Item 8. Financial Statements and Supplementary Data.

Reports of Management

Management’s Responsibilities

The following financial statements have been prepared by management in conformity with U.S. generally accepted accounting principles and include, where required, amounts based on the best estimates and judgments of management. The integrity and objectivity of data in the financial statements and elsewhere in this Annual Report are the responsibility of management.

In fulfilling its responsibilities for the integrity of the data presented and to safeguard the Company’s assets, management employs a system of internal accounting controls designed to provide reasonable assurance, at appropriate cost, that the Company’s assets are protected and that transactions are appropriately authorized, recorded and summarized. This system of control is supported by the selection of qualified personnel, by organizational assignments that provide appropriate delegation of authority and division of responsibilities, and by the dissemination of written policies and procedures. This control structure is further reinforced by a program of internal audits, including a policy that requires responsive action by management.

The Board of Directors monitors the internal control system, including internal accounting and financial reporting controls, through its Audit Committee, which consists of five independent Directors. The Audit Committee meets periodically with the independent registered public accounting firm, the internal auditors and management to review the work of each and to satisfy itself that they are properly discharging their responsibilities. The independent registered public accounting firm and the internal auditors have full and free access to the Audit Committee and meet with its members, with and without management present, to discuss the scope and results of their audits including internal control, auditing and financial reporting matters.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under the Securities Act of 1934, as amended. Management conducted an assessment of the effectiveness of internal control over financial reporting based on the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

On September 3, 2024, the Company completed the acquisition of Edwards Lifesciences’ Critical Care product group (“Critical Care”), which was renamed as BD Advanced Patient Monitoring (“Advanced Patient Monitoring”). While the Company has extended its oversight and monitoring processes that support its internal control over financial reporting, as well as its disclosure controls and procedures, the Company continues to integrate the acquired operations of Advanced Patient Monitoring. As such, the Company has excluded Advanced Patient Monitoring from its evaluation of internal control over financial reporting. This exclusion is in accordance with the U.S. Securities and Exchange Commission's general guidance that a recently acquired business may be omitted from the assessment scope for up to one year from the date of acquisition. The Advanced Patient Monitoring business had total assets that represented approximately 2% of the Company's consolidated total assets at September 30, 2024, and total revenues that represented less than 1% of the Company's consolidated revenues for fiscal year 2024.

Based on the Company's assessment of the effectiveness of internal control over financial reporting and the criteria noted above, management concluded that internal control over financial reporting was effective as of September 30, 2024.

The financial statements and internal control over financial reporting have been audited by Ernst & Young LLP, an independent registered public accounting firm. Ernst & Young’s reports with respect to fairness of the presentation of the financial statements, and the effectiveness of internal control over financial reporting, are included herein.

/s/ Thomas E. Polen						/s/ Christopher J. DelOrefice
Thomas E. Polen						Christopher J. DelOrefice
Chairman, Chief Executive Officer and President						Executive Vice President and Chief Financial Officer

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of

Becton, Dickinson and Company

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Becton, Dickinson and Company (the “Company”) as of September 30, 2024 and 2023, the related consolidated statements of income, comprehensive income and cash flows for each of the three years in the period ended September 30, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of

September 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated November 27, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

			Business Combination
Description of the Matter			As disclosed in Note 11 to the consolidated financial statements, the Company completed the acquisition of Edwards Lifesciences’ Critical Care product group, which was renamed as BD Advanced Patient Monitoring, for total consideration of $3.911 billion. The transaction was accounted for as a business combination. Auditing the Company’s accounting for the acquisition was complex due to the significant estimation required by management to determine the preliminary fair value of certain identified intangible assets which consisted of developed technology intangible assets of $714 million and customer relationships intangible assets of $650 million. The Company used an income approach to measure the technology-related intangible assets and certain customer relationship-related assets. The significant assumptions used to estimate the value of the intangible assets included discount rates and revenue growth rates which are forward looking and could be affected by future economic and market conditions.
How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s accounting for business combinations. For example, we tested controls over the identification and valuation of intangible assets, including the valuation models, and underlying assumptions used to develop such estimates. We read the purchase agreement, evaluated the significant assumptions and methods used in developing the fair value estimates, and tested the recognition of the identifiable intangible assets acquired at fair value and goodwill. To test the estimated fair value of the intangible assets, we performed audit procedures that included, among others, evaluating the Company's use of the income approach and testing the significant assumptions used in the models, as described above. We evaluated the completeness and accuracy of the underlying data used in the analyses. For example, we compared the significant assumptions to current industry, market, and economic trends, to the historical results of the acquired business, and to other guideline companies within the same industry. We involved our valuation specialists to assist with our evaluation of the methodology used by the Company and significant assumptions included in the fair value estimates.

			Income taxes — Uncertain tax positions
Description of the Matter			As discussed in Notes 1 and 17 to the consolidated financial statements, the Company conducts business in numerous countries and as a result, files tax returns in those locations. Uncertain tax positions may arise for multiple reasons including, but not limited to, the interpretation of global tax rules and regulations. The Company uses judgment to (1) determine whether, based on the technical merits, a tax position is more likely than not to be sustained and (2) measure the amount of tax benefit that qualifies for recognition. The Company has recorded a liability of $257 million related to uncertain tax positions as of September 30, 2024. Due to the inherent uncertainty in predicting the resolution of these tax matters, auditing the Company’s uncertain tax positions involved complex analysis and auditor judgment. This also required the use of tax subject matter resources to determine whether the more likely than not criteria was met.
How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s accounting for uncertain tax positions, including assessment of the technical merits of tax positions. To evaluate whether the technical merits of uncertain tax positions are more likely than not sustainable, our audit procedures included, among others, evaluation of applicable tax law, tax regulations and other regulatory guidance by our tax subject matter professionals. We also involved our tax subject matter professionals in verifying our understanding of the relevant facts and analysis, by assessing the Company’s correspondence with the relevant tax authorities and evaluating third-party advice obtained by the Company. We also evaluated the adequacy of the Company’s income tax disclosures included in Note 17 to the consolidated financial statements in relation to these matters.

/s/			ERNST & YOUNG LLP
We have served as the Company's auditor since 1959.
New York, New York
November 27, 2024

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of

Becton, Dickinson and Company

Opinion on Internal Control Over Financial Reporting

We have audited Becton, Dickinson and Company’s internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), (the COSO criteria). In our opinion, Becton, Dickinson and Company (the Company) maintained, in all material respects, effective internal control over financial reporting as of September 30, 2024, based on the COSO criteria.

As indicated in the accompanying Management's Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of BD Advanced Patient Monitoring, which is included in the 2024 consolidated financial statements of the Company and constituted 2% of total assets as of September 30, 2024 and less than 1% of revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of BD Advanced Patient Monitoring.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2024 and 2023, the related consolidated statements of income, comprehensive income and cash flows for each of the three years in the period ended September 30, 2024, and the related notes and our report dated November 27, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ ERNST & YOUNG LLP
New York, New York
November 27, 2024

Consolidated Statements of Income

Becton, Dickinson and Company

Years Ended September 30

Millions of dollars, except per share amounts			2024						2023						2022
Revenues			$	20,178					$	19,372					$	18,870
Cost of products sold			11,053						11,202						10,393
Selling and administrative expense			4,857						4,719						4,709
Research and development expense			1,190						1,237						1,256
Integration, restructuring and transaction expense			458						313						192
Other operating expense (income), net			222						(210)						37
Total Operating Costs and Expenses			17,780						17,261						16,588
Operating Income			2,397						2,111						2,282
Interest expense			(528)						(452)						(398)
Interest income			163						49						16
Other expense, net			(28)						(46)						(117)
Income from Continuing Operations Before Income Taxes			2,005						1,662						1,783
Income tax provision			300						132						148
Net Income from Continuing Operations			1,705						1,530						1,635
(Loss) Income from Discontinued Operations, Net of Tax			—						(46)						144
Net Income			1,705						1,484						1,779
Preferred stock dividends			—						(60)						(90)
Net income applicable to common shareholders			$	1,705					$	1,424					$	1,689
Basic Earnings per Share
Income from Continuing Operations			$	5.88					$	5.14					$	5.42
(Loss) Income from Discontinued Operations			—						(0.16)						0.50
Basic Earnings per Share			$	5.88					$	4.97					$	5.93
Diluted Earnings per Share
Income from Continuing Operations			$	5.86					$	5.10					$	5.38
(Loss) Income from Discontinued Operations			—						(0.16)						0.50
Diluted Earnings per Share			$	5.86					$	4.94					$	5.88

Amounts may not add due to rounding.

See notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income

Becton, Dickinson and Company

Years Ended September 30

Millions of dollars			2024						2023						2022
Net Income			$	1,705					$	1,484					$	1,779
Other Comprehensive (Loss) Income, Net of Tax
Foreign currency translation adjustments			(166)						(91)						305
Defined benefit pension and postretirement plans			14						4						210
Cash flow hedges			(32)						27						85
Unrealized loss on available-for-sale debt securities			(1)						—						—
Other Comprehensive (Loss) Income, Net of Tax			(184)						(60)						600
Comprehensive Income			$	1,521					$	1,424					$	2,379

Amounts may not add due to rounding.

See notes to consolidated financial statements.

Consolidated Balance Sheets

Becton, Dickinson and Company

September 30

Millions of dollars, except per share amounts and numbers of shares			2024						2023
Assets
Current Assets
Cash and equivalents			$	1,717					$	1,416
Restricted cash			139						65
Short-term investments			445						8
Trade receivables, net			3,033						2,534
Inventories			3,843						3,273
Prepaid expenses and other			1,292						1,380
Total Current Assets			10,468						8,676
Property, Plant and Equipment, Net			6,821						6,557
Goodwill			26,465						24,522
Developed Technology, Net			7,733						8,058
Customer Relationships, Net			2,635						2,338
Other Intangibles, Net			549						552
Other Assets			2,615						2,078
Total Assets			$	57,286					$	52,780
Liabilities and Shareholders’ Equity
Current Liabilities
Current debt obligations			$	2,170					$	1,141
Accounts payable			1,896						1,641
Accrued expenses			3,476						2,604
Salaries, wages and related items			1,246						1,115
Income taxes			168						139
Total Current Liabilities			8,956						6,641
Long-Term Debt			17,940						14,738
Long-Term Employee Benefit Obligations			942						1,023
Deferred Income Taxes and Other Liabilities			3,558						4,582
Commitments and Contingencies (See Note 6)
Shareholders’ Equity
Common stock — $1 par value: authorized — 640,000,000 shares; issued — 370,594,401 shares in 2024 and 2023.			371						371
Capital in excess of par value			19,893						19,720
Retained earnings			16,139						15,535
Deferred compensation			25						24
Treasury stock — 81,493,082 shares in 2024 and 80,202,608 shares in 2023.			(8,807)						(8,305)
Accumulated other comprehensive loss			(1,732)						(1,548)
Total Shareholders’ Equity			25,890						25,796
Total Liabilities and Shareholders’ Equity			$	57,286					$	52,780

Amounts may not add due to rounding.

See notes to consolidated financial statements.

Consolidated Statements of Cash Flows

Becton, Dickinson and Company

Years Ended September 30

Millions of dollars			2024						2023						2022
Operating Activities
Net income			$	1,705					$	1,484					$	1,779
Less: (Loss) income from discontinued operations, net of tax			—						(46)						144
Income from continuing operations, net of tax			1,705						1,530						1,635
Adjustments to net income from continuing operations to derive net cash provided by continuing operating activities:
Depreciation and amortization			2,286						2,288						2,229
Share-based compensation			247						259						233
Deferred income taxes			(211)						(622)						(120)
Change in operating assets and liabilities:
Trade receivables, net			(453)						(290)						32
Inventories			98						(15)						(631)
Prepaid expenses and other			23						192						(436)
Accounts payable, income taxes and other liabilities			625						(517)						(473)
Pension obligation			(70)						112						(55)
Gain on sale of business			—						(268)						—
Product remediation-related charges			38						653						72
Other, net			(445)						(332)						(16)
Net Cash Provided by Continuing Operating Activities			3,844						2,990						2,471
Investing Activities
Capital expenditures			(725)						(874)						(973)
Purchases of investments, net			(421)						—						—
Acquisitions, net of cash acquired			(3,924)						—						(2,070)
Proceeds from divestitures, net			—						540						—
Other, net			(444)						(382)						(178)
Net Cash Used for Continuing Investing Activities			(5,514)						(716)						(3,220)
Financing Activities
Change in short-term debt			400						(230)						230
Proceeds from long-term debt			4,517						1,662						497
Distribution from Embecta Corp. (see Note 2)			—						—						1,266
Net transfer of cash to Embecta upon spin-off			—						—						(265)
Payments of debt			(1,142)						(2,155)						(805)
Repurchase of common stock			(500)						—						(500)
Dividends paid			(1,100)						(1,114)						(1,082)
Other, net			(89)						(120)						(77)
Net Cash Provided by (Used for) Continuing Financing Activities			2,087						(1,956)						(736)
Discontinued Operations:
Net cash (used for) provided by operating activities			(46)						(1)						163
Net cash used for investing activities			—						—						(11)
Net cash provided by financing activities			—						—						145
Net Cash (Used for) Provided by Discontinued Operations			(46)						(1)						298
Effect of exchange rate changes on cash and equivalents and restricted cash			4						5						(45)
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash			375						322						(1,233)
Opening Cash and Equivalents and Restricted Cash			1,481						1,159						2,392
Closing Cash and Equivalents and Restricted Cash			$	1,856					$	1,481					$	1,159

Amounts may not add due to rounding.

