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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994 COMMISSION FILE NUMBER 1-4802
BECTON, DICKINSON AND COMPANY
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-0760120
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1 BECTON DRIVE
FRANKLIN LAKES, NEW JERSEY 07417-1880
(Address of principal executive (Zip Code)
offices)
(201) 847-6800
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
NAME OF EACH EXCHANGE ON WHICH
TITLE OF EACH CLASS REGISTERED
Common Stock, Par Value $1.00 New York Stock Exchange
Preferred Stock Purchase Rights New York Stock Exchange
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
As of November 30, 1994, 68,307,934 shares of the registrant's common stock
were outstanding and the aggregate market value of such common stock held by
nonaffiliates of the registrant was approximately $3,215,990,000.
DOCUMENTS INCORPORATED BY REFERENCE
(1) Portions of the registrant's Annual Report to Shareholders for the fiscal
year ended September 30, 1994 are incorporated by reference into Parts I and II
hereof.
(2) Portions of the registrant's Proxy Statement for the Annual Meeting of
Shareholders to be held February 14, 1995 are incorporated by reference into
Part III hereof.
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PART I
ITEM 1. BUSINESS.
GENERAL
Becton, Dickinson and Company was incorporated under the laws of the State of
New Jersey in November 1906, as successor to a New York business started in
1897. Its executive offices are located at 1 Becton Drive, Franklin Lakes, New
Jersey 07417-1880 and its telephone number is (201) 847-6800. All references
herein to "the Company" refer to Becton, Dickinson and Company and its domestic
and foreign subsidiaries unless otherwise indicated by the context.
The Company is engaged principally in the manufacture and sale of a broad
line of medical supplies and devices and diagnostic systems used by health care
professionals, medical research institutions and the general public.
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS
The Company's operations are comprised of two worldwide business segments,
Medical Supplies and Devices, and Diagnostic Systems. The countries in which
the Company has local revenue-generating operations have been combined into the
following geographic areas: United States (including Puerto Rico); Europe; and
Other (which is comprised of Canada, Latin America, Japan and Asia Pacific).
Information with respect to revenues, operating income and identifiable
assets attributable to each of the Company's business segments and geographic
areas of operation, as well as capital expenditures and depreciation and
amortization attributable to each of the Company's business segments, appears
on pages 32-33 of the Company's Annual Report to Shareholders for the fiscal
year ended September 30, 1994 (the "1994 Annual Report"), and is incorporated
herein by reference.
MEDICAL SUPPLIES AND DEVICES SEGMENT
The major products in this segment are hypodermic products, specially
designed devices for diabetes care, prefillable drug delivery systems, vascular
access products and surgical devices (including disposable scrubs, surgical
gloves, specialty and surgical blades and pre-surgery patient prep kits).
This segment also includes specialty needles, drug infusion systems, elastic
support products, thermometers, examination gloves and contract packaging
services. The Company's contract packaging services are provided to
pharmaceutical, cosmetic and toiletry companies.
DIAGNOSTIC SYSTEMS SEGMENT
The major products in this segment are classical and instrumented
microbiology products, blood collection products, instrumentation systems for
cellular analysis, including flow cytometry and cellular imaging products,
tissue culture labware, hematology instruments and other diagnostic systems,
including immunodiagnostic test kits.
1
FOREIGN OPERATIONS
The Company's products are manufactured and sold worldwide. The principal
markets for the Company's products outside the United States are Europe, Japan,
Mexico, Asia Pacific, Canada and Brazil. The principal products sold by the
Company outside of the United States are hypodermic needles and syringes,
diagnostic systems, VACUTAINER (R) brand blood collection products, HYPAK (R)
brand prefillable syringe systems, and intravenous catheters. The Company has
manufacturing operations in Australia, Belgium, Brazil, Canada, France,
Germany, Ireland, Japan, Mexico, Singapore, Spain and the United Kingdom.
Foreign economic conditions and exchange rate fluctuations have caused the
profitability on foreign revenues to fluctuate more than on domestic revenues.
The Company believes its foreign business involves greater risk than its
domestic business due to the foregoing factors as well as local political and
governmental conditions.
