Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Mar. 31, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Trading Symbol | 'BDX |
Entity Registrant Name | 'BECTON DICKINSON & CO |
Entity Central Index Key | '0000010795 |
Current Fiscal Year End Date | '--09-30 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 193,204,013 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and equivalents | $1,731 | $1,890 |
Short-term investments | 895 | 718 |
Trade receivables, net | 1,130 | 1,240 |
Inventories: | ' | ' |
Materials | 221 | 226 |
Work in process | 294 | 258 |
Finished products | 997 | 918 |
Inventories | 1,512 | 1,402 |
Prepaid expenses, deferred taxes and other | 678 | 623 |
Total Current Assets | 5,946 | 5,873 |
Property, plant and equipment | 7,632 | 7,437 |
Less allowances for depreciation and amortization | 4,120 | 3,961 |
Property, plant and equipment, net | 3,512 | 3,476 |
Goodwill | 1,124 | 1,109 |
Core and Developed Technology, Net | 540 | 541 |
Other Intangibles, Net | 281 | 293 |
Capitalized Software, Net | 364 | 371 |
Other | 483 | 487 |
Total Assets | 12,250 | 12,149 |
Current Liabilities: | ' | ' |
Short-term debt | 202 | 207 |
Payables and accrued expenses | 1,814 | 1,923 |
Total Current Liabilities | 2,016 | 2,130 |
Long-Term Debt | 3,764 | 3,763 |
Long-Term Employee Benefit Obligations | 728 | 805 |
Deferred Income Taxes and Other | 427 | 408 |
Commitments and Contingencies | ' | ' |
Shareholders' Equity: | ' | ' |
Common stock | 333 | 333 |
Capital in excess of par value | 2,147 | 2,068 |
Retained earnings | 11,689 | 11,342 |
Deferred compensation | 17 | 19 |
Common shares in treasury - at cost | -8,416 | -8,204 |
Accumulated other comprehensive loss | -455 | -516 |
Total Shareholders' Equity | 5,315 | 5,043 |
Total Liabilities and Shareholders' Equity | $12,250 | $12,149 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $2,072 | $2,000 | $4,086 | $3,901 |
Cost of products sold | 1,019 | 982 | 1,999 | 1,876 |
Selling and administrative | 525 | 515 | 1,056 | 1,010 |
Research and development | 147 | 122 | 273 | 241 |
Total Operating Costs and Expenses | 1,690 | 1,619 | 3,327 | 3,127 |
Operating Income | 381 | 381 | 759 | 773 |
Interest income | 10 | 12 | 24 | 20 |
Interest expense | -33 | -35 | -67 | -70 |
Other income, net | 5 | 2 | 6 | 3 |
Income From Continuing Operations Before Income Taxes | 363 | 360 | 722 | 726 |
Income tax provision | 76 | 84 | 164 | 180 |
Income From Continuing Operations | 287 | 276 | 558 | 546 |
Income (Loss) from Discontinued Operations, net | ' | ' | ' | 355 |
Net Income | $287 | $276 | $558 | $901 |
Basic Earnings per Share: | ' | ' | ' | ' |
Income from Continuing Operations | $1.48 | $1.42 | $2.88 | $2.79 |
Income (Loss) from Discontinued Operations | ' | ' | ' | $1.81 |
Basic Earnings per Share | $1.48 | $1.42 | $2.88 | $4.61 |
Diluted Earnings per Share: | ' | ' | ' | ' |
Income from Continuing Operations | $1.45 | $1.39 | $2.82 | $2.74 |
Income (Loss) from Discontinued Operations | ' | ' | ' | $1.78 |
Diluted Earnings per Share | $1.45 | $1.39 | $2.82 | $4.53 |
Dividends per Common Share | $0.55 | $0.50 | $1.09 | $0.99 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $287 | $276 | $558 | $901 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' |
Foreign currency translation adjustments | 9 | -72 | 15 | -34 |
Defined benefit pension and postretirement plans | 35 | 14 | 43 | 27 |
Unrealized gains on cash flow hedges, net of amounts realized | 1 | 1 | 2 | 5 |
Other Comprehensive Income (Loss), Net of Tax | 45 | -57 | 60 | -1 |
Comprehensive Income | $332 | $219 | $619 | $900 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net Income | $558 | $901 |
Less: Income from discontinued operations, net | ' | 355 |
Income From Continuing Operations | 558 | 546 |
Adjustments to income from continuing operations to derive net cash provided by continuing operating activities, net of amounts acquired: | ' | ' |
Depreciation and amortization | 272 | 265 |
Share-based compensation | 67 | 58 |
Deferred income taxes | -24 | -1 |
Change in operating assets and liabilities | -113 | -264 |
Pension obligation | -19 | -88 |
Other, net | 25 | 25 |
Net Cash Provided by Continuing Operating Activities | 768 | 543 |
Investing Activities | ' | ' |
Capital expenditures | -214 | -197 |
Capitalized software | -31 | -32 |
(Purchases of) proceeds from investments, net | -173 | 116 |
Acquisitions of businesses, net of cash acquired | -40 | -138 |
Divestitures of businesses | ' | 720 |
Other, net | -41 | -53 |
Net Cash (Used for) Provided by Continuing Investing Activities | -498 | 415 |
Financing Activities | ' | ' |
Change in short-term debt | -6 | ' |
Repurchase of common stock | -213 | -356 |
Excess tax benefits from payments under share-based compensation plans | 19 | 14 |
Dividends paid | -211 | -193 |
Issuance of common stock and other, net | -10 | 36 |
Net Cash Used for Financing Activities | -422 | -500 |
Discontinued Operations | ' | ' |
Net cash used for operating activities | ' | -100 |
Net Cash Used for Discontinued Operations | ' | -100 |
Effect of exchange rate changes on cash and equivalents | -7 | -5 |
Net (decrease) increase in cash and equivalents | -159 | 353 |
Opening Cash and Equivalents | 1,890 | 1,671 |
Closing Cash and Equivalents | $1,731 | $2,024 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [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 accompanying notes 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 in the Company’s 2013 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. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
Note 2 – Accumulated Other Comprehensive Income | |||||||||||||||||
The components and changes in accumulated other comprehensive income (loss) for the six-month period ended March 31, 2014 were as follows: | |||||||||||||||||
(millions of dollars) | Total | Foreign | Benefit Plans | Unrealized | |||||||||||||
Currency | Adjustments(A) | Losses on | |||||||||||||||
Translation | Cash Flow | ||||||||||||||||
Adjustments | Hedges(B) | ||||||||||||||||
Balance at September 30, 2013 | $ | (516 | ) | $ | 74 | $ | (558 | ) | $ | (31 | ) | ||||||
Other comprehensive income before reclassifications | 41 | 15 | 27 | — | |||||||||||||
Amounts reclassified into income (C) | 19 | — | 17 | 2 | |||||||||||||
Balance at March 31, 2014 | $ | (455 | ) | $ | 88 | $ | (514 | ) | $ | (29 | ) | ||||||
(A) | The reclassifications from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost and additional details are provided in Note 7. The reclassification amount for the three months ended March 31, 2014 was $8 million. The reclassification amounts for the three and six months ended March 31, 2013 were $14 million and $27 million, respectively. Amounts are net of taxes. | ||||||||||||||||
(B) | The reclassification amount for the three months ended March 31, 2014 was $1 million. The reclassification amounts for the three and six months ended March 31, 2013 were $2 million and $3 million, respectively. Additional details regarding the reclassifications from accumulated other comprehensive income (loss) related to cash flow hedges are provided in Note 10. Amounts are net of taxes. | ||||||||||||||||
(C) | The benefit plan-related amount is not reclassified into income in its entirety. The reclassification amounts related to cash flow hedges for the three and six months ended March 31, 2014 and 2013 were primarily recorded in Interest expense. | ||||||||||||||||
The gain in foreign currency translation adjustments for the six months ended March 31, 2014 was primarily attributable to the strengthening of the Euro against the U.S. dollar, partially offset by the weakening of currencies in Latin America and Asia Pacific, as well as the weakening of the Canadian Dollar, against the U.S. dollar during the period. | |||||||||||||||||
The income tax provision associated with the net gain recorded in other comprehensive income as a result of the Company’s remeasurement of its U.S. postretirement healthcare benefit plan in the second quarter of fiscal year 2014 was $16 million. Additional disclosures regarding this remeasurement are provided in Note 7. The income tax benefits associated with the benefit plan-related reclassification adjustments for amortization of prior service credit and amortization of net actuarial losses for the three months ended March 31, 2014 and 2013 were $4 million and $8 million, respectively. The income tax benefits associated with the reclassification adjustments for amortization of prior service credit and amortization of net actuarial losses for the six months ended March 31, 2014 and 2013 were $9 million and $15 million, respectively. | |||||||||||||||||
