|
Thousands of dollars, except per-share amounts and numbers of shares
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 products in the Medical segment are hypodermic products, specially designed devices for diabetes care, prefillable 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 immunodiagnostic 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.
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 2004, 2003 and 2002, 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 |
|
2004 |
|
|
2003 |
|
|
2002 |
|
 |
| Medical |
$ |
2,680,165 |
|
$ |
2,456,876 |
|
$ |
2,151,374 |
|
| Diagnostics |
|
1,531,639 |
|
|
1,373,651 |
|
|
1,236,319 |
|
| Biosciences |
|
722,941 |
|
|
632,982 |
|
|
572,666 |
|
|
| Total(A) |
$ |
4,934,745 |
|
$ |
4,463,509 |
|
$ |
3,960,359 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Segment Operating Income |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
566,582 |
(I) |
$ |
556,284 |
|
$ |
470,168 |
(C) |
| Diagnostics |
|
359,370 |
|
|
302,071 |
|
|
251,004 |
(D) |
| Biosciences |
|
155,888 |
|
|
100,597 |
(B) |
|
115,804 |
(E) |
|
| Total Segment Operating Income |
|
1,081,840 |
|
|
958,952 |
|
|
836,976 |
|
| Unallocated Expenses(F) |
|
(328,972 |
)(H) |
|
(236,994 |
) |
|
(209,509 |
) |
|
| Income From Continuing Operations |
|
|
|
|
|
|
|
|
|
| Before Income Taxes |
$ |
752,868 |
|
$ |
721,958 |
|
$ |
627,467 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Segment Assets |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
2,703,643 |
|
$ |
2,738,082 |
|
$ |
2,536,185 |
|
| Diagnostics |
|
1,217,620 |
|
|
1,128,878 |
|
|
1,187,710 |
|
| Biosciences |
|
706,728 |
|
|
717,455 |
(B) |
|
717,493 |
|
|
| Total Segment Assets |
|
4,627,991 |
|
|
4,584,415 |
|
|
4,441,388 |
|
| Corporate and All Other(G) |
|
1,060,894 |
|
|
792,535 |
|
|
374,252 |
|
| Discontinued Operations |
|
63,694 |
|
|
195,303 |
|
|
213,343 |
|
|
| Total |
$ |
5,752,579 |
|
$ |
5,572,253 |
|
$ |
5,028,983 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Capital Expenditures |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
158,728 |
|
$ |
167,168 |
|
$ |
182,506 |
|
| Diagnostics |
|
79,782 |
|
|
61,590 |
|
|
41,780 |
|
| Biosciences |
|
16,560 |
|
|
20,287 |
|
|
18,716 |
|
| Corporate and All Other |
|
10,648 |
|
|
10,173 |
|
|
12,703 |
|
|
| Total |
$ |
265,718 |
|
$ |
259,218 |
|
$ |
255,705 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
|
| Medical |
$ |
187,254 |
|
$ |
174,711 |
|
$ |
150,939 |
|
| Diagnostics |
|
97,731 |
|
|
86,882 |
|
|
89,311 |
|
| Biosciences |
|
55,878 |
|
|
55,896 |
|
|
42,172 |
|
| Corporate and All Other |
|
16,361 |
|
|
18,270 |
|
|
14,154 |
|
|
| Total |
$ |
357,224 |
|
$ |
335,759 |
|
$ |
296,576 |
|
|
| (A) |
Intersegment revenues are not material.
|
| (B) |
Includes $26,717 in 2003 of impairment charges discussed in Note 3.
|
| (C) |
Includes $22,600 in 2002 for special charges, net of reversals 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.
|
| (H) |
Includes the litigation settlement of $100,000 as discussed in Note 17.
|
| (I) |
Includes the $45,024 charge related to blood glucose monitoring products as discussed in
Note 20.
|
| Revenues by Organizational Units |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
BD Medical
Medical Surgical Systems |
$ |
1,540,723 |
|
$ |
1,426,202 |
|
$ |
1,299,229 |
|
| Diabetes Care |
|
586,190 |
|
|
542,327 |
|
|
473,825 |
|
| Pharmaceutical Systems |
|
497,421 |
|
|
435,624 |
|
|
326,346 |
|
| Ophthalmic Systems |
|
55,831 |
|
|
52,723 |
|
|
51,974 |
|
|
| |
$ |
2,680,165 |
|
$ |
2,456,876 |
|
$ |
2,151,374 |
|
|
BD Diagnostics
Preanalytical Systems |
$ |
787,996 |
|
$ |
707,079 |
|
$ |
637,194 |
|
| Diagnostic Systems |
|
743,643 |
|
|
666,572 |
|
|
599,125 |
|
|
| |
$ |
1,531,639 |
|
$ |
1,373,651 |
|
$ |
1,236,319 |
|
|
BD Biosciences
Immunocytometry Systems |
$ |
397,151 |
|
$ |
332,386 |
|
$ |
294,718 |
|
| Pharmingen |
|
135,650 |
|
|
121,173 |
|
|
110,125 |
|
| Discovery Labware |
|
190,140 |
|
|
179,423 |
|
|
167,823 |
|
|
| |
$ |
722,941 |
|
$ |
632,982 |
|
$ |
572,666 |
|
|
| Total |
$ |
4,934,745 |
|
$ |
4,463,509 |
|
$ |
3,960,359 |
|
|
Geographic Information
The countries in which the Company has local revenuegenerating
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.
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
Revenues
United States |
$ |
2,435,889 |
|
$ |
2,296,318 |
|
$ |
2,118,691 |
|
| International |
|
2,498,856 |
|
|
2,167,191 |
|
|
1,841,668 |
|
|
| Total |
$ |
4,934,745 |
|
$ |
4,463,509 |
|
$ |
3,960,359 |
|
|
Long-Lived Assets
United States |
$ |
1,687,276 |
|
$ |
1,652,508 |
|
$ |
1,651,927 |
|
| International |
|
1,203,632 |
|
|
1,188,509 |
|
|
1,069,533 |
|
| Corporate |
|
220,337 |
|
|
227,777 |
|
|
216,141 |
|
|
| Total |
$ |
3,111,245 |
|
$ |
3,068,794 |
|
$ |
2,937,601 |
|
|
|
