|
Thousands of dollars, except per-share amounts and numbers of shares
| 20 |
Blood Glucose Monitoring Charges |
The Company recorded a pre-tax charge of $45,024 to cost of products sold in the Company’s results of operations during 2004 related to its blood glucose monitoring (“BGM”) products, which included a reserve of $6,473 in connection with the voluntary product recall of certain lots of BGM test strips and the write-off of $29,803 of certain test strip inventories. Based upon internal testing, it was determined that certain BGM test strip lots, produced by BD’s manufacturing partner, were not performing within BD’s specifications. As a result, the Company decided to recall the affected lots and dispose of the non-conforming product in inventory. In addition, the charge reflects BD’s decision to focus its sales and marketing efforts on the BD Logic and Paradigm Link® blood glucose meters in the United States, and to discontinue support of the BD Latitude system product offering in the United States, resulting in a write-off of $8,748 of related blood glucose meters and fixed assets. As of September 30, 2004, a $2,361 reserve remains for product to be returned related to this voluntary product recall, which is expected to be fully exhausted in 2005.
| Quarterly Data (unaudited) |
| Thousands of dollars, except per-share amounts |
| |
2004 |
 |
| |
|
1st |
|
|
2nd |
|
|
3rd |
|
|
4th |
|
|
Year |
|
|
| Revenues |
$ |
1,185,120 |
|
$ |
1,253,633 |
|
$ |
1,242,714 |
|
$ |
1,253,278 |
|
$ |
4,934,745 |
|
| Gross Profit |
|
550,865 |
|
|
624,117 |
|
|
627,101 |
|
|
632,300 |
|
|
2,434,383 |
(B) |
| Income from Continuing Operations, Net of Tax |
|
124,925 |
|
|
164,083 |
|
|
110,162 |
|
|
183,334 |
|
|
582,504 |
(B)(C) |
| Earnings Per Share: |
| Income from Continuing Operations |
|
.49 |
|
|
.65 |
|
|
.43 |
|
|
.73 |
|
|
2.30 |
|
| Loss from Discontinued Operations |
|
— |
|
|
— |
|
|
— |
|
|
(.46 |
) |
|
(.46 |
) |
| Basic Earnings Per Share |
|
.50 |
|
|
.65 |
|
|
.43 |
|
|
.27 |
|
|
1.85 |
|
| |
| |
| Income from Continuing Operations |
|
.48 |
|
|
.62 |
|
|
.42 |
|
|
.70 |
|
|
2.21 |
|
| Loss from Discontinued Operations |
|
— |
|
|
— |
|
|
— |
|
|
(.44 |
) |
|
(.44 |
) |
| Diluted Earnings Per Share |
|
.48 |
|
|
.62 |
|
|
.41 |
|
|
.26 |
|
|
1.77 |
|
|
| |
| |
| |
2003 |
|
| |
|
1st |
|
|
2nd |
|
|
3rd |
|
|
4th |
|
|
Year |
|
|
| Revenues |
$ |
1,035,901 |
|
$ |
1,116,715 |
|
$ |
1,149,516 |
|
$ |
1,161,377 |
|
$ |
4,463,509 |
|
| Gross Profit |
|
492,664 |
|
|
549,297 |
|
|
541,139 |
|
|
583,772 |
|
|
2,166,872 |
(A) |
| Income from Continuing Operations, Net of Tax |
|
114,319 |
|
|
143,571 |
|
|
134,779 |
|
|
162,261 |
|
|
554,930 |
(A) |
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from Continuing Operations |
|
.45 |
|
|
.56 |
|
|
.53 |
|
|
.64 |
|
|
2.17 |
|
| Loss from Discontinued Operations |
|
— |
|
|
(.01 |
) |
|
(.02 |
) |
|
— |
|
|
(.03 |
) |
| Basic Earnings Per Share |
|
.44 |
|
|
.56 |
|
|
.51 |
|
|
.64 |
|
|
2.14 |
|
| |
| |
| Income from Continuing Operations |
|
.43 |
|
|
.54 |
|
|
.51 |
|
|
.62 |
|
|
2.10 |
|
| Loss from Discontinued Operations |
|
— |
|
|
(.01 |
) |
|
(.02 |
) |
|
— |
|
|
(.03 |
) |
| Diluted Earnings Per Share |
|
.43 |
|
|
.54 |
|
|
.49 |
|
|
.61 |
|
|
2.07 |
|
|
| (A) |
Includes $26,717 of impairment charges in the third quarter, as discussed in Note 2.
|
| (B) |
Includes the $45,024 charge related to blood glucose monitoring (BGM) products in the first quarter, as discussed in Note 20.
|
| (C) |
Includes the litigation settlement of $100,000 in the third quarter, as discussed in Note 17.
|
|
