| Document and Company Information (USD $) | ||
| 3 Months Ended
Dec. 31, 2009 | Mar. 31, 2009
| |
| Document and Company Information [Abstract] | ||
| Entity Registrant Name | BECTON DICKINSON & CO | |
| Entity Central Index Key | 0000010795 | |
| Document Type | 10-Q | |
| Document Period End Date | 2009-12-31 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --09-30 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Public Float | $16,063,979,260 | |
| Entity Common Stock, Shares Outstanding | 235,699,337 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Thousands | Dec. 31, 2009
| Sep. 30, 2009
|
| Current Assets: | ||
| Cash and equivalents | $1,182,306 | $1,394,244 |
| Short-term investments | 276,107 | 551,561 |
| Trade receivables, net | 1,075,263 | 1,168,662 |
| Inventories: | ||
| Materials | 162,289 | 171,449 |
| Work in process | 221,849 | 223,094 |
| Finished products | 779,861 | 762,219 |
| Inventories, Total | 1,163,999 | 1,156,762 |
| Prepaid expenses, deferred taxes and other | 359,218 | 375,725 |
| Total Current Assets | 4,056,893 | 4,646,954 |
| Property, plant and equipment | 6,364,218 | 6,241,329 |
| Less allowances for depreciation and amortization | 3,364,792 | 3,274,700 |
| Property, Plant and Equipment, Net | 2,999,426 | 2,966,629 |
| Goodwill | 769,975 | 621,872 |
| Core and Developed Technology, Net | 301,433 | 309,990 |
| Other Intangibles, Net | 266,531 | 96,659 |
| Capitalized Software, Net | 214,292 | 197,224 |
| Other | 485,726 | 465,296 |
| Total Assets | 9,094,276 | 9,304,624 |
| Current Liabilities: | ||
| Short-term debt | 205,441 | 402,965 |
| Payables and accrued expenses | 1,333,386 | 1,374,128 |
| Total Current Liabilities | 1,538,827 | 1,777,093 |
| Long-Term Debt | 1,487,844 | 1,488,460 |
| Long-Term Employee Benefit Obligations | 619,993 | 782,034 |
| Deferred Income Taxes and Other | 187,453 | 114,325 |
| Shareholders' Equity: | ||
| Common stock | 332,662 | 332,662 |
| Capital in excess of par value | 1,533,450 | 1,485,674 |
| Retained earnings | 7,978,872 | 7,752,831 |
| Deferred compensation | 18,079 | 17,906 |
| Common shares in treasury - at cost | (4,265,077) | (4,073,699) |
| Accumulated other comprehensive income | (337,827) | (372,662) |
| Total Shareholders' Equity | 5,260,159 | 5,142,712 |
| Total Liabilities and Shareholders' Equity | $9,094,276 | $9,304,624 |
| Condensed Consolidated Statements of Income (Unaudited) (USD $) | ||
| In Thousands, except Per Share data | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 |
| Revenues | $1,916,774 | $1,717,919 |
| Cost of products sold | 919,542 | 796,274 |
| Selling and administrative | 450,928 | 406,019 |
| Research and development | 100,284 | 97,314 |
| Total Operating Costs and Expenses | 1,470,754 | 1,299,607 |
| Operating Income | 446,020 | 418,312 |
| Interest income | 8,789 | 1,651 |
| Interest expense | (12,987) | (7,824) |
| Other (expense) income, net | (2,354) | 9,411 |
| Income From Continuing Operations Before Income Taxes | 439,468 | 421,550 |
| Income tax provision | 123,490 | 112,131 |
| Income From Continuing Operations | 315,978 | 309,419 |
| Income from Discontinued Operations, net | 398 | 2,649 |
| Net Income | $316,376 | $312,068 |
| Basic Earnings per Share: | ||
| Income from Continuing Operations | 1.33 | 1.28 |
| Income from Discontinued Operations | $0 | 0.01 |
| Basic Earnings per Share | 1.33 | 1.29 |
| Diluted Earnings per Share: | ||
| Income from Continuing Operations | 1.3 | 1.25 |
| Income from Discontinued Operations | $0 | 0.01 |
| Diluted Earnings per Share | 1.3 | 1.26 |
| Dividends per Common Share | 0.37 | 0.33 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 |
| Operating Activities | ||
| Net income | $316,376 | $312,068 |
| Income from discontinued operations, net | (398) | (2,649) |
| Income from continuing operations | 315,978 | 309,419 |
| Adjustments to income from continuing operations to derive net cash provided by continuing operating activities, net of amounts acquired: | ||
| Depreciation and amortization | 125,221 | 116,459 |
| Share-based compensation | 35,320 | 33,761 |
| Deferred income taxes | 1,709 | 9,293 |
| Change in working capital | 88,691 | (101,416) |
| Pension obligation | (158,593) | (102,060) |
| Other, net | (13,698) | 48 |
| Net Cash Provided by Continuing Operating Activities | 394,628 | 265,504 |
| Investing Activities | ||
| Capital expenditures | (111,564) | (95,365) |
| Capitalized software | (25,496) | (25,069) |
