Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Becton, Dickinson & Co., balance sheet: goodwill and intangible assets

US$ in millions

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Developed technology	14,399)	14,105)	13,960)	13,966)	3,508)	3,409)
Customer relationships	4,658)	4,616)	4,608)	4,584)	3,393)	3,360)
Product rights	123)	119)	110)	121)	131)	125)
Trademarks	409)	408)	407)	407)	408)	405)
Patents and other	533)	500)	445)	397)	371)	349)
Amortized intangible assets, gross carrying amount	20,122)	19,748)	19,530)	19,475)	7,811)	7,648)
Accumulated amortization	(7,385)	(5,981)	(4,555)	(3,073)	(1,987)	(1,435)
Amortized intangible assets, net	12,737)	13,767)	14,975)	16,402)	5,824)	6,213)
Acquired in-process research and development	44)	44)	1)	37)	67)	66)
Trademarks	2)	2)	2)	2)	2)	2)
Unamortized intangible assets	46)	46)	3)	39)	69)	68)
Intangible assets, net	12,783)	13,813)	14,978)	16,441)	5,893)	6,281)
Goodwill	23,901)	23,620)	23,376)	23,600)	7,563)	7,419)
Intangible assets and goodwill	36,684)	37,433)	38,354)	40,041)	13,456)	13,700)

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Becton, Dickinson & Co. intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Becton, Dickinson & Co. goodwill increased from 2019 to 2020 and from 2020 to 2021.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Becton, Dickinson & Co. intangible assets and goodwill decreased from 2019 to 2020 and from 2020 to 2021.

Becton, Dickinson & Co., adjustments to financial statements

US$ in millions

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Adjustment to Total Assets
Total assets (as reported)	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Less: Goodwill	23,901)	23,620)	23,376)	23,600)	7,563)	7,419)
Total assets (adjusted)	29,965)	30,392)	28,389)	30,304)	30,171)	18,167)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Less: Goodwill	23,901)	23,620)	23,376)	23,600)	7,563)	7,419)
Shareholders’ equity (adjusted)	(224)	145)	(2,295)	(2,606)	5,385)	214)

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

Becton, Dickinson & Co., Financial Data: Reported vs. Adjusted

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Becton, Dickinson & Co., adjusted financial ratios

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Total Asset Turnover
Reported total asset turnover	0.38	0.32	0.33	0.30	0.32	0.49
Adjusted total asset turnover	0.68	0.56	0.61	0.53	0.40	0.69
Financial Leverage
Reported financial leverage	2.28	2.27	2.46	2.57	2.91	3.35
Adjusted financial leverage	—	209.60	—	—	5.60	84.89
Return on Equity (ROE)
Reported ROE	8.84%	3.68%	5.85%	1.48%	8.50%	12.79%
Adjusted ROE	—	602.76%	—	—	20.43%	456.07%
Return on Assets (ROA)
Reported ROA	3.88%	1.62%	2.38%	0.58%	2.92%	3.81%
Adjusted ROA	6.98%	2.88%	4.34%	1.03%	3.65%	5.37%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Becton, Dickinson & Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Becton, Dickinson & Co. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Becton, Dickinson & Co., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Revenues	20,248)	17,117)	17,290)	15,983)	12,093)	12,483)
Total assets	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Activity Ratio
Total asset turnover¹	0.38	0.32	0.33	0.30	0.32	0.49
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	20,248)	17,117)	17,290)	15,983)	12,093)	12,483)
Adjusted total assets	29,965)	30,392)	28,389)	30,304)	30,171)	18,167)
Activity Ratio
Adjusted total asset turnover²	0.68	0.56	0.61	0.53	0.40	0.69

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 20,248 ÷ 53,866 = 0.38

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 20,248 ÷ 29,965 = 0.68

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Becton, Dickinson & Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Shareholders’ equity	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Solvency Ratio
Financial leverage¹	2.28	2.27	2.46	2.57	2.91	3.35
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	29,965)	30,392)	28,389)	30,304)	30,171)	18,167)
Adjusted shareholders’ equity	(224)	145)	(2,295)	(2,606)	5,385)	214)
Solvency Ratio
Adjusted financial leverage²	—	209.60	—	—	5.60	84.89

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 53,866 ÷ 23,677 = 2.28

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 29,965 ÷ -224 = —

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	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Shareholders’ equity	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Profitability Ratio
ROE¹	8.84%	3.68%	5.85%	1.48%	8.50%	12.79%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Adjusted shareholders’ equity	(224)	145)	(2,295)	(2,606)	5,385)	214)
Profitability Ratio
Adjusted ROE²	—	602.76%	—	—	20.43%	456.07%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,092 ÷ 23,677 = 8.84%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 2,092 ÷ -224 = —

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	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Total assets	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Profitability Ratio
ROA¹	3.88%	1.62%	2.38%	0.58%	2.92%	3.81%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Adjusted total assets	29,965)	30,392)	28,389)	30,304)	30,171)	18,167)
Profitability Ratio
Adjusted ROA²	6.98%	2.88%	4.34%	1.03%	3.65%	5.37%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,092 ÷ 53,866 = 3.88%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,092 ÷ 29,965 = 6.98%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Becton, Dickinson & Co. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Becton, Dickinson & Co. (NYSE:BDX)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Becton, Dickinson & Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Becton, Dickinson & Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)