Acquisitions and Divestitures - Completed acquisition of Edwards Lifesciences' Critical Care product group for 3.911billion,renamedasBDAdvancedPatientMonitoring[286][299]−TheCompanycompletedthesaleofitsInterventionalsegment′sSurgicalInstrumentationplatforminAugust2023,recognizingapre−taxgainofapproximately268 million[356] - The Company completed the spin-off of its Diabetes Care business as Embecta Corp. on April 1, 2022, receiving a cash distribution of approximately 1.266billionfromEmbecta[357]−Acquisitions,netofcashacquired,totaled3,924 million in 2024, compared to 0in2023and2,070 million in 2022[323] Financial Performance - Revenue increased to 20,178millionin2024,up4.219,372 million in 2023[314] - Net income from continuing operations rose to 1,705millionin2024,an11.41,530 million in 2023[314] - Operating income grew to 2,397millionin2024,a13.52,111 million in 2023[314] - Comprehensive income was 1,521millionin2024,a6.81,424 million in 2023[317] - Diluted earnings per share from continuing operations increased to 5.86in2024,up14.95.10 in 2023[314] - Net income for 2024 increased to 1,705million,upfrom1,484 million in 2023 and 1,779millionin2022[323]−Netcashprovidedbycontinuingoperatingactivitiesin2024was3,844 million, compared to 2,990millionin2023and2,471 million in 2022[323] Segment Performance - Medical segment revenues increased to 10,074millionin2024,upfrom9,502 million in 2023 and 8,841millionin2022[437]−LifeSciencessegmentrevenuesgrewto5,191 million in 2024, compared to 5,133millionin2023and5,564 million in 2022[437] - Interventional segment revenues rose to 4,980millionin2024,upfrom4,736 million in 2023 and 4,464millionin2022[437]−Totalcompanyrevenuesfromcontinuingoperationsreached20,178 million in 2024, compared to 19,372millionin2023and18,870 million in 2022[437] - Medical segment operating income increased to 2,742millionin2024,upfrom1,967 million in 2023[441] - Life Sciences segment operating income remained stable at 1,595millionin2024,comparedto1,585 million in 2023[441] - Interventional segment operating income grew to 1,420millionin2024,upfrom1,217 million in 2023[441] Assets and Liabilities - Total assets increased to 57,286millionin2024,up8.552,780 million in 2023[320] - Cash and equivalents rose to 1,717millionin2024,a21.31,416 million in 2023[320] - Long-term debt increased to 17,940millionin2024,up21.714,738 million in 2023[320] - Goodwill increased to 26,465millionin2024,a7.924,522 million in 2023[320] - Recorded a liability of 257millionrelatedtouncertaintaxpositionsasofSeptember30,2024[300]−Productliabilityaccrualsamountedto1.7 billion and 1.9billionatSeptember30,2024and2023,respectively[407]−Thecompany′srebateliabilitieswere749 million and 669millionatSeptember30,2024and2023,respectively[416]−Contractliabilitiesforunearnedrevenuewereapproximately482 million and 412millionatSeptember30,2024and2023,respectively[421]ResearchandDevelopment−Researchanddevelopmentexpensedecreasedto1,190 million in 2024, down 3.8% from 1,237millionin2023[314]ShareRepurchasesandCompensation−TheCompanyexecutedandsettledacceleratedsharerepurchaseagreementsinfiscalyear2024,repurchasing2.118millionsharesofitscommonstockfor500 million[374] - In fiscal year 2022, the Company repurchased 1.953 million common shares for 500millionandrecordedanadditional150 million as an increase to Treasury stock[375] - Share repurchase program authorized on November 3, 2021 for up to 10 million shares of BD common stock, with no expiration date[376] - Total share-based compensation cost for 2024 was 249million,comparedto261 million in 2023 and 240millionin2022[447]−Thecompanyissued0.1millionsharesduring2024tosatisfySARsexercised,withatotalintrinsicvalueof25 million[450][451] - The weighted average grant date fair value of SARs granted in 2024 was 63.05,upfrom57.80 in 2023 and 49.45in2022[450]−Performance−basedrestrictedstockunitsoutstandingasofSeptember30,2024were991thousand,withaweightedaveragegrantdatefairvalueof229.02[457] - Time-vested restricted stock units outstanding as of September 30, 2024 were 1,693 thousand, with a weighted average grant date fair value of 227.20[457]−Thetotalfairvalueofrestrictedstockunitsvestedduring2024was45 million for performance-based and 179millionfortime−vestedunits[458]−Unrecognizedcompensationexpenseforallnon−vestedshare−basedawardsasofSeptember30,2024wasapproximately253 million[459] Pension and Postretirement Benefits - Net pension cost for 2024 was 131million,downfrom174 million in 2023 and 143millionin2022[468]−Thecompany′sU.S.pensionplanbenefitobligationincreasedto2,913 million in 2024 from 2,617millionin2023,withasignificantactuarialgainof241 million in 2024 compared to a loss of 24millionin2023[472]−Internationalpensionplanassetsatfairvaluegrewto880 million in 2024 from 748millionin2023,whiletheprojectedbenefitobligationsincreasedto992 million from 833millionoverthesameperiod[472]−Thecompanymadeadiscretionarycontributionof150 million to its U.S. pension plan in fiscal year 2024 and does not anticipate significant required contributions in fiscal year 2025[480] - The discount rate for U.S. pension plans increased to 6.01% in 2024 from 5.62% in 2023, while the expected return on plan assets for U.S. plans slightly increased to 7.29% from 7.25%[476] - The funded status of the U.S. pension plan improved, with the unfunded benefit obligation