See notes to consolidated financial statements.

Notes to Consolidated Financial Statements

Becton, Dickinson and Company

Millions of dollars, except per share amounts or as otherwise specified

Note 1 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements and Notes to Consolidated Financial Statements of Becton, Dickinson and Company (the "Company" or "BD") have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages and earnings per share amounts presented are calculated from the underlying amounts. Our fiscal year ends on September 30.

On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company. The historical results of the Diabetes Care business (previously included in BD’s Medical segment) that was contributed to Embecta Corp ("Embecta") in the spin-off were reflected as discontinued operations in the Company’s consolidated financial statements. Additional disclosures regarding the spin-off are provided in Note 2.

Principles of Consolidation

The consolidated financial statements include the Company’s accounts and those of its majority-owned subsidiaries after the elimination of intercompany transactions. The Company has no material interests in variable interest entities.

Cash Equivalents

Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase.

Restricted Cash

Restricted cash consists of cash restricted from withdrawal and usage and largely represents funds that are restricted for certain product liability matters, which are further discussed in Note 6.

Trade Receivables

The Company grants credit to customers in the normal course of business and the resulting trade receivables are stated at their net realizable value. The allowance for doubtful accounts represents the Company’s estimate of expected credit losses relating to trade receivables and is determined based on historical experience, current conditions, reasonable and supportable forecasts and other specific account data. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is not collectable.

Inventories

Inventories are stated at the lower of approximate cost or net realizable value determined on the first-in, first-out basis.

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are principally provided on the straight-line basis over estimated useful lives, which range from 20 to 45 years for buildings, four to 20 years for machinery and equipment and one to 20

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

years for leasehold improvements. Depreciation and amortization expense was $676 million, $696 million and $672 million in fiscal years 2024, 2023 and 2022, respectively.

Goodwill and Other Intangible Assets

The Company’s unamortized intangible assets include goodwill that arises from acquisitions of businesses. The Company reviews goodwill for impairment using quantitative models. Goodwill is reviewed at least annually for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. The Company’s reporting units represent one level below reporting segments. The Company reviews goodwill for each reporting unit by comparing the fair value of the reporting unit, estimated using an income approach, with its carrying value. The annual impairment review performed on July 1, 2024 indicated that all identified reporting units’ fair values exceeded their respective carrying values.

Amortized intangible assets include developed technology assets which arise from acquisitions. These assets represent acquired intellectual property that is already technologically feasible upon the acquisition date or acquired in-process research and development assets that are completed subsequent to acquisition. Developed technology assets are generally amortized over periods ranging from 15 to 20 years, using the straight-line method. Customer relationship assets are generally amortized over periods ranging from 10 to 15 years, using the straight-line method. Other intangibles with finite useful lives, which include patents, are amortized over periods principally ranging from one to 40 years, using the straight-line method. Finite-lived intangible assets, including developed technology assets, are periodically reviewed when impairment indicators are present to assess recoverability from future operations using undiscounted cash flows. The carrying values of these finite-lived assets are compared to the undiscounted cash flows they are expected to generate and an impairment loss is recognized in operating results to the extent any finite-lived intangible asset’s carrying value exceeds its calculated fair value.

Foreign Currency Translation

Generally, foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. The U.S. dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the foreign currency translation adjustments in Accumulated other comprehensive income (loss).

Revenue Recognition

The Company recognizes revenue from product sales when the customer obtains control of the product, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized upon customer acceptance of these installed products. Revenue for certain service arrangements, including extended warranty and software maintenance contracts, is recognized ratably over the contract term. When arrangements include multiple performance obligations, the total transaction price of the contract is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Variable consideration such as rebates, sales discounts and sales returns are estimated and treated as a reduction of revenue in the same period the related revenue is recognized. These estimates are based on contractual terms, historical practices, and current trends, and are adjusted as new information becomes available. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities.

Equipment lease transactions with customers are evaluated and classified as either operating or sales-type leases. Generally, these arrangements are accounted for as operating leases and therefore, revenue is recognized at the contracted rate over the rental period defined within the customer agreement.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Additional disclosures regarding the Company's accounting for revenue recognition are provided in Note 7.

Shipping and Handling Costs

The Company considers its shipping and handling costs to be contract fulfillment costs and records them within Selling and administrative expense. Shipping expense was $702 million, $733 million and $751 million in 2024, 2023 and 2022, respectively.

Contingencies

The Company establishes accruals for future losses which are both probable and can be reasonably estimated. Additional disclosures regarding the Company's accounting for contingencies are provided in Note 6.

Derivative Financial Instruments

All derivatives are recorded in the balance sheet at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. Any deferred gains or losses associated with derivative instruments are recognized in income in the period in which the underlying hedged transaction is recognized. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. Cash flows for all other derivatives, including undesignated hedges, are classified in the same line item as the cash flows of the related hedged item, which is generally within operating or financing activities. Additional disclosures regarding the Company's accounting for derivative instruments are provided in Note 14.

Income Taxes

The Company has reviewed its needs in the United States for possible repatriation of undistributed earnings of its foreign subsidiaries and continues to invest foreign subsidiaries earnings outside of the United States to fund foreign investments or meet foreign working capital and property, plant and equipment expenditure needs. As a result, the Company is permanently reinvested with respect to all of its historical foreign earnings as of September 30, 2024. Deferred taxes are not provided on undistributed earnings of foreign subsidiaries that are indefinitely reinvested. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable because of the complexities associated with its hypothetical calculation.

The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. In evaluating the exposure associated with various tax filing positions, the Company records accruals for uncertain tax positions based on the technical support for the positions, past audit experience with similar situations, and the potential interest and penalties related to the matters.

The Company maintains valuation allowances where it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances are included in the tax provision in the period of change. In determining whether a valuation allowance is warranted, management evaluates factors such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. Additional disclosures regarding the Company's accounting for income taxes are provided in Note 17.

The Tax Cuts and Jobs Act was enacted on December 22, 2017 and subjects a U.S. shareholder to tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The Company has elected to account for its GILTI tax due as a period expense in the year the tax is incurred.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Earnings per Share

Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In computing diluted earnings per share, only potential common shares that are dilutive (i.e., those that reduce earnings per share or increase loss per share) are included in the calculation.

Fair Value Measurements

A fair value hierarchy is applied to prioritize inputs used in measuring fair value. The three levels of inputs used to measure fair value are detailed below. Additional disclosures regarding the Company’s fair value measurements are provided in Notes 10 and 15.

Level 1 — Inputs to the valuation methodology which represent unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 — Inputs to the valuation methodology which include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability.

Level 3 — Inputs to the valuation methodology which are unobservable and significant to the fair value measurement.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates or assumptions affect reported assets, liabilities, revenues and expenses as reflected in the consolidated financial statements. Actual results could differ from these estimates.

Note 2 — Divestitures

Surgical Instrumentation Platform

The Company completed the sale of its Interventional segment's Surgical Instrumentation platform in August 2023. The Company recognized a pre-tax gain on the sale of approximately $268 million, which was recorded as a component of Other operating expense (income), net in fiscal year 2023. The historical financial results for the Surgical Instrumentation platform have not been classified as a discontinued operation.

Spin-Off of Embecta Corp.

On April 1, 2022, the Company completed the spin-off of its former Diabetes Care business as a separate publicly traded company named Embecta through a distribution of Embecta’s publicly traded common stock (listed on NASDAQ under the ticker symbol "EMBC") to BD’s shareholders of record as of the close of business on March 22, 2022 (the “record date”). The Company distributed one share of Embecta common stock for every five common shares of BD outstanding as of the record date and shareholders received cash in lieu of fractional shares of Embecta common stock. BD retained no ownership interest in Embecta subsequent to the spin-off. The distribution is expected to qualify and has been treated as tax-free to the Company and its shareholders for U.S. federal income tax purposes. On March 31, 2022, Embecta used a portion of the proceeds from financing transactions to make a cash distribution of approximately $1.266 billion to the Company.

The Company and Embecta entered into various agreements to effect the spin-off and provide a framework for the relationship between the Company and Embecta after the spin-off. Such agreements include the separation and distribution agreement, as well as the following ongoing agreements: a cannula supply agreement, an intellectual property matters agreement, a transition services agreement, manufacturing and supply agreements, a lease agreement, a distribution agreement to support commercial operations, a logistics services agreement and other agreements including an employee matters agreement and a tax matters agreement. Under these agreements, the Company has continued to provide certain products and services to

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Embecta following the spin-off. The agreements do not provide the Company with the ability to influence the operating or financial policies of Embecta subsequent to the spin-off date. Amounts included in the Company’s consolidated statements of income during the fiscal years ended September 30, 2024, 2023 and 2022 as a result of these agreements are detailed in Note 19.

Details of (Loss) Income from Discontinued Operations, Net of Tax, which represent the historical results of the Diabetes Care business prior to the spin-off date of April 1, 2022, are as follows:

Millions of dollars									2022
Revenues									$	538
Cost of products sold									143
Selling and administrative expense									78
Research and development expense									32
Other operating expense, net									95
Total Operating Costs and Expenses									348
Operating Income									190
Interest expense									(4)
Income from Discontinued Operations Before Income Taxes									186
Income tax provision									42
Income from Discontinued Operations, Net of Tax									$	144

In fiscal year 2023, the Company recorded expenses of $46 million within (Loss) Income from Discontinued Operations, Net of Tax related to a foreign tax associated with the spin-off. For fiscal year 2022, in the table above, Other operating expense, net, includes $30 million of costs incurred by the Company to execute the spin-off and other costs for related residual activities, as well as $78 million of separation costs incurred by the Company prior to the spin-off date, including those for consulting, legal, tax and other advisory services associated with the spin-off.

The amounts of Revenues and Cost of products sold from discontinued operations detailed above include previously eliminated intercompany transactions that occurred between BD and Embecta which resulted in a third-party sale in the same period.

Note 3 — Accounting Changes

New Accounting Principles Adopted

In September 2022, the Financial Accounting Standards Board ("FASB") issued an accounting standard update that requires additional qualitative and quantitative disclosures regarding supplier finance programs. The new disclosure requirements are intended to help investors better consider the effect of these programs on a company's working capital, liquidity, and cash flows. The Company adopted this accounting standard on October 1, 2023, and disclosures regarding the Company’s supplier finance programs are provided in Note 15.

On July 1, 2022, the Company early-adopted an accounting standard update issued by the FASB, which requires an entity to apply the provisions of Accounting Standard Codification Topic 606, "Revenue from Contracts with Customers," ("ASC 606") when recognizing and measuring contract assets and contract liabilities acquired in a business combination. The Company’s adoption of this accounting standard update for

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

business combinations that occurred during fiscal year 2022 did not have a material impact on its consolidated financial statements.

New Accounting Principles Not Yet Adopted

In November 2024, the FASB issued an accounting standard update that requires the Company to disclose more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in each relevant income statement expense caption. The update is effective for the Company beginning with its fiscal year 2028 reporting and for interim reporting beginning with its fiscal year 2029. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures.

In December 2023, the FASB issued an accounting standard update that requires more disaggregated information to be included in the income tax rate reconciliation and income taxes paid annual disclosures. This update is effective for the Company beginning in its fiscal year 2026 and the Company is currently evaluating the impact that this update will have on its disclosures.

In November 2023, the FASB issued a new accounting standard update that requires more disaggregated expense information about a public entity’s reportable segments. This update is effective for the Company beginning with its fiscal year 2025 reporting and for interim reporting beginning with its fiscal year 2026. The Company is currently evaluating the impact that this update will have on its disclosures.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 4 — Shareholders’ Equity

Changes in certain components of shareholders’ equity were as follows:

			Common Stock Issued at Par Value						Capital in Excess of Par Value						Retained Earnings						Deferred Compensation						Treasury Stock
(Millions of dollars)			Shares (in thousands)						Amount
Balance at September 30, 2021			$	365					$	19,272					$	13,826					$	23					(80,164)						$	(7,723)
Net income			—						—						1,779						—						—						—
Cash dividends:
Common ($3.48 per share)			—						—						(992)						—						—						—
Preferred			—						—						(90)						—						—						—
Issuance of shares under employee and other plans, net			—						(108)						(1)						—						1,271						44
Share-based compensation			—						239						—						—						—						—
Common stock held in trusts, net (a)			—						—						—						—						25						—
Repurchase of common stock			—						150						—						—						(2,415)						(650)
Spin-off of Embecta (See Note 2)			—						—						634						—						—						—
Balance at September 30, 2022			$	365					$	19,553					$	15,157					$	23					(81,283)						$	(8,330)
Net income			—						—						1,484						—						—						—
Cash dividends:
Common ($3.64 per share)			—						—						(1,046)						—						—						—
Preferred			—						—						(60)						—						—						—
Issuance of shares for preferred shares converted to common shares (b)			6						(4)						—						—						—						—
Issuance of shares under employee and other plans, net			—						(88)						—						1						1,056						24
Share-based compensation			—						259						—						—						—						—
Common stock held in trusts, net (a)			—						—						—						—						24						—
Balance at September 30, 2023			$	371					$	19,720					$	15,535					$	24					(80,203)						$	(8,305)
Net income			—						—						1,705						—						—						—
Cash dividends:
Common ($3.80 per share)			—						—						(1,100)						—						—						—
Issuance of shares under employee and other plans, net			—						(73)						—						1						801						2
Share-based compensation			—						247						—						—						—						—
Common stock held in trusts, net (a)			—						—						—						—						27						—
Repurchase of common stock			—						—						—						—						(2,118)						(503)
Balance at September 30, 2024			$	371					$	19,893					$	16,139					$	25					(81,493)						$	(8,807)

(a)Common stock held in trusts consists of the Company’s shares held in rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan.