| Proceeds (purchases) of investments, net | 279,593 | (8,825) |
| Acquisitions of business, net of cash acquired | (274,756) | 0 |
| Other, net | (9,605) | 253 |
| Net Cash Used for Continuing Investing Activities | (141,828) | (129,006) |
| Financing Activities | ||
| Change in short-term debt | (197,309) | 928 |
| Payments of debt | (28) | (93) |
| Repurchase of common stock | (191,133) | (283,321) |
| Excess tax benefit from payments under share-based compensation plans | 7,824 | 3,702 |
| Dividends paid | (89,889) | (82,102) |
| Issuance of common stock and other, net | 3,862 | (6,651) |
| Net Cash Used for Continuing Financing Activities | (466,673) | (367,537) |
| Discontinued Operations | ||
| Net cash (used for) provided by operating activities | (109) | 2,361 |
| Net cash used for investing activities | 0 | (64) |
| Net Cash (Used for) Provided by Discontinued Operations | (109) | 2,297 |
| Effect of exchange rate changes on cash and equivalents | 2,044 | (4,116) |
| Net decrease in cash and equivalents | (211,938) | (232,858) |
| Opening Cash and Equivalents | 1,394,244 | 830,477 |
| Closing Cash and Equivalents | $1,182,306 | $597,619 |
| Basis of Presentation | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation | Note 1 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 the Company, 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 footnotes required for a presentation in accordance with U.S. generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included or incorporated by reference in the Companys 2009 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Company evaluates subsequent events and the evidence they provide about conditions existing at the date of the balance sheet as well as conditions that arose after the balance sheet date but before the financial statements are issued. The effects of conditions that existed at the date of the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. For purposes of preparing the accompanying condensed consolidated financial statements and the following notes to these financial statements, the Company evaluated subsequent events through the date the financial statements were issued. |
| Accounting Change | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Accounting Change [Abstract] | |
| Accounting Change | Note 2 Accounting Change The Company implemented revised business combination rules for acquisitions occurring after October 1, 2009. Under the new rules, acquired in-process research and development assets will be recorded as indefinite-lived intangible assets until projects are completed or abandoned and acquisition-related costs are expensed as incurred. The new requirements are effective on a prospective basis with limited exception relating to income tax uncertainties. Disclosures required under the revised business combination rules relating to the Companys acquisition of HandyLab, Inc., on November19, 2009, are provided in Note 9. The Company implemented new fair value measurement requirements for nonfinancial assets and liabilities measured on a nonrecurring basis on October1, 2009. The new guidance defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures relating to fair value measurements. Assets and liabilities subject to this guidance primarily include goodwill and indefinite-lived intangible assets measured at fair value for impairment assessments, long-lived assets measured at fair value when impaired and non-financial assets and liabilities measured at fair value in business combinations. The Companys adoption of this guidance did not materially impact the consolidated financial statements. |
| Comprehensive Income | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | Note 3 Comprehensive Income Comprehensive income was comprised of the following: Three Months Ended December 31, 2009 2008 Net Income $ 316,376 $ 312,068 Other Comprehensive Income (Loss), Net of Tax Foreign currency translation adjustments 21,332 (139,477 ) Benefit plans adjustment 8,059 3,097 Unrealized losses on investments, net of amounts reclassified (29 ) Unrealized gains (losses)on cash flow hedges, net of amounts realized 5,444 (9,900 ) 34,835 (146,309 ) Comprehensive Income $ 351,211 $ 165,759 The change in foreign currency translation adjustments is primarily attributable to a weaker U.S. dollar against stronger European currencies at December31, 2009 compared to a stronger U.S. dollar versus European and Latin American currencies at December31, 2008. |