There were no unrealized gains or losses recognized on cash flow hedges in the three and six months ended March 31, 2014. The income tax benefit recorded in the three months ended March 31, 2013 for unrealized losses on cash flow hedges was immaterial and the income tax provision recorded in the six months ended March 31, 2013 for unrealized gains on cash flow hedges was $1 million. The tax benefits associated with the reclassification adjustments for realized hedge losses in the three months ended March 31, 2014 and 2013 were $1 million for both periods. The tax benefits associated with the reclassification adjustments for realized hedge losses in the six months ended March 31, 2014 and 2013 were $1 million and $2 million, respectively. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
Note 3 – 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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Average common shares outstanding | 193,609 | 194,609 | 193,909 | 195,528 | |||||||||||||
Dilutive share equivalents from share-based plans | 3,879 | 3,534 | 4,089 | 3,540 | |||||||||||||
Average common and common equivalent shares outstanding – assuming dilution | 197,488 | 198,143 | 197,998 | 199,068 | |||||||||||||
Contingencies
Contingencies | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Contingencies | ' | ||||
Note 4 – 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 Company’s consolidated results of operations and consolidated cash flows. | |||||
The Company was named as a defendant in the following purported class action suits brought on behalf of indirect purchasers of the Company’s products, such as hospitals and retailers (the “Hospital Plaintiffs”), alleging that the Company violated federal and state antitrust laws, resulting in the charging of higher prices for the Company’s products to the plaintiffs and other purported class members. | |||||
Case | Court | Date Filed | |||
Jabo’s Pharmacy, Inc., et. al. v. Becton Dickinson & Company | U.S. District Court, Greenville, Tennessee | 3-Jun-05 | |||
Drug Mart Tallman, Inc., et. al. v. Becton Dickinson and Company | U.S. District Court, Newark, New Jersey | January 17, 2006 | |||
Medstar v. Becton Dickinson | U.S. District Court, Newark, New Jersey | 18-May-06 | |||
The Hebrew Home for the Aged at Riverdale v. Becton Dickinson and Company | U.S. District Court, Southern District of New York | 28-Mar-07 | |||
The plaintiffs in each of the above antitrust class action lawsuits sought monetary damages. These antitrust class action lawsuits were consolidated for pre-trial purposes in a Multi-District Litigation in Federal court in New Jersey. | |||||
Pursuant to a settlement agreement that the Company entered into with the Hospital Plaintiffs on July 30, 2013 and following approval by the New Jersey District Court (on a preliminarily basis in November 2013 and on a final basis in March 2014), the Company has paid $22 million in exchange for a release by all potential class members of the indirect purchaser claims related to the products and acts enumerated in the complaint, and a dismissal of the case with prejudice. | |||||
In June 2007, Retractable Technologies, Inc. (“RTI”) filed a complaint against the Company under the caption Retractable Technologies, Inc. vs. Becton Dickinson and Company (Civil Action No. 2:07-cv-250, U.S. District Court, Eastern District of Texas). RTI alleges that the BD IntegraTMsyringes infringe patents licensed exclusively to RTI. In its complaint, RTI also alleges that the Company engaged in false advertising with respect to certain of the Company’s safety-engineered products in violation of the Lanham Act; acted to exclude RTI from various product markets and to maintain its market share through, among other things, exclusionary contracts in violation of state and federal antitrust laws; and engaged in unfair competition. In January 2008, the court severed the patent and non-patent claims into separate cases, and stayed the non-patent claims during the pendency of the patent claims at the trial court level. RTI seeks money damages and injunctive relief. On April 1, 2008, RTI filed a complaint against BD under the caption Retractable Technologies, Inc. and Thomas J. Shaw v. Becton Dickinson and Company (Civil Action No.2:08-cv-141, U.S. District Court, Eastern District of Texas). RTI alleges that the BD IntegraTM syringes infringe another patent licensed exclusively to RTI. RTI seeks money damages and injunctive relief. On August 29, 2008, the court ordered the consolidation of the patent cases. On November 9, 2009, at a trial of these consolidated cases, the jury rendered a verdict in favor of RTI on all but one of its infringement claims, but did not find any willful infringement, and awarded RTI $5 million in damages. On May 19, 2010, the court granted RTI’s motion for a permanent injunction against the continued sale by the Company of its BD IntegraTM products in their current form, but stayed the injunction for the duration of the Company’s appeal. At the same time, the court lifted a stay of RTI’s non-patent claims. On July 8, 2011, the Court of Appeals for the Federal Circuit reversed the District Court judgment that the Company’s 3ml BD Integra™ products infringed the asserted RTI patents and affirmed the District Court judgment of infringement against the Company’s discontinued 1ml BD Integra™ products. On October 31, 2011, the Federal Circuit Court of Appeals denied RTI’s request for an en banc rehearing. In January 2013, RTI’s petition for review with the U.S. Supreme Court was denied. BD’s motion for further proceedings on damages was denied by the District Court on the grounds that the Court did not have authority to modify the $5 million damage award. BD has appealed this ruling to the Federal Circuit Court of Appeals. | |||||
On September 19, 2013, a jury returned a verdict against BD with respect to certain of RTI’s non-patent claims. The verdict was unfavorable to BD with respect to RTI’s Lanham Act claim and claim for attempted monopolization based on deception in the safety syringe market. The jury awarded RTI $113.5 million for its attempted monopolization claim (which will be trebled and attorneys’ fees added to under the antitrust statute). The Court will determine whether to award equitable relief under the Lanham Act including disgorgement. The jury’s verdict rejected RTI’s monopolization claims in the markets for safety syringes, conventional syringes and safety IV catheters; its attempted monopolization claims in the markets for conventional syringes and safety IV catheters; and its claims for contractual restraint of trade and exclusive dealing in the markets for safety syringes, conventional syringes and safety IV catheters. In connection with the verdict, the Company recorded a pre-tax charge of approximately $341 million in the fourth quarter of fiscal year 2013. The Company plans to appeal the jury’s verdict. | |||||
On November 4, 2013, the Secretariat of Foreign Trade (“SECEX”) of the Federal Republic of Brazil, initiated an administrative anti-dumping investigation of imports of vacuum plastic tubes for blood collection into Brazil from the United States of America, the United Kingdom of Great Britain and Northern Ireland, the Federal Republic of Germany and the People’s Republic of China during the period from January 2012 through December 2012. BD, through its United States and international subsidiaries, exports vacuum plastic tubes for blood collection into Brazil and is cooperating with the investigation. The investigation is expected to be completed by November 2014, but could extend longer. During the course of the investigation (on a provisional basis) and upon completion of the investigation (on a final basis), the SECEX will issue a decision on whether grounds exist to apply anti-dumping measures (including, without limitation, the imposition of duties on such vacuum plastic tubes imported into Brazil). Once applied, anti-dumping measures will last for as long as the measures are deemed necessary, which, in most cases, is for five years. The Company does not expect that the outcome of the investigation will materially affect results of operations. | |||||
The Company believes that it has meritorious defenses to each of the above-mentioned suits pending against the Company and is engaged in a vigorous defense of each of these matters. | |||||
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 is a party to a number of Federal 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 commencing. For all sites, there are other potentially responsible parties that may be jointly or severally liable to pay all cleanup costs. |
Segment_Data
Segment Data | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Data | ' | ||||||||||||||||