(b)Represents the conversion, in accordance with their terms, of 1.500 million mandatory convertible preferred shares that were issued in May 2020 were converted into 5.955 million shares of BD common stock on the mandatory conversion date of June 1, 2023.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Share Repurchases

In fiscal year 2024, the Company executed and settled accelerated share repurchase (“ASR”) agreements for the repurchase of 2.118 million shares of its common stock for total consideration of $500 million, excluding a 1% excise tax on share repurchases of $3 million, which was recorded as an increase to Treasury stock.

In fiscal year 2022, the Company executed an ASR agreement in which 1.953 million common shares were repurchased and delivered in fiscal year 2022 for $500 million, and were recorded as an increase to Treasury stock. Also in fiscal year 2022, $150 million was recorded as an increase to Treasury stock, with an offsetting increase to Capital in excess of par value for the delivery of 462 thousand shares upon final settlement of a separate ASR agreement which was executed in fiscal year 2021.

The share repurchases discussed above were made pursuant to the repurchase program authorized by the Board of Directors on September 24, 2013 for 10 million shares, which was fully utilized as of September 30, 2022, and a repurchase program authorized by the Board of Directors on November 3, 2021 for up to an additional 10 million shares of BD common stock, for which there is no expiration date.

The components and changes of Accumulated other comprehensive income (loss) were as follows:

(Millions of dollars)			Total						Foreign Currency Translation						Benefit Plans						Cash Flow Hedges						Available-for-Sale Debt Securities
Balance at September 30, 2021			$	(2,088)					$	(1,292)					$	(784)					$	(10)					$	—
Other comprehensive income before reclassifications, net of taxes			306						54						169						83						—
Amounts reclassified into income, net of taxes			43						—						41						2						—
Spin-off of Embecta (See Note 2)			251						251						—						—						—
Balance at September 30, 2022			$	(1,488)					$	(987)					$	(574)					$	75					$	—
Other comprehensive (loss) income before reclassifications, net of taxes			(106)						(91)						(37)						21						—
Amounts reclassified into income, net of taxes			46						—						41						6						—
Balance at September 30, 2023			$	(1,548)					$	(1,078)					$	(571)					$	103					$	—
Other comprehensive loss before reclassifications, net of taxes			(227)						(166)						(32)						(28)						(1)
Amounts reclassified into income, net of taxes			42						—						46						(4)						—
Balance at September 30, 2024			$	(1,732)					$	(1,244)					$	(557)					$	70					$	(1)

The amount of foreign currency translation recognized in other comprehensive income during the years ended September 30, 2024, 2023 and 2022 included net (losses) gains relating to net investment hedges, as further discussed in Note 14. The amount recognized in other comprehensive income relating to cash flow hedges in 2024 is primarily related to foreign exchange contracts and forward starting interest rate swaps, which were terminated during fiscal year 2024. The amounts recognized in other comprehensive income relating to cash flow hedges in 2023 and 2022 are primarily related to forward starting interest rate swaps. Additional disclosures regarding the Company's derivatives are provided in Note 14.

The tax impacts for benefit plans and cash flow hedges recognized in other comprehensive income before reclassifications in 2024, 2023 and 2022 were immaterial to the Company's consolidated financial results. The tax impacts for reclassifications out of Accumulated other comprehensive income (loss) relating to benefit plans and cash flow hedges in 2024, 2023 and 2022 were also immaterial to the Company's consolidated financial results.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 5 — Earnings per Share

The weighted average common shares used in the computations of basic and diluted earnings per share (shares in thousands) for the years ended September 30 were as follows:

			2024						2023						2022
Average common shares outstanding			289,763						286,282						285,005
Dilutive share equivalents from share-based plans (a) (b)			1,246						2,110						2,333
Dilutive share equivalents from Series C preferred shares (c)			—						—						26
Average common and common equivalent shares outstanding — assuming dilution			291,009						288,392						287,364

(a)In 2023 and 2022, dilutive share equivalents associated with mandatory convertible preferred stock of 4 million and 6 million, respectively, were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. All of the mandatory convertible preferred shares outstanding were converted during fiscal year 2023, as further discussed in Note 4.

(b)In 2024, 1 million of certain share-based compensation awards were excluded from the diluted earnings per share calculation as the exercise prices of these awards were greater than the average market price of the Company’s common shares. In 2023 and 2022, no such awards were excluded from the diluted earnings per share calculation. Additional disclosures regarding the Company’s share-based compensation are provided in Note 9.

(c)Represents dilutive share equivalents from Series C preferred shares that temporarily replaced shares of common stock held in trusts to adhere to trust requirements until the Company’s spin-off of its Diabetes Care business on April 1, 2022 was completed.

Note 6 — Commitments and Contingencies

Commitments

The Company has certain future purchase commitments entered in the normal course of business to meet operational and capital requirements. As of September 30, 2024, these commitments aggregated to approximately $1.831 billion and will be expended over the next several years.

Contingencies

The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. Given the uncertain nature of litigation generally, the Company is not able, in all cases, to reasonably estimate the amount or range of loss that could result from an unfavorable outcome of litigation in which the Company is a party. Even if the Company believes it has meritorious defenses, from time to time the Company engages in settlement discussions and mediation and considers settlements taking into account various factors including, among other things, developments in such legal proceedings and the resulting risks and uncertainties. These activities have resulted in settlements for certain matters and going forward could result in further settlements, which may be confidential and could be significant and result in charges in excess of accruals.

In accordance with U.S. GAAP, the Company establishes accruals to the extent future losses are probable and reasonably estimable. With respect to putative class action lawsuits and certain tort actions in the United States and certain of the Canadian lawsuits described below or in our other SEC filings, the Company may not be able to determine if a probable loss exists for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the Company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of any class. With respect to certain of the civil investigative demands (“CIDs”) served by the Department of Justice which are discussed below, the Company may not be able to determine if a probable loss exists, unless otherwise noted, for the following reasons: (i) all or certain of the proceedings are in early stages; and/or (ii) there are significant factual and legal issues to be resolved.

Product Liability Matters

As of September 30, 2024, the Company is defending approximately 6,610 product liability claims involving the Company’s line of hernia repair devices (collectively, the “Hernia Product Claims”).The Company’s outstanding Hernia Product Claims as of September 30, 2023 were approximately 34,845. The reduction in the number of outstanding claims primarily reflects a settlement agreement that was consummated in the fourth quarter of fiscal year 2024 to resolve the vast majority of the Company’s existing hernia litigation. The aggregate amount payable pursuant to this settlement is within the Company's current product liability accrual for this matter and will be paid out over a multi-year period. The majority of the outstanding claims are currently pending in a coordinated proceeding in Rhode Island State Court (“RI”) and in a federal multi-district litigation (“MDL”) established in the Southern District of Ohio, but claims are also pending in other state and/or federal court jurisdictions. In addition, outstanding claims include multiple putative class actions in Canada. Generally, the Hernia Product Claims seek damages for personal injury allegedly resulting from use of the products. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters. There are no trials currently scheduled.

The Company also continues to be a defendant in certain other mass tort litigation. As of September 30, 2024, the Company is defending product liability claims involving the Company’s line of pelvic mesh products, the majority of which are pending in a coordinated proceeding in New Jersey Superior Court and in various federal court jurisdictions, the Company’s line of inferior vena cava (“IVC”) filter products, which are pending in various jurisdictions, and the Company’s line of implantable ports, the majority of which are pending in an MDL in the United States District Court for the District of Arizona. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters.

In most product liability litigations like those described above, plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the Company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions and, consequently, is unable to fully evaluate the claims. The Company expects that it will receive and review additional information regarding any remaining unsettled product liability matters.

Other Matters

On November 2, 2020, a putative shareholder derivative action captioned Jankowski v. Forlenza, et al., Civ. No. 2:20-cv-15474, was filed in the U.S. District Court for the District of New Jersey by a shareholder, derivatively on behalf of the Company, against certain of the Company’s directors and officers. The complaint asserts claims for breach of fiduciary duty; violations of sections 10(b), 14(a) and 21D of the Exchange Act, and insider trading. The complaint principally alleges, that the Company made misleading statements regarding AlarisTM infusion pumps in a proxy statement and other SEC filings. A second federal derivative action was filed on January 24, 2021, and the two actions were consolidated and stayed. In March 2021, the Company received letters from two additional shareholders which, in general, mirrored the allegations in the derivative actions, and demanded, among other things, that the Board of Directors pursue claims against members of management for claimed breaches of fiduciary duties. Consistent with New Jersey law, the Board appointed a special committee to review the allegations and demands in the derivative actions and demand letters. Following an investigation, the special committee determined that no action was warranted, and rejected the shareholders’ demands, communicating its determination to counsel for the shareholders. On January 10, 2023, one of the two shareholders referenced above filed a separate derivative action that: (i) is generally consistent with the shareholder letter and the two prior actions; and (ii) purports to challenge the reasonableness of the special

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

committee’s process and determination. That action was also stayed. Following entry of a stipulated scheduling order for an amended complaint and motion to dismiss the consolidated federal action, the case schedule was adjourned without date pending mediation. Mediation proceedings have taken place, with negotiations continuing. On September 10, 2024, the Company received an additional substantially identical shareholder demand letter and on September 26, 2024, that shareholder filed a second substantially identical state court derivative action. The Company believes that the defendants have meritorious defenses and intends to vigorously defend these matters, if ongoing negotiations are unproductive.

Beginning in February 2021, the Company received subpoenas from the Enforcement Division of the SEC requesting information from the Company relating to, among other things, certain reporting issues involving BD AlarisTM infusion pumps included in SEC disclosures prior to 2021. The Company is cooperating with the SEC and is engaged in discussions with the SEC with respect to a potential resolution of this matter. Although the Company cannot predict the outcome of the discussions with the SEC, the Company expects that any resolution will likely require the Company to pay monetary penalties and/or undertake other remedial actions, any of which could potentially be material. As a result, although no agreement has been reached, the Company recorded charges of $50 million and $125 million in the third and fourth quarters of 2024, respectively, to Other operating expense (income), net to accrue an estimated $175 million liability as of September 30, 2024 based on these discussions. However, the Company cannot anticipate the timing, scope, outcome or ultimate impact of the investigation, financial or otherwise, including but not limited to what actions the SEC might pursue against the Company and/or individuals. As a result, the ultimate resolution of this matter is unknown at this time, and it is possible that the amount of the Company’s liability could significantly exceed its currently accrued amount.

In July 2017, C.R. Bard, which was acquired by the Company in December 2017, received a CID from the Department of Justice seeking documents and information relating to an investigation into possible violations of the False Claims Act in connection with the sales and marketing of FloChec® and QuantaFloTM devices. The Company has responded to these requests and met with the Department of Justice in February and July 2024; discussions are ongoing.

In April 2019, the Department of Justice served the Company and CareFusion with CIDs seeking information regarding certain of CareFusion’s contracts with the Department of Veteran’s Affairs, some dating back more than 10 years, for certain products, including AlarisTM and PyxisTM devices, in connection with a civil investigation of possible violations of the False Claims Act, and the government later expanded the investigation to include several additional contracts. The government has made several requests for documents and interviews or depositions of Company personnel. The Company is cooperating with the government and responding to these requests.

In September 2021, the Company received a CID related to an inquiry initiated by the Department of Justice in the Northern District of Georgia in 2018 concerning sales and marketing practices with respect to certain aspects of the Company’s urology business. After multiple document productions and interviews, the Company and the government mediated the case in an effort to resolve this dispute; an agreement was reached to resolve this matter for an adequately accrued amount that is not material to the Company’s consolidated financial results.

In April 2023, the Department of Justice served the Company with a CID seeking information regarding the Company’s GenesisTM container products in connection with an investigation of possible violations of the False Claims Act. The government has requested documents and the Company is cooperating with the government and responding to its requests.

The Company was sued in state and federal courts in Georgia by plaintiffs who work or reside near Company facilities in Covington, GA, where ethylene oxide (“EtO”) sterilization activities take place. The federal cases have been dismissed and refiled in state court. The plaintiffs in the cases seek compensatory and punitive damages. Pursuant to Georgia statute, punitive damages in these cases are generally capped at $250,000 per claimant, unless the plaintiff can prove by clear and convincing evidence that the Company acted, or failed to act, with a specific intent to cause harm. The cases allege a variety of injuries, including but not

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

limited to multiple types of cancer, allegedly attributable to exposure to EtO. As of September 30, 2024, the Company has approximately 350 of such suits involving approximately 360 plaintiffs asserting individual personal injury claims; approximately 50 of the cases also allege injury caused by exposure to a chemical of another defendant entirely unrelated to the Company. No cases have yet been tried although a trial date has been set for one such case scheduled for April 2025. The Company believes that it has meritorious defenses and is vigorously defending itself in these matters.