REVENUES AND DISTRIBUTION
The Company's products and services are marketed in the United States both
through independent distribution channels and directly to end-users. The
Company's products are marketed outside the United States through independent
distributors and sales representatives, and in some markets directly to end-
users. Sales to a distributor, which supplies the Company's products to many
end-users, accounted for approximately 12% of total Company revenues in fiscal
1994, and were from both business segments. Order backlog is not material to
the Company's business inasmuch as orders for the Company's products are
generally received and filled on a current basis, except for items temporarily
out of stock. Substantially all revenue is recognized when products are shipped
to customers.
RESEARCH AND DEVELOPMENT
The Company conducts its research and development activities at its operating
units, its Research Center in Research Triangle Park, North Carolina and in
collaboration with selected universities and medical centers. The Company also
retains individual consultants to support its efforts in specialized fields.
The Company spent $144,227,000 on research and development during the fiscal
year ended September 30, 1994 and $139,141,000 and $125,207,000, respectively,
during the two immediately preceding fiscal years.
COMPETITION
A number of companies, some of which are more specialized than the Company,
compete in the medical technology field. In each such case, competition
involves only a part of the Company's product lines. Competition in the
Company's markets is based on a combination of factors including price,
quality, service, reputation, distribution and promotion. Ongoing investments
in research, quality management, quality and product improvement and
productivity improvement are required to maintain an advantage in the
competitive environments in which the Company operates.
New companies have entered the medical technology field and established
companies have diversified their business activities into this area. Other
firms engaged in the distribution of medical technology products have become
manufacturers as well. Some of the Company's competitors have greater financial
resources than the Company. The Company is also faced with competition from
products manufactured outside the United States.
PATENTS, TRADEMARKS AND LICENSES
The Company owns numerous patents, patent applications and trademarks in the
United States and other countries. The Company is also licensed under domestic
and foreign patents, patent
2
applications and trademarks owned by others. In the aggregate, these patents,
patent applications, trademarks and licenses are of material importance to the
Company's business.
RAW MATERIALS
The Company purchases many different types of raw materials including
plastics, glass, metals, yarn and yarn goods, paper products, agricultural
products, electronic and mechanical sub-assemblies and various biological,
chemical and petrochemical products. All but a few of the Company's principal
raw materials are available from multiple sources.
REGULATION
The Company's medical technology products and operations are subject to
regulation by the federal Food and Drug Administration and various other
federal and state agencies, as well as by a number of foreign governmental
agencies. The Company believes it is in compliance in all material respects
with the regulations promulgated by such agencies, and that such compliance has
not had, and is not expected to have, a material adverse effect on its
business.
The Company also believes that its operations comply in all material respects
with applicable environmental laws and regulations. Such compliance has not
had, and is not expected to have, a material adverse effect on the Company's
capital expenditures, earnings or competitive position.
EMPLOYEES
As of September 30, 1994, the Company had approximately 18,600 employees, of
whom approximately 9,900 were employed in the United States. The Company
believes that its employee relations are satisfactory.
ITEM 2. PROPERTIES.
The executive offices of the Company are located in Franklin Lakes, New
Jersey. The Company owns and leases approximately 11,670,000 square feet of
manufacturing, warehousing, administrative and research facilities throughout
the world. The domestic facilities, including Puerto Rico, comprise
approximately 6,378,000 square feet of owned and 1,726,000 square feet of
leased space. The foreign facilities comprise approximately 2,500,000 square
feet of owned and 1,066,000 square feet of leased space. Sales offices and
distribution centers included in the total square footage are also located
throughout the world.
Operations in both of the Company's business segments are carried on at both
domestic and foreign locations. Primarily at foreign locations, facilities
often serve both business segments and are used for multiple purposes, such as
administrative/sales, manufacturing and/or warehousing/distribution. The
Company generally seeks to own its manufacturing facilities, although some,
particularly at foreign locations, are leased. Most of the Company's
administrative, sales and warehousing/distribution facilities are leased.