Note 5 – Segment Data | |||||||||||||||||
The Company’s organizational structure is based upon its three principal business segments: BD Medical (“Medical”), BD Diagnostics (“Diagnostics”) and BD Biosciences (“Biosciences”). These segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses. Segment Operating Income for the Medical and Biosciences segments for the six months ended March 31, 2014 reflect a correction of a $6 million misallocation of costs between the segments for the three months ended December 31, 2013 which was identified subsequent to the issuance of the Company’s condensed consolidated financial statements for the first quarter of fiscal year 2014. This misallocation, which had no impact on the Company’s consolidated results of operations, financial position, or cash flows, resulted in an understatement of the Medical segment’s selling and administrative expense with an offsetting overstatement of the Biosciences segment’s selling and administrative expense. Financial information for the Company’s segments was as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues (A) | |||||||||||||||||
Medical | $ | 1,116 | $ | 1,062 | $ | 2,180 | $ | 2,045 | |||||||||
Diagnostics | 653 | 659 | 1,325 | 1,311 | |||||||||||||
Biosciences | 302 | 279 | 581 | 544 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
Segment Operating Income | |||||||||||||||||
Medical | $ | 317 | $ | 291 | $ | 611 | $ | 579 | |||||||||
Diagnostics | 131 | (B) | 145 | 293 | (B) | 315 | |||||||||||
Biosciences | 67 | (C) | 71 | 139 | (C) | 136 | |||||||||||
Total Segment Operating Income | 515 | 507 | 1,043 | 1,030 | |||||||||||||
Unallocated Items (D) | (152 | ) (E) | (147 | ) | (321 | ) (E) | (304 | ) | |||||||||
Income from Continuing Operations Before Income Taxes | $ | 363 | $ | 360 | $ | 722 | $ | 726 | |||||||||
(A) | Intersegment revenues are not material. | ||||||||||||||||
(B) | Includes an $11 million charge that resulted from the early termination of a European distributor agreement. | ||||||||||||||||
(C) | Includes a $20 million charge primarily resulting from the discontinuance of an instrument product development program. The charge is largely attributable to capitalized product software, but also includes a lesser amount attributable to fixed assets. | ||||||||||||||||
(D) | Includes primarily interest, net; foreign exchange; corporate expenses; and share-based compensation expense. | ||||||||||||||||
(E) | Includes an $8 million gain resulting from the Company’s receipt of cash proceeds from the sale of a company in which it held a small equity ownership interest. | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues by Organizational Units | |||||||||||||||||
BD Medical | |||||||||||||||||
Medical Surgical Systems | $ | 551 | $ | 539 | $ | 1,130 | $ | 1,075 | |||||||||
Diabetes Care | 251 | 232 | 514 | 475 | |||||||||||||
Pharmaceutical Systems | 314 | 291 | 535 | 496 | |||||||||||||
Total | 1,116 | 1,062 | 2,180 | 2,045 | |||||||||||||
BD Diagnostics | |||||||||||||||||
Preanalytical Systems | 342 | 330 | 690 | 665 | |||||||||||||
Diagnostic Systems | 311 | 329 | 636 | 646 | |||||||||||||
Total | 653 | 659 | 1,325 | 1,311 | |||||||||||||
BD Biosciences | 302 | 279 | 581 | 544 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
Revenues by geographic areas were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Total Revenues | |||||||||||||||||
United States | $ | 826 | $ | 824 | $ | 1,675 | $ | 1,654 | |||||||||
International | 1,246 | 1,177 | 2,412 | 2,247 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Share-Based Compensation | ' | ||||||||
Note 6 – 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 that 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 March 31, 2014 and 2013, compensation expense charged to income was $25 million and $21 million, respectively. For the six months ended March 31, 2014 and 2013, compensation expense was $67 million and $58 million, respectively. | |||||||||
The amount of unrecognized compensation expense for all non-vested share-based awards as of March 31, 2014 was approximately $156 million, which is expected to be recognized over a weighted-average remaining life of approximately 2.2 years. | |||||||||
The fair values of stock appreciation rights granted during the annual share-based grants in November of 2013 and 2012, respectively, were estimated on the date of grant using a lattice-based binomial valuation model based on the following assumptions: | |||||||||
2014 | 2013 | ||||||||
Risk-free interest rate | 2.31 | % | 1.33 | % | |||||
Expected volatility | 19 | % | 21 | % | |||||
Expected dividend yield | 2 | % | 2.6 | % | |||||
Expected life | 7.8 years | 8.0 years | |||||||
Fair value derived | $ | 19.9 | $ | 12.08 |
Benefit_Plans
Benefit Plans | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Benefit Plans | ' | ||||||||||||||||
Note 7 – 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. The measurement date used for the Company’s employee benefit plans is September 30. | |||||||||||||||||
Effective April 1, 2014, the Company replaced its current post-65 group medical coverage with a new approach for retirees age 65 and older and their eligible dependents to access post-65 retiree medical and prescription drug coverage in the U.S. Such changes were communicated to active employees and retirees in early January 2014 and as such, the Company remeasured its U.S. postretirement healthcare benefit plan as of January 1, 2014. The impact of this plan change and remeasurement is immaterial to the Company’s consolidated financial results. The plan design changes included, among other modifications, a replacement of the Company-sponsored healthcare coverage program for post-65 retirees with contributions to a health reimbursement account that can be used to purchase coverage through a Medicare insurance exchange. | |||||||||||||||||
Net pension and postretirement cost included the following components for the three months ended March 31: | |||||||||||||||||
Pension Plans | Other Postretirement | ||||||||||||||||
Benefits | |||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 18 | $ | 21 | $ | 1 | $ | 1 | |||||||||
Interest cost | 23 | 22 | 2 | 3 | |||||||||||||
Expected return on plan assets | (31 | ) | (29 | ) | — | — | |||||||||||
Amortization of prior service credit | (4 | ) | (3 | ) | (1 | ) | — | ||||||||||
Amortization of loss | 12 | 19 | 1 | 1 | |||||||||||||
Net pension and postretirement cost | $ | 18 | $ | 29 | $ | 2 | $ | 5 | |||||||||
Net pension and postretirement cost included the following components for the six months ended March 31: | |||||||||||||||||
Pension Plans | Other Postretirement | ||||||||||||||||
Benefits | |||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 35 | $ | 42 | $ | 2 | $ | 3 | |||||||||
Interest cost | 46 | 43 | 5 | 5 | |||||||||||||
Expected return on plan assets | (62 | ) | (58 | ) | — | — | |||||||||||
Amortization of prior service credit | (8 | ) | (7 | ) | (2 | ) | (1 | ) | |||||||||
Amortization of loss | 24 | 38 | 1 | 2 | |||||||||||||
Net pension and postretirement cost | $ | 35 | $ | 58 | $ | 6 | $ | 9 | |||||||||
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 (loss) income in prior periods. | |||||||||||||||||
Postemployment benefit costs were $12 million for the three-month periods ended March 31, 2014 and 2013 and $23 million for the six-month periods ended March 31, 2014 and 2013. |
Divestiture
Divestiture | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||
Divestiture | ' | ||||||||||||||||
Note 8 – Divestiture | |||||||||||||||||
On October 31, 2012, the Company completed the sale of its BD Biosciences—Discovery Labware unit, excluding its Advanced Bioprocessing platform. Gross cash proceeds from the sale were approximately $740 million, subject to post-closing adjustments. Total gross proceeds included a payment of approximately $16 million received in the third quarter of fiscal year 2013 as reimbursement of additional tax costs incurred by the Company as a result of the buyer’s treatment of the acquisition as an asset purchase for federal tax purposes. The Company recognized a pre-tax gain on sale from this divestiture of $577 million. The after-tax gain recognized from this divestiture was $355 million. As a result of this divestiture, the Company derecognized $17 million of goodwill, allocated based upon the relative fair values of the disposed assets. | |||||||||||||||||
The Company agreed to perform some contract manufacturing and other transition services for a defined period after the sale; however, the Company will not have the ability to exert significant influence over the Discovery Labware disposal group after the sale, and cash flows associated with these activities are not expected to be material. The net cash flows from these activities are reported in the Condensed Consolidated Statements of Income as Other income (expense). | |||||||||||||||||