In 2015, legislation was enacted in Italy which requires medical technology companies to make payments to the Italian government if Italy’s medical device expenditures exceed annual regional expenditure ceilings. The amount of these payments is based on the amount by which the regional ceilings for the given year were exceeded. Considerable uncertainty has existed regarding the enforceability and implementation of this payback legislation since it was enacted and the Company, as well as other medical device companies, have filed appeals which challenge the enforceability of this legislation. In July 2024, the Italian Constitutional Court issued two judgments which concluded that the medical device payback legislation is constitutional; however, litigation proceedings before Italian Courts are still pending. While the Company has recorded a preliminary estimate of the liability related to this matter, ultimate resolution is unknown at this time, and it is possible that the amount of the Company’s liability could differ from the currently accrued amount. This estimated amount, which substantially relates to years prior to the current fiscal year, was recorded for the fiscal year ended September 30, 2024 as a $62 million reduction of Revenues.

In May 2024, CareFusion 303, Inc., the Company’s subsidiary that manufactures its BD PyxisTM dispensing equipment, received a Form 483 Notice from the U.S. Food and Drug Administration (“FDA”) that contained observations of non-conformance with the FDA’s quality system and Medical Device Reporting (“MDR”) regulations. In November 2024, the Company received a Warning Letter that contained alleged violations of the quality system regulations, MDR regulation, the corrections and removals reporting regulation and law. During the fourth quarter of fiscal year 2024, the Company recorded a $28 million liability for estimated future costs associated with certain actions required to respond to the Warning Letter and to address the non-conformities. The Company is currently working to respond to this Warning Letter; however, no assurances can be given regarding further action by the FDA as a result of the noted non-conformities, or that corrective actions proposed and taken by CareFusion 303, Inc. will be adequate to address the non-conformities. Any failure to adequately address this Warning Letter may result in regulatory actions initiated by the FDA without further notice, which may include, but are not limited to, seizure, injunction and civil monetary penalties. As a result, the ultimate resolution of this Warning Letter and its impact on the Company’s operations is unknown at this time, and it is possible that the amount of the Company’s liability could exceed its currently accrued amount.

The Company is also involved both as a plaintiff and a defendant in other legal proceedings and claims that arise in the ordinary course of business. The Company believes that it has meritorious defenses and is vigorously defending itself in each of these matters.

Except as otherwise noted, the Company cannot predict the outcome of the other legal matters discussed above, nor can it predict whether any outcome will have a material adverse effect on the Company’s consolidated results of operations and/or consolidated cash flows. Further, the Company may not be able to determine if a probable loss exists for certain of the other legal matters discussed above, and accordingly, the Company has recorded no provisions for such matters in its consolidated results of operations.

The Company is a potentially responsible party to a number of federal administrative proceedings in the United States brought under the Comprehensive Environment Response, Compensation and Liability Act, also known as “Superfund,” and similar state laws. The Company also is subject to administrative proceedings under environmental laws in jurisdictions outside the U.S. The affected sites are in varying stages of development. In some instances, the remedy has been completed, while in others, environmental studies are underway or commencing. For several sites, there are other potentially responsible parties that may be jointly or severally liable to pay all or part of cleanup costs. While it is not feasible to predict the outcome of these proceedings, based upon the Company’s experience, current information and applicable law, the Company does not expect

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

these proceedings to have a material adverse effect on its consolidated results of operations and/or consolidated cash flows.

Litigation Accruals

The Company regularly monitors and evaluates the status of product liability and other litigated matters, and may, from time-to-time, engage in settlement discussions and mediation taking into consideration, among other things, developments in the litigation and the risks and uncertainties associated therewith. These activities have resulted in confidential settlements and going forward could result in further settlements, the terms of which may be confidential and could be significant and result in charges in excess of accruals. A determination of the accrual amounts for these contingencies is made after analysis of each litigation matter. When appropriate, the accrual is developed with the consultation of outside counsel and, in the case of certain mass tort litigation, actuarial specialists regarding the nature, timing, and extent of each matter.

During fiscal years 2024, 2023 and 2022, the Company recorded a pre-tax (benefit) charge to Other operating expense (income), net, of approximately $(36) million, $26 million and $21 million, respectively, related to certain of the product liability matters discussed above under the heading “Product Liability Matters,” including the related legal defense costs. The benefit recorded in fiscal year 2024 primarily reflected the favorable resolution of claims during the fiscal year.

The Company considers relevant information when estimating its product liability accruals, including, but not limited to: the nature, number, and quality of unfiled and filed claims; the rate of claims being filed; the status of settlement discussions with plaintiffs’ counsel; the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the Company; and the stage of litigation. Because currently available information regarding product liability matters is often limited, there is inherent uncertainty and volatility relating to the Company’s estimate of product liability. As additional information becomes available, the Company records adjustments to its product liability accruals as required.

Accruals for the Company's product liability claims which are discussed above, as well as the related legal defense costs, amounted to approximately $1.7 billion and $1.9 billion at September 30, 2024 and 2023, respectively. These accruals are recorded within Accrued expenses and Deferred Income Taxes and Other Liabilities on the Company's consolidated balance sheets. The decrease in the Company’s product liability accrual as of September 30, 2024, as compared with September 30, 2023, largely reflected reductions to the accrual due to the payment of settlements and legal fees, as well as the adjustment of $36 million noted above. The decrease in the number of outstanding hernia repair device claims discussed above did not materially impact the Company’s product liability accrual because the aggregate amount payable pursuant to this settlement agreement will be paid out over a multi-year period. The accrual also reflects a determination that the remaining outstanding hernia repair device claims are generally of lower quality. Claim activity during the fiscal year 2024 relating to the pelvic mesh device and IVC filter matters did not materially impact the Company’s product liability accrual as of September 30, 2024.

The particular outcome in any one product liability trial is typically not representative of potential outcomes of all cases or claims. Because the accrual already contemplates a wide range of possible outcomes, including those with a de minimis value, individual outcomes generally do not impact the value of other cases in the total case inventory or the overall product liability accrual.

In view of the uncertainties discussed above, the Company could incur charges in excess of any currently established accruals and, to the extent available, liability insurance. In the opinion of management, any such future charges, individually or in the aggregate, could have a material adverse effect on the Company’s consolidated results of operations, financial condition, and/or consolidated cash flows.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 7 — Revenues

The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.

Timing of Revenue Recognition

The Company's revenues are primarily recognized when the customer obtains control of the product sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customer’s ability to use and benefit from the product, are recognized when customer acceptance of these installed products has been confirmed. For certain service arrangements, including extended warranty and software maintenance contracts, revenue is recognized ratably over the contract term. The majority of revenues relating to extended warranty contracts associated with certain instruments and equipment is generally recognized within a few years whereas deferred revenue relating to software maintenance contracts is generally recognized over a longer period.

Measurement of Revenues

The Company acts as the principal in substantially all of its customer arrangements and as such, generally records revenues on a gross basis. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. The Company considers its shipping and handling costs to be costs of contract fulfillment and has made the accounting policy election to record these costs within Selling and administrative expense.

Payment terms extended to the Company's customers are based upon commercially reasonable terms for the markets in which the Company's products are sold. Because the Company generally expects to receive payment within one year or less from when control of a product is transferred to the customer, the Company does not generally adjust its revenues for the effects of a financing component. The Company’s allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. Amounts are written off against the allowances for doubtful accounts when the Company determines that a customer account is uncollectable. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results.

The Company's gross revenues are subject to a variety of deductions which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales discounts and sales returns. Because these deductions represent estimates of the related obligations, judgment is required when determining the impact of these revenue deductions on gross revenues for a reporting period. Rebates provided by the Company are based upon prices determined under the Company's agreements with its end-user customers. Additional factors considered in the estimate of the Company's rebate liability include the quantification of inventory that is either in stock at or in transit to the Company's distributors, as well as the estimated lag time between the sale of product and the payment of corresponding rebates. The Company’s rebate liabilities are classified as an offset to Trade receivables, net, or as Accounts payable or Accrued expenses, depending on the form of settlement and were $749 million and $669 million at September 30, 2024 and 2023, respectively. The impact of other forms of variable consideration, including sales discounts and sales returns, is not material to the Company's revenues. Additional disclosures relating to sales discounts and sales returns are provided in Note 19.

The Company's agreements with customers within certain organizational units including Medication Management Solutions, Integrated Diagnostic Solutions and Biosciences, contain multiple performance obligations including both products and certain services noted above. The transaction price for these agreements

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

is allocated to each performance obligation based upon its relative standalone selling price. Standalone selling price is the amount at which the Company would sell a promised good or service separately to a customer. The Company generally estimates standalone selling prices using its list prices and a consideration of typical discounts offered to customers.

Effects of Revenue Arrangements on Consolidated Balance Sheets

Due to the nature of the majority of the Company's products and services, the Company typically does not incur costs to fulfill a contract in advance of providing the customer with goods or services. Capitalized contract costs associated with the costs to fulfill contracts for certain products in the Medication Management Solutions organizational unit are immaterial to the Company's consolidated balance sheets. The Company's costs to obtain contracts are comprised of sales commissions which are paid to the Company's employees or third party agents. The majority of the sales commissions incurred by the Company relate to revenue that is recognized over a period that is less than one year and as such, the Company has elected a practical expedient provided under ASC 606 to record the majority of its expense associated with sales commissions as it is incurred. Commissions relating to revenues recognized over a period longer than one year are recorded as assets which are amortized over the period over which the revenues underlying the commissions are recognized. Capitalized contract costs related to such commissions are immaterial to the Company's consolidated balance sheets.

The Company records contract liabilities for unearned revenue that is allocated to performance obligations such as extended warranty and software maintenance contracts, which are performed over time as discussed further above. Accrued expenses on the Company’s consolidated balance sheet as of September 30, 2024 and 2023, included approximately $482 million and $412 million, respectively, of contract liabilities. The Company's liability for product warranties provided under its agreements with customers is not material to its consolidated balance sheets.

Remaining Performance Obligations

The Company's obligations relative to service contracts, which are further discussed above, and pending installations of equipment, primarily in the Company's Medication Management Solutions unit, represent unsatisfied performance obligations of the Company. The revenues under existing contracts with original expected durations of more than one year, which are attributable to products and/or services that have not yet been installed or provided, are estimated to be approximately $2.3 billion at September 30, 2024. The Company expects to recognize the majority of this revenue over the next three years.

Within the Company's Medication Management Solutions, Medication Delivery Solutions, Integrated Diagnostic Solutions, and Biosciences units, some contracts also contain minimum purchase commitments of reagents or other consumables and the future sales of these consumables represent additional unsatisfied performance obligations of the Company. The revenue attributable to the unsatisfied minimum purchase commitment-related performance obligations, for contracts with original expected durations of more than one year, is estimated to be approximately $2.1 billion at September 30, 2024. This revenue will be recognized over the customer relationship periods.

Disaggregation of Revenues

A disaggregation of the Company's revenues by segment, organizational unit and geographic region is provided in Note 8.

Note 8 — Segment Data

The Company's organizational structure is based upon three worldwide business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). The Company’s segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Medical

Medical produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The primary customers served by Medical are hospitals and clinics; physicians’ office practices; consumers and retail pharmacies; governmental and nonprofit public health agencies; pharmaceutical companies; and healthcare workers. Medical consists of the following organizational units: Medication Delivery Solutions; Medication Management Solutions; Pharmaceutical Systems; Advanced Patient Monitoring.

Life Sciences

Life Sciences provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections and cancers. In addition, Life Sciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. That information is used to aid the discovery and development of new drugs and vaccines, and to improve the diagnosis and management of diseases. The primary customers served by Life Sciences are hospitals, laboratories and clinics; blood banks; healthcare workers; physicians’ office practices; academic and government institutions; and pharmaceutical and biotechnology companies. Life Sciences consists of the following organizational units: Integrated Diagnostic Solutions and Biosciences.

Interventional

Interventional provides vascular, urology, oncology and surgical specialty products that are intended to be used once and then discarded or are either temporarily or permanently implanted. The primary customers served by Interventional are hospitals, ambulatory surgery centers, individual healthcare professionals, extended care facilities, alternate site facilities, and patients via the segment's Homecare business. Interventional consists of the following organizational units: Surgery; Peripheral Intervention; Urology and Critical Care.

Additional Segment Information

Distribution of products is primarily through independent distribution channels, and directly to end-users by BD and independent sales representatives. No customer accounted for 10% or more of revenues in any of the three years presented.

Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income, which represents revenues reduced by product costs and operating expenses. The Company’s chief operating decision maker does not receive any asset information by business segment and, as such, the Company does not report asset information by business segment.

The tables below reflect the Company’s revenues and operating income from continuing operations. Revenues and operating income from the former Diabetes Care business prior to its spin-off on April 1, 2022 are included in (Loss) Income from Discontinued Operations, Net of Tax. See Note 2 for further information.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Financial information for the Company’s segments is detailed below. The Company has no material intersegment revenues.

