Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Becton, Dickinson & Co., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Federal	102)	(50)	235)	665)	(230)	312)
State and local, including Puerto Rico	46)	47)	41)	72)	(20)	18)
Foreign	290)	400)	300)	387)	200)	286)
Current	438)	397)	576)	1,124)	(50)	616)
Domestic	(286)	(184)	(566)	(201)	(64)	(441)
Foreign	(2)	(102)	(67)	(61)	(10)	(78)
Deferred	(288)	(286)	(633)	(262)	(74)	(519)
Income tax provision (benefit)	150)	111)	(57)	862)	(124)	97)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Becton, Dickinson & Co. current decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Becton, Dickinson & Co. deferred increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Income tax provision (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Becton, Dickinson & Co. income tax provision (benefit) increased from 2019 to 2020 and from 2020 to 2021.

Becton, Dickinson & Co., effective income tax rate (EITR) reconciliation

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Federal statutory tax rate	21.00%	21.00%	21.00%	24.50%	35.00%	35.00%
State and local income taxes, net of federal tax benefit	-1.90%	-1.90%	0.10%	0.80%	-2.60%	1.50%
Foreign income tax at rates other than 21%	-8.10%	-14.80%	-6.60%	-11.70%	0.00%	0.00%
Effect of foreign operations	-0.10%	19.10%	-5.50%	19.00%	0.00%	0.00%
Effect of foreign and Puerto Rico earnings (losses) and foreign tax credits (legacy)	0.00%	0.00%	0.00%	0.00%	-40.80%	-23.70%
Effect of Research Credits and FDII/Domestic Production Activities	-1.60%	-5.00%	-3.30%	-2.80%	-2.70%	-4.40%
Effect of share-based compensation	0.10%	-4.50%	-3.90%	-6.10%	-7.90%	0.00%
Effect of gain on divestitures	0.00%	-4.50%	-2.00%	1.30%	0.00%	0.00%
Effect of uncertain tax position	0.00%	0.00%	0.00%	3.30%	0.00%	0.00%
Effect of valuation allowance release	-1.70%	0.00%	0.00%	-4.80%	0.00%	0.00%
Effect of application for change in accounting method	0.00%	0.00%	0.00%	-4.50%	0.00%	0.00%
Effect of nondeductible compensation	0.00%	0.00%	0.00%	1.60%	0.00%	0.00%
Other, net	-1.00%	1.90%	-0.30%	-1.70%	6.30%	0.70%
Effective income tax rate, before U.S. tax legislation	6.70%	11.30%	-0.50%	18.90%	-12.70%	9.10%
U.S. tax legislation	0.00%	0.00%	-4.30%	54.60%	0.00%	0.00%
Effective income tax rate	6.70%	11.30%	-4.80%	73.50%	-12.70%	9.10%

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
Effective income tax rate, before U.S. tax legislation	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Becton, Dickinson & Co. effective income tax rate, before U.S. tax legislation increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Becton, Dickinson & Co., components of deferred tax assets and liabilities

US$ in millions

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Compensation and benefits	527)	554)	513)	458)	618)	720)
Loss and credit carryforwards	2,107)	1,900)	1,327)	1,290)	1,098)	1,101)
Product recall and liability reserves	191)	241)	—)	—)	—)	—)
Other	554)	501)	634)	707)	531)	720)
Deferred tax assets, before valuation allowance	3,379)	3,196)	2,474)	2,455)	2,247)	2,541)
Valuation allowance	(2,036)	(1,820)	(1,240)	(1,180)	(1,031)	(997)
Deferred tax assets	1,343)	1,376)	1,234)	1,275)	1,216)	1,544)
Property and equipment	(410)	(361)	(255)	(253)	(244)	(235)
Intangibles	(2,160)	(2,408)	(2,624)	(2,948)	(1,584)	(1,493)
Other	(123)	(137)	(189)	(384)	(164)	(608)
Deferred tax liabilities	(2,693)	(2,906)	(3,068)	(3,585)	(1,992)	(2,336)
Net deferred tax assets (liabilities)	(1,350)	(1,530)	(1,834)	(2,310)	(776)	(792)