The results of operations associated with the Discovery Labware disposal group 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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 20 | |||||||||
Income (loss) from discontinued operations before income taxes | — | (2 | ) | — | 570 | ||||||||||||
Less income tax provision (benefit) | — | (1 | ) | — | 215 | ||||||||||||
Income (loss) from discontinued operations, net | $ | — | $ | — | $ | — | $ | 355 | |||||||||
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Note 9 – Intangible Assets | |||||||||||||||||
Intangible assets consisted of: | |||||||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||||||
(millions of dollars) | Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Core and developed technology | $ | 965 | $ | 425 | $ | 942 | $ | 401 | |||||||||
Product rights | 166 | 29 | 167 | 24 | |||||||||||||
Patents, trademarks, and other | 326 | 238 | 349 | 254 | |||||||||||||
Amortized intangible assets | $ | 1,458 | $ | 693 | $ | 1,457 | $ | 679 | |||||||||
Unamortized intangible assets | |||||||||||||||||
Acquired in-process research and development | $ | 54 | $ | 54 | |||||||||||||
Trademarks | 2 | 2 | |||||||||||||||
Unamortized intangible assets | $ | 56 | $ | 56 | |||||||||||||
Intangible amortization expense for the three months ended March 31, 2014 and 2013 was $21 million and $22 million, respectively. Intangible amortization expense for the six months ended March 31, 2014 and 2013 was $42 million and $41 million, respectively. | |||||||||||||||||
The following is a reconciliation of goodwill by business segment: | |||||||||||||||||
(millions of dollars) | Medical | Diagnostics | Biosciences | Total | |||||||||||||
Goodwill as of September 30, 2013 | $ | 511 | $ | 378 | $ | 220 | $ | 1,109 | |||||||||
Acquisitions (A) | — | 13 | — | 13 | |||||||||||||
Currency translation/other (B) | 1 | 1 | — | 2 | |||||||||||||
Goodwill as of March 31, 2014 | $ | 512 | $ | 392 | $ | 220 | $ | 1,124 | |||||||||
(A) | Represents goodwill recognized upon the Company’s acquisition of Alverix, Inc. in the second quarter of fiscal year 2014. | ||||||||||||||||
(B) | Includes amounts resulting from foreign currency translation as well as acquisition accounting adjustments. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||
Note 10 – 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. 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 and currency options. 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. The offset of these gains or losses against the gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments, is recognized in Other income (expense). | |||||||||||||||||||
The total notional amounts of the Company’s outstanding foreign exchange contracts as of March 31, 2014 and September 30, 2013 were $1.4 billion and $2.2 billion, respectively. | |||||||||||||||||||
Interest Rate Risks and Related Strategies | |||||||||||||||||||
The Company’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Company’s policy is to manage interest cost 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. | |||||||||||||||||||
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 offset by amounts 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. Losses on interest rate swaps designated as cash flow hedges recognized in the consolidated statements of income for the three and six months ended March 31, 2014 and 2013 were immaterial. 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 Company had no outstanding interest rate swaps designated as cash flow hedges as of March 31, 2014 or as of September 30, 2013. | |||||||||||||||||||
In March 2014, the Company entered into fixed-to-floating interest rate swap agreements with a consolidated notional amount of $250 million. These agreements were entered into to convert the interest payments on $250 million of the Company’s 3.125% notes, due November 8, 2021, from the fixed rate to a floating interest rate based on LIBOR. These interest rate swaps were designated as fair value hedges. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt, and an immaterial loss was recorded on these fair value hedges, as well as an offsetting gain on the underlying debt instrument, during the second quarter of fiscal year 2014. | |||||||||||||||||||
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. The Company had no outstanding commodity derivative contracts designated as cash flow hedges as of March 31, 2014 and September 30, 2013. Reclassifications from Accumulated other comprehensive income (loss) relating to commodity derivative contracts are recorded in Cost of products sold. There were no gains or losses on commodity derivative contracts recognized in the consolidated statements of income for the three months ended March 31, 2014. Gains and losses on commodity derivative contracts recognized in the consolidated statements of income for the six months ended March 31, 2014 and the three and six months ended March 31, 2013 were immaterial. | |||||||||||||||||||
Effects on Consolidated Balance Sheets | |||||||||||||||||||
The location and amounts of derivative instrument fair values in the consolidated balance sheet are segregated below between designated, qualifying hedging instruments and ones that are not designated for hedge accounting. | |||||||||||||||||||
(millions of dollars) | March 31, | September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Asset derivatives-undesignated for hedge accounting | |||||||||||||||||||
Forward exchange contracts | 6 | 13 | |||||||||||||||||
Total asset derivatives (A) | $ | 6 | $ | 13 | |||||||||||||||
Liability derivatives-undesignated for hedge accounting | |||||||||||||||||||
Forward exchange contracts | 5 | 7 | |||||||||||||||||
Total liability derivatives (B) | $ | 5 | $ | 7 | |||||||||||||||
(A) | All asset derivatives are included in Prepaid expenses, deferred taxes and other. | ||||||||||||||||||
(B) | All liability derivatives are included in Accrued expenses. | ||||||||||||||||||
Effects on Consolidated Statements of Income | |||||||||||||||||||
Cash flow hedges | |||||||||||||||||||
The Company’s designated derivative instruments have been highly effective. As such, there were no gains or losses, related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing, recognized immediately in income for the three and six-month periods ending March 31, 2013 relating to commodity derivative contracts outstanding at March 31, 2013. | |||||||||||||||||||
Undesignated hedges | |||||||||||||||||||
The location and amount of gains and losses recognized in income on derivatives not designated for hedge accounting were as follows: | |||||||||||||||||||
(millions of dollars) | Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended | Six Months Ended | ||||||||||||||||
Recognized in Income on | March 31, | March 31, | |||||||||||||||||
Hedging Instruments | Derivatives | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Forward exchange contracts (A) | Other income (expense) | $ | (1 | ) | $ | (9 | ) | $ | 5 | $ | 4 | ||||||||
(A) | The gains and losses on forward contracts and currency options utilized to hedge the intercompany transactional foreign exchange exposures are largely offset by gains and losses on the underlying hedged items in Other income (expense). |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Instruments and Fair Value Measurements | ' | ||||||||||||||||
Note 11 – Financial Instruments and Fair Value Measurements | |||||||||||||||||
The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at March 31, 2014 and September 30, 2013 are classified in accordance with the fair value hierarchy in the tables below: | |||||||||||||||||
Basis of Fair Value Measurement | |||||||||||||||||
(millions of dollars) | March 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets | Observable | Unobservable | ||||||||||||||
Total | for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Institutional money market investments | $ | 1,022 | $ | 1,022 | $ | — | $ | — | |||||||||
Forward exchange contracts | 6 | — | 6 | — | |||||||||||||
Total Assets | $ | 1,028 | $ | 1,022 | $ | 6 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Forward exchange contracts | $ | 5 | $ | — | $ | 5 | $ | — | |||||||||
Contingent consideration liabilities | 24 | — | — | 24 | |||||||||||||
Total Liabilities | $ | 29 | $ | — | $ | 5 | $ | 24 | |||||||||
Basis of Fair Value Measurement | |||||||||||||||||
(millions of dollars) | September 30, | Quoted Prices | Significant Other | Significant | |||||||||||||