(Millions of dollars)			2024																		2023																		2022
			United States						International						Total						United States						International						Total						United States						International						Total
Medical
Medication Delivery Solutions			$	2,661					$	1,768					$	4,429					$	2,519					$	1,774					$	4,293					$	2,483					$	1,825					$	4,308
Medication Management Solutions			2,627						670						3,297						2,303						677						2,980						1,935						598						2,533
Pharmaceutical Systems			629						1,644						2,273						666						1,563						2,229						533						1,468						2,001
Advanced Patient Monitoring			47						27						74						—						—						—						—						—						—
Total segment revenues			$	5,964					$	4,110					$	10,074					$	5,488					$	4,014					$	9,502					$	4,950					$	3,891					$	8,841
Life Sciences
Integrated Diagnostic Solutions			$	1,733					$	1,946					$	3,679					$	1,774					$	1,850					$	3,624					$	2,190					$	1,995					$	4,185
Biosciences			577						935						1,512						603						906						1,509						542						838						1,379
Total segment revenues			$	2,310					$	2,881					$	5,191					$	2,377					$	2,756					$	5,133					$	2,732					$	2,833					$	5,564
Interventional
Surgery			$	1,130					$	363					$	1,492					$	1,159					$	338					$	1,497					$	1,094					$	306					$	1,400
Peripheral Intervention			1,029						904						1,933						1,016						849						1,865						960						799						1,759
Urology and Critical Care			1,236						319						1,554						1,073						301						1,374						986						319						1,305
Total segment revenues			$	3,394					$	1,586					$	4,980					$	3,247					$	1,489					$	4,736					$	3,040					$	1,424					$	4,464
Other (a)			$	(6)					$	(62)					$	(67)					$	—					$	—					$	—					$	—					$	—					$	—
Total Company revenues from continuing operations			$	11,663					$	8,515					$	20,178					$	11,113					$	8,258					$	19,372					$	10,722					$	8,148					$	18,870

(a) Represents the recognition of accruals resulting from recent developments relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to the current fiscal year. Such amounts were not allocated to the Company’s reportable segments and these matters are further discussed in Note 6.

The following tables provide a reconciliation of segment operating income to Income from Continuing Operations before Income Taxes and segment information for both capital expenditures and depreciation and amortization.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

(Millions of dollars)			2024						2023						2022
Income from Continuing Operations Before Income Taxes
Medical (a) (b)			$	2,742					$	1,967					$	2,215
Life Sciences			1,595						1,585						1,710
Interventional			1,420						1,217						1,081
Total Segment Operating Income			5,758						4,769						5,006
Integration, restructuring and transaction expense			(458)						(313)						(173)
Net interest expense			(364)						(403)						(382)
Other unallocated items (c)			(2,931)						(2,391)						(2,668)
Total Income from Continuing Operations Before Income Taxes			$	2,005					$	1,662					$	1,783
Capital Expenditures
Medical			$	438					$	563					$	602
Life Sciences			114						139						213
Interventional			127						138						130
Corporate and All Other			46						35						28
Total Capital Expenditures			$	725					$	874					$	973
Depreciation and Amortization
Medical			$	1,216					$	1,199					$	1,144
Life Sciences			272						277						283
Interventional			786						799						789
Corporate and All Other			13						13						13
Total Depreciation and Amortization			$	2,286					$	2,288					$	2,229

(a)The amounts in 2024, 2023 and 2022 include charges of $38 million, $653 million and $72 million, respectively, recorded to Cost of products sold, to record or adjust future costs estimated for product remediation efforts.

(b)The amount in 2022 includes a charge of $54 million, recorded to Cost of products sold, to write down the carrying value of certain fixed assets in the Pharmaceutical Systems unit.

(c)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount in 2024 includes a charge of $175 million to accrue an estimated liability for the SEC investigation, which is further discussed in Note 6. The amount in 2023 includes a pre-tax gain recognized on the Company's sale of its Surgical Instrumentation platform of approximately $268 million, which is further discussed in Note 2.

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); EMEA (which includes Europe, the Middle East and Africa); Greater Asia (which includes countries in Greater China, Japan, South Asia, Southeast Asia, Korea, and Australia and New Zealand); and Other, which is comprised of Latin America (which includes Mexico, Central America, the Caribbean and South America) and Canada.

Revenues to unaffiliated customers are generally based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

The table below shows revenues from continuing operations and long-lived assets of continuing operations by geographic area:

(Millions of dollars)			2024						2023						2022
Revenues
United States			$	11,663					$	11,113					$	10,722
EMEA			4,402						4,244						4,043
Greater Asia			2,906						2,913						3,047
Other			1,207						1,102						1,058
			$	20,178					$	19,372					$	18,870
Long-Lived Assets
United States			$	35,526					$	35,732					$	36,617
EMEA			6,706						5,317						5,126
Greater Asia			1,580						1,521						1,528
Other			2,548						1,116						1,079
Corporate			459						418						442
			$	46,818					$	44,104					$	44,792

Note 9 — Share-Based Compensation

The Company grants share-based awards under the 2004 Employee and Director Equity-Based Compensation Plan ("2004 Plan"), which provides long-term incentive compensation to employees and directors consisting of: stock appreciation rights ("SARs"), performance-based restricted stock units, time-vested restricted stock units and other stock awards.

The fair value of share-based payments is recognized as compensation expense in net income. BD estimates forfeitures based on experience at the time of grant and adjusts expense to reflect actual forfeitures. The amounts and location of compensation cost relating to share-based payments included in the consolidated statements of income is as follows:

(Millions of dollars)			2024						2023						2022
Cost of products sold			$	51					$	50					$	46
Selling and administrative expense			156						170						156
Research and development expense			42						41						37
Integration, restructuring and transaction expense			—						—						1
Total share-based compensation cost			$	249					$	261					$	240
Tax benefit associated with share-based compensation costs recognized			$	58					$	58					$	55

Total share-based compensation expense includes pre-tax compensation expense included in Income from Discontinued Operations, Net of Tax that was not material in 2022.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Stock Appreciation Rights

SARs represent the right to receive, upon exercise, shares of common stock having a value equal to the difference between the market price of common stock on the date of exercise and the exercise price on the date of grant. SARs generally vest over a period of four years and have a term of ten years. The fair value of awards was estimated on the date of grant using a lattice-based binomial option valuation model and these valuations were largely based upon the following weighted-average assumptions:

			2024						2023						2022
Risk-free interest rate			4.51%						3.78%						1.41%
Expected volatility			22.0%						21.0%						22.0%
Expected dividend yield			1.59%						1.53%						1.42%
Expected life			7.0 years						7.0 years						7.3 years
Fair value derived			$63.05						$57.80						$49.45

Expected volatility is based upon historical volatility for the Company’s common stock and other factors. The expected life of SARs granted is derived from the output of the lattice-based model, using assumed exercise rates based on historical exercise and termination patterns, and represents the period of time that SARs granted are expected to be outstanding. The risk-free interest rate used is based upon the published U.S. Treasury yield curve in effect at the time of grant for instruments with a similar life. The dividend yield is based upon the most recently declared quarterly dividend as of the grant date. The Company issued 0.1 million shares during 2024 to satisfy the SARs exercised.

A summary of SARs outstanding as of September 30, 2024 and changes during the year then ended is as follows:

			SARs (in thousands)						Weighted Average Exercise Price						Weighted Average Remaining Contractual Term (Years)						Aggregate Intrinsic Value (Millions of dollars)
Balance at October 1			4,905						$	211.47
Granted			597						238.89
Exercised			(297)						154.25
Forfeited, canceled or expired			(210)						237.09
Balance at September 30			4,995						$	217.07					5.25						$	125
Vested and expected to vest at September 30			4,863						216.50						5.17						$	125
Exercisable at September 30			3,669						$	209.57					4.18						$	121

A summary of SARs exercised during 2024, 2023 and 2022 is as follows:

(Millions of dollars)			2024						2023						2022
Total intrinsic value of SARs exercised			$	25					$	126					$	184
Total fair value of SARs vested			$	31					$	34					$	36

Performance-Based and Time-Vested Restricted Stock Units

Performance-based restricted stock units cliff vest three years after the date of grant. These units are tied to the Company’s performance against pre-established targets over a performance period of three years. The performance measures for fiscal years 2024, 2023 and 2022 were average annual currency-neutral revenue growth and average annual return on invested capital, with the combined factor subject to adjustment based on the Company's relative total shareholder return (measures the Company’s stock performance during the performance period against that of peer companies). Under the Company’s long-term incentive program, the

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

actual payout under these awards may vary from zero to 200% of an employee’s target payout, based on the Company’s actual performance over the performance period of three years. In fiscal year 2021, the Company also issued additional performance-based time-vested units to certain key executives, a portion of which cliff vested in fiscal year 2024 based on the Company’s performance against average annual growth in the Company’s Adjusted EPS over a performance period of three years. The fair value was based on the market price of the Company’s stock on the date of grant, and compensation cost was adjusted for subsequent changes in the expected outcome of performance-related conditions.

Time-vested restricted stock unit awards vest on a graded basis over a period of three years, except for certain key executives of the Company, including the executive officers, for which such units generally vest one year following the employee’s retirement. The related share-based compensation expense is recorded over the requisite service period, which is the vesting period or is based on retirement eligibility. The fair value of all time-vested restricted stock units is based on the market value of the Company’s stock on the date of grant.

A summary of restricted stock units outstanding as of September 30, 2024 and changes during the year then ended is as follows:

			Performance-Based															Time-Vested
			Stock Units (in thousands)									Weighted Average Grant Date Fair Value						Stock Units (in thousands)						Weighted Average Grant Date Fair Value
Balance at October 1			963									$	226.51					1,716						$	225.33
Granted			387									223.60						922						231.32
Distributed			(145)									212.46						(556)						225.13
Forfeited or canceled			(213)									219.15						(390)						231.68
Balance at September 30			991			(a)						$	229.02					1,693						$	227.20
Expected to vest at September 30			465			(b)						$	229.96					1,549						$	226.80

(a)Based on 200% of target payout for performance based restricted units and 100% of the performance based time-vested units.

(b)Net of expected forfeited units and units in excess of the expected performance payout of 71 thousand and 454 thousand shares, respectively.

The weighted average grant date fair value of restricted stock units granted during the years 2024, 2023 and 2022 are as follows:

			Performance-Based																		Time-Vested
			2024						2023						2022						2024						2023						2022
Weighted average grant date fair value of units granted			$	223.60					$	227.11					$	242.39					$	231.32					$	231.58					$	239.39

The total fair value of stock units vested during 2024, 2023 and 2022 was as follows:

			Performance-Based																		Time-Vested
(Millions of dollars)			2024						2023						2022						2024						2023						2022
Total fair value of units vested			$	45					$	28					$	14					$	179					$	169					$	169

At September 30, 2024, the weighted average remaining vesting term of performance-based and time vested restricted stock units is 1.24 and 0.87 years, respectively.

Unrecognized Compensation Expense and Other Stock Plans

The amount of unrecognized compensation expense for all non-vested share-based awards as of September 30, 2024, is approximately $253 million, which is expected to be recognized over a weighted-

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

average remaining life of approximately 1.8 years. At September 30, 2024, 10.0 million shares were authorized for future grants under the 2004 Plan. The Company has a policy of satisfying share-based payments through either open market purchases or shares held in treasury. At September 30, 2024, the Company has sufficient shares held in treasury to satisfy these payments.

As of September 30, 2024, 81 thousand shares were held in trust relative to a Director's Deferral plan, which provides a means to defer director compensation, from time to time, on a deferred stock or cash basis. Also as of September 30, 2024, 200 thousand shares were issuable under a Deferred Compensation Plan that allows certain highly-compensated employees, including executive officers, to defer salary, annual incentive awards and certain equity-based compensation.

Note 10 — Benefit Plans

The Company has defined benefit pension plans covering certain employees in the United States and in certain international locations. Postretirement healthcare and life insurance benefits provided to qualifying domestic retirees as well as other postretirement benefit plans in international countries are not material. The measurement date used for the Company’s employee benefit plans is September 30.

In August 2023, the Company announced that effective September 30, 2024, it would freeze the U.S. Plan, and plan participants, which include legacy Bard U.S. pension plan participants as further discussed below, no longer will accrue benefits under the plan subsequent to this date. Both the legacy BD U.S. pension and legacy Bard U.S. pension plans had already been frozen to prevent new participants effective January 1, 2018 and January 1, 2011, respectively.

In fiscal year 2022, the transfer of employees to Embecta in connection with the spin-off triggered remeasurements of some of the Company’s benefit plans. The BD U.S. pension plan was also remeasured upon the merging of this plan with the legacy Bard U.S. pension plan effective January 1, 2022. These remeasurements did not materially impact the Company’s benefit obligation and resulted in adjustments to Accumulated other comprehensive loss.

Generally, all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other expense, net on its consolidated statements of income. Certain amounts for termination benefits, curtailments and settlements related to the spin-off of Embecta, were recorded in Income from Discontinued Operations, Net of Tax and were not material.

Net pension cost for the years ended September 30 included the following components:

			Pension Plans
(Millions of dollars)			2024						2023						2022
Service cost			$	88					$	91					$	134
Interest cost			139						129						77
Expected return on plan assets			(150)						(141)						(187)
Amortization of prior service credit			(4)						(7)						(15)
Amortization of loss			57						58						61
Curtailments/settlement loss			1						44						73
Net pension cost			$	131					$	174					$	143
Net pension cost included in the preceding table that is attributable to international plans			$	28					$	25					$	20

The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods. The Company recognizes pension settlements when payments

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

from the plan exceed the sum of service and interest cost components of net periodic pension cost associated with the plan for the fiscal year. The settlement losses recorded in 2023 and 2022 included lump sum benefit payments primarily associated with the Company’s U.S. pension plan. A curtailment gain was recognized in 2023 related the freeze of the U.S. pension plan.

