| Document and Entity Information (USD $) | ||
| 6 Months Ended
Mar. 31, 2010 | Mar. 31, 2009
| |
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | BECTON DICKINSON & CO | |
| Entity Central Index Key | 0000010795 | |
| Document Type | 10-Q | |
| Document Period End Date | 2010-03-31 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q2 | |
| 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 | 233,331,366 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Thousands | 6 Months Ended
Mar. 31, 2010 | 12 Months Ended
Sep. 30, 2009 |
| Current Assets: | ||
| Cash and equivalents | $830,688 | $1,394,244 |
| Short-term investments | 427,414 | 551,561 |
| Trade receivables, net | 1,142,155 | 1,168,662 |
| Inventories: | ||
| Materials | 160,337 | 171,449 |
| Work in process | 233,157 | 223,094 |
| Finished products | 772,550 | 762,219 |
| Inventories, Total | 1,166,044 | 1,156,762 |
| Prepaid expenses, deferred taxes and other | 373,192 | 375,725 |
| Total Current Assets | 3,939,493 | 4,646,954 |
| Property, plant and equipment | 6,306,797 | 6,241,329 |
| Less allowances for depreciation and amortization | 3,339,120 | 3,274,700 |
| Property, Plant and Equipment, Net | 2,967,677 | 2,966,629 |
| Goodwill | 764,059 | 621,872 |
| Core and Developed Technology, Net | 296,744 | 309,990 |
| Other Intangibles, Net | 266,621 | 96,659 |
| Capitalized Software, Net | 228,290 | 197,224 |
| Other | 480,508 | 465,296 |
| Total Assets | 8,943,392 | 9,304,624 |
| Current Liabilities: | ||
| Short-term debt | 200,573 | 402,965 |
| Payables and accrued expenses | 1,266,893 | 1,374,128 |
| Total Current Liabilities | 1,467,466 | 1,777,093 |
| Long-Term Debt | 1,490,262 | 1,488,460 |
| Long-Term Employee Benefit Obligations | 634,907 | 782,034 |
| Deferred Income Taxes and Other | 201,123 | 114,325 |
| Commitments and Contingencies | ||
| Shareholders' Equity: | ||
| Common stock | 332,662 | 332,662 |
| Capital in excess of par value | 1,581,014 | 1,485,674 |
| Retained earnings | 8,192,151 | 7,752,831 |
| Deferred compensation | 13,852 | 17,906 |
| Common shares in treasury - at cost | (4,510,440) | (4,073,699) |
| Accumulated other comprehensive loss | (459,605) | (372,662) |
| Total Shareholders' Equity | 5,149,634 | 5,142,712 |
| Total Liabilities and Shareholders' Equity | $8,943,392 | $9,304,624 |
| Condensed Consolidated Statements of Income (Unaudited) (USD $) | |||||||||||||||||||
| In Thousands, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | 6 Months Ended
Mar. 31, 2010 | 6 Months Ended
Mar. 31, 2009 | |||||||||||||||
| Condensed Consolidated Statements of Income [Abstract] | |||||||||||||||||||
| Revenues | $1,844,854 | $1,724,967 | $3,761,628 | $3,442,886 | |||||||||||||||
| Cost of products sold | 886,895 | 829,350 | 1,806,437 | 1,625,624 | |||||||||||||||
| Selling and administrative | 426,346 | 436,359 | 877,275 | 842,378 | |||||||||||||||
| Research and development | 101,118 | 98,588 | 201,402 | 195,902 | |||||||||||||||
| Total Operating Costs and Expenses | 1,414,359 | 1,364,297 | 2,885,114 | 2,663,904 | |||||||||||||||
| Operating Income | 430,495 | 360,670 | 876,514 | 778,982 | |||||||||||||||
| Interest income | 9,652 | 4,312 | 18,441 | 5,963 | |||||||||||||||
| Interest expense | (12,913) | (7,495) | (25,900) | (15,319) | |||||||||||||||
| Other income (expense), net | 164 | (5,701) | (2,189) | 3,710 | |||||||||||||||
| Income From Continuing Operations Before Income Taxes | 427,398 | 351,786 | 866,866 | 773,336 | |||||||||||||||
| Income tax provision | 129,673 | 92,612 | 253,163 | 204,743 | |||||||||||||||
| Income From Continuing Operations | 297,725 | 259,174 | 613,703 | 568,593 | |||||||||||||||
| (Loss) income from Discontinued Operations, net | (94) | 2,115 | 304 | 4,764 | |||||||||||||||
| Net Income | $297,631 | $261,289 | $614,007 | $573,357 | |||||||||||||||
| Basic Earnings per Share: | |||||||||||||||||||
| Income from Continuing Operations | 1.27 | 1.08 | 2.6 | 2.36 | |||||||||||||||
| (Loss) income from Discontinued Operations | 0.01 | 0.02 | |||||||||||||||||
| Basic Earnings per Share | 1.26 | [1] | 1.09 | [1] | 2.6 | [1] | 2.38 | [1] | |||||||||||
| Diluted Earnings per Share: | |||||||||||||||||||
| Income from Continuing Operations | 1.24 | 1.05 | 2.53 | 2.3 | |||||||||||||||
| (Loss) income from Discontinued Operations | 0.01 | 0.02 | |||||||||||||||||
| Diluted Earnings per Share | 1.24 | 1.06 | 2.53 | 2.32 | |||||||||||||||
| Dividends per Common Share | 0.37 | 0.33 | 0.74 | 0.66 | |||||||||||||||