2013 | in Active | Observable Inputs | Unobservable | ||||||||||||||
Total | Markets | (Level 2) | Inputs (Level 3) | ||||||||||||||
for Identical | |||||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Institutional money market investments | $ | 881 | $ | 881 | $ | — | $ | — | |||||||||
Forward exchange contracts | 13 | — | 13 | — | |||||||||||||
Total Assets | $ | 895 | $ | 881 | $ | 13 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Forward exchange contracts | $ | 7 | $ | — | $ | 7 | $ | — | |||||||||
Contingent consideration liabilities | 23 | — | — | 23 | |||||||||||||
Total Liabilities | $ | 30 | $ | — | $ | 7 | $ | 23 | |||||||||
The Company’s 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 Company’s remaining cash equivalents were $709 million and $1.009 billion at March 31, 2014 and September 30, 2013, respectively. 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 interest rate swaps based upon the present value of expected future cash flows using market-based observable inputs including credit risk, interest rate yield curves, foreign currency spot prices and forward prices. | |||||||||||||||||
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 $4.1 billion and $4.0 billion at March 31, 2014 and September 30, 2013, respectively. | |||||||||||||||||
The contingent consideration liabilities were recognized as part of the consideration transferred in the Company’s acquisition of the following: KIESTRA, which occurred in the second quarter of fiscal year 2012; Sirigen, which occurred in the fourth quarter of fiscal year 2012; and Cato, which occurred in the second quarter of fiscal year 2013. The fair values of the contingent consideration liabilities were estimated using probability-weighted discounted cash flow models that were based upon the probabilities assigned to the contingent events. The estimated fair values of the contingent consideration liabilities are remeasured at each reporting period based upon increases or decreases in the probability of the contingent payments. The changes to the total contingent consideration liability in the three and six-month periods ending March 31, 2014 were immaterial. | |||||||||||||||||
The Company’s 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 March 31, 2014 and 2013. |
Contingencies_Policies
Contingencies (Policies) | 6 Months Ended |
Mar. 31, 2014 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
ASC 450-20 recognition guidelines | ' |
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 Company’s consolidated results of operations and consolidated cash flows. | |
Derivative instruments and hedging activities | ' |
Foreign Currency Risks and Related Strategies | |
The Company has foreign currency exposures throughout Europe, Asia Pacific, Canada, Japan 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 and currency options. 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. The offset of these gains or losses against the gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments, is recognized in Other income (expense). | |
The total notional amounts of the Company’s outstanding foreign exchange contracts as of March 31, 2014 and September 30, 2013 were $1.4 billion and $2.2 billion, respectively. | |
Interest Rate Risks and Related Strategies | |
The Company’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Company’s policy is to manage interest cost 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. | |
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 offset by amounts 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. Losses on interest rate swaps designated as cash flow hedges recognized in the consolidated statements of income for the three and six months ended March 31, 2014 and 2013 were immaterial. 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 Company had no outstanding interest rate swaps designated as cash flow hedges as of March 31, 2014 or as of September 30, 2013. | |
In March 2014, the Company entered into fixed-to-floating interest rate swap agreements with a consolidated notional amount of $250 million. These agreements were entered into to convert the interest payments on $250 million of the Company’s 3.125% notes, due November 8, 2021, from the fixed rate to a floating interest rate based on LIBOR. These interest rate swaps were designated as fair value hedges. Changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt, and an immaterial loss was recorded on these fair value hedges, as well as an offsetting gain on the underlying debt instrument, during the second quarter of fiscal year 2014. | |
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. The Company had no outstanding commodity derivative contracts designated as cash flow hedges as of March 31, 2014 and September 30, 2013. Reclassifications from Accumulated other comprehensive income (loss) relating to commodity derivative contracts are recorded in Cost of products sold. There were no gains or losses on commodity derivative contracts recognized in the consolidated statements of income for the three months ended March 31, 2014. Gains and losses on commodity derivative contracts recognized in the consolidated statements of income for the six months ended March 31, 2014 and the three and six months ended March 31, 2013 were immaterial. | |
ASC 820 fair value disclosures | ' |
The Company measures the fair value of forward exchange contracts and interest rate swaps based upon the present value of expected future cash flows using market-based observable inputs including credit risk, interest rate yield curves, foreign currency spot prices and forward prices. | |
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 $4.1 billion and $4.0 billion at March 31, 2014 and September 30, 2013, respectively. | |
The contingent consideration liabilities were recognized as part of the consideration transferred in the Company’s acquisition of the following: KIESTRA, which occurred in the second quarter of fiscal year 2012; Sirigen, which occurred in the fourth quarter of fiscal year 2012; and Cato, which occurred in the second quarter of fiscal year 2013. The fair values of the contingent consideration liabilities were estimated using probability-weighted discounted cash flow models that were based upon the probabilities assigned to the contingent events. The estimated fair values of the contingent consideration liabilities are remeasured at each reporting period based upon increases or decreases in the probability of the contingent payments. The changes to the total contingent consideration liability in the three and six-month periods ending March 31, 2014 were immaterial. | |
The Company’s 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 March 31, 2014 and 2013. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The components and changes in accumulated other comprehensive income (loss) for the six-month period ended March 31, 2014 were as follows: | |||||||||||||||||
(millions of dollars) | Total | Foreign | Benefit Plans | Unrealized | |||||||||||||
Currency | Adjustments(A) | Losses on | |||||||||||||||
Translation | Cash Flow | ||||||||||||||||
Adjustments | Hedges(B) | ||||||||||||||||
Balance at September 30, 2013 | $ | (516 | ) | $ | 74 | $ | (558 | ) | $ | (31 | ) | ||||||
Other comprehensive income before reclassifications | 41 | 15 | 27 | — | |||||||||||||
Amounts reclassified into income (C) | 19 | — | 17 | 2 | |||||||||||||
Balance at March 31, 2014 | $ | (455 | ) | $ | 88 | $ | (514 | ) | $ | (29 | ) | ||||||
(A) | The reclassifications from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost and additional details are provided in Note 7. The reclassification amount for the three months ended March 31, 2014 was $8 million. The reclassification amounts for the three and six months ended March 31, 2013 were $14 million and $27 million, respectively. Amounts are net of taxes. | ||||||||||||||||
(B) | The reclassification amount for the three months ended March 31, 2014 was $1 million. The reclassification amounts for the three and six months ended March 31, 2013 were $2 million and $3 million, respectively. Additional details regarding the reclassifications from accumulated other comprehensive income (loss) related to cash flow hedges are provided in Note 10. Amounts are net of taxes. | ||||||||||||||||
(C) | The benefit plan-related amount is not reclassified into income in its entirety. The reclassification amounts related to cash flow hedges for the three and six months ended March 31, 2014 and 2013 were primarily recorded in Interest expense. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Average common shares outstanding | 193,609 | 194,609 | 193,909 | 195,528 | |||||||||||||
