16	Segment Data

The Company’s organizational structure is based upon its three principal business segments: BD Medical (formerly “BD Medical Systems”) (“Medical”), BD Diagnostics (formerly “BD Clinical Laboratory Solutions”) (“Diagnostics”), and BD Biosciences (“Biosciences”).

     The major products in the Medical segment are hypodermic products, specially designed devices for diabetes care, prefill-able drug delivery systems, infusion therapy products, elastic support products and thermometers. The Medical segment also includes disposable scrubs, specialty needles, and surgical blades. The major products in the Diagnostics segment are clinical and industrial microbiology products, sample collection products, specimen management systems, hematology instruments, and other diagnostic systems, including immunodiag-nostic test kits. This segment also includes consulting services and customized, automated bar-code systems for use in laboratories. The major products in the Biosciences segment are flow cytometry systems for cellular analysis, reagents and tissue culture labware.

     The Company evaluates performance based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses. The calculations of segment operating income and assets are in accordance with the accounting policies described in Note 1.

     Distribution of products is both through distributors and 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 2003, 2002 and 2001, 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		2003			2002			2001
Medical	$	2,456,876		$	2,151,374		$	2,004,626
Diagnostics		1,373,651			1,236,319			1,151,517
Biosciences		697,413			645,376			590,039
Total(A)	$	4,527,940		$	4,033,069		$	3,746,182
Segment Operating Income
Medical	$	556,284		$	470,168	(C)	$	446,940
Diagnostics		302,071			251,004	(D)		212,837
Biosciences		88,885	(B)		116,926	(E)		97,293
Total Segment Operating Income		947,240			838,098			757,070
Unallocated Expenses(F)		(237,534	)		(209,509	)		(180,320	)
Income Before Income Taxes and
Cumulative Effect of Change
in Accounting Principle	$	709,706		$	628,589		$	576,750
Segment Assets
Medical	$	2,738,082		$	2,536,185		$	2,431,709
Diagnostics		1,128,878			1,187,710			1,091,063
Biosciences		912,758	(B)		930,836			822,745
Total Segment Assets		4,779,718			4,654,731			4,345,517
Corporate and All Other(G)		792,535			374,252			445,293
Total	$	5,572,253		$	5,028,983		$	4,790,810
Capital Expenditures
Medical	$	167,165		$	182,479		$	265,531
Diagnostics		61,589			41,774			62,009
Biosciences		22,116			22,747			24,083
Corporate and All Other		10,173			12,703			19,131
Total	$	261,043		$	259,703		$	370,754
Depreciation and Amortization
Medical	$	174,701		$	150,849		$	145,702
Diagnostics		86,879			89,275			89,117
Biosciences		64,605			50,587			58,204
Corporate and All Other		18,271			14,154			12,677
Total	$	344,456		$	304,865		$	305,700
(A) Intersegment revenues are not material. (B) Includes $26,717 in 2003 of impairment charges discussed in Note 2. (C) Includes $22,600 in 2002 for special charges discussed in Note 5. (D) Includes $(468) in 2002 for special charge reversals discussed in Note 5. (E) Includes $(447) in 2002 for special charge reversals discussed in Note 5. (F) Includes interest, net; foreign exchange; corporate expenses; gains on sales of investments; and certain legal defense costs. Also includes special charge reversals of $(177) in 2002, as discussed in Note 5. (G) Includes cash and investments and corporate assets.
Revenues by
Organizational Units		2003			2002			2001
BD Medical
Medical Surgical Systems	$	1,426,202		$	1,299,229		$	1,192,340
Diabetes Care		542,327			473,825			483,053
Pharmaceutical Systems		435,624			326,346			278,309
Ophthalmic Systems		52,723			51,974			50,924
	$	2,456,876		$	2,151,374		$	2,004,626
BD Diagnostics
Preanalytical Systems	$	707,079		$	637,194		$	584,277
Diagnostic Systems		666,572			599,125			567,240
	$	1,373,651		$	1,236,319		$	1,151,517
BD Biosciences
Immunocytometry Systems	$	332,505		$	294,718		$	265,365
Clontech		64,312			72,710			78,607
Pharmingen		121,173			110,125			94,776
Discovery Labware		179,423			167,823			151,291
	$	697,413		$	645,376		$	590,039
Total	$	4,527,940		$	4,033,069		$	3,746,182
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, and International, which is composed of Europe, 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. Intangible assets are not included since, by their nature, they do not have a physical or geographic location.
		2003			2002			2001
Revenues
United States	$	2,328,246		$	2,158,275		$	2,001,341
International		2,199,694			1,874,794			1,744,841
Total	$	4,527,940		$	4,033,069		$	3,746,182
Long-Lived Assets
United States	$	979,735		$	974,797		$	956,138
International		724,100			653,464			633,671
Corporate		140,936			137,469			126,214
Total	$	1,844,771		$	1,765,730		$	1,716,023

Quarterly Data (Unaudited)
Thousands of dollars, except per-share amounts

	2003
	1st			2nd			3rd			4th			Year
Revenues	$	1,051,648		$	1,134,041		$	1,165,369		$	1,176,882		$	4,527,940
Gross Profit		501,609			555,613			542,982			591,446			2,191,650	(B)
Net Income		113,638			142,040			130,018			161,360			547,056	(B)
Earnings Per Share:
Basic		.44			.56			.51			.64			2.14
Diluted		.43			.54			.49			.61			2.07
	2002
	1st			2nd			3rd			4th			Year
Revenues	$	944,946		$	1,012,971		$	998,460		$	1,076,692		$	4,033,069
Gross Profit		445,184			489,838			484,389			529,989			1,949,400
Net Income		99,673			129,188			119,725			131,396			479,982	(A)
Earnings Per Share:
Basic		.38			.50			.46			.51			1.85
Diluted		.37			.48			.44			.50			1.79