| [1](A) Total per share amounts may not add due to rounding. | |||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 6 Months Ended
Mar. 31, 2010 | 6 Months Ended
Mar. 31, 2009 |
| Operating Activities | ||
| Net income | $614,007 | $573,357 |
| (Loss) income from Discontinued Operations, net | 304 | 4,764 |
| Income from continuing operations | 613,703 | 568,593 |
| Adjustments to income from continuing operations to derive net cash provided by continuing operating activities, net of amounts acquired: | ||
| Depreciation and amortization | 252,027 | 233,793 |
| Share-based compensation | 52,467 | 56,470 |
| Deferred income taxes | 14,125 | 6,373 |
| Change in operating assets and liabilities | (141,912) | (271,601) |
| Pension obligation | (139,337) | (90,090) |
| Other, net | 36,523 | 19,006 |
| Net Cash Provided by Continuing Operating Activities | 687,596 | 522,544 |
| Investing Activities | ||
| Capital expenditures | (229,597) | (223,022) |
| Capitalized software | (50,369) | (51,253) |
| Proceeds (purchases) of investments, net | 123,633 | (16,232) |
| Acquisitions of businesses, net of cash acquired | (281,367) | |
| Other, net | (34,591) | (29,005) |
| Net Cash Used for Continuing Investing Activities | (472,291) | (319,512) |
| Financing Activities | ||
| Change in short-term debt | (202,196) | (16) |
| Payments of debt | (49) | (192) |
| Repurchase of common stock | (450,000) | (341,518) |
| Excess tax benefits from payments under share-based compensation plans | 17,591 | 9,633 |
| Dividends paid | (174,232) | (158,706) |
| Issuance of common stock and other, net | 31,258 | 11,246 |
| Net Cash Used for Continuing Financing Activities | (777,628) | (479,553) |
| Discontinued Operations | ||
| Net cash (used for) provided by operating activities | (1,061) | 1,415 |
| Net cash used for investing activities | (169) | |
| Net Cash (Used for) Provided by Discontinued Operations | (1,061) | 1,246 |
| Effect of exchange rate changes on cash and equivalents | (172) | (12,490) |
| Net decrease in cash and equivalents | (563,556) | (287,765) |
| Opening Cash and Equivalents | 1,394,244 | 830,477 |
| Closing Cash and Equivalents | $830,688 | $542,712 |
| Basis of Presentation | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 Changes | |
| 6 Months Ended
Mar. 31, 2010 | |
| Accounting Changes [Abstract] | |
| Accounting Changes | Note 2 Accounting Changes The Company implemented the revised business combination rules for acquisitions occurring after October1, 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. 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 | |
| 6 Months Ended
Mar. 31, 2010 | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | Note 3 Comprehensive Income Comprehensive income was comprised of the following: Three Months Ended Six Months Ended March 31, March 31, 2010 2009 2010 2009 Net Income $ 297,631 $ 261,289 $ 614,007 $ 573,357 Other Comprehensive (Loss) Income, Net of Tax Foreign currency translation adjustments (167,565 ) (144,516 ) (146,233 ) (283,993 ) Benefit plans adjustment 8,059 3,097 16,118 6,194 Unrealized losses on investments, net of amounts reclassified (37 ) (66 ) Unrealized gains (losses)on cash flow hedges, net of amounts realized 37,728 4,803 43,172 (5,097 ) (121,778 ) (136,653 ) (86,943 ) (282,962 ) Comprehensive Income $ 175,853 $ 124,636 $ 527,064 $ 290,395 The losses recorded as foreign currency translation adjustments for the three months ended March31, 2010 and March31, 2009, as well as for the six months ended March31, 2010 and March31, 2009, are mainly attributable to the strengthening of the U.S. dollar against the Euro during these periods. |
| Earnings per Share | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 Six Months Ended March 31, March 31, 2010 2009 2010 2009 Average common shares outstanding 235,325 240,239 236,353 241,330 Dilutive share equivalents from share-based plans 5,538 5,651 5,974 6,106 Average common and common equivalent shares outstanding assuming dilution 240,863 245,890 242,327 247,436 |
| Contingencies | |
| 6 Months Ended
Mar. 31, 2010 | |
| Contingencies [Abstract] | |