Dilutive share equivalents from share-based plans | 3,879 | 3,534 | 4,089 | 3,540 | |||||||||||||
Average common and common equivalent shares outstanding – assuming dilution | 197,488 | 198,143 | 197,998 | 199,068 | |||||||||||||
Segment_Data_Tables
Segment Data (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Financial Information for Company's Segments | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues (A) | |||||||||||||||||
Medical | $ | 1,116 | $ | 1,062 | $ | 2,180 | $ | 2,045 | |||||||||
Diagnostics | 653 | 659 | 1,325 | 1,311 | |||||||||||||
Biosciences | 302 | 279 | 581 | 544 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
Segment Operating Income | |||||||||||||||||
Medical | $ | 317 | $ | 291 | $ | 611 | $ | 579 | |||||||||
Diagnostics | 131 | (B) | 145 | 293 | (B) | 315 | |||||||||||
Biosciences | 67 | (C) | 71 | 139 | (C) | 136 | |||||||||||
Total Segment Operating Income | 515 | 507 | 1,043 | 1,030 | |||||||||||||
Unallocated Items (D) | (152 | ) (E) | (147 | ) | (321 | ) (E) | (304 | ) | |||||||||
Income from Continuing Operations Before Income Taxes | $ | 363 | $ | 360 | $ | 722 | $ | 726 | |||||||||
(A) | Intersegment revenues are not material. | ||||||||||||||||
(B) | Includes an $11 million charge that resulted from the early termination of a European distributor agreement. | ||||||||||||||||
(C) | Includes a $20 million charge primarily resulting from the discontinuance of an instrument product development program. The charge is largely attributable to capitalized product software, but also includes a lesser amount attributable to fixed assets. | ||||||||||||||||
(D) | Includes primarily interest, net; foreign exchange; corporate expenses; and share-based compensation expense. | ||||||||||||||||
(E) | Includes an $8 million gain resulting from the Company’s receipt of cash proceeds from the sale of a company in which it held a small equity ownership interest. | ||||||||||||||||
Revenues by Organizational Units | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues by Organizational Units | |||||||||||||||||
BD Medical | |||||||||||||||||
Medical Surgical Systems | $ | 551 | $ | 539 | $ | 1,130 | $ | 1,075 | |||||||||
Diabetes Care | 251 | 232 | 514 | 475 | |||||||||||||
Pharmaceutical Systems | 314 | 291 | 535 | 496 | |||||||||||||
Total | 1,116 | 1,062 | 2,180 | 2,045 | |||||||||||||
BD Diagnostics | |||||||||||||||||
Preanalytical Systems | 342 | 330 | 690 | 665 | |||||||||||||
Diagnostic Systems | 311 | 329 | 636 | 646 | |||||||||||||
Total | 653 | 659 | 1,325 | 1,311 | |||||||||||||
BD Biosciences | 302 | 279 | 581 | 544 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
Revenues by Geographic Areas | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Total Revenues | |||||||||||||||||
United States | $ | 826 | $ | 824 | $ | 1,675 | $ | 1,654 | |||||||||
International | 1,246 | 1,177 | 2,412 | 2,247 | |||||||||||||
Total Revenues | $ | 2,072 | $ | 2,000 | $ | 4,086 | $ | 3,901 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Assumptions for Estimation of Fair Values of Stock Appreciation Rights Granted During Reporting Periods | ' | ||||||||
The fair values of stock appreciation rights granted during the annual share-based grants in November of 2013 and 2012, respectively, were estimated on the date of grant using a lattice-based binomial valuation model based on the following assumptions: | |||||||||
2014 | 2013 | ||||||||
Risk-free interest rate | 2.31 | % | 1.33 | % | |||||
Expected volatility | 19 | % | 21 | % | |||||
Expected dividend yield | 2 | % | 2.6 | % | |||||
Expected life | 7.8 years | 8.0 years | |||||||
Fair value derived | $ | 19.9 | $ | 12.08 |
Benefit_Plans_Tables
Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Net Pension and Other Postretirement Cost | ' | ||||||||||||||||
Net pension and postretirement cost included the following components for the three months ended March 31: | |||||||||||||||||
Pension Plans | Other Postretirement | ||||||||||||||||
Benefits | |||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 18 | $ | 21 | $ | 1 | $ | 1 | |||||||||
Interest cost | 23 | 22 | 2 | 3 | |||||||||||||
Expected return on plan assets | (31 | ) | (29 | ) | — | — | |||||||||||
Amortization of prior service credit | (4 | ) | (3 | ) | (1 | ) | — | ||||||||||
Amortization of loss | 12 | 19 | 1 | 1 | |||||||||||||
Net pension and postretirement cost | $ | 18 | $ | 29 | $ | 2 | $ | 5 | |||||||||
Net pension and postretirement cost included the following components for the six months ended March 31: | |||||||||||||||||
Pension Plans | Other Postretirement | ||||||||||||||||
Benefits | |||||||||||||||||
(millions of dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 35 | $ | 42 | $ | 2 | $ | 3 | |||||||||
Interest cost | 46 | 43 | 5 | 5 | |||||||||||||
Expected return on plan assets | (62 | ) | (58 | ) | — | — | |||||||||||
Amortization of prior service credit | (8 | ) | (7 | ) | (2 | ) | (1 | ) | |||||||||
Amortization of loss | 24 | 38 | 1 | 2 | |||||||||||||
Net pension and postretirement cost | $ | 35 | $ | 58 | $ | 6 | $ | 9 | |||||||||
Divestiture_Tables
Divestiture (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||
Results of Discontinued Operations | ' | ||||||||||||||||
Results of discontinued operations were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 20 | |||||||||
Income (loss) from discontinued operations before income taxes | — | (2 | ) | — | 570 | ||||||||||||
Less income tax provision (benefit) | — | (1 | ) | — | 215 | ||||||||||||
Income (loss) from discontinued operations, net | $ | — | $ | — | $ | — | $ | 355 | |||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Components of Intangible Assets | ' | ||||||||||||||||
Intangible assets consisted of: | |||||||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||||||
(millions of dollars) | Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Core and developed technology | $ | 965 | $ | 425 | $ | 942 | $ | 401 | |||||||||
Product rights | 166 | 29 | 167 | 24 | |||||||||||||
Patents, trademarks, and other | 326 | 238 | 349 | 254 | |||||||||||||
Amortized intangible assets | $ | 1,458 | $ | 693 | $ | 1,457 | $ | 679 | |||||||||
Unamortized intangible assets | |||||||||||||||||
Acquired in-process research and development | $ | 54 | $ | 54 | |||||||||||||
Trademarks | 2 | 2 | |||||||||||||||
Unamortized intangible assets | $ | 56 | $ | 56 | |||||||||||||
Reconciliation of Goodwill by Business Segment | ' | ||||||||||||||||
The following is a reconciliation of goodwill by business segment: | |||||||||||||||||
(millions of dollars) | Medical | Diagnostics | Biosciences | Total | |||||||||||||
Goodwill as of September 30, 2013 | $ | 511 | $ | 378 | $ | 220 | $ | 1,109 | |||||||||
Acquisitions (A) | — | 13 | — | 13 | |||||||||||||
Currency translation/other (B) | 1 | 1 | — | 2 | |||||||||||||
Goodwill as of March 31, 2014 | $ | 512 | $ | 392 | $ | 220 | $ | 1,124 | |||||||||
(A) | Represents goodwill recognized upon the Company’s acquisition of Alverix, Inc. in the second quarter of fiscal year 2014. | ||||||||||||||||
(B) | Includes amounts resulting from foreign currency translation as well as acquisition accounting adjustments. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Effects on Consolidated Balance Sheets | ' | ||||||||||||||||||
Effects on Consolidated Balance Sheets | |||||||||||||||||||
The location and amounts of derivative instrument fair values in the consolidated balance sheet are segregated below between designated, qualifying hedging instruments and ones that are not designated for hedge accounting. | |||||||||||||||||||
(millions of dollars) | March 31, | September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Asset derivatives-undesignated for hedge accounting | |||||||||||||||||||
Forward exchange contracts | 6 | 13 | |||||||||||||||||
Total asset derivatives (A) | $ | 6 | $ | 13 | |||||||||||||||
Liability derivatives-undesignated for hedge accounting | |||||||||||||||||||
Forward exchange contracts | 5 | 7 | |||||||||||||||||
Total liability derivatives (B) | $ | 5 | $ | 7 | |||||||||||||||
(A) | All asset derivatives are included in Prepaid expenses, deferred taxes and other. | ||||||||||||||||||
(B) | All liability derivatives are included in Accrued expenses. | ||||||||||||||||||
Undesignated Hedges | ' | ||||||||||||||||||
Undesignated hedges | |||||||||||||||||||
The location and amount of gains and losses recognized in income on derivatives not designated for hedge accounting were as follows: | |||||||||||||||||||
(millions of dollars) | Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended | Six Months Ended | ||||||||||||||||
Hedging Instruments | Recognized in Income on | March 31, | March 31, | ||||||||||||||||