The change in benefit obligation, change in fair value of pension plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:

			Pension Plans
(Millions of dollars)			2024						2023
Change in benefit obligation:
Beginning obligation			$	2,617					$	2,634
Service cost			88						91
Interest cost			139						129
Benefits paid			(201)						(67)
Actuarial gain			241						(24)
Curtailments/settlements			(21)						(214)
Other, includes translation			51						68
Benefit obligation at September 30			$	2,913					$	2,617
Change in fair value of plan assets:
Beginning fair value			$	2,129					$	2,242
Actual return on plan assets			395						33
Employer contribution			200						62
Benefits paid			(201)						(67)
Settlements			(21)						(200)
Other, includes translation			54						59
Plan assets at September 30			$	2,557					$	2,129
Funded Status at September 30:
Unfunded benefit obligation			$	(356)					$	(488)
Amounts recognized in the Consolidated Balance Sheets at September 30:
Other Assets			$	99					$	81
Salaries, wages and related items			(12)						(15)
Long-term Employee Benefit Obligations			(443)						(554)
Net amount recognized			$	(356)					$	(488)
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30:
Prior service credit			$	2					$	3
Net actuarial loss			(636)						(689)
Net amount recognized			$	(634)					$	(686)

International pension plan assets at fair value included in the preceding table were $880 million and $748 million at September 30, 2024 and 2023, respectively. The international pension plan projected benefit obligations were $992 million and $833 million at September 30, 2024 and 2023, respectively.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

The benefit obligation associated with postretirement healthcare and life insurance plans provided to qualifying domestic retirees, which was largely recorded to Long-Term Employee Benefit Obligations, was $94 million and $92 million at September 30, 2024 and 2023, respectively.

Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:

			Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets												Projected Benefit Obligation Exceeds the Fair Value of Plan Assets
(Millions of dollars)			2024						2023						2024						2023
Projected benefit obligation			$	2,382					$	2,140					$	2,382					$	2,159
Accumulated benefit obligation			$	2,318					$	2,088
Fair value of plan assets			$	1,927					$	1,575					$	1,927					$	1,591

The weighted average assumptions used in determining pension plan information were as follows:

			2024						2023						2022
Net Cost
Discount rate:
U.S. plans (a)			6.01		%				5.62		%				2.89		%
International plans			4.52						4.26						1.75
Expected return on plan assets:
U.S. plans			7.29						7.25						6.25
International plans			5.30						5.02						4.84
Rate of compensation increase:
U.S. plans			4.00						4.51						4.31
International plans			2.81						2.86						2.63
Cash balance plan interest crediting rate:
U.S. plans			4.00						4.00						4.00
International plans			2.16						1.98						2.02
Benefit Obligation
Discount rate:
U.S. plans			4.98						6.01						5.62
International plans			3.88						4.62						4.26
Rate of compensation increase:
U.S. plans			4.00						4.00						4.51
International plans			2.81						2.86						2.86
Cash balance plan interest crediting rate:
U.S. plans			4.00						4.00						4.00
International plans			2.21						2.21						1.98

(a)The Company calculated the service and interest components utilizing an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Expected Rate of Return on Plan Assets

The expected rate of return on plan assets is based upon expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, the Company considers many factors, including historical assumptions compared with actual results; benchmark data; expected returns on various plan asset classes, as well as current and expected asset allocations.

Expected Funding

The Company’s funding policy for its defined benefit pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that may be appropriate considering the funded status of the plans, tax consequences, the cash flow generated by the Company and other factors. The Company made a discretionary contribution to its BD U.S. pension plan of $150 million during fiscal year 2024. The Company did not make any required contributions in 2024 and does not anticipate any significant required contributions to its pension plans in fiscal year 2025.

Expected benefit payments are as follows:

(Millions of dollars)			Pension Plans
2025			$	238
2026			239
2027			221
2028			216
2029			212
2030-2034			1,008

Expected benefit payments associated with postretirement healthcare plans are immaterial to the Company's consolidated financial results.

Investments

The Company’s primary objective is to achieve returns sufficient to meet future benefit obligations. It seeks to generate above market returns by investing in more volatile asset classes such as equities while at the same time controlling risk through diversification in non-correlated asset classes and through allocations to more stable asset classes like fixed income.

U.S. Plans

The Company’s U.S. pension plans comprise 66% of total benefit plan investments, based on September 30, 2024 market values, and have a target asset mix of 45% fixed income, 21% diversifying investments and 34% equities. This mix was established based on an analysis of projected benefit payments and estimates of long-term returns, volatilities and correlations for various asset classes. The asset allocations to diversifying investments include high-yield bonds, hedge funds, real estate, infrastructure, leveraged loans and emerging markets bonds.

The actual portfolio investment mix may, from time to time, deviate from the established target mix due to various factors such as normal market fluctuations, the reliance on estimates in connection with the determination of allocations and normal portfolio activity such as additions and withdrawals. Rebalancing of the asset portfolio on a quarterly basis is required to address any allocations that deviate from the established target allocations in excess of defined allowable ranges. The target allocations are subject to periodic review, including a review of the asset portfolio’s performance, by the named fiduciary of the plans. Any tactical deviations from the established asset mix require the approval of the named fiduciary.

The U.S. plans may enter into both exchange traded and non-exchange traded derivative transactions in order to manage interest rate exposure, volatility, term structure of interest rates, and sector and currency

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

exposures within the fixed income portfolios. The Company has established minimum credit quality standards for counterparties in such transactions.

The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2024 and 2023. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.

																											Basis of fair value measurement (See Note 1)
(Millions of dollars)			Total U.S. Plan Asset Balances												Investments Measured at Net Asset Value (a)												Level 1												Level 2												Level 3
			2024						2023						2024						2023						2024						2023						2024						2023						2024						2023
Fixed Income:
Corporate bonds			$	518					$	443					$	—					$	—					$	296					$	260					$	222					$	182					$	—					$	—
Government and agency-U.S.			159						53						—						—						149						43						10						10						—						—
Government and agency-Foreign			31						17						—						—						—						—						31						17						—						—
Other fixed income			53						46						—						—						25						24						28						22						—						—
Equity securities			582						469						71						59						512						410						—						—						—						—
Cash and cash equivalents			172						202						—						—						172						202						—						—						—						—
Other			162						151						75						79						87						72						—						—						—						—
Fair value of plan assets			$	1,676					$	1,382					$	146					$	138					$	1,240					$	1,012					$	291					$	231					$	—					$	—

(a)As per applicable disclosure requirements, certain investments that were measured at net asset value per share or its equivalent have not been categorized within the fair value hierarchy. Values of such assets are based on the corroborated net asset value provided by the fund administrator.

Fixed Income Securities

U.S. pension plan assets categorized above as fixed income securities include fund investments comprised of corporate and government and agency investments. Investments in corporate bonds are diversified across industry and sector and consist of investment-grade, as well as high-yield debt instruments. U.S. government investments consist of obligations of the U.S. Treasury, other U.S. government agencies, state governments and local municipalities. Assets categorized as foreign government and agency debt securities included investments in developed and emerging markets.

The values of fixed income investments classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. A portion of the fixed income instruments classified within Level 2 are valued based upon estimated prices from independent vendors’ pricing models and these prices are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data.

Equity Securities

U.S. pension plan assets categorized as equity securities consist of fund investments in publicly-traded U.S. and non-U.S. equity securities. In order to achieve appropriate diversification, these portfolios are invested across market sectors, investment styles, capitalization weights and geographic regions. The values of equity securities classified within Level 1 are based on the closing price reported on the major market on which the

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

investments are traded or have a readily determinable fair value based on published prices obtained from fund managers which represent the price at which the instruments can be redeemed at period end. The U.S. pension plan has no future funding commitments associated with these investments and has the right to redeem them upon one day’s notice, at any time and without restriction.

Cash and Cash Equivalents

A portion of the U.S. plans’ assets consists of investments in cash and cash equivalents, primarily to accommodate liquidity requirements relating to trade settlement and benefit payment activity, and the values of these assets are based upon quoted market prices.

Other Securities

Other U.S. pension plan assets include fund investments comprised of hedge funds. The values of such instruments classified within Level 1 are based on the closing price reported on the major market on which the investments are traded.

International Plans

International plan assets comprise 34% of the Company’s total benefit plan assets, based on market value at September 30, 2024. Such plans have local independent fiduciary committees, with responsibility for development and oversight of investment policy, including asset allocation decisions. In making such decisions, consideration is given to local regulations, investment practices and funding rules.

The following table provides the fair value measurements of international plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2024 and 2023.

																											Basis of fair value measurement (See Note 1)
(Millions of dollars)			Total International Plan Asset Balances																		Level 1												Level 2												Level 3 (a)
			2024						2023																		2024						2023						2024						2023						2024						2023
Fixed Income:
Corporate bonds			$	114					$	122																	$	92					$	100					$	9					$	10					$	13					$	12
Government and agency-U.S.			9						9																		7						8						2						2						—						—
Government and agency-Foreign			223						197																		188						165						28						26						7						6
Other fixed income			52						43																		44						34						9						9						—						—
Equity securities			196						173																		166						147						—						1						30						25
Cash and cash equivalents			13						10																		11						8						—						—						2						2
Real estate			44						36																		1						1						34						26						9						9
Insurance contracts			113						103																		—						—						—						—						113						103
Other			117						55																		92						35						3						1						22						19
Fair value of plan assets			$	880					$	748																	$	600					$	499					$	85					$	74					$	195					$	175

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

(a)Changes in the fair value of international pension assets measured using Level 3 inputs for the years ended September 30, 2024 and 2023 were immaterial.

Fixed Income Securities

Fixed income investments held by international pension plans include corporate, U.S. government and non-U.S. government securities. The values of fixed income securities classified within Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of investments classified within Level 2 are based upon estimated prices from independent vendors’ pricing models and these prices are derived from market observable sources.

Equity Securities

Equity securities included in the international plan assets consist of publicly-traded U.S. and non-U.S. equity securities. The values of equity securities classified within Level 1 are based on the closing price reported on the major market on which the investments are traded or have a readily determinable fair value based on published prices obtained from fund managers which represent the price at which the instruments can be redeemed at period end. The international plans holding these securities have no future funding commitments associated with these investments and have the right to redeem them upon one day’s notice, at any time and without restriction.

Other Securities

The international plans hold a portion of assets in cash and cash equivalents, in order to accommodate liquidity requirements and the values are based upon quoted market prices. Real estate investments consist of investments in funds holding an interest in real properties and the corresponding values represent the estimated fair value based on the fair value of the underlying investment value or cost, adjusted for any accumulated earnings or losses. The values of insurance contracts approximately represent cash surrender value. Other investments include fund investments for which values are based upon either quoted market prices or market observable sources.

Defined Contribution Plans

The cost of voluntary defined contribution plans which provide for a Company match or contribution was $195 million in 2024, $156 million in 2023 and $178 million in 2022.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 11 — Acquisitions

Edwards Lifesciences’ Critical Care Product Group

On September 3, 2024, the Company completed its acquisition of Edwards Lifesciences’ Critical Care product group (“Critical Care”), which was renamed as BD Advanced Patient Monitoring (“Advanced Patient Monitoring”). Since the acquisition date, financial results for Advanced Patient Monitoring’s product offerings are being reported as a separate organizational unit within the Medical segment. Advanced Patient Monitoring is a global leader in advanced monitoring solutions that expands the Company’s portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement the Company's existing technologies serving operating rooms and intensive care units. The Company funded the transaction with cash on hand, using net proceeds raised through debt issuances in the third quarter of fiscal year 2024, as further discussed in Note 16, and borrowings under its commercial paper program. The acquisition was accounted for under the acquisition method of accounting for business combinations.

The Company is in the process of finalizing the allocation of the purchase price to the individual assets acquired and liabilities assumed, related to assessing certain assumptions underlying the valuation of intangible assets. The preliminary allocations of the purchase price provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. These provisional estimates may be adjusted upon the availability of further information regarding events or circumstances that existed at the acquisition date. Such adjustments may be significant. The fair value of consideration transferred in connection with the acquisition was $3.911 billion, and the assets acquired and the liabilities assumed resulted in the recognition of developed technology intangible assets of $714 million, customer relationships intangible assets of $650 million and $714 million of other net assets, which are primarily inventory. The goodwill recorded from the excess of the purchase price over the fair value of the acquired net assets was $1.833 billion, which related to synergies expected to be gained from combining operations of the acquiree and acquirer, as well as revenue and cash flow projections associated with future innovative technologies expected to occur. The preliminary estimate of the goodwill that is expected to be deductible for tax purposes is approximately $1.1 billion.

The Company included Advanced Patient Monitoring in its consolidated results of operations beginning on September 3, 2024. The Company’s unaudited pro forma Revenues for fiscal years 2024 and 2023, giving effect as if Advanced Patient Monitoring had been acquired as of October 1, 2022, were $21.069 billion and $20.258 billion, respectively. The calculation of pro forma Net Income for fiscal years 2024 and 2023 is not practicable because of complexities associated with its hypothetical calculation.