| Contingencies | Note 5 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. generally accepted accounting principles, the Company establishes accruals to the extent probable future losses are estimable (in the case of environmental matters, without considering possible third-party recoveries). In view of the uncertainties discussed below, the Company could incur charges in excess of any currently established accruals and, to the extent available, excess liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Companys consolidated results of operations and consolidated cash flows. 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: Case Court Date Filed Louisiana Wholesale Drug Company, Inc., et. al. vs. Becton Dickinson and Company U.S. District Court, Newark, New Jersey March25, 2005 SAJ Distributors, Inc. et. al. vs. Becton Dickinson Co. U.S. District Court, Eastern District of Pennsylvania September6, 2005 Dik Drug Company, et. al. vs. Becton, Dickinson and Company U.S. District Court, Newark, New Jersey September12, 2005 American Sales Company, Inc. et. al. vs. Becton, Dickinson Co. U.S. District Court, Eastern District of Pennsylvania October3, 2005 Park Surgical Co. Inc. et. al. vs. Becton, Dickinson and Company U.S. District Court, Eastern District of Pennsylvania 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: Case Court Date Filed Jabos Pharmacy, Inc., et. al. v. Becton Dickinson Company U.S. District Court, Greenville, Tennessee June7, 2005 Drug Mart Tallman, Inc., et. al. v. Becton Dickinson and Company U.S. District Court, Newark, New Jersey January17, 2006 Medstar v. Becton Dickinson U.S. District Court, Newark, New Jersey May18, 2006 The Hebrew Home for the Aged at Riverdale v. Becton Dickinson and Company U.S. District Court, Southern District of New York March28, 2007 A fifth purported class action on behalf of indirect purchasers, International Multiple Sclerosis Management Practice v. B |
| Segment Data | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 Six Months Ended March 31, March 31, 2010 2009 2010 2009 Revenues (A) Medical $ 967,078 $ 881,487 $ 1,985,704 $ 1,756,677 Diagnostics 555,672 539,640 1,151,147 1,079,831 Biosciences 322,104 303,840 624,777 606,378 $ 1,844,854 $ 1,724,967 $ 3,761,628 $ 3,442,886 Segment Operating Income Medical $ 280,342 $ 248,651 $ 599,446 $ 507,448 Diagnostics 143,685 141,266 306,086 295,801 Biosciences 97,230 92,147 182,696 191,836 Total Segment Operating Income 521,257 482,064 1,088,228 995,085 Unallocated Items (B) (93,859 ) (130,278) (C) (221,362 ) (221,749 )(C) Income from Continuing Operations Before Income Taxes $ 427,398 $ 351,786 $ 866,866 $ 773,336 (A) Intersegment revenues are not material. (B) Includes primarily interest, net; foreign exchange; corporate expenses; and share-based compensation expense. (C) Includes charge associated with the pending settlement with the direct purchaser plaintiffs (which includes BDs distributors) in the antitrust class actions. Three Months Ended Six Months Ended March 31, March 31, 2010 2009 2010 2009 Revenues by Organizational Units BD Medical Medical Surgical Systems $ 506,089 $ 472,583 $ 1,066,112 $ 953,085 Diabetes Care 187,986 168,392 389,507 348,398 Pharmaceutical Systems 252,383 221,150 488,357 415,931 Ophthalmic Systems 20,620 19,362 41,728 39,263 $ 967,078 $ 881,487 $ 1,985,704 $ 1,756,677 BD Diagnostics Preanalytical Systems $ 287,670 $ 278,465 $ 587,837 $ 556,619 Diagnostic Systems 268,002 261,175 563,310 523,212 $ 555,672 $ 539,640 |
| Share-Based Compensation | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 March31, 2010 and 2009, compensation expense charged to income was $17,147 and $22,709, respectively. For the six months ended March31, 2010 and 2009, compensation expense was $52,467 and $56,470, 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 March 31, 2010 was approximately $135,175, which is expected to be recognized over a weighted-average remaining life of approximately 2.5years. 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: 2010 2009 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 | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 March31: Other Postretirement Pension Plans Benefits 2010 2009 2010 2009 Service cost $ 18,398 $ 13,389 $ 1,254 $ 863 Interest cost 22,940 21,871 3,551 3,808 Expected return on plan assets (25,156 ) (21,208 ) Amortization of prior service (credit) cost (270 ) (286 ) 1 (115 ) Amortization of loss (gain) 10,492 4,415 855 (37 ) $ 26,404 $ 18,181 $ 5,661 $ 4,519 Net pension and postretirement cost included the following components for the six months ended March31: Other Postretirement Pension Plans Benefits 2010 2009 2010 2009 Service cost $ 36,711 $ 26,328 $ 2,503 $ 1,726 Interest cost 45,776 43,006 7,095 7,615 Expected return on plan assets (50,198 ) (41,702 ) Amortization of prior service (credit) cost (540 ) (562 ) 2 (231 ) Amortization of loss (gain) 20,938 8,681 1,704 (73 ) Net pension and postretirement cost $ 52,687 $ 35,751 $ 11,304 $ 9,037 Postemployment benefit costs for the three months ended March31, 2010 and 2009 were $5,467 and $4,502, respectively. For the six months ended March31, 2010 and 2009, postemployment benefit costs were $10,934 and $9,003, respectively. |