decreasing to 356millionin2024from488 million in 2023[472] - The company recognized a curtailment gain in 2023 related to the freeze of the U.S. pension plan, while settlement losses were recorded in both 2023 and 2022 due to lump sum benefit payments[471] - The postretirement healthcare and life insurance benefit obligation for domestic retirees increased slightly to 94millionin2024from92 million in 2023[475] - The fair value of U.S. pension plan assets increased to 2,557millionin2024from2,129 million in 2023, driven by an actual return on plan assets of 395million[472]−Thecompany′sinternationalpensionplanssawadecreaseinthediscountrateto4.5250 million and 125millioninthethirdandfourthquartersof2024,respectively,toaccrueanestimated175 million liability related to SEC discussions[394] - The company received subpoenas from the SEC in February 2021 regarding reporting issues involving BD Alaris infusion pumps, with ongoing discussions and potential monetary penalties[394] - In July 2017, C.R. Bard received a CID from the Department of Justice regarding an investigation into possible violations of the False Claims Act, with ongoing discussions as of July 2024[394] - In April 2019, the Department of Justice served the company and CareFusion with CIDs regarding contracts with the Department of Veteran's Affairs, with ongoing document requests and interviews[394] - In September 2021, the company received a CID related to an inquiry initiated by the Department of Justice in 2018 concerning sales and marketing practices in the urology business, resolved with an adequately accrued amount[394] - The company has approximately 350 lawsuits involving 360 plaintiffs related to ethylene oxide exposure, with a trial date set for April 2025[398] - The company recorded a 62millionreductioninrevenuesduetoItalianmedicaldevicepaybacklegislation[398]−Thecompanyrecordeda28 million liability for estimated future costs related to an FDA Warning Letter[398] Intangible Assets and Valuation - Developed technology intangible assets valued at 714millionandcustomerrelationshipsintangibleassetsvaluedat650 million as part of the acquisition[299] - The company used an income approach to measure technology-related intangible assets and certain customer relationship-related assets[299] - Significant assumptions for valuation included discount rates and revenue growth rates, which are forward-looking and subject to future economic and market conditions[299] Internal Controls and Audits - Internal control over financial reporting was effective as of September 30, 2024, excluding BD Advanced Patient Monitoring[286][304] - The company's consolidated financial statements were audited and found to be in conformity with U.S. generally accepted accounting principles[293] - The company's internal control over financial reporting was audited and found to be effective based on COSO criteria[303] - The company's audit included evaluation of controls over accounting for business combinations and uncertain tax positions[299][300] Geographic Revenue Performance - United States revenues increased to 11,663millionin2024,comparedto11,113 million in 2023 and 10,722millionin2022[445]−EMEArevenuesgrewto4,402 million in 2024, up from 4,244millionin2023and4,043 million in 2022[445] Capital Expenditures and Commitments - Total capital expenditures decreased to 725millionin2024,downfrom874 million in 2023[441] - Future purchase commitments as of September 30, 2024 aggregated to approximately 1.831billion,tobeexpendedoverthenextseveralyears[381]DiscontinuedOperations−Thecompanycompletedthespin−offofitsDiabetesCarebusinessonApril1,2022,withhistoricalresultsreflectedasdiscontinuedoperations[327]−Infiscalyear2023,theCompanyrecordedexpensesof46 million within (Loss) Income from Discontinued Operations, Net of Tax related to a foreign tax associated with the spin-off[362] Tax and Valuation Allowances - The company is permanently reinvested with respect to all historical foreign earnings as of September 30, 2024[347] - The company maintains valuation allowances for deferred tax assets where realization is not more likely than not[349] Shipping and Depreciation Expenses - Shipping expense decreased to 702millionin2024from733 million in 2023 and 751millionin2022[344]−Depreciationandamortizationexpensewas676 million in 2024, 696millionin2023,and672 million in 2022[335] Goodwill and Impairment - Goodwill impairment review on July 1, 2024, indicated that all reporting units' fair values exceeded their carrying values[336] Share-Based Awards and Plans - The company has 10.0 million shares authorized for future grants under the 2004 Plan as of September 30, 2024[461] - Accumulated other comprehensive income (loss) balance at September 30, 2024 was (1,732)million,including(1,244) million from foreign currency translation and (557)millionfrombenefitplans[376]−Weightedaveragecommonsharesoutstandingfor2024were289,763thousand,withdilutiveshareequivalentsof1,246thousand,resultingin291,009thousandaveragecommonandcommonequivalentsharesoutstanding[380]RevenuefromUnsatisfiedObligations−Thecompanyestimates2.3 billion in revenue from unsatisfied performance obligations as of September 30, 2024[422] - The company estimates $2.1 billion in revenue from unsatisfied minimum purchase commitments as of September 30, 2024[423]
Becton, Dickinson(BDX)2024-11-27 18:36