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
Deferred tax assets, before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Becton, Dickinson & Co. deferred tax assets, before valuation allowance increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Becton, Dickinson & Co. deferred tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Becton, Dickinson & Co. net deferred tax assets (liabilities) increased 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 Liabilities
Total liabilities (as reported)	30,189)	30,248)	30,684)	32,910)	24,786)	17,953)
Less: Noncurrent deferred tax liabilities, net	1,350)	1,530)	1,834)	2,310)	776)	792)
Total liabilities (adjusted)	28,839)	28,718)	28,850)	30,600)	24,010)	17,161)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Less: Net deferred tax assets (liabilities)	(1,350)	(1,530)	(1,834)	(2,310)	(776)	(792)
Shareholders’ equity (adjusted)	25,027)	25,295)	22,915)	23,304)	13,724)	8,425)
Adjustment to Net Income
Net income (as reported)	2,092)	874)	1,233)	311)	1,100)	976)
Add: Deferred income tax expense (benefit)	(288)	(286)	(633)	(262)	(74)	(519)
Net income (adjusted)	1,804)	588)	600)	49)	1,026)	457)

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
Net Profit Margin
Reported net profit margin	10.33%	5.11%	7.13%	1.95%	9.10%	7.82%
Adjusted net profit margin	8.91%	3.44%	3.47%	0.31%	8.48%	3.66%
Financial Leverage
Reported financial leverage	2.28	2.27	2.46	2.57	2.91	3.35
Adjusted financial leverage	2.15	2.14	2.26	2.31	2.75	3.04
Return on Equity (ROE)
Reported ROE	8.84%	3.68%	5.85%	1.48%	8.50%	12.79%
Adjusted ROE	7.21%	2.32%	2.62%	0.21%	7.48%	5.42%
Return on Assets (ROA)
Reported ROA	3.88%	1.62%	2.38%	0.58%	2.92%	3.81%
Adjusted ROA	3.35%	1.09%	1.16%	0.09%	2.72%	1.79%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Becton, Dickinson & Co. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Becton, Dickinson & Co. adjusted financial leverage ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Becton, Dickinson & Co. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as adjusted 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)
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Revenues	20,248)	17,117)	17,290)	15,983)	12,093)	12,483)
Profitability Ratio
Net profit margin¹	10.33%	5.11%	7.13%	1.95%	9.10%	7.82%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,804)	588)	600)	49)	1,026)	457)
Revenues	20,248)	17,117)	17,290)	15,983)	12,093)	12,483)
Profitability Ratio
Adjusted net profit margin²	8.91%	3.44%	3.47%	0.31%	8.48%	3.66%

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 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 2,092 ÷ 20,248 = 10.33%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 1,804 ÷ 20,248 = 8.91%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Becton, Dickinson & Co. adjusted net profit margin 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Adjusted shareholders’ equity	25,027)	25,295)	22,915)	23,304)	13,724)	8,425)
Solvency Ratio
Adjusted financial leverage²	2.15	2.14	2.26	2.31	2.75	3.04

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 = Total assets ÷ Adjusted shareholders’ equity
= 53,866 ÷ 25,027 = 2.15

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Becton, Dickinson & Co. adjusted financial leverage ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,804)	588)	600)	49)	1,026)	457)
Adjusted shareholders’ equity	25,027)	25,295)	22,915)	23,304)	13,724)	8,425)
Profitability Ratio
Adjusted ROE²	7.21%	2.32%	2.62%	0.21%	7.48%	5.42%

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 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 1,804 ÷ 25,027 = 7.21%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Becton, Dickinson & Co. adjusted ROE 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,804)	588)	600)	49)	1,026)	457)
Total assets	53,866)	54,012)	51,765)	53,904)	37,734)	25,586)
Profitability Ratio
Adjusted ROA²	3.35%	1.09%	1.16%	0.09%	2.72%	1.79%

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 × Adjusted net income ÷ Total assets
= 100 × 1,804 ÷ 53,866 = 3.35%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)