (1,256 ) $ (1,005 ) $ (23 ) Other comprehensive income before reclassifications, net of taxes 63 26 — 37 Amounts reclassified into income, net of taxes 19 — 17 2 Balance at December 31, 2019 $ (2,202 ) $ (1,230 ) $ (988 ) $ 16 (Millions of dollars) Total Foreign Currency Translation Benefit Plans Cash Flow Hedges Balance at September 30, 2018 $ (1,909 ) $ (1,162 ) $ (729 ) $ (17 ) Other comprehensive (loss) income before reclassifications, net of taxes (32 ) (35 ) 3 (1 ) Amounts reclassified into income, net of taxes 14 — 13 1 Balance at December 31, 2018 $ (1,927 ) $ (1,197 ) $ (714 ) $ (16 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Average common shares outstanding 271,102 269,035 Dilutive share equivalents from share-based plans 3,850 5,221 Average common and common equivalent shares outstanding – assuming dilution 274,952 274,256 Share equivalents excluded from the diluted shares outstanding calculation because the result would have been antidilutive: Mandatory convertible preferred stock 11,685 11,685 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Area | Revenues by segment, organizational unit and geographical areas for the three -month periods are detailed below. The Company has no material intersegment revenues. Three Months Ended December 31, (Millions of dollars) 2019 2018 United States International Total United States International Total Medical Medication Delivery Solutions (a) $ 520 $ 428 $ 948 $ 519 $ 438 $ 956 Medication Management Solutions (a) 462 113 575 508 118 625 Diabetes Care 139 129 268 145 129 274 Pharmaceutical Systems 84 215 299 68 212 280 Total segment revenues $ 1,204 $ 886 $ 2,090 $ 1,239 $ 896 $ 2,135 Life Sciences Integrated Diagnostic Solutions Preanalytical Systems $ 202 $ 196 $ 398 $ 201 $ 192 $ 393 Diagnostic Systems 184 218 402 175 207 382 Total Integrated Diagnostic Solutions 386 414 800 376 399 774 Biosciences 152 171 323 108 173 281 Total segment revenues $ 538 $ 585 $ 1,123 $ 484 $ 572 $ 1,056 Interventional Surgery (b) $ 256 $ 70 $ 326 $ 246 $ 64 $ 310 Peripheral Intervention (b) 225 170 395 223 160 382 Urology and Critical Care (b) 206 85 291 195 83 277 Total segment revenues $ 688 $ 325 $ 1,012 $ 664 $ 306 $ 970 Total Company revenues $ 2,430 $ 1,795 $ 4,225 $ 2,387 $ 1,773 $ 4,160 (a) Prior-period amounts reflect the reclassification of U.S. revenues of $2 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit. (b) Prior-period amounts reflect the total reclassifications of $31 million of U.S. revenues and $14 million of international revenues associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit. |
Financial Information for Company's Segments | Segment income for the three -month periods was as follows: Three Months Ended (Millions of dollars) 2019 2018 Income Before Income Taxes Medical (a) $ 564 $ 665 Life Sciences 361 305 Interventional 243 209 Total Segment Operating Income 1,167 1,180 Acquisitions and other restructurings (86 ) (91 ) Net interest expense (134 ) (183 ) Other unallocated items (b) (553 ) (192 ) Total Income Before Income Taxes $ 394 $ 714 (a) The amount for the three months ended December 31, 2019 included the estimated cost of a product recall of $59 million which was recorded to Cost of products sold and is further discussed in Note 15. (b) Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the three months ended December 31, 2018 included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $335 million , which is further discussed in Note 9 . |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Net Pension and Postretirement Cost | Net pension cost included the following components for the three months ended December 31 : Three Months Ended (Millions of dollars) 2019 2018 Service cost $ 40 $ 35 Interest cost 22 28 Expected return on plan assets (49 ) (47 ) Amortization of prior service credit (3 ) (3 ) Amortization of loss 25 20 Net pension cost $ 35 $ 32 |
Business Restructuring Charges
Business Restructuring Charges (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Accrual Activity | Restructuring liability activity for the three months ended December 31, 2019 was as follows: (Millions of dollars) Employee Termination Other Total Bard Other Initiatives Bard (a) Other Initiatives Bard Other Initiatives Balance at September 30, 2019 $ 22 $ 31 $ 1 $ 3 $ 23 $ 34 Charged to expense 4 2 13 4 17 6 Cash payments (7 ) (12 ) (6 ) (4 ) (13 ) (16 ) Non-cash settlements — — (7 ) — (7 ) — Balance at December 31, 2019 $ 19 $ 21 1 $ 3 $ 20 $ 24 (a) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets consisted of: December 31, 2019 September 30, 2019 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Developed technology $ 14,010 $ 3,161 $ 13,960 $ 2,906 Customer relationships 4,610 1,265 4,608 1,183 Product rights 115 65 110 60 Trademarks 407 106 407 102 Patents and other 488 311 445 305 Amortized intangible assets $ 19,630 $ 4,908 $ 19,530 $ 4,555 Unamortized intangible assets Acquired in-process research and development $ 1 $ 1 Trademarks 2 2 Unamortized intangible assets $ 3 $ 3 |