| Earnings per Share | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Earnings per Share [Abstract] | |
| Earnings per Share | Note 4 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 December 31, 2009 2008 Average common shares outstanding 237,360 242,397 Dilutive share equivalents from share-based plans 5,605 5,914 Average common and common equivalent shares outstanding assuming dilution 242,965 248,311 |
| Contingencies | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Contingencies [Abstract] | |
| Contingencies | Note 5 Contingencies The Company is named as a defendant in five purported class action suits brought on behalf of direct purchasers of the Companys products, such as distributors, alleging that the Company violated federal antitrust laws, resulting in the charging of higher prices for the Companys products to the plaintiff and other purported class members. The cases filed are as follows: Louisiana Wholesale Drug Company, Inc., et. al. vs. Becton Dickinson and Company (Civil Action No. 05-1602, U.S. District Court, Newark, New Jersey), filed on March25, 2005; SAJ Distributors, Inc. et. al. vs. Becton Dickinson Co. (Case 2:05-CV-04763-JD, U.S. District Court, Eastern District of Pennsylvania), filed on September6, 2005; Dik Drug Company, et. al. vs. Becton, Dickinson and Company (Case No.2:05-CV-04465, U.S. District Court, Newark, New Jersey), filed on September12, 2005; American Sales Company, Inc. et. al. vs. Becton, Dickinson Co. (Case No.2:05-CV-05212-CRM, U.S. District Court, Eastern District of Pennsylvania), filed on October3, 2005; and Park Surgical Co. Inc. et. al. vs. Becton, Dickinson and Company (Case 2:05-CV-05678- CMR, U.S. District Court, Eastern District of Pennsylvania), filed on October26, 2005. These actions have been consolidated under the caption In re Hypodermic Products Antitrust Litigation. The Company is also named as a defendant in four purported class action suits brought on behalf of indirect purchasers of the Companys products, alleging that the Company violated federal and state antitrust laws, resulting in the charging of higher prices for the Companys products to the plaintiff and other purported class members. The cases filed are as follows: Jabos Pharmacy, Inc., et. al. v. Becton Dickinson Company (Case No.2:05-CV-00162, U.S. District Court, Greenville, Tennessee), filed on June7, 2005; Drug Mart Tallman, Inc., et. al. v. Becton Dickinson and Company (Case No.2:06-CV-00174, U.S. District Court, Newark, New Jersey), filed on January17, 2006; Medstar v. Becton Dickinson (Case No.06-CV-03258-JLL (RJH), U.S. District Court, Newark, New Jersey), filed on May18, 2006; and The Hebrew Home for the Aged at Riverdale v. Becton Dickinson and Company (Case No.07-CV-2544, U.S. District Court, Southern District of New York), filed on March28, 2007. A fifth purported class action on behalf of indirect purchasers International Multiple Sclerosis Management Practice v. Becton Dickinson Company (Case No.2:07-cv-10602, U.S. District Court, Newark, New Jersey), filed on April5, 2007 was voluntarily withdrawn by the plaintiff. The plaintiffs in each of the antitrust class action lawsuits seek monetary damages. All of the antitrust class action lawsuits have been consolidated for pre-trial purposes in a Multi-District Litigation (MDL)in Federal court in New Jersey. On April27, 2009, the Company entered into a settlement agreement with the direct purchaser plaintiffs in these actions. Under the terms of the settlement agreement, which is subject to preliminary and final approval by the court following notice to potential class members, the Company will pay $45,000 into a settlement fund in exchange for a release by |
| Segment Data | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Segment Data [Abstract] | |
