10-KPeriod: FY2017

BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2017

Filed November 22, 2017For Securities:BDX

Summary

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 billion, 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 million) 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.

Financial Highlights

56 data points
Beta

Revenue

$12.09B

49.1% Gross Margin

Net Income

$1.10B

9.1% Net Margin

EPS (Diluted)

$4.60

Total Assets

$37.73B

Cash & Equivalents

$14.18B

Free Cash Flow

$1.82B

Financial Statements
Beta
Revenue$12.09B
Cost of Revenue$6.13B
Gross Profit$5.94B
R&D Expenses$770.00M
SG&A Expenses$2.91B
Operating Expenses$10.57B
Operating Income$1.52B
Interest Expense$521.00M
Net Income$1.10B
EPS (Basic)$4.70
EPS (Diluted)$4.60
Shares Outstanding (Basic)218.94M
Shares Outstanding (Diluted)223.59M

Key Highlights

  • 1Announced definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion, expected to close in Q4 2017.
  • 2Reported 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.
  • 3Invested $774 million in Research and Development (R&D) to drive innovation and platform extensions.
  • 4Maintained a strong financial position with $14.2 billion in cash and short-term investments at fiscal year-end.
  • 5Returned value to shareholders through dividends ($677 million) and share repurchases ($220 million).
  • 6Operated under two main segments: BD Medical and BD Life Sciences, with continued volume growth in continuing businesses.
  • 7Acknowledged risks related to foreign currency exchange rates, competition, regulatory changes, and the integration of the pending Bard acquisition.

Frequently Asked Questions

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.

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.

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.

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.