The Company believes that its facilities are of good construction and in good
physical condition, are suitable and adequate for the operations conducted at
those facilities, and are, with minor exceptions, fully utilized and operating
at normal capacity.
The domestic facilities are grouped as follows:
--Eastern Sector includes facilities in Connecticut, Georgia, Maryland,
Massachusetts, New Jersey, New York, North Carolina, South Carolina and
Puerto Rico and is comprised of approximately 3,931,000 square feet of
owned and 1,037,000 square feet of leased space.
3
--Central Sector includes facilities in Illinois, Indiana, Michigan,
Missouri, Nebraska, Ohio, Texas and Wisconsin and is comprised of
approximately 1,043,000 square feet of owned and 481,000 square feet of
leased space.
--Western Sector includes facilities in California and Utah and is
comprised of approximately 1,404,000 square feet of owned and 208,000
square feet of leased space.
The foreign facilities are grouped as follows:
--Canada includes approximately 161,000 square feet of owned and 46,000
square feet of leased space.
--Europe includes facilities in Belgium, France, Germany, Greece, Ireland,
Italy, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom
and is comprised of approximately 1,315,000 square feet of owned and
725,000 square feet of leased space.
--Latin America includes facilities in Brazil, Colombia, Mexico and Panama
and is comprised of approximately 629,000 square feet of owned and
145,000 square feet of leased space.
--Asia Pacific includes facilities in Australia, Hong Kong, Japan, Korea,
Malaysia, Philippines, Singapore, Taiwan and Thailand and is comprised of
approximately 395,000 square feet of owned and 150,000 square feet of
leased space.
The table below summarizes property information by business segment:
BUSINESS SEGMENT
---------------------------------------------------------------
MEDICAL
SUPPLIES AND DIAGNOSTIC
CATEGORY DEVICES SYSTEMS MIXED(A) TOTAL
-------- ------------ ---------- --------- -----
Owned
Facilities............. 20 22 17 59
Square feet............ 3,522,000 2,823,000 2,533,000 8,878,000
Manufacturing (B)...... 1,968,000(20) 1,245,000(16) 595,000(6) 3,808,000(42)
Leased
Facilities............. 22 9 60 91
Square feet............ 493,000 262,000 2,037,000 2,792,000
Manufacturing (B)...... 217,000(6) 67,000(5) 27,000(4) 311,000(15)
Total
Facilities............. 42 31 77 150
Square feet............ 4,015,000 3,085,000 4,570,000 11,670,000
Manufacturing (B)...... 2,185,000(26) 1,312,000(21) 622,000(10) 4,119,000(57)
- --------
(A) Facilities used by both business segments.
(B) Aggregate square footage and number of facilities (noted in parentheses) by
category used for manufacturing purposes.
ITEM 3. LEGAL PROCEEDINGS.
The Company is a party to a number of federal proceedings in the United
States brought under the Comprehensive Environmental Response, Compensation and
Liability Act, also known as Superfund, and similar state laws. The Company is
also involved in other legal proceedings and claims which arise in the ordinary
course of business, both as a plaintiff and a defendant. The results of these
matters, individually and in the aggregate, are not expected to have a material
effect on the Company.
4
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
EXECUTIVE OFFICERS OF THE REGISTRANT (AS OF DECEMBER 1, 1994)
The following is a list of the executive officers of the Company, their ages
and all positions and offices held by each of them during the past five years.
There is no family relationship between any of the named persons.
AGE POSITION
NAME --- --------
Clateo Castellini....... 59 Director, Chairman of the Board, President and
Chief Executive Officer since June 1994 and prior
thereto Sector President -- Medical.
John W. Galiardo........ 60 Director, Vice Chairman of the Board and General
Counsel since June 1994 and prior thereto Vice
President and General Counsel.
Vincent L. De Caprio.... 44 Sector President -- Technique Products since Octo-
ber 1994 and prior thereto President -- Becton
Dickinson Vascular Access.
Walter M. Miller........ 51 Sector President -- Infectious Disease Diagnostics
since October 1994 and prior thereto Sector Presi-
dent -- Diagnostic.
Robert A. Reynolds...... 62 Vice President -- Finance and Controller.
