 |
Notes to Consolidated Financial Statements
|
|
The Company’s organizational structure is based upon its three principal business segments: BD Medical (“Medical”), BD Diagnostics (“Diagnostics”) and BD Biosciences (“Biosciences”).
The major product lines in the Medical segment include needles, syringes and intravenous catheters, including safety-engineered devices, for medication delivery; insulin injection devices and blood glucose monitors for the treatment of diabetes; prefillable drug delivery devices provided to pharmaceutical companies and sold to end-users as drug/device combinations; surgical blades and regional anesthesia needles; critical care monitoring devices; ophthalmic surgery devices; sharps disposal containers; and home healthcare products. The major products and services in the Diagnostics segment are integrated systems for evacuated blood collection; an extensive line of safety-engineered specimen collection products and systems; plated media; automated blood culturing; molecular testing systems for sexually transmitted diseases; microorganism identification and drug susceptibility systems; and rapid manual testing products. The major product lines in the Biosciences segment include fluorescence activated cell sorters and analyzers; cell imaging systems; monoclonal antibodies and kits; reagent systems for life sciences research; tools to aid in drug discovery and growth of tissue and cells; and diagnostic assays.
The Company evaluates performance of its business segments based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses.
Distribution of products is primarily through distributors, as well as directly to hospitals, laboratories and other end users. Sales to a distributor which supplies the Company’s products to many end users accounted for approximately 11% of revenues in 2005, 2004 and 2003, respectively and included products from the Medical and Diagnostics segments. No other customer accounted for 10% or more of revenues in each of the three years presented.
| Revenues |
2005 |
2004 |
2003 |
|
| Medical |
$ |
2,958,088 |
|
$ |
2,680,165 |
|
$ |
2,456,876 |
|
| Diagnostics |
|
1,657,064 |
|
|
1,531,639 |
|
|
1,373,651 |
|
| Biosciences |
|
799,529 |
|
|
722,941 |
|
|
632,982 |
|
|
| Total(A) |
$ |
5,414,681 |
|
$ |
4,934,745 |
|
$ |
4,463,509 |
|
|
Segment Operating Income |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
710,551 |
|
$ |
566,582 |
(B) |
$ |
556,284 |
|
| Diagnostics |
|
413,908 |
|
|
359,370 |
|
|
302,071 |
|
| Biosciences |
|
175,339 |
|
|
155,888 |
|
|
100,597 |
(C) |
|
| Total Segment Operating Income |
|
1,299,798 |
|
|
1,081,840 |
|
|
958,952 |
|
| Unallocated Expenses(D) |
|
(294,944 |
)(E) |
|
(328,972 |
)(F) |
|
(236,994 |
) |
|
Income From Continuing Operations
Before Income Taxes |
$ |
1,004,854 |
|
$ |
752,868 |
|
$ |
721,958 |
|
|
Segment Assets |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
2,656,320 |
|
$ |
2,703,643 |
|
$ |
2,738,082 |
|
| Diagnostics |
|
1,245,769 |
|
|
1,217,620 |
|
|
1,128,878 |
|
| Biosciences |
|
678,286 |
|
|
706,728 |
|
|
717,455 |
(C) |
|
| Total Segment Assets |
|
4,580,375 |
|
|
4,627,991 |
|
|
4,584,415 |
|
| Corporate and All Other(G) |
|
1,491,594 |
|
|
1,060,894 |
|
|
792,535 |
|
| Discontinued Operations |
|
— |
|
|
63,694 |
|
|
195,303 |
|
|
| Total |
$ |
6,071,969 |
|
$ |
5,752,579 |
|
$ |
5,572,253 |
|
|
Capital Expenditures |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
184,525 |
|
$ |
158,728 |
|
$ |
167,168 |
|
| Diagnostics |
|
99,742 |
|
|
79,782 |
|
|
61,590 |
|
| Biosciences |
|
22,218 |
|
|
16,560 |
|
|
20,287 |
|
| Corporate and All Other |
|
11,143 |
|
|
10,648 |
|
|
10,173 |
|
|
| Total |
$ |
317,628 |
|
$ |
265,718 |
|
$ |
259,218 |
|
|
Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
202,825 |
|
$ |
187,254 |
|
$ |
174,711 |
|
| Diagnostics |
|
102,882 |
|
|
97,731 |
|
|
86,882 |
|
| Biosciences |
|
64,599 |
|
|
55,878 |
|
|
55,896 |
|
| Corporate and All Other |
|
17,190 |
|
|
16,361 |
|
|
18,270 |
|
|
| Total |
$ |
387,496 |
|
$ |
357,224 |
|
$ |
335,759 |
|
|
| (A) |
Intersegment revenues are not material.