Derivatives | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Forward exchange contracts (A) | Other income (expense) | $ | (1 | ) | $ | (9 | ) | $ | 5 | $ | 4 | ||||||||
(A) | The gains and losses on forward contracts and currency options utilized to hedge the intercompany transactional foreign exchange exposures are largely offset by gains and losses on the underlying hedged items in Other income (expense). |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at March 31, 2014 and September 30, 2013 are classified in accordance with the fair value hierarchy in the tables below: | |||||||||||||||||
Basis of Fair Value Measurement | |||||||||||||||||
(millions of dollars) | March 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets | Observable | Unobservable | ||||||||||||||
Total | for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Institutional money market investments | $ | 1,022 | $ | 1,022 | $ | — | $ | — | |||||||||
Forward exchange contracts | 6 | — | 6 | — | |||||||||||||
Total Assets | $ | 1,028 | $ | 1,022 | $ | 6 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Forward exchange contracts | $ | 5 | $ | — | $ | 5 | $ | — | |||||||||
Contingent consideration liabilities | 24 | — | — | 24 | |||||||||||||
Total Liabilities | $ | 29 | $ | — | $ | 5 | $ | 24 | |||||||||
Basis of Fair Value Measurement | |||||||||||||||||
(millions of dollars) | September 30, | Quoted Prices | Significant Other | Significant | |||||||||||||
2013 | in Active | Observable Inputs | Unobservable | ||||||||||||||
Total | Markets | (Level 2) | Inputs (Level 3) | ||||||||||||||
for Identical | |||||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Institutional money market investments | $ | 881 | $ | 881 | $ | — | $ | — | |||||||||
Forward exchange contracts | 13 | — | 13 | — | |||||||||||||
Total Assets | $ | 895 | $ | 881 | $ | 13 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Forward exchange contracts | $ | 7 | $ | — | $ | 7 | $ | — | |||||||||
Contingent consideration liabilities | 23 | — | — | 23 | |||||||||||||
Total Liabilities | $ | 30 | $ | — | $ | 7 | $ | 23 | |||||||||
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | ($516) | ' |
Other comprehensive income before reclassifications | ' | ' | 41 | ' |
Amounts reclassified into income | ' | ' | 19 | ' |
Accumulated other comprehensive (loss) income, ending balance | -455 | ' | -455 | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | 74 | ' |
Other comprehensive income before reclassifications | ' | ' | 15 | ' |
Amounts reclassified into income | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, ending balance | 88 | ' | 88 | ' |
Benefit Plans Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | -558 | ' |
Other comprehensive income before reclassifications | ' | ' | 27 | ' |
Amounts reclassified into income | 8 | 14 | 17 | 27 |
Accumulated other comprehensive (loss) income, ending balance | -514 | ' | -514 | ' |
Unrealized Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | -31 | ' |
Other comprehensive income before reclassifications | ' | ' | ' | ' |
Amounts reclassified into income | 1 | 2 | 2 | 3 |
Accumulated other comprehensive (loss) income, ending balance | ($29) | ' | ($29) | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified into income | ' | ' | $19 | ' |
Benefit Plans Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified into income | 8 | 14 | 17 | 27 |
Unrealized Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified into income | $1 | $2 | $2 | $3 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Income tax provision (benefit) | ' | ' | $16 | ' |
Income tax provision (benefit) | 76 | 84 | 164 | 180 |
Income tax provision (benefit) for cash flow hedges | ' | ' | ' | 1 |
Unrealized gains or losses recognized on cash flow hedges | ' | ' | ' | ' |
Benefit Plans Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Income tax provision (benefit) | -4 | -8 | -9 | -15 |
Unrealized Losses on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Income tax provision (benefit) | ($1) | ($1) | ($1) | ($2) |
Earnings_per_Share_Weighted_Av
Earnings per Share - Weighted Average Common Shares Used in Computations of Basic and Diluted Earnings Per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Average common shares outstanding | 193,609 | 194,609 | 193,909 | 195,528 |
Dilutive share equivalents from share-based plans | 3,879 | 3,534 | 4,089 | 3,540 |
Average common and common equivalent shares outstanding - assuming dilution | 197,488 | 198,143 | 197,998 | 199,068 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Sep. 19, 2013 | Nov. 09, 2009 | Sep. 30, 2013 | Jul. 30, 2013 |
RTI Technologies [Member] | RTI Technologies [Member] | RTI Technologies [Member] | Hospital Plaintiffs [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Settlement amount | ' | ' | ' | $22 |
Damages awarded | 113.5 | 5 | ' | ' |
Pre-tax charge relating to an unfavorable litigation verdict | ' | ' | $341 | ' |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Segment | |
Segment Reporting [Abstract] | ' |
Number of principal business segments | 3 |
Correction of misallocation of costs, description | 'Segment Operating Income for the Medical and Biosciences segments for the six months ended March 31, 2014 reflect a correction of a $6 million misallocation of costs between the segments for the three months ended December 31, 2013 which was identified subsequent to the issuance of the Companybs condensed consolidated financial statements for the first quarter of fiscal year 2014. This misallocation, which had no impact on the Companybs consolidated results of operations, financial position, or cash flows, resulted in an understatement of the Medical segmentbs selling and administrative expense with an offsetting overstatement of the Biosciences segmentbs selling and administrative expense. |
Correction of misallocation of costs | $6 |
Segment_Data_Financial_Informa
Segment Data - Financial Information for Company's Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $2,072 | $2,000 | $4,086 | $3,901 |
Income from Continuing Operations Before Income Taxes | 363 | 360 | 722 | 726 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income from Continuing Operations Before Income Taxes | 515 | 507 | 1,043 | 1,030 |
Operating Segments [Member] | Medical [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 1,116 | 1,062 | 2,180 | 2,045 |
Income from Continuing Operations Before Income Taxes | 317 | 291 | 611 | 579 |
Operating Segments [Member] | Diagnostics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 653 | 659 | 1,325 | 1,311 |
Income from Continuing Operations Before Income Taxes | 131 | 145 | 293 | 315 |
Operating Segments [Member] | Biosciences [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 302 | 279 | 581 | 544 |
Income from Continuing Operations Before Income Taxes | 67 | 71 | 139 | 136 |
Corporate and All Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income from Continuing Operations Before Income Taxes | ($152) | ($147) | ($321) | ($304) |
Segment_Data_Financial_Informa1
Segment Data - Financial Information for Company's Segments (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Diagnostics [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Charge resulted from termination | $11 | $11 |
Biosciences [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Charge from discontinuance | 20 | 20 |
Corporate and All Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Gain from receipt of cash proceeds | $8 | $8 |
Segment_Data_Revenues_by_Organ
Segment Data - Revenues by Organizational Units (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | $2,072 | $2,000 | $4,086 | $3,901 |
Operating Segments [Member] | Medical [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 1,116 | 1,062 | 2,180 | 2,045 |
Operating Segments [Member] | Medical [Member] | Medical Surgical Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 551 | 539 | 1,130 | 1,075 |
Operating Segments [Member] | Medical [Member] | Diabetes Care [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 251 | 232 | 514 | 475 |
Operating Segments [Member] | Medical [Member] | Pharmaceutical Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 314 | 291 | 535 | 496 |
Operating Segments [Member] | Diagnostics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 653 | 659 | 1,325 | 1,311 |
Operating Segments [Member] | Diagnostics [Member] | Preanalytical Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 342 | 330 | 690 | 665 |
Operating Segments [Member] | Diagnostics [Member] | Diagnostic Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | 311 | 329 | 636 | 646 |
Operating Segments [Member] | Biosciences [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenues | $302 | $279 | $581 | $544 |