Mark C. Throdahl........ 43 Sector President -- Drug Delivery since October
1994; President -- Nippon Becton Dickinson Compa-
ny, Ltd. from May 1991 to September 1994; and
prior thereto Director -- Corporate Planning.
Kenneth R. Weisshaar.... 44 Sector President -- Cellular Analysis Diagnostics
since October 1994; President -- Becton Dickinson
Division from March 1992 to September 1994; and
prior thereto Vice President -- Planning, Perfor-
mance and Development.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
The Company's common stock is listed on the New York Stock Exchange. As of
November 30, 1994, there were approximately 7,586 shareholders of record. The
balance of the information required by this item appears under the caption
"Common Stock Prices and Dividends" on page 52 of the Company's 1994 Annual
Report and is incorporated herein by reference.
ITEM 6. SELECTED FINANCIAL DATA.
The information required by this item is included under the caption "Six Year
Summary of Selected Financial Data" on pages 30-31 of the Company's 1994 Annual
Report and is incorporated herein by reference.
5
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
The information required by this item is included in the text contained under
the caption "Financial Review" on pages 23-29 of the Company's 1994 Annual
Report and is incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The information required by this item appears on pages 32-33, 35-51 and under
the caption "Quarterly Data (Unaudited)" on page 52 of the Company's 1994
Annual Report and is incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
Not applicable.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
The information relating to directors required by this item will be contained
under the captions "Board of Directors", "Election of Directors" and
"Continuing Directors" in a definitive Proxy Statement involving the election
of directors which the registrant will file with the Securities and Exchange
Commission not later than 120 days after September 30, 1994 (the "1995 Proxy
Statement"), and such information is incorporated herein by reference.
The information relating to executive officers required by this item is
included herein in Part I under the caption "Executive Officers of the
Registrant".
The information required pursuant to Item 405 of Regulation S-K will be
contained under the caption "Compliance with Section 16(a) of the Securities
Exchange Act of 1934" in the Company's 1995 Proxy Statement, and such
information is incorporated herein by reference.
ITEM 11. EXECUTIVE COMPENSATION.
The information required by this item will be contained under the captions
"Board of Directors" and "Executive Compensation" in the Company's 1995 Proxy
Statement, and such information is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
The information required by this item will be contained under the caption
"Share Ownership of Management and Certain Beneficial Owners" in the Company's
1995 Proxy Statement, and such information is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
Not applicable.
6
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(A)(1) FINANCIAL STATEMENTS
The following consolidated financial statements of the Company and the Report
of Ernst & Young LLP, Independent Auditors, included in the Company's 1994
Annual Report at the pages indicated in parentheses, are incorporated by
reference in Item 8 hereof:
Report of Ernst & Young LLP, Independent Auditors (page 35)
Consolidated Statements of Income--Years ended September 30, 1994, 1993
and 1992 (page 36)
Consolidated Balance Sheets--September 30, 1994 and 1993 (page 37)
Consolidated Statements of Cash Flows--Years ended September 30, 1994,
1993 and 1992 (page 38)
Notes to Consolidated Financial Statements (pages 39-51)
(A)(2) FINANCIAL STATEMENT SCHEDULES
The following consolidated financial statement schedules of the Company are
included herein at the pages indicated in parentheses:
Schedule V--Property, Plant and Equipment (page 10)
Schedule VI--Accumulated Depreciation, Depletion and Amortization of
Property, Plant and Equipment (page 11)
Schedule VIII--Valuation and Qualifying Accounts (page 12)
Schedule IX--Short-Term Borrowings (page 13)
Schedule X--Supplementary Income Statement Information (page 14)
All other schedules for which provision is made in the applicable accounting
regulation of the Securities Exchange Act of 1934 are not required under the
related instructions or are inapplicable, and therefore have been omitted.
(A)(3) EXHIBITS
See Exhibit Index on pages 15-16 hereof for a list of all management
contracts, compensatory plans and arrangements required by this item (Exhibit
Nos. 10(a)(i) through 10(k)), and all other Exhibits filed or incorporated by
reference as a part of this report.