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, 2019 $ 9,989 $ 772 $ 12,615 $ 23,376 Acquisitions (a) 10 — — 10 Currency translation 17 2 30 49 Goodwill as of December 31, 2019 $ 10,016 $ 774 $ 12,645 $ 23,435 (a) Represents goodwill recognized relative to certain acquisitions which were not material individually or in the aggregate. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Net (losses) gains recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows: Three Months Ended (Millions of dollars) 2019 2018 Foreign currency-denominated debt $ (34 ) $ 59 Cross-currency swaps $ (52 ) $ — |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at December 31, 2019 and September 30, 2019 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) December 31, 2019 September 30, 2019 Cash and equivalents $ 560 $ 536 Restricted cash 49 54 Cash and equivalents and restricted cash $ 609 $ 590 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases [Table Text Block] | The right-of-use assets and lease liabilities recognized on the Company’s condensed consolidated balance sheet as of December 31, 2019 were as follows: (Millions of dollars) December 31, 2019 Right-use-assets recorded in Other Assets $ 426 Current lease liabilities recorded in Payables, accrued expenses and other current liabilities $ 105 Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities $ 340 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The Company’s payments due under its operating leases are as follows: (Millions of dollars) Remaining for 2020 $ 86 2021 95 2022 74 2023 49 2024 33 Thereafter 158 Total payments due 494 Less: imputed interest 49 Total $ 445 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company’s future minimum rental commitments on non-cancelable leases at September 30, 2019 , as disclosed in the Company’s 2019 Annual Report on Form 10-K, were as follows: (Millions of dollars) 2020 $ 122 2021 103 2022 83 2023 57 2024 56 Thereafter 123 Total $ 546 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Certain Components of Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends per Common Share (USD per share) | $ 0.79 | $ 0.77 |
Beginning balance | $ 21,081 | |
Net income | 278 | $ 599 |
Ending balance | 21,202 | |
Common Stock Issued at Par Value | ||
Beginning balance | 347 | 347 |
Ending balance | 347 | 347 |
Capital in Excess of Par Value | ||
Beginning balance | 16,270 | 16,179 |
Common stock issued for share-based compensation and other plans, net | (32) | (97) |
Share-based compensation | 82 | 92 |
Ending balance | 16,320 | 16,174 |
Retained Earnings | ||
Beginning balance | 12,913 | 12,596 |
Net income | 278 | 599 |
Common dividends | (215) | (207) |
Preferred dividends | (38) | (38) |
Effect of changes in accounting principle | 68 | |
Ending balance | 12,938 | 13,018 |
Deferred Compensation | ||
Beginning balance | 23 | 22 |
Common stock issued for share-based compensation and other plans, net | 1 | 2 |
Ending balance | 24 | 24 |
Treasury Stock | ||
Beginning balance | $ (6,190) | $ (6,243) |
Beginning balance (shares) | (76,260) | (78,463) |
Common stock issued for share-based compensation and other plans, net | $ (38) | $ 9 |
Common stock issued for share-based compensation and other plans, net (in shares) | 758 | 851 |
Common stock held in trusts, net | (12) | (12) |
Ending balance | $ (6,228) | $ (6,235) |
Ending balance (shares) | (75,514) | (77,624) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) - Components and Changes of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | $ (2,283) | $ (1,909) |
Other comprehensive income before reclassifications, net of taxes | 63 | (32) |
Amounts reclassified into income, net of taxes | 19 | 14 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (2,202) | (1,927) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (1,256) | (1,162) |
Other comprehensive income before reclassifications, net of taxes | 26 | (35) |
Amounts reclassified into income, net of taxes | 0 | 0 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (1,230) | (1,197) |
Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (1,005) | (729) |
Other comprehensive income before reclassifications, net of taxes | 0 | 3 |
Amounts reclassified into income, net of taxes | 17 | 13 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (988) | (714) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (23) | (17) |
Other comprehensive income before reclassifications, net of taxes | 37 | (1) |
Amounts reclassified into income, net of taxes | 2 | 1 |
Accumulated other comprehensive income (loss), net of tax, ending balance | $ 16 | $ (16) |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Average common shares outstanding (shares) | 271,102 | 269,035 |
Dilutive share equivalents from share-based plans (shares) | 3,850 | 5,221 |
Average common and common equivalent shares outstanding - assuming dilution (shares) | 274,952 | 274,256 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded (in shares) | 11,685 | 11,685 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 2,400 | $ 2,500 | ||
Qualified settlement funds | 48 | 53 | ||
Loss contingency, receivable | $ 152 | 150 | ||
Other Operating Income (Expense) | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual, period expense | $ 582 | $ 331 | ||
Hernia Product Claims | ||||
Loss Contingencies [Line Items] | ||||
Pending claims | 14,330 | |||
Womens Health Product Claims | ||||
Loss Contingencies [Line Items] | ||||
Pending claims | 750 | |||
Claims lacking sufficient information | 1,010 | |||
PaymentstoSupplier | $ 141 | |||
Number of claims in settlement agreement | 15,165 | |||
Damages awarded | $ 68 | |||
Womens Health Product Claims | Compensatory | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | 33 | |||
Womens Health Product Claims | Punitive | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 35 | |||
Filter Product Claims | ||||
Loss Contingencies [Line Items] | ||||
Pending claims | 2,650 | |||
Loss Contingency, Claims Settled, Number | 6,400 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 $ in Billions | Dec. 31, 2019USD ($) |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 3 years |
Products and/or Services | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1.8 |
Consumables [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2.7 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of principal business segments (segment) | 3 |
Segment Data - Revenues by Geog
Segment Data - Revenues by Geographic Areas (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 4,225 | $ 4,160 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,090 | 2,135 |
Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,123 | 1,056 |
Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,012 | 970 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,430 | 2,387 |
United States | IVFluids | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2 | |
United States | InterventionalSpecialties,BrachytherapyandFeedingProducts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 31 | |
United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,204 | 1,239 |
United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 538 | 484 |
United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 688 | 664 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,795 | 1,773 |
International | InterventionalSpecialties,BrachytherapyandFeedingProducts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 14 | |
International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 886 | 896 |
International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 585 | 572 |
International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 325 | 306 |
Medication Delivery Solutions | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 948 | 956 |
Medication Delivery Solutions | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 520 | 519 |
Medication Delivery Solutions | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 428 | 438 |
Medication Management Solutions | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 575 | 625 |
Medication Management Solutions | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 462 | 508 |
Medication Management Solutions | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 113 | 118 |
Diabetes Care | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 268 | 274 |
Diabetes Care | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 139 | 145 |
Diabetes Care | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 129 | 129 |
Pharmaceutical Systems | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 299 | 280 |
Pharmaceutical Systems | United States | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 84 | 68 |
Pharmaceutical Systems | International | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues | 215 | 212 |
Preanalytical Systems | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 398 | 393 |
Preanalytical Systems | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 202 | 201 |
Preanalytical Systems | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 196 | 192 |
Diagnostic Systems | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 402 | 382 |
Diagnostic Systems | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 184 | 175 |
Diagnostic Systems | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 218 | 207 |
Integrated Diagnostic Solutions | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 800 | 774 |
Integrated Diagnostic Solutions | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 386 | 376 |
Integrated Diagnostic Solutions | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 414 | 399 |
Biosciences | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 323 | 281 |
Biosciences | United States | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 152 | 108 |
Biosciences | International | Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Revenues | 171 | 173 |
Surgery | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 326 | 310 |
Surgery | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 256 | 246 |
Surgery | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 70 | 64 |
Peripheral Intervention | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 395 | 382 |
Peripheral Intervention | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 225 | 223 |
Peripheral Intervention | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 170 | 160 |
Urology and Critical Care | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 291 | 277 |
Urology and Critical Care | United States | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | 206 | 195 |
Urology and Critical Care | International | Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 85 | $ 83 |
Segment Data - Financial Inform
Segment Data - Financial Information for Company's Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | $ 394 | $ 714 |
Acquisitions and other restructurings | (86) | (91) |
Inventory Recall Expense | 59 | |
Gain on sale of business | 0 | 335 |
Advanced Bioprocessing | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of business | 335 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 1,167 | 1,180 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 564 | 665 |
Operating Segments | Life Sciences | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 361 | 305 |
Operating Segments | Interventional | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | 243 | 209 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Acquisitions and other restructurings | (86) | (91) |
Net interest expense | (134) | (183) |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) Before Income Taxes | $ (553) | $ (192) |
Benefit Plans - Net Pension and
Benefit Plans - Net Pension and Postretirement Cost (Detail) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 40 | $ 35 |
Interest cost | 22 | 28 |
Expected return on plan assets | (49) | (47) |
Amortization of prior service credit | (3) | (3) |
Amortization of loss | 25 | 20 |
Net pension and postretirement cost | $ 35 | $ 32 |
Divestiture - Additional Inform
Divestiture - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain (loss) on disposition of business | $ 0 | $ 335 |
Advanced Bioprocessing | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain (loss) on disposition of business | $ 335 |
Business Restructuring Charge_2
Business Restructuring Charges - Summary of Restructuring Accrual Activity (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
CR Bard Inc | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | $ 23 |
Charged to expense | 17 |