Segment_Data_Revenues_by_Geogr
Segment Data - Revenues by Geographic Areas (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | $2,072 | $2,000 | $4,086 | $3,901 |
Operating Segments [Member] | United States [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | 826 | 824 | 1,675 | 1,654 |
Operating Segments [Member] | International [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | $1,246 | $1,177 | $2,412 | $2,247 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Allocated share-based compensation expense | $25 | $21 | $67 | $58 |
Unrecognized compensation expense for all non-vested share-based awards | $156 | ' | $156 | ' |
Weighted-average remaining life non-vested share-based awards | '2 years 2 months 12 days | ' | ' | ' |
ShareBased_Compensation_Assump
Share-Based Compensation - Assumptions for Estimation of Fair Values of Stock Appreciation Rights Granted During Reporting Periods (Detail) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Risk-free interest rate | 2.31% | 1.33% |
Expected volatility | 19.00% | 21.00% |
Expected dividend yield | 2.00% | 2.60% |
Expected life | '7 years 9 months 18 days | '8 years |
Fair value derived | $19.90 | $12.08 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Postemployment benefit costs | $12 | $12 | $23 | $23 |
Post-65 Group Medical Coverage [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Description of plan amendment | ' | ' | 'Effective April 1, 2014, the Company replaced its current post-65 group medical coverage with a new approach for retirees age 65 and older and their eligible dependents to access post-65 retiree medical and prescription drug coverage in the U.S. | ' |
Benefit_Plans_Net_Pension_and_
Benefit Plans - Net Pension and Other Postretirement Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $18 | $21 | $35 | $42 |
Interest cost | 23 | 22 | 46 | 43 |
Expected return on plan assets | -31 | -29 | -62 | -58 |
Amortization of prior service credit | -4 | -3 | -8 | -7 |
Amortization of loss | 12 | 19 | 24 | 38 |
Net pension and postretirement cost | 18 | 29 | 35 | 58 |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 1 | 1 | 2 | 3 |
Interest cost | 2 | 3 | 5 | 5 |
Expected return on plan assets | ' | ' | ' | ' |
Amortization of prior service credit | -1 | ' | -2 | -1 |
Amortization of loss | 1 | 1 | 1 | 2 |
Net pension and postretirement cost | $2 | $5 | $6 | $9 |
Divestiture_Additional_Informa
Divestiture - Additional Information (Detail) (Discovery Labware [Member], USD $) | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2012 | Jun. 30, 2013 |
Discovery Labware [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Proceeds from sale of productive assets | $740 | ' |
Additional payment received from the sale | ' | 16 |
Pre-tax gain on sale | 577 | ' |
After-tax gain on sale | 355 | ' |
Amount of goodwill derecognized | $17 | ' |
Divestiture_Results_of_Discont
Divestiture - Results of Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' | ' |
Revenues | ' | ' | ' | $20 |
Income (loss) from discontinued operations before income taxes | ' | -2 | ' | 570 |
Less income tax provision (benefit) | ' | -1 | ' | 215 |
Income (loss) from discontinued operations, net | ' | ' | ' | $355 |
Intangible_Assets_Components_o
Intangible Assets - Components of Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $1,458 | $1,457 |
Accumulated Amortization | 693 | 679 |
Unamortized intangible assets, Total | 56 | 56 |
Acquired in-process research and development [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Unamortized intangible assets, Total | 54 | 54 |
Trademarks [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Unamortized intangible assets, Total | 2 | 2 |
Core and developed technology [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 965 | 942 |
Accumulated Amortization | 425 | 401 |
Product rights [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 166 | 167 |
Accumulated Amortization | 29 | 24 |
Patents, trademarks, and other [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 326 | 349 |
Accumulated Amortization | $238 | $254 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Intangible amortization expense | $21 | $22 | $42 | $41 |
Intangible_Assets_Reconciliati
Intangible Assets - Reconciliation of Goodwill by Business Segment (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | $1,109 |
Acquisitions | 13 |
Currency translation/other | 2 |
Goodwill, ending balance | 1,124 |
Medical [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 511 |
Acquisitions | ' |
Currency translation/other | 1 |
Goodwill, ending balance | 512 |
Diagnostics [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 378 |
Acquisitions | 13 |
Currency translation/other | 1 |
Goodwill, ending balance | 392 |
Biosciences [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 220 |
Acquisitions | ' |
Currency translation/other | ' |
Goodwill, ending balance | $220 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 |
Fixed to floating interest rate swaps agreements [Member] | Commodity forward contracts [Member] | Commodity forward contracts [Member] | Forward exchange contracts [Member] | Forward exchange contracts [Member] | Interest rate swaps [Member] | Interest rate swaps [Member] | ||||
Cash flow hedges [Member] | Cash flow hedges [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | $250 | ' | ' | $1,400 | $2,200 | ' | ' |
Reclassification of terminated interest rate swaps to interest expense within the next 12 months | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | 3.13% | ' | ' | ' | ' | ' | ' |
Interest rate swap agreement conversion description | ' | ' | ' | 'These agreements were entered into to convert the interest payments on $250 million in 3.125% notes, due November 8, 2021, from the fixed rate to a floating interest rate based on LIBOR. | ' | ' | ' | ' | ' | ' |
Financial instruments related to hedges, maturity date | ' | ' | ' | 8-Nov-21 | ' | ' | ' | ' | ' | ' |
Gains or losses, related to hedge ineffectiveness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Effects on Consolidated Balance Sheets (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Asset derivatives | $6 | $13 |
Liability derivatives | 5 | 7 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward exchange contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset derivatives | 6 | 13 |
Liability derivatives | $5 | $7 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Undesignated Hedges (Detail) (Derivatives Not Designated as Hedging Instruments [Member], Forward exchange contracts [Member], Other income (expense) [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward exchange contracts [Member] | Other income (expense) [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | ($1) | ($9) | $5 | $4 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurements - Fair Values of Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Institutional money market investments | $1,022 | $881 |
Forward exchange contracts | 6 | 13 |
Total Assets | 1,028 | 895 |
Liabilities | ' | ' |
Forward exchange contracts | 5 | 7 |
Contingent consideration liabilities | 24 | 23 |
Total Liabilities | 29 | 30 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets | ' | ' |
Institutional money market investments | 1,022 | 881 |
Forward exchange contracts | ' | ' |
Total Assets | 1,022 | 881 |
Liabilities | ' | ' |
Forward exchange contracts | ' | ' |
Contingent consideration liabilities | ' | ' |
Total Liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets | ' | ' |
Institutional money market investments | ' | ' |
Forward exchange contracts | 6 | 13 |
Total Assets | 6 | 13 |
Liabilities | ' | ' |
Forward exchange contracts | 5 | 7 |
Contingent consideration liabilities | ' | ' |
Total Liabilities | 5 | 7 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets | ' | ' |
Institutional money market investments | ' | ' |
Forward exchange contracts | ' | ' |
Total Assets | ' | ' |
Liabilities | ' | ' |
Forward exchange contracts | ' | ' |
Contingent consideration liabilities | 24 | 23 |
Total Liabilities | $24 | $23 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' | ' |
Remaining cash equivalents | $709 | ' | $709 | ' | $1,009 |
Maturity period of cash equivalents at the time of purchase | ' | ' | 'Three months or less | ' | ' |
Maturity period of instruments in short-term investments | ' | ' | 'Three months and less than one year | ' | ' |
Fair value of long-term debt | 4,100 | ' | 4,100 | ' | 4,000 |
Transfer of assets in and out of level 1, 2 and 3 measurements during the period | ' | ' | ' | ' | ' |
Transfer of liabilities in and out of level 1, 2 and 3 measurements during the period | ' | ' | ' | ' | ' |