(B) REPORTS ON FORM 8-K
None.
7
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED
ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
Becton, Dickinson and Company
/s/ John W. Galiardo
By___________________________________
(JOHN W. GALIARDO
VICE CHAIRMAN OF THE BOARD
AND GENERAL COUNSEL)
Dated: December 27, 1994
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS
REPORT HAS BEEN SIGNED BELOW ON THE 27TH DAY OF DECEMBER, 1994 BY THE FOLLOWING
PERSONS ON BEHALF OF THE REGISTRANT AND IN THE CAPACITIES INDICATED.
NAME CAPACITY
---- --------
/s/ Harry N. Beaty, M.D. Director
- ------------------------------------
(HARRY N. BEATY, M.D.)
/s/ Henry P. Becton, Jr. Director
- ------------------------------------
(HENRY P. BECTON, JR.)
/s/ Clateo Castellini Director, Chairman of the Board,
- ------------------------------------ President and Chief Executive
(CLATEO CASTELLINI) Officer (Principal Executive
Officer)
/s/ Gerald M. Edelman, M.D. Director
- ------------------------------------
(GERALD M. EDELMAN, M.D.)
/s/ Edmund B. Fitzgerald Director
- ------------------------------------
(EDMUND B. FITZGERALD)
/s/ John W. Galiardo Director
- ------------------------------------
(JOHN W. GALIARDO)
/s/ Richard W. Hanselman Director
- ------------------------------------
(RICHARD W. HANSELMAN)
/s/ Thomas A. Holmes Director
- ------------------------------------
(THOMAS A. HOLMES)
/s/ Frank A. Olson Director
- ------------------------------------
(FRANK A. OLSON)
/s/ Gloria M. Shatto Director
- ------------------------------------
(GLORIA M. SHATTO)
/s/ Raymond S. Troubh Director
- ------------------------------------
(RAYMOND S. TROUBH)
/s/ Robert A. Reynolds Vice President--Finance and
- ------------------------------------ Controller (Principal Financial
(ROBERT A. REYNOLDS) and Accounting Officer)
8
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors
Becton, Dickinson and Company
We have audited the consolidated financial statements and related schedules
of Becton, Dickinson and Company listed in the accompanying index to financial
statements (Item 14(a)). These financial statements and related schedules are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and related schedules based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and related
schedules are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and related schedules. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements listed in the accompanying index to
financial statements (Item 14(a)) present fairly, in all material respects, the
consolidated financial position of Becton, Dickinson and Company at September
30, 1994 and 1993, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended September 30, 1994 in
conformity with generally accepted accounting principles. Also, in our opinion,
the related financial statement schedules, when considered in relation to the
basic financial statements taken as a whole, present fairly in all material
respects the information set forth therein.
As discussed in Note 1 to the financial statements, in 1993 the Company
changed its methods of accounting for postretirement benefits other than
pensions, postemployment benefits, and income taxes.
/s/Ernst & Young LLP
Ernst & Young LLP
Hackensack, New Jersey
November 8, 1994
9
BECTON, DICKINSON AND COMPANY
SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
YEARS ENDED SEPTEMBER 30, 1994, 1993 AND 1992
(THOUSANDS OF DOLLARS)
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COL. A COL. B COL. C COL. D COL. E COL. F
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OTHER
BALANCE AT ADDITIONS CHANGES-- BALANCE AT
BEGINNING AT COST RETIRE- ADD (DEDUCT) END OF
DESCRIPTION OF PERIOD (A) MENTS (B) PERIOD
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1994
Land.................... $ 52,842 $ 18 $ 51 $ 1,601 $ 54,410
Buildings............... 881,643 13,326 693 13,556 907,832
Machinery, equipment and
fixtures............... 1,401,319 101,386 34,743 15,372 1,483,334
Leasehold improvements.. 28,052 8,287 29 (1,950) 34,360
---------- -------- -------- -------- ----------
Total................. $2,363,856 $123,017 $ 35,516 $ 28,579 $2,479,936
========== ======== ======== ======== ==========
1993
Land.................... $ 52,060 $ 604 $ -- $ 178 $ 52,842
Buildings............... 862,510 37,743 4,095 (14,515) 881,643
Machinery, equipment and
fixtures............... 1,356,460 135,778 22,550 (68,369) 1,401,319
Leasehold improvements.. 23,758 10,043 1,754 (3,995) 28,052
---------- -------- -------- -------- ----------
Total................. $2,294,788 $184,168 $ 28,399 $(86,701) $2,363,856
========== ======== ======== ======== ==========
1992
Land.................... $ 48,478 $ -- $ 193 $ 3,775 $ 52,060
Buildings............... 805,314 47,187 831 10,840 862,510
Machinery, equipment and
fixtures............... 1,215,969 142,290 34,546 32,747 1,356,460
Leasehold improvements.. 27,468 3,197 3,891 (3,016) 23,758
---------- -------- -------- -------- ----------
Total................. $2,097,229 $192,674 $ 39,461 $ 44,346 $2,294,788
========== ======== ======== ======== ==========
- --------
(A) Includes the following amounts related to acquisitions of businesses:
1992 - $7,115
(B) Reclassifications and currency translation adjustments and, in 1994, $1,135
of special charges.