| Segment Data | Note 6 Segment Data The Companys organizational structure is based upon its three principal business segments: BD Medical (Medical), BD Diagnostics (Diagnostics), and BD Biosciences (Biosciences). The Company evaluates segment performance based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses. The Company hedges against certain forecasted sales of U.S.-produced products sold outside the United States. Gains and losses associated with these foreign currency translation hedges are reported in segment revenues based upon their proportionate share of these international sales of U.S.-produced products. Financial information for the Companys segments was as follows: Three Months Ended December 31, 2009 2008 Revenues (A) Medical $ 1,018,628 $ 875,190 Diagnostics 595,474 540,191 Biosciences 302,672 302,538 $ 1,916,774 $ 1,717,919 Segment Operating Income Medical $ 319,105 $ 258,798 Diagnostics 162,401 154,535 Biosciences 85,465 99,689 Total Segment Operating Income 566,971 513,022 Unallocated Items (B) (127,503 ) (91,472 ) Income from Continuing Operations Before Income Taxes $ 439,468 $ 421,550 (A) Intersegment revenues are not material. (B) Includes primarily interest, net; foreign exchange; corporate expenses and share-based compensation expense. Three Months Ended December 31, 2009 2008 Revenues by Organizational Units BD Medical Medical Surgical Systems $ 560,026 $ 480,501 Diabetes Care 201,521 180,006 Pharmaceutical Systems 235,974 194,781 Ophthalmic Systems 21,107 19,902 $ 1,018,628 $ 875,190 BD Diagnostics Preanalytical Systems $ 300,166 $ 278,154 Diagnostic Systems 295,308 262,037 $ 595,474 $ 540,191 BD Biosciences Cell Analysis $ 231,335 $ 229,521 Discovery Labware 71,337 73,017 $ 302,672 $ 302,538 $ 1,916,774 $ 1,717,919 |
| Share - Based Compensation | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Share-Based Compensation [Abstract] | |
| Share-Based Compensation | Note 7 Share-Based Compensation The Company grants share-based awards under the 2004 Employee and Director Equity-Based Compensation Plan (the 2004 Plan), which provides long-term incentive compensation to employees and directors. The Company believes such awards align the interests of its employees and directors with those of its shareholders. The fair value of share-based payments is recognized as compensation expense in net income. For the three months ended December31, 2009 and 2008, compensation expense charged to income was $35,320 and $33,761, respectively. Share-based compensation attributable to discontinued operations was not material. The amount of unrecognized compensation expense for all non-vested share-based awards as of December31, 2009 was approximately $172,346, which is expected to be recognized over a weighted-average remaining life of approximately 2.6years. The fair values of stock appreciation rights granted during the annual share-based grants in November of 2009 and 2008, respectively, were estimated on the date of grant using a lattice-based binomial valuation model based on the following assumptions: 2009 2008 Risk-free interest rate 2.60 % 2.73 % Expected volatility 28.00 % 28.00 % Expected dividend yield 1.96 % 2.11 % Expected life 6.5 years 6.5 years Fair value derived $ 19.70 $ 16.11 |
| Benefit Plans | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Benefit Plans [Abstract] | |
| Benefit Plans | Note 8 Benefit Plans The Company has defined benefit pension plans covering substantially all of its employees in the United States and certain foreign locations. The Company also provides certain postretirement healthcare and life insurance benefits to qualifying domestic retirees. Other postretirement benefit plans in foreign countries are not material. Net pension and postretirement cost included the following components for the three months ended December31: Pension Plans Other Postretirement Benefits 2009 2008 2009 2008 Service cost $ 18,313 $ 12,939 $ 1,249 $ 863 Interest cost 22,836 21,135 3,544 3,807 Expected return on plan assets (25,042 ) (20,494 ) Amortization of prior service (cost)credit (270 ) (276 ) 1 (116 ) Amortization of loss (gain) 10,446 4,266 849 (36 ) $ 26,283 $ 17,570 $ 5,643 $ 4,518 Postemployment benefit costs for the three months ended December31, 2009 and 2008 were $5,467 and $4,501, respectively. |
| Acquisitions | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Acquisitions [Abstract] | |