Parata

On July 18, 2022, the Company completed the acquisition of Parata Systems (“Parata”), an innovative provider of pharmacy automation solutions. The fair value of consideration transferred was $1.548 billion. Since the acquisition date, financial results for Parata's product offerings are being reported within results for the Medical segment’s Medication Management Solutions unit. The acquisition was accounted for under the acquisition method of accounting for business combinations.

The fair value of the assets acquired and the liabilities assumed resulted in the recognition of developed technology intangible assets of $628 million, customer relationships intangible asset of $161 million, and $1 million of other net liabilities. The goodwill recorded from the excess of the purchase price over the fair value of the acquired net assets was $759 million, which related to synergies expected to be gained from leveraging the existing presence of the Company’s sales and marketing teams in pharmacies and acute care facilities, the broader coverage of the Company’s legacy sales and marketing teams, and revenue and cash flow projections associated with future technologies. A portion of the goodwill is deductible for tax purposes.

In addition to the Parata acquisition discussed above, the Company completed various other acquisitions during fiscal year 2022 which were not material individually or in the aggregate, including Parata.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 12 — Business Restructuring Charges

The Company incurred restructuring costs, primarily in connection with the Company's simplification and other cost saving initiatives that are part of its strategic objectives, which were largely recorded within Integration, restructuring and transaction expense on its consolidated statements of income. These simplification and other costs saving initiatives are focused on reducing complexity, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Company’s segments. Restructuring liability activity in 2024, 2023 and 2022 was as follows:

(Millions of dollars)						Employee Termination						Other (a)						Total
Balance at September 30, 2021						$	14					$	5					$	19
Charged to expense						21						103						123
Cash payments						(11)						(71)						(82)
Non-cash settlements						—						(25)						(25)
Other adjustments						—						(1)						(1)
Balance at September 30, 2022						$	24					$	11					$	35
Charged to expense						117						122						239
Cash payments						(62)						(103)						(165)
Non-cash settlements						—						(30)						(30)
Other adjustments						—						1						1
Balance at September 30, 2023						$	79					$	1					$	80
Charged to expense						80						307						387
Cash payments						(103)						(202)						(305)
Non-cash settlements						—						(104)						(104)
Other adjustments						2						—						2
Balance at September 30, 2024						$	58					$	2					$	60

(a)Other non-employee-related expenses primarily relate to other costs associated with the execution of the Company’s cost efficiency and restructuring programs, such as incremental project management costs, facility exit costs, inventory write-offs and long-lived asset impairments and disposals, which are discussed further in Note 15.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 13 — Intangible Assets

Intangible assets at September 30 consisted of:

			2024																		2023
(Millions of dollars)			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Amortized intangible assets
Developed technology			$	15,827					$	(8,094)					$	7,733					$	15,080					$	(7,023)					$	8,058
Customer relationships			5,513						(2,878)						2,635						4,859						(2,521)						2,338
Patents, trademarks and other			1,185						(682)						503						1,130						(624)						505
Amortized intangible assets			$	22,525					$	(11,654)					$	10,871					$	21,069					$	(10,168)					$	10,901
Unamortized intangible assets
Acquired in-process research and development			$	44																	$	44
Trademarks			2																		2
Unamortized intangible assets			$	46																	$	46

Intangible amortization expense was $1.468 billion, $1.465 billion and $1.430 billion in 2024, 2023 and 2022, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2025 to 2029 are as follows: 2025 — $1.551 billion; 2026 — $1.519 billion; 2027 — $1.450 billion; 2028 — $1.357 billion; 2029 — $1.264 billion.

The following is a reconciliation of goodwill by business segment:

(Millions of dollars)			Medical						Life Sciences						Interventional						Total
Goodwill as of September 30, 2022			$	10,909					$	888					$	12,824					$	24,621
Divestitures and related adjustments (a)			—						—						(218)						(218)
Purchase price allocation adjustments (b)			13						—						—						13
Currency translation			33						9						64						105
Goodwill as of September 30, 2023			$	10,955					$	897					$	12,670					$	24,522
Acquisitions (c)			1,833						—						—						1,833
Currency translation			43						7						59						109
Goodwill as of September 30, 2024			$	12,832					$	904					$	12,729					$	26,465

(a)Represents goodwill derecognized upon the Company’s sale of its Surgical Instrumentation platform, as further discussed in Note 2.

(b)The purchase price allocation adjustments were primarily driven by an adjustment to tax-related balances recorded upon the finalization of the Parata acquisition allocation within one year of the transaction's closing.

(c)Represents goodwill recognized in the Medical segment upon the Company's acquisition of Advanced Patient Monitoring, which is further discussed in Note 11.

Note 14 — Derivative Instruments and Hedging Activities

The Company uses derivative instruments to mitigate certain exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. The effects these derivative instruments and hedged items had on the Company’s balance sheets and the fair values of the derivatives outstanding at

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

September 30, 2024 and 2023 were not material. The effects on the Company’s financial performance and cash flows are provided below.

Foreign Currency Risks and Related Strategies

The Company has foreign currency exposures throughout Europe, Greater Asia, Canada and Latin America. Transactional currency exposures that arise from entering into transactions, generally on an intercompany basis, in non-hyperinflationary countries that are denominated in currencies other than the functional currency are mitigated primarily through the use of forward contracts.

In order to mitigate transactional foreign currency exposures resulting from anticipated intercompany purchases and sales denominated in a currency other than local functional currencies, the Company has hedged a portion of this currency risk with certain instruments such as foreign exchange forward and option contracts, which are designated as cash flow hedges.

In order to mitigate foreign currency exposure relating to its investments in certain foreign subsidiaries, the Company has hedged the currency risk associated with those investments with certain instruments such as foreign currency-denominated debt and cross-currency swaps, which are designated as net investment hedges, as well as currency exchange contracts.

The notional amounts of the Company’s foreign currency-related derivative instruments as of September 30, 2024 and 2023 were as follows:

(Millions of dollars)			Hedge Designation						2024						2023
Foreign exchange contracts (a)			Undesignated						$	4,521					$	3,146
Foreign exchange contracts (b)			Cash flow hedges						543						—
Foreign currency-denominated debt (c)			Net investment hedges						3,065						1,056
Cross-currency swaps (d)			Net investment hedges						1,366						2,119

(a)Represents hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. Net amounts recognized in Other expense, net, during the years ending September 30, 2024, 2023 and 2022 are detailed in Note 19.

(b)Represents foreign exchange contracts that the Company entered into in fiscal year 2024 related to anticipated intercompany purchases and sales, described above, which generally have durations of less than eighteen months.

(c)Represents foreign currency-denominated long-term notes outstanding, which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.

(d)Represents cross-currency swaps, which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.

Net gains or losses resulting from the change in fair value of the foreign exchange contracts designated as cash flow hedges are initially recorded within Other comprehensive income (loss) and reclassified into earnings upon the occurrence of the related underlying third-party transaction. If foreign exchange contracts designated as cash flow hedges are terminated prematurely as a result of the hedged transaction being probable of not occurring, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is immediately reclassified into Revenues or Cost of products sold (depending on whether the hedged item is an intercompany sale or purchase). Net after tax losses recognized in Other comprehensive income (loss) during 2024 were immaterial and no amounts were reclassified from Accumulated other comprehensive income (loss) relating to these cash flow hedges during 2024. The amounts expected to be reclassified from accumulated other

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

comprehensive income into earnings within the next 12 months, are not material to the Company's consolidated financial results.

Net gains or losses relating to the net investment hedges, which are attributable to changes in the foreign currencies to U.S. dollar spot exchange rates, are recorded as accumulated foreign currency translation in Other comprehensive income (loss). Upon the termination of a net investment hedge, any net gain or loss included in Accumulated other comprehensive income (loss) relative to the investment hedge remains until the foreign subsidiary investment is disposed of or is substantially liquidated.

Net (losses) gains recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges as of September 30, 2024, 2023 and 2022 were as follows:

(Millions of dollars)			2024						2023						2022
Foreign currency-denominated debt			(96)						(155)						320
Cross-currency swaps (a)			(71)						(70)						173

(a)The amounts in 2024, 2023 and 2022 include net of tax gains recognized on terminated cross-currency swaps of $9 million, $13 million and $46 million, respectively.

Interest Rate Risks and Related Strategies

The Company uses a mix of fixed and variable rate debt, which is further discussed in Note 16, to manage its interest rate exposure, and periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Company exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated as either cash flow or fair value hedges.

Changes in the fair value of the interest rate swaps designated as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk) are recorded in Other comprehensive income (loss). If interest rate derivatives designated as cash flow hedges are terminated, the balance in Accumulated other comprehensive income (loss) attributable to those derivatives is reclassified into earnings, within Interest expense, over the remaining life of the hedged debt. The amounts reclassified from accumulated other comprehensive income relating to cash flow hedges during 2024, 2023 and 2022, as well as the amounts expected to be reclassified within the next 12 months, are not material to the Company's consolidated financial results.

Net after-tax (losses) gains were recorded in Other comprehensive income (loss) relating to interest rate cash flow hedges of $(10) million, $23 million and $92 million in fiscal years 2024, 2023 and 2022, respectively. The amounts recorded during 2024 and 2022 included net after-tax gains of $67 million and $41 million, respectively, that were realized upon the Company’s termination of forward starting interest rate swaps.

For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. Amounts recorded during the years ended September 30, 2024 and 2023 were immaterial to the Company's consolidated financial results.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

The notional amounts of the Company’s interest rate-related derivative instruments as of September 30, 2024 and 2023 were as follows:

(Millions of dollars)			Hedge Designation						2024						2023
Interest rate swaps (a)			Fair value hedges						$	700					$	700
Forward starting interest rate swaps (b)			Cash flow hedges						—						500

(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on secured overnight financing rates ("SOFR").

(b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances.

Other Risk Exposures

The Company purchases resins, which are oil-based components used in the manufacture of certain products. Significant increases in world oil prices that lead to increases in resin purchase costs could impact future operating results. From time to time, the Company has managed price risks associated with these commodity purchases through commodity derivative forward contracts. The Company’s commodity derivative forward contracts at September 30, 2024 and 2023 were immaterial to the Company's consolidated financial results.

Note 15 — Financial Instruments and Fair Value Measurements

The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at September 30, 2024 and 2023 to the total of these amounts shown on the Company's consolidated statements of cash flows:

(Millions of dollars)			2024						2023
Cash and equivalents			$	1,717					$	1,416
Restricted cash			139						65
Cash and equivalents and restricted cash			$	1,856					$	1,481

The fair values of the Company’s financial instruments are as follows:

(Millions of dollars)			Basis of fair value measurement (See Note 1)						2024						2023
Institutional money market accounts (a)			Level 1						$	285					$	373
Current portion of long-term debt (b)			Level 2						1,748						1,122
Long-term debt (b)			Level 2						17,199						12,850

(a)These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption.

(b)Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments.

Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments primarily consist of time deposits with maturities greater than three months and less than one year. All other instruments measured by the Company at fair value, including derivatives, contingent consideration liabilities and available-for-sale debt securities, are immaterial to the Company's consolidated balance sheets.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Nonrecurring Fair Value Measurements

In fiscal year 2024, the Company recorded non-cash asset impairment charges of $83 million to Integration, restructuring and transaction expense to write down the carrying value of certain fixed assets. In fiscal year 2022, the Company recorded non-cash asset impairment charges of $11 million to Cost of products sold in the Life Sciences segment, $19 million to Integration, restructuring and transaction expense in the Medical segment and $54 million to Cost of products sold in the Medical segment to write down the carrying value of certain fixed assets. The amounts recognized were recorded to adjust the carrying amount of assets to the assets' fair values, which were generally estimated, based upon a market participant's perspective, using Level 3 measurements, including values estimated using the income approach.

Concentration of Credit Risk

The Company maintains cash deposits in excess of government-provided insurance limits. Such cash deposits are exposed to loss in the event of nonperformance by financial institutions. Substantially all of the Company’s trade receivables are due from public and private entities involved in the healthcare industry. Due to the large size and diversity of the Company’s customer base, concentrations of credit risk with respect to trade receivables are limited. The Company does not normally require collateral. The Company is exposed to credit loss in the event of nonperformance by financial institutions with which it conducts business. However, this loss is limited to the amounts, if any, by which the obligations of the counterparty to the financial instrument contract exceed the obligations of the Company. The Company also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

The Company continually evaluates its accounts receivables for potential collection risks, particularly those resulting from sales to government-owned or government-supported healthcare facilities in certain countries, as payment may be dependent upon the financial stability and creditworthiness of those countries’ national economies. The Company continually evaluates all governmental receivables for potential collection risks associated with the availability of government funding and reimbursement practices. The Company believes the current reserves related to all governmental receivables are adequate and that this concentration of credit risk will not have a material adverse impact on its financial position or liquidity.

Transfers of trade receivables

Over the normal course of its business activities, the Company transfers certain trade receivable assets to third parties under factoring agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer. Accordingly, the Company accounts for the transfers as sales of trade receivables by recognizing an increase to Cash and equivalents and a decrease to Trade receivables, net when proceeds from the transactions are received. The costs incurred by the Company in connection with factoring activities were not material to its consolidated financial results. The amounts transferred and yet to be remitted under factoring arrangements are provided below.