Depreciation and amortization are provided on a straight-line basis over the
estimated useful lives, generally as follows:
Buildings................................................... 20 to 45 years
Machinery, equipment and fixtures........................... 4 to 10 years
The cost of leasehold improvements is being amortized over the terms of the
respective leases or the lives of the assets, whichever is shorter.
10
BECTON, DICKINSON AND COMPANY
SCHEDULE VI--ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT
YEARS ENDED SEPTEMBER 30, 1994, 1993 AND 1992
(THOUSANDS OF DOLLARS)
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
COL. A COL. B COL. C COL. D COL. E COL. F
- ----------------------------------------------------------------------------------
ADDITIONS
BALANCE AT CHARGED TO OTHER CHANGES -- BALANCE AT
BEGINNING COSTS AND RETIRE- ADD (DEDUCT) END OF
DESCRIPTION OF PERIOD EXPENSES MENTS (A) PERIOD
- ----------------------------------------------------------------------------------
1994
Buildings.............. $174,106 $ 25,862 $ 570 $ 2,871 $ 202,269
Machinery, equipment
and fixtures.......... 776,697 126,458 28,981 13,661 887,835
Leasehold improvements. 9,983 2,692 29 837 13,483
-------- -------- ------- -------- ----------
Total............ $960,786 $155,012 $29,580 $ 17,369 $1,103,587
======== ======== ======= ======== ==========
1993
Buildings.............. $150,562 $ 25,658 $ 3,219 $ 1,105 $ 174,106
Machinery, equipment
and fixtures.......... 703,336 119,024 19,636 (26,027) 776,697
Leasehold improvements. 11,371 1,719 1,283 (1,824) 9,983
-------- -------- ------- -------- ----------
Total............ $865,269 $146,401 $24,138 $(26,746) $ 960,786
======== ======== ======= ======== ==========
1992
Buildings.............. $125,236 $ 21,209 $ 437 $ 4,554 $ 150,562
Machinery, equipment
and fixtures.......... 608,318 111,179 31,390 15,229 703,336
Leasehold improvements. 12,288 3,494 3,720 (691) 11,371
-------- -------- ------- -------- ----------
Total............ $745,842 $135,882 $35,547 $ 19,092 $ 865,269
======== ======== ======= ======== ==========
- --------
(A) Reclassifications, currency translation adjustments and $4,484 and $15,655
in 1994 and 1993, respectively, of special charges.
