01—Abstract
Summary
Summary of the 10-K filed November 22, 2017. Cited figures are marked; the original filing is the authoritative source.
Becton, Dickinson and Company (BDX) filed its 2017 10-K, reporting on its fiscal year ending September 29, 2017.
The company, a global medical technology firm, operates through two main segments: BD Medical and BD Life Sciences. A significant development during the year was the announcement of the definitive agreement to acquire C. R.
Bard, Inc. for approximately $24 billiona, a transaction expected to close in the fourth quarter of 2017. This acquisition aims to create a more differentiated medical technology company. Financially, revenues for fiscal year 2017 were $12.093 billion, a decrease of 3.1% from the prior year, primarily due to the divestiture of the Respiratory Solutions business.
Despite the revenue dip, the company continued to invest in research and development ($774 millionb) and returned value to shareholders through dividends and share repurchases. The company's financial position remains strong, with significant cash on hand, bolstered by equity and debt issuances to support the upcoming Bard acquisition. Management expressed confidence in its ability to fund operations and strategic initiatives, while acknowledging risks related to the integration of acquisitions and global economic conditions.
02—Key points
Key Highlights
- Announced definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion, expected to close in Q4 2017.
- Reported fiscal year 2017 revenues of $12.093 billion, a 3.1% decrease year-over-year, largely attributed to the divestiture of the Respiratory Solutions business.
- Invested $774 million in Research and Development (R&D) to drive innovation and platform extensions.
- Maintained a strong financial position with $14.2 billion in cash and short-term investments at fiscal year-end.
- Returned value to shareholders through dividends ($677 million) and share repurchases ($220 million).
- Operated under two main segments: BD Medical and BD Life Sciences, with continued volume growth in continuing businesses.
- Acknowledged risks related to foreign currency exchange rates, competition, regulatory changes, and the integration of the pending Bard acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2017, Becton Dickinson & Co kept $0.09.
- Revenue$12.09B100.0%
- Cost of revenue−$6.15B50.9%
- Gross profit$5.94B49.1%
- Operating costs−$4.42B36.6%
- Operating income$1.52B12.6%
- Interest, other & tax−$422.0M3.5%
- Net income$1.10B9.1%
Where FY2017 revenue went
$12.09B- Cost of revenue: $6.13B, 51% of revenue
- SG&A: $2.91B, 24% of revenue
- Net income: $1.10B, 9.1% of revenue
- R&D: $770.0M, 6.4% of revenue
- Other operating costs: $764.0M, 6.3% of revenue
- Interest, other & tax: $422.0M, 3.5% of revenue
Kept 9.1% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2017filed November 22, 2017Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $12.09B$12.48B | −3.1% |
| Cost of Revenue | $6.13B$6.49B | −5.6% |
| Gross Profit | $5.94B$5.99B | −0.8% |
| R&D Expenses | $770.00M$828.00M | −7.0% |
| SG&A Expenses | $2.91B$3.00B | −3.2% |
| Operating Expenses | $10.57B$11.05B | −4.4% |
| Operating Income | $1.52B$1.43B | +6.4% |
| Interest Expense | $521.00M$388.00M | +34.3% |
| Net Income | $1.10B$976.00M | +12.7% |
| EPS (Basic) | $4.70$4.59 | +2.4% |
| EPS (Diluted) | $4.60$4.49 | +2.4% |
| Shares Outstanding (Basic) | 218.94M212.70M | +2.9% |
| Shares Outstanding (Diluted) | 223.59M217.54M | +2.8% |
05—Questions
Frequently Asked Questions
What was the most significant strategic move for BDX in fiscal year 2017?
The most significant strategic move was the announcement of the definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion. This acquisition, expected to close in the fourth calendar quarter of 2017, is intended to create a more differentiated and leading medical technology company.
How did BDX's revenues perform in fiscal year 2017?
BDX reported revenues of $12.093 billion for fiscal year 2017, a decrease of 3.1% compared to the prior year. This decline was primarily driven by the divestiture of the Respiratory Solutions business, though the company noted volume growth of over 4% in its continuing businesses.
What is the status of the C. R. Bard acquisition and how is it being financed?
The acquisition of C. R. Bard, Inc. was announced in April 2017 and was subject to regulatory approvals and customary closing conditions, with an expected closing in the fourth calendar quarter of 2017. BDX planned to finance the cash portion of the transaction through available cash, including net proceeds raised from equity offerings totaling approximately $4.8 billion and debt transactions totaling approximately $9.6 billion in the third quarter of fiscal year 2017.
What are the key business segments for BDX?
Becton, Dickinson and Company operates through two principal business segments: BD Medical and BD Life Sciences. BD Medical focuses on a broad array of medical technologies and devices, while BD Life Sciences provides products for specimen collection, diagnostic systems, and tools for cell research and analysis.
06—Continue