| Acquisitions | Note 9 Acquisitions On November19, 2009, the Company acquired 100% of the outstanding shares of HandyLab, Inc., (HandyLab) a company that develops and manufactures molecular diagnostic assays and automation platforms. The acquisition-date fair value of consideration transferred totaled $277,610, net of cash acquired, which consisted of the following: Cash $ 274,756 Settlement of preexisting relationship 2,854 (A) Total $ 277,610 (A) The acquisition effectively settled a prepaid asset associated with a pre-existing relationship with HandyLab, as discussed in further detail below. HandyLab has developed and commercialized a flexible automated platform (Jaguar Plus) for performing molecular diagnostics which complements the Companys molecular diagnostics offerings, specifically in the area of healthcare-associated infections. The Company plans to place its BD GeneOhmTM molecular assays onto the HandyLab platform and market them as the new BD MaxTM System. The Company intends for this acquisition to allow further expansion of the BD molecular diagnostic menu and the achievement of revenue and cost synergies. The acquisition was accounted for under the acquisition method of accounting for business combinations and HandyLabs results of operations were included in the Diagnostics segments results as of the acquisition date. Pro forma information was not provided as the acquisition did not have a material effect on the Companys consolidated results. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. These fair values are based upon the information available as of December31, 2009 and may be adjusted should further information regarding events or circumstances existing at the acquisition date become available. Acquired in-process research and development $ 169,000 Deferred tax assets 22,330 Other 8,843 Total identifiable assets acquired 200,173 Deferred tax liabilities (64,220 ) Other (6,468 ) Total liabilities assumed (70,688 ) Net identifiable assets acquired 129,485 Goodwill 148,125 Net assets acquired $ 277,610 The acquired in-process research and development assets of $169,000 consisted of two projects that were still in development at the acquisition date: Platform technology for $26,000 and Jaguar Plus technology for $143,000. The Platform technology is incorporated into an automated platform that performs molecular diagnostics on certain specimens. The Jaguar Plus technology incorporates the Platform technology as well as additional technology to perform assays or molecular tests. The fair values of these projects were determined based on the present value of projected cash flows utilizing an income approach reflecting the appropriate risk-adjusted discount rate based on the applicable technological and commercial risk of each project. The $148,125 of goodwill was allocated to the Diagnostics segment. The primary item tha |
| Divestitures | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Divestitures [Abstract] | |
| Divestitures | Note 10 Divestitures On July8, 2009, the Company sold certain assets and liabilities related to the elastics and thermometer components of the Home Healthcare product line of the Medical segment for $51,022. The Company recognized a pre-tax gain on sale of $18,145. Concurrent with the sale, the Company exited the remaining portion of the Home Healthcare product line. The results of operations associated with the Home Healthcare product line are reported as discontinued operations for all periods presented in the accompanying Condensed Consolidated Statements of Income and Cash Flows and related disclosures. Results of discontinued operations were as follows: Three Months Ended December 31, 2009 2008 Revenues $ 522 $ 15,585 Income from discontinued operations before income taxes 550 3,503 Less: income tax provision 152 854 Income from discontinued operations, net $ 398 $ 2,649 |
| Other Intangible Assets | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Other Intangible Assets [Abstract] | |
| Other Intangible Assets | Note 11 Other Intangible Assets Intangible assets consisted of: December 31, 2009 September 30, 2009 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets Core and developed technology $ 537,351 $ 235,918 $ 539,674 $ 229,684 Patents, trademarks, and other 317,436 222,675 312,430 218,531 $ 854,787 $ 458,593 $ 852,104 $ 448,215 Unamortized intangible assets Acquired in-process research and development $ 169,000 $ Trademarks 2,770 2,760 $ 171,770 $ 2,760 Intangible amortization expense for the three months ended December31, 2009 and 2008 was $12,335 and $11,723, respectively. |
| Derivative Instruments and Hedging Activities | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Derivative Instruments and Hedging Activities [Abstract] | |