11
BECTON, DICKINSON AND COMPANY
SCHEDULE VIII--VALUATION AND QUALIFYING ACCOUNTS
YEARS ENDED SEPTEMBER 30, 1994, 1993, AND 1992
(THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COL. A COL. B COL. C COL. D COL. E
- --------------------------------------------------------------------------------
ADDITIONS
---------
BALANCE CHARGED
AT TO COSTS BALANCE AT
BEGINNING AND END OF
DESCRIPTION OF PERIOD EXPENSES DEDUCTIONS PERIOD
- --------------------------------------------------------------------------------
1994
Against trade receivables:
For doubtful accounts............ $12,077 $ 5,323 $ 3,463(A) $13,937
For cash discounts............... 6,821 28,813 27,413 8,221
------- ------- ------- -------
Total........................ $18,898 $34,136 $30,876 $22,158
======= ======= ======= =======
1993
Against trade receivables:
For doubtful accounts............ $13,090 $ 4,906 $ 5,919(A) $12,077
For cash discounts............... 7,509 25,173 25,861 6,821
------- ------- ------- -------
Total........................ $20,599 $30,079 $31,780 $18,898
======= ======= ======= =======
1992
Against trade receivables:
For doubtful accounts............ $11,662 $ 2,616 $ 1,188(A) $13,090
For cash discounts............... 5,606 25,221 23,318 7,509
------- ------- ------- -------
Total........................ $17,268 $27,837 $24,506 $20,599
======= ======= ======= =======
- --------
(A) Accounts written off.
12
BECTON, DICKINSON AND COMPANY
SCHEDULE IX--SHORT-TERM BORROWINGS
YEARS ENDED SEPTEMBER 30, 1994, 1993 AND 1992
(THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COL. A COL. B COL. C COL. D COL. E COL. F
- -------------------------------------------------------------------------------
MAXIMUM AVERAGE WEIGHTED
BALANCE WEIGHTED AMOUNT AMOUNT AVERAGE
AT AVERAGE OUTSTANDING OUTSTANDING INTEREST
CATEGORY OF AGGREGATE END OF INTEREST DURING THE DURING THE RATE DURING
SHORT-TERM BORROWINGS PERIOD RATE PERIOD(A) PERIOD(A) THE PERIOD
- -------------------------------------------------------------------------------
1994
Commercial paper(B).... $ 35,941 5% $120,200 $ 73,600 3 3/4%
Notes payable to
banks(C).............. 110,883 4 121,000 101,300 11 1/2
1993
Commercial paper(B).... $108,000 3 1/4% $166,700 $116,000 3 1/2%
Notes payable to
banks(C).............. 81,752 5 1/2 131,000 93,900 13
1992
Commercial paper(B).... $101,000 3 1/2% $154,000 $ 83,100 4 1/2%
Notes payable to
banks(C).............. 99,674 8 1/2 138,100 114,200 16
- --------
(A) The maximum and average amount outstanding during the year was computed
based on month-end amounts.
(B) Commercial paper generally matures six months or less from date of issue
with no provision for the extension of its maturity.
(C) Notes payable to banks represent borrowings under credit arrangements that
are subject to periodic renewal. Weighted average interest rates include
the impact of borrowing in the currencies of countries with rates of
inflation which vary from those in the United States.
13
BECTON, DICKINSON AND COMPANY
SCHEDULE X--SUPPLEMENTARY INCOME STATEMENT INFORMATION
YEARS ENDED SEPTEMBER 30, 1994, 1993 AND 1992
(THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COL. A COL. B
- --------------------------------------------------------------------------------
ITEM CHARGED TO COSTS AND EXPENSES
- --------------------------------------------------------------------------------
1994 1993 1992
---- ---- ----
Maintenance and repairs........................... $39,136 $37,298 $35,306
Advertising costs................................. -- -- 24,578
Amortization of intangible assets, taxes (other than payroll and income taxes)
and royalties are less than one percent of revenues for all years presented.
Advertising costs are less than one percent of revenues for 1994 and 1993.
14
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION METHOD OF FILING
------- ----------- ----------------
3(a) Restated Certificate of Incorporation, Incorporated by reference to Exhibit
as amended January 22, 1990 3(a) to the registrant's Annual Re-
port on Form 10-K for the fiscal year
ended September 30, 1990
3(b) By-Laws, as amended May 30, 1989 Incorporated by reference to Exhibit
3(b) to the registrant's Annual Re-
port on Form 10-K for the fiscal year
ended September 30, 1989
4(a) Indenture, dated as of December 1, Incorporated by reference to Exhibit 4
1982, between the registrant and Man- to Registration Statement No. 2-80707
ufacturers Hanover Trust Company on Form S-3 filed by the registrant
4(b) First Supplemental Indenture, dated as Incorporated by reference to Exhibit
of May 15, 1986, between the regis- 4(b) to Registration Statement No.