| Acquisition | |
| 6 Months Ended
Mar. 31, 2010 | |
| Acquisition [Abstract] | |
| Acquisition | Note 9 Acquisition 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 March31, 2010 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 an 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 that generate |
| Divestiture | |
| 6 Months Ended
Mar. 31, 2010 | |
| Divestiture [Abstract] | |
| Divestiture | Note 10 Divestiture 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 Six Months Ended March 31, March 31, 2010 2009 2010 2009 Revenues $ 134 $ 15,831 $ 656 $ 31,416 (Loss) income from discontinued operations before income taxes (148 ) 2,726 403 6,229 Less income tax (benefit)provision (54 ) 611 99 1,465 (Loss) income from discontinued operations, net $ (94 ) $ 2,115 $ 304 $ 4,764 |
| Intangible Assets | |
| 6 Months Ended
Mar. 31, 2010 | |
| Intangible Assets [Abstract] | |
| Intangible Assets | Note 11 Intangible Assets Intangible assets consisted of: March 31, 2010 September 30, 2009 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets Core and developed technology $ 540,319 $ 243,575 $ 539,674 $ 229,684 Patents, trademarks, and other 320,821 225,969 312,430 218,531 $ 861,140 $ 469,544 $ 852,104 $ 448,215 Unamortized intangible assets Acquired in-process research and development $ 169,000 $ Trademarks 2,769 2,760 $ 171,769 $ 2,760 Intangible amortization expense for the three months ended March31, 2010 and 2009 was $12,157 and $11,608, respectively. Intangible amortization expense for the six months ended March31, 2010 and 2009 was $24,492 and $23,331, respectively. |
| Derivative Instruments and Hedging Activities | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 used to hedge forecasted sales in fiscal years 2010 and 2009. The Company designates forward contracts used 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 March31, 2010, the Company expected to reclassify $1,093, net of tax, of net losses on foreign currency exchange instruments from Accumulated other comprehensive income (loss) to Revenues during the next six months due to actual and forecasted export sales. The Company currently has not entered into contracts to hedge cash flows in fiscal year 2011. 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 income (expense). 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 intercompan |
| Financial Instruments and Fair Value Measurements | |
| 6 Months Ended
Mar. 31, 2010 | |
| 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 March31, 2010 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 Institutional money market investments $ 87,314 $ 87,314 $ $ Forward exchange contracts 16,634 16,634 Interest rate swaps 3,660 3,660 Total Assets $ 107,608 $ 87,314 $ 20,294 $ Liabilities Forward exchange contracts $ 19,271 $ $ 19,271 $ Long-term debt 1,490,262 1,541,348 Total Liabilities $ 1,509,533 $ $ 1,560,619 $ The Companys institutional money market accounts 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. The Companys remaining cash equivalents totaling $743,374 and short-term investments are held to their maturities and are carried at cost, which approximates fair value. The cash equivalents consist of liquid investments with a maturity of three months or less and the short-term investments consist of instruments with maturities greater than three months and less than one year. The Company measures the fair value of forward exchange contracts and currency options using an income approach with significant observable inputs, specifically spot currency rates, market designated forward currency prices and a discount rate. The fair value of 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. The Companys policy is to recognize any transfers into fair value measurement hierarchy levels and transfers out of levels at the beginning of each reporting period. There were no transfers in and out of Level 1, Level 2 or Level 3 measurements for the three and six months ended March31, 2010. |