| Derivative Instruments and Hedging Activities | Note 12 Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate certain exposures. 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, Asia Pacific, Canada, Japan and Latin America. The Company partially hedges forecasted export sales denominated in foreign currencies using forward and option contracts, generally with one-year terms. The Companys hedging program has been designed to mitigate exposures resulting from movements of the U.S. dollar, from the beginning of a reporting period, against other foreign currencies. The Companys strategy is to offset the changes in the present value of future foreign currency revenue resulting from these movements with either gains or losses in the fair value of foreign currency derivative contracts. Forward contracts were utilized to hedge forecasted sales in fiscal year 2009 and 2010. The Company designates forward contracts utilized to hedge these certain forecasted sales denominated in foreign currencies as cash flow hedges. Changes in the effective portion of the fair value of the Companys forward contracts that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are included in Other comprehensive income (loss)until the hedged transactions are reclassified in earnings. These changes result from the maturity of derivative instruments as well as the commencement of new derivative instruments. The changes also reflect movements in the period-end foreign exchange rates against the spot rates at the time the Company enters into any given derivative instrument contract. Once the hedged revenue transaction occurs, the gain or loss on the contract is recognized from Accumulated other comprehensive income (loss)to Revenues. The Company records the premium or discount of the forward contracts, which is included in the assessment of hedge effectiveness, to Revenues. At December31, 2009, the Company expects to reclassify $38,511, net of tax, of net losses on foreign currency exchange instruments from Accumulated other comprehensive income (loss)to revenues during the next 12months due to actual and forecasted export sales. In the event the revenue transactions underlying a derivative instrument are no longer probable of occurring, accounting for the instrument under hedge accounting must be discontinued. Gains and losses previously recognized in other comprehensive income (loss)must be reclassified into Other (expense)income. If only a portion of the revenue transaction underlying a derivative instrument is no longer probable of occurring, only the portion of the derivative relating to those revenues would no longer be eligible for hedge accounting. 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 t |
| Financial Instruments and Fair Value Measurements | |
| 3 Months Ended
Dec. 31, 2009 USD / shares | |
| Financial Instruments and Fair Value Measurements [Abstract] | |
| Financial Instruments and Fair Value Measurements | Note 13 Financial Instruments and Fair Value Measurements The Company adopted newly issued fair value measurement requirements for financial assets and liabilities on October1, 2008 and for nonfinancial assets and liabilities on October1, 2009. These provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement provisions require the categorization of assets and liabilities carried at fair value within a three-level hierarchy based upon inputs used in measuring fair value. The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at December31, 2009 are classified in accordance with the fair value hierarchy in the table below: Basis of Fair Value Measurement Quoted Prices in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Cash and equivalents $ 328,074 $ 328,074 $ $ Forward exchange contracts 4,418 4,418 Interest rate swap 1,294 1,294 Total Assets $ 333,786 $ 328,074 $ 5,712 $ Liabilities Forward exchange contracts $ 63,950 $ $ 63,950 $ Long-term debt 1,487,844 1,591,001 Total Liabilities $ 1,551,794 $ $ 1,654,951 $ The Companys cash and equivalents include balances in money market funds that permit daily redemption. The fair values of these investments are based upon the quoted prices provided by the holding financial institutions. The Companys remaining cash equivalents and short-term investments are carried at cost, which approximates fair value. The Company measures the fair value of forward exchange contracts and currency options based upon observable inputs, specifically spot currency rates and forward currency prices for similar assets and liabilities. The fair value of forward commodity contracts and interest rate swaps are provided by the financial institutions that are counterparties to these arrangements. The fair value of long-term debt is based upon quoted prices in active markets for similar instruments. |