trant and Manufacturers Hanover Trust 33-5663 on Form S-3 filed by the reg-
Company istrant (the registrant hereby agrees
to furnish to the Commission upon re-
quest a copy of any other instruments
which define the rights of holders of
long-term debt of the registrant)
10(a)(i) Employment Agreement, dated June 18, Incorporated by reference to Exhibit
1986, between the registrant and 10(b)(i) to the registrant's Annual
Clateo Castellini Report on Form 10-K for the fiscal
year ended September 30, 1986
10(a)(ii) Employment Agreement, dated June 18, Incorporated by reference to Exhibit
1986, between the registrant and John 10(b)(ii) to the registrant's Annual
W. Galiardo Report on Form 10-K for the fiscal
year ended September 30, 1986
10(a)(iii) Employment Agreement, dated June 9, Incorporated by reference to Exhibit
1987, between the registrant and Wal- 10(b)(v) to the registrant's Annual
ter M. Miller Report on Form 10-K for the fiscal
year ended September 30, 1989
10(a)(iv) Employment Agreement, dated June 18, Incorporated by reference to Exhibit
1986, between the registrant and Rob- 10(b)(vi) to the registrant's Annual
ert A. Reynolds Report on Form 10-K for the fiscal
year ended September 30, 1990
10(b) Certified Resolution authorizing cer- Incorporated by reference to Exhibit
tain payments to certain corporate 10(k) to the registrant's Annual Re-
officers in the event of a discharge, port on Form 10-K for the fiscal year
resignation due to removal from posi- ended September 30, 1986
tion or a significant change in such
officers' respective duties within
two years after a change in control
of the registrant
15
EXHIBIT
NUMBER DESCRIPTION METHOD OF FILING
- ------- ----------- ----------------
10(c) Form of Split Dollar Agreement and re- Incorporated by reference to Exhibit
lated Collateral Assignment covering 10(e) to the registrant's Annual Re-
the providing to corporate officers port on Form 10-K for the fiscal year
of a life insurance policy in an ended September 30, 1987
amount equal to two times base salary
in lieu of full participation in the
registrant's group life insurance
program
10(d) Stock Award Plan, as amended and re- Incorporated by reference to Exhibit
stated effective February 11, 1992 10(d) to the registrant's Annual Re-
port on Form 10-K for the fiscal year
ended September 30, 1992
10(e) Executive Bonus Plans Filed with this report
10(f) 1982 Incentive Stock Option Plan, as Filed with this report
amended and restated February 8, 1994
10(g) 1982 Unqualified Stock Option Plan, as Filed with this report
amended and restated February 8, 1994
10(h) Salary and Bonus Deferral Plan Filed with this report
10(i) 1990 Stock Option Plan, as amended and Filed with this report
restated February 8, 1994
10(j) Retirement Benefit Restoration Plan Incorporated by reference to Exhibit
and related Benefit Restoration Plan 10(j) to the registrant's Annual Re-
Trust port on Form 10-K for the fiscal year
ended September 30, 1992
10(k) 1994 Restricted Stock Plan for Non- Incorporated by reference to Exhibit A
Employee Directors to the registrant's Proxy Statement
dated January 5, 1994
11 Computation of Earnings Per Share Filed with this report
13 Portions of the registrant's Annual Filed with this report
Report to Shareholders for fiscal
year 1994 (graphic material contained
under the caption "Financial Review"
is not included in the electronic
filing of this report)
21 Subsidiaries of the registrant Filed with this report
23 Consent of independent auditors Filed with this report
27 Financial Data Schedule Filed with this report
Copies of any Exhibits not accompanying this Form 10-K are available at a
charge of 25 cents per page by contacting: Investor Relations, Becton,
Dickinson and Company, 1 Becton Drive, Franklin Lakes, New Jersey 07417-
1880, Phone: 1-800-284-6845.
16