Cash payments | (13) |
Non-cash settlements | (7) |
Balance at December 31, 2019 | 20 |
CR Bard Inc | Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | 22 |
Charged to expense | 4 |
Cash payments | (7) |
Non-cash settlements | 0 |
Balance at December 31, 2019 | 19 |
CR Bard Inc | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | 1 |
Charged to expense | 13 |
Cash payments | (6) |
Non-cash settlements | (7) |
Balance at December 31, 2019 | 1 |
Other Initiatives | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | 34 |
Charged to expense | 6 |
Cash payments | (16) |
Non-cash settlements | 0 |
Balance at December 31, 2019 | 24 |
Other Initiatives | Employee Termination | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | 31 |
Charged to expense | 2 |
Cash payments | (12) |
Non-cash settlements | 0 |
Balance at December 31, 2019 | 21 |
Other Initiatives | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Balance at September 30, 2019 | 3 |
Charged to expense | 4 |
Cash payments | (4) |
Non-cash settlements | 0 |
Balance at December 31, 2019 | $ 3 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 19,630 | $ 19,530 |
Accumulated Amortization | 4,908 | 4,555 |
Unamortized intangible assets | 3 | 3 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 2 | 2 |
Acquired in-process research and development | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 1 | 1 |
Developed technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,010 | 13,960 |
Accumulated Amortization | 3,161 | 2,906 |
Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,610 | 4,608 |
Accumulated Amortization | 1,265 | 1,183 |
Product rights | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 115 | 110 |
Accumulated Amortization | 65 | 60 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 407 | 407 |
Accumulated Amortization | 106 | 102 |
Patents and other | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 488 | 445 |
Accumulated Amortization | $ 311 | $ 305 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 345 | $ 378 |
Intangible Assets - Reconciliat
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2019 | $ 23,376 |
Goodwill, Acquired During Period | 10 |
Currency translation | 49 |
Goodwill as of December 31, 2019 | 23,435 |
Medical | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2019 | 9,989 |
Goodwill, Acquired During Period | 10 |
Currency translation | 17 |
Goodwill as of December 31, 2019 | 10,016 |
Life Sciences | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2019 | 772 |
Goodwill, Acquired During Period | 0 |
Currency translation | 2 |
Goodwill as of December 31, 2019 | 774 |
Interventional | |
Goodwill [Roll Forward] | |
Goodwill as of September 30, 2019 | 12,615 |
Goodwill, Acquired During Period | 0 |
Currency translation | 30 |
Goodwill as of December 31, 2019 | $ 12,645 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Reclassification of terminated interest rate swaps to interest expense within the next 12 months | $ (6) | |
Debt | Net Investment Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 1,400 | $ 1,400 |
Foreign Exchange Contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 1,200 | 2,300 |
Currency Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 3,000 | 2,300 |
Fixed to Floating | Fair Value Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 375 | 375 |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 1,500 | $ 1,500 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 37 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Disclosure - Gains (Losses) on Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency-Denominated Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (34) | $ 59 |
Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (52) | $ 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value Disclosures [Abstract] | ||||
Cash and equivalents | $ 560 | $ 536 | ||
Restricted cash | 49 | 54 | ||
Cash and equivalents and restricted cash | $ 609 | $ 590 | $ 1,042 | $ 1,236 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | $ 39 | |
Remaining cash equivalents | $ 560 | 497 |
Fair value of long-term debt | 18,100 | 19,200 |
Fair value of debt reclassified from long term to short term | 2,500 | $ 1,300 |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 328 | |
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 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 2.30% |
Lease, Cost | $ 34 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 25 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-use-assets recorded in Other Assets | $ 426 |
Current lease liabilities recorded in Payables, accrued expenses and other current liabilities | 105 |
Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities | $ 340 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease, Liability, Maturity (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 86 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 95 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 74 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 49 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 33 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 158 |
Lessee, Operating Lease, Liability, Payments, Due | 494 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 49 |
Operating Lease, Liability | $ 445 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 122 |
Operating Leases, Future Minimum Payments, Due in Two Years | 103 |
Operating Leases, Future Minimum Payments, Due in Three Years | 83 |
Operating Leases, Future Minimum Payments, Due in Four Years | 57 |
Operating Leases, Future Minimum Payments, Due in Five Years | 56 |
Operating Leases, Future Minimum Payments, Due Thereafter | 123 |
Operating Leases, Future Minimum Payments Due | $ 546 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Subsequent Events [Abstract] | |
Inventory Recall Expense | $ 59 |