|
| (B) |
Includes the $45,024 charge related to blood glucose monitoring products as discussed in Note 19.
|
| (C) |
Includes $26,717 in 2003 of impairment charges discussed in Note 3.
|
| (D) |
Includes interest, net; foreign exchange; corporate expenses; and certain legal defense costs.
|
| (E) |
Includes share-based compensation expense, as discussed further in Note 2.
|
| (F) |
Includes the litigation settlement of $100,000 as discussed in Note 16.
|
| (G) |
Includes cash and investments and corporate assets.
|
| Revenues by Organizational Units |
2005 |
2004 |
2003 |
|
BD Medical
Medical Surgical Systems |
$ |
1,661,150 |
|
$ |
1,540,723 |
|
$ |
1,426,202 |
|
| Diabetes Care |
|
674,020 |
|
|
586,190 |
|
|
542,327 |
|
| Pharmaceutical Systems |
|
563,271 |
|
|
497,421 |
|
|
435,624 |
|
| Ophthalmic Systems |
|
59,647 |
|
|
55,831 |
|
|
52,723 |
|
|
| |
$ |
2,958,088 |
|
$ |
2,680,165 |
|
$ |
2,456,876 |
|
|
BD Diagnostic
Preanalytical Systems |
$ |
854,831 |
|
$ |
787,996 |
|
$ |
707,079 |
|
| Diagnostic Systems |
|
802,233 |
|
|
743,643 |
|
|
666,572 |
|
|
| |
$ |
1,657,064 |
|
$ |
1,531,639 |
|
$ |
1,373,651 |
|
|
BD Biosciences
Immunocytometry Systems |
$ |
452,383 |
|
$ |
397,151 |
|
$ |
332,386 |
|
| Pharmingen |
|
140,585 |
|
|
135,650 |
|
|
121,173 |
|
| Discovery Labware |
|
206,561 |
|
|
190,140 |
|
|
179,423 |
|
|
| |
$ |
799,529 |
|
$ |
722,941 |
|
$ |
632,982 |
|
|
| Total |
$ |
5,414,681 |
|
$ |
4,934,745 |
|
$ |
4,463,509 |
|
|
Geographic Information
The countries in which the Company has local revenue-generating operations have been combined into the following geographic areas: the United States (including Puerto Rico), Europe and Other, which is composed of Canada, Latin America, Japan and Asia Pacific.
Revenues to unaffiliated customers are based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.
| |
2005 |
2004 |
2003 |
|
Revenues
United States |
$ |
2,590,951 |
|
$ |
2,435,889 |
|
$ |
2,296,318 |
|
| Europe |
|
1,671,112 |
|
|
1,482,793 |
|
|
1,277,994 |
|
| Other |
|
1,152,618 |
|
|
1,016,063 |
|
|
889,197 |
|
|
| Total |
$ |
5,414,681 |
|
$ |
4,934,745 |
|
$ |
4,463,509 |
|
|
Long-Lived Assets
United States |
$ |
1,687,808 |
|
$ |
1,687,276 |
|
$ |
1,652,508 |
|
| Europe |
|
776,681 |
|
|
805,179 |
|
|
778,375 |
|
| Other |
|
410,354 |
|
|
398,453 |
|
|
410,134 |
|
| Corporate |
|
221,812 |
|
|
220,337 |
|
|
227,777 |
|
|
| Total |
$ |
3,096,655 |
|
$ |
3,111,245 |
|
$ |
3,068,794 |
|
|
|
