Notes to Consolidated Financial Statements
Becton, Dickinson and Company
15 Segment Data
The Companys 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; syringes and pen needles for the self-injection of insulin and other drugs used in 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 surgical instruments; sharps disposal containers; and home healthcare products. The major products and services in the Diagnostics segment are integrated systems for specimen collection; an extensive line of safety-engineered specimen blood collection products and systems; plated media; automated blood culturing systems; molecular testing systems for sexually transmitted diseases and healthcare-associated infections; microorganism identification and drug susceptibility systems; and rapid diagnostic assays. 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 Companys products to many end users accounted for approximately 11% of revenues in 2006, 2005 and 2004, 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(A) |
2006 |
2005 |
2004 |
 |
| Medical |
$ |
3,203,456 |
|
$ |
2,958,088 |
|
$ |
2,680,165 |
|
| Diagnostics |
|
1,754,866 |
|
|
1,657,064 |
|
|
1,531,639 |
|
| Biosciences |
|
876,505 |
|
|
799,529 |
|
|
722,941 |
|
 |
|
$ |
5,834,827 |
|
$ |
5,414,681 |
|
$ |
4,934,745 |
|
 |
Segment Operating Income |
|
|
|
|
|
|
|
|
|
 |
| Medical |
$ |
767,672 |
(B) |
$ |
710,551 |
|
$ |
566,582 |
(D) |
| Diagnostics |
|
399,212 |
(C) |
|
413,908 |
|
|
359,370 |
|
| Biosciences |
|
213,068 |
|
|
175,339 |
|
|
155,888 |
|
 |
| Total Segment Operating Income |
|
1,379,952 |
|
|
1,299,798 |
|
|
1,081,840 |
|
| Unallocated Expenses(E) |
|
(344,995 |
)(F) |
|
(294,944 |
)(F) |
|
(328,972 |
)(G) |
 |
Income From Continuing Operations Before Income Taxes |
$ |
1,034,957 |
|
$ |
1,004,854 |
|
$ |
752,868 |
|
 |
Segment Assets |
|
|
|
|
|
|
|
|
|
 |
| Medical |
$ |
2,835,613 |
|
$ |
2,656,320 |
|
$ |
2,703,643 |
|
| Diagnostics |
|
1,485,959 |
|
|
1,245,769 |
|
|
1,217,620 |
|
| Biosciences |
|
727,634 |
|
|
678,286 |
|
|
706,728 |
|
 |
| Total Segment Assets |
|
5,049,206 |
|
|
4,580,375 |
|
|
4,627,991 |
|
| Corporate and All Other(H) |
|
1,775,319 |
|
|
1,552,418 |
|
|
1,060,894 |
|
| Discontinued Operations |
|
|
|
|
|
|
|
63,694 |
|
 |
|
$ |
6,824,525 |
|
$ |
6,132,793 |
|
$ |
5,752,579 |
|
 |
Capital Expenditures |
|
|
|
|
|
|
|
|
|
 |
| Medical |
$ |
270,910 |
|
$ |
184,525 |
|
$ |
158,728 |
|
| Diagnostics |
|
104,815 |
|
|
99,742 |
|
|
79,782 |
|
| Biosciences |
|
38,952 |
|
|
22,218 |
|
|
16,560 |
|
| Corporate and All Other |
|
44,631 |
|
|
11,143 |
|
|
10,648 |
|
 |
|
$ |
459,308 |
|
$ |
317,628 |
|
$ |
265,718 |
|
 |
Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
 |
| Medical |
$ |
212,807 |
|
$ |
202,825 |
|
$ |
187,254 |
|
| Diagnostics |
|
116,072 |
|
|
102,882 |
|
|
97,731 |
|
| Biosciences |
|
63,383 |
|
|
64,599 |
|
|
55,878 |
|
| Corporate and All Other |
|
12,833 |
|
|
17,190 |
|
|
16,361 |
|
 |
|
$ |
405,095 |
|
$ |
387,496 |
|
$ |
357,224 |
|
 |
| (A) |
Intersegment revenues are not material.
|
| (B) |
Includes the $63,414 charge related to BGM exit costs, as discussed in Note 3.
|
| (C) |
Includes the in-process research and development charge related to the GeneOhm
acquisition, as discussed in Note 3.
|
| (D) |
Includes the $45,024 charge related to BGM products as discussed in Note 16.
|
| (E) |
Includes interest, net; foreign exchange; and corporate expenses.
|
| (F) |
Includes share-based compensation expense, as discussed in Note 2.
|
| (G) |
Includes the litigation settlement of $100,000 as discussed in Note 16.
|
| (H) |
Includes cash and investments and corporate assets. |
| Revenues by Organizational Units |
2006 |
2005 |
2004 |
 |
BD Medical Medical Surgical Systems |
$ |
1,748,743 |
|
$ |
1,661,150 |
|
$ |
1,540,723 |
|
| Diabetes Care |
|
753,343 |
|
|
674,020 |
|
|
586,190 |
|
| Pharmaceutical Systems |
|
639,694 |
|
|
563,271 |
|
|
497,421 |
|
| Ophthalmic Systems |
|
61,676 |
|
|
59,647 |
|
|
55,831 |
|
 |
| |
$ |
3,203,456 |
|
$ |
2,958,088 |
|
$ |
2,680,165 |
|
 |
BD Diagnostic Preanalytical Systems |
$ |
927,759 |
|
$ |
854,831 |
|
$ |
787,996 |
|
| Diagnostic Systems |
|
827,107 |
|
|
802,233 |
|
|
743,643 |
|
 |
| |
$ |
1,754,866 |
|
$ |
1,657,064 |
|
$ |
1,531,639 |
|
 |
BD Biosciences Immunocytometry Systems |
$ |
502,847 |
|
$ |
452,383 |
|
$ |
397,151 |
|
| Pharmingen |
|
157,349 |
|
|
140,585 |
|
|
135,650 |
|
| Discovery Labware |
|
216,309 |
|
|
206,561 |
|
|
190,140 |
|
 |
| |
$ |
876,505 |
|
$ |
799,529 |
|
$ |
722,941 |
|
 |
| |
$ |
5,834,827 |
|
$ |
5,414,681 |
|
$ |
4,934,745 |
|
 |
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.
| |
2006 |
2005 |
2004 |
 |
Revenues United States |
$ |
2,828,023 |
|
$ |
2,590,951 |
|
$ |
2,435,889 |
|
| Europe |
|
1,764,600 |
|
|
1,671,112 |
|
|
1,482,793 |
|
| Other |
|
1,242,204 |
|
|
1,152,618 |
|
|
1,016,063 |
|
 |
| |
$ |
5,834,827 |
|
$ |
5,414,681 |
|
$ |
4,934,745 |
|
 |
Long-Lived Assets United States |
$ |
1,934,994 |
|
$ |
1,687,808 |
|
$ |
1,687,276 |
|
| Europe |
|
893,495 |
|
|
823,694 |
|
|
805,179 |
|
| Other |
|
540,925 |
|
|
424,165 |
|
|
398,453 |
|
| Corporate |
|
269,858 |
|
|
221,812 |
|
|
220,337 |
|
 |
| |
$ |
3,639,272 |
|
$ |
3,157,479 |
|
$ |
3,111,245 |
|
 |
|