(Millions of dollars)			2024						2023						2022
Trade receivables transferred to third parties under factoring arrangements			$	1,385					$	2,615					$	1,215
(Millions of dollars)			2024						2023
Amounts yet to be collected and remitted to the third parties			254						357

Supplier Finance Programs

The Company has agreements where participating suppliers are provided the ability to receive early payment of the Company’s obligations at a nominal discount through supplier finance programs entered into with third party financial institutions. The Company is not a party to these arrangements, and these programs do not impact the Company’s obligations or affect the Company’s payment terms, which generally range from 90

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

to 150 days. The agreements with the financial institutions do not require the Company to provide assets pledged as security or other forms of guarantees for the supplier finance programs. The Company had $112 million and $94 million of outstanding payables related to supplier finance programs as of September 30, 2024 and 2023, respectively, which were recorded within Accounts payable on the Company's consolidated balance sheets.

Note 16 — Debt

Current debt obligations

The carrying value of Current debt obligations, net of unamortized debt issuance costs, at September 30 consisted of:

(Millions of dollars)									2024						2023
Commercial paper borrowings									$	400					$	—
Current portion of long-term debt
3.875% Notes due May 15, 2024			(a)						—						144
3.363% Notes due June 6, 2024			(a)						—						997
3.734% Notes due December 15, 2024									875						—
3.020% Notes due May 24, 2025									335						—
0.034% Notes due August 13, 2025									559						—
Other									1						—
Total current debt obligations									$	2,170					$	1,141

(a)All of the aggregate principal amount outstanding was retired upon maturity during 2024, as further discussed below.

The weighted average interest rates for current debt obligations were 2.91% and 3.43% at September 30, 2024 and 2023, respectively.

From time to time, the Company may access the commercial paper market as it manages working capital over the normal course of its business activities. The Company’s U.S. and multicurrency euro commercial paper programs provide for a maximum amount of unsecured borrowings under the two programs, in aggregate, of $2.750 billion. Proceeds from these programs may be used for working capital purposes and general corporate purposes, which may include acquisitions, share repurchases and repayments of debt. The Company utilized commercial paper borrowings in the fourth quarter of fiscal year 2024 to partially fund the Advanced Patient Monitoring acquisition, as further discussed in Note 11. There was $400 million of commercial paper borrowings outstanding as of September 30, 2024 and no such borrowings outstanding as of September 30, 2023.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Long-term debt

The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:

(Millions of dollars)									2024						2023
3.734% Notes due December 15, 2024									$	—					$	874
3.020% Notes due May 24, 2025									—						306
0.034% Notes due August 13, 2025									—						528
1.208% Notes due June 4, 2026									671						634
6.700% Notes due December 1, 2026									158						161
1.900% Notes due December 15, 2026									559						528
3.700% Notes due June 6, 2027									1,721						1,719
7.000% Debentures due August 1, 2027									118						119
4.693% Notes due February 13, 2028									797						796
6.700% Debentures due August 1, 2028									115						115
0.334% Notes due August 13, 2028									1,004						949
4.874% Notes due February 8, 2029			(a)						622						—
5.081% Notes due June 7, 2029			(a)						596						—
3.553% Notes due September 13, 2029									891						842
2.823% Notes due May 20, 2030									746						745
3.519% Notes due February 8, 2031			(a)						835						—
1.957% Notes due February 11, 2031									994						993
3.828% Notes due June 7, 2032			(a)						1,113						—
4.298% Notes due August 22, 2032									496						496
5.110% Notes due February 8, 2034			(a)						545						—
1.213% Notes due February 12, 2036									668						631
4.029% Notes due June 7, 2036			(a)						889						—
6.000% Notes due May 15, 2039									121						121
5.000% Notes due November 12, 2040									90						90
1.336% Notes due August 13, 2041									999						945
4.875% Notes due May 15, 2044									244						245
4.685% Notes due December 15, 2044									934						899
4.669% Notes due June 6, 2047									1,460						1,445
3.794% Notes due May 20, 2050									554						554
Other long-term debt									1						2
Total Long-Term Debt									$	17,940					$	14,738

(a)Represents notes issued during 2024, as further discussed below.

The aggregate annual maturities of Long-Term Debt including interest during the fiscal years ending September 30, 2025 to 2029 are as follows: 2025 — $2.824 billion; 2026 — $1.297 billion; 2027 — $3.136 billion; 2028 — $2.434 billion; 2029 — $2.581 billion.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Other current credit facilities

In July 2024, the Company extended its five-year senior unsecured revolving credit facility in place by one-year. The credit facility, which will expire in September 2027, provides borrowings of up to $2.750 billion, with separate sub-limits of $100 million and $194 million for letters of credit and swingline loans, respectively. The expiration date of the credit facility may be extended for up to one additional one year period, subject to certain restrictions, including the consent of the lenders. The credit facility provides that the Company may, subject to additional commitments by lenders, request an additional $500 million of financing, for a maximum aggregate commitment under the credit facility of up to $3.250 billion. Proceeds from this facility may be used for general corporate purposes and Becton Dickinson Euro Finance S.à r.l. ("Becton Finance"), an indirect, wholly-owned finance subsidiary of BD, is authorized as an additional borrower under the credit facility. There were no borrowings outstanding under the Company’s revolving credit facility as of September 30, 2024 and 2023. In addition, the Company has informal lines of credit outside of the United States.

Debt issuances

The Company issued the following U.S. dollar-denominated debt during fiscal years 2024 and 2023:

Interest rate and maturity						Period issued						Amount issued (Millions of dollars)						Use of proceeds
5.081% Notes due June 7, 2029						Third quarter 2024						$	600					Funding of the cash consideration and related fees and expenses for the Advanced Patient Monitoring acquisition and for general corporate purposes
4.874% Notes due February 8, 2029						Second quarter 2024						$	625					Retirement of 3.363% notes due June 6, 2024 and retirement, upon maturity, of 3.734% notes due December 15, 2024
5.110% Notes due February 8, 2034						Second quarter 2024						$	550					Retirement of 3.363% notes due June 6, 2024 and retirement, upon maturity, of 3.734% notes due December 15, 2024
4.693% notes due February 13, 2028						Second quarter 2023						$	800					Retirement of 1.401% notes due May 24, 2023 and 0.000% notes due August 13, 2023

The Company issued the following Euro-denominated debt during fiscal year 2024:

Interest rate and maturity						Period issued						Amount issued (Millions of Euros)						Amount issued (millions of dollars)						Use of proceeds
3.828% Notes due June 7, 2032						Third quarter 2024						€	1,000					$	1,087					Funding of the cash consideration and related fees and expenses for the Advanced Patient Monitoring acquisition and for general corporate purposes
3.519% Notes due February 8, 2031						Second quarter 2024						€	750					$	806					Retirement of 3.875% notes due May 15, 2024 and 3.363% notes due June 6, 2024

Also in fiscal years 2024 and 2023, Becton Finance issued Euro-denominated notes, listed below, which are fully and unconditionally guaranteed on a senior unsecured basis by the Company. No other of the Company's subsidiaries provide any guarantees with respect to these notes. The indenture covenants included a limitation on liens and a restriction on sale and leasebacks, change of control and consolidation, merger and sale of assets covenants. These covenants are subject to a number of exceptions, limitations and qualifications. The indenture does not restrict the Company, Becton Finance, or any other of the Company's subsidiaries from incurring additional debt or other liabilities, including additional senior debt. Additionally, the indenture does

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

not restrict Becton Dickinson Euro Finance S.à r.l. and the Company from granting security interests over its assets. The notes issued by Becton Finance included the following:

Interest rate and maturity						Period issued						Amount issued (Millions of Euros)						Amount issued (Millions of dollars)						Use of proceeds
4.029% Notes due June 7, 2036						Third quarter 2024						€	800					$	869					Funding of the cash consideration and related fees and expenses for the Advanced Patient Monitoring acquisition and for general corporate purposes
3.553% notes due September 13, 2029						Second quarter 2023						€	800					$	868					Retirement of 0.632% notes due June 4, 2023

Debt retirements

The Company’s retirements of debt upon maturity in fiscal years 2024 and 2023 included the following:

Principal, interest rate and maturity						Period of retirement
$998 million of 3.363% notes due June 6, 2024						Third quarter 2024
$144 million of 3.875% notes due May 15, 2024						Third quarter 2024
400 million Euros ($439 million) of 0.000% notes due August 13, 2023						Fourth quarter 2023
800 million Euros ($857 million) of 0.632% notes due June 4, 2023						Third quarter 2023
300 million Euros ($325 million) of 1.401% notes due May 24, 2023						Third quarter 2023
500 million Euros ($528 million) of 1.000% notes due December 15, 2022						First quarter 2023

Capitalized interest

The Company capitalizes interest costs as a component of the cost of construction in progress. A summary of interest costs and payments for the years ended September 30 is as follows:

(Millions of dollars)			2024						2023						2022
Charged to operations			$	528					$	452					$	398
Capitalized			57						51						46
Total interest costs			$	584					$	503					$	444
Interest paid, net of amounts capitalized			$	473					$	452					$	390

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Note 17 — Income Taxes

Provision for Income Taxes

The provision (benefit) for income taxes for the years ended September 30 consisted of:

(Millions of dollars)			2024						2023						2022
Current:
Federal			$	132					$	364					$	17
State and local, including Puerto Rico			17						87						32
Foreign			362						303						228
			$	511					$	754					$	277
Deferred:
Domestic			$	(169)					$	(644)					$	(96)
Foreign			(42)						22						(33)
			(211)						(622)						(129)
Income tax provision			$	300					$	132					$	148

The components of Income from Continuing Operations Before Income Taxes for the years ended September 30 consisted of:

(Millions of dollars)			2024						2023						2022
Domestic, including Puerto Rico			$	336					$	358					$	496
Foreign			1,669						1,304						1,287
Income from Continuing Operations Before Income Taxes			$	2,005					$	1,662					$	1,783

Unrecognized Tax Benefits

The table below summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled. The Company believes it is reasonably possible that the amount of unrecognized benefits will change during the next twelve months due to one or more of the following events: expiring statutes, audit activity, tax payments, other activity, or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate. However, the Company does not expect changes to have a significant effect on its results of operations, financial condition, or cash flows.

(Millions of dollars)			2024						2023						2022
Balance at October 1			$	269					$	267					$	354
Increase due to acquisitions			—						—						2
Increase due to current year tax positions			22						22						40
Increase due to prior year tax positions			—						33						60
Decreases due to prior year tax positions			—						(29)						—
Decrease due to settlements with tax authorities			(64)						(6)						(77)
Decrease due to lapse of statute of limitations			(6)						(18)						(112)
Balance at September 30			$	221					$	269					$	267
Unrecognized tax benefits that would affect the effective tax rate if recognized			$	257					$	366					$	348

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

The following were included for the years ended September 30 as a component of Income tax provision on the consolidated statements of income.

(Millions of dollars)			2024						2023						2022
Interest and penalties associated with unrecognized tax benefits			$	42					$	20					$	(6)

The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. The IRS has completed its audit for the BD legacy fiscal year 2014 and BD combined company fiscal years 2015 and 2017. With regard to legacy CareFusion, which the Company acquired in 2015, and legacy Bard, all pre-acquisition examinations have been completed. The IRS is reviewing BD’s fiscal years 2018 through 2022. For the other major tax jurisdictions where the Company conducts business, tax years are generally open after 2016.

Deferred Income Taxes

Deferred income taxes at September 30 consisted of:

			2024												2023
(Millions of dollars)			Assets						Liabilities						Assets						Liabilities
Compensation and benefits			$	405					$	—					$	426					$	—
Property and equipment			—						391						—						405
Intangibles			—						1,612						—						1,858
Loss and credit carryforwards			2,946						—						2,352						—
Product recall and liability reserves			261						—						362						—
Capitalized research and development expenses (a)			364						—						243						—
Other			512						64						431						88
			4,489						2,067						3,814						2,351
Valuation allowance			(2,990)						—						(2,272)						—
Net (b)			$	1,498					$	2,067					$	1,542					$	2,351

(a)As required by the 2017 Tax Cuts and Jobs Act, the Company’s research and development expenditures were capitalized and amortized in fiscal year 2024 for income tax purposes. This resulted in an increase in cash tax paid in fiscal year 2024 with a corresponding deferred tax benefit.

(b)Net deferred tax assets are included in Other Assets and net deferred tax liabilities are included in Deferred Income Taxes and Other Liabilities on the consolidated balance sheets*.*

Deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. The Company asserts indefinite reinvestment for all historical unremitted foreign earnings as of September 30, 2024. Deferred taxes have not been provided on undistributed earnings of foreign subsidiaries as of September 30, 2024 since the determination of the total amount of unrecognized deferred tax liability is not practicable.

Generally, deferred tax assets have been established as a result of net operating losses and credit carryforwards with expiration dates from 2025 to an unlimited expiration date. Valuation allowances have been established as a result of an evaluation of the uncertainty associated with the realization of certain deferred tax assets on these losses and credit carryforwards. The valuation allowance at September 30, 2024 is primarily the result of foreign losses due to the Company’s global re-organization of its foreign entities and these generally have no expiration date. Valuation allowances are also maintained with respect to deferred tax assets for certain state carryforwards that may not be realized. The net change during the year in the total valuation allowance is attributable to foreign losses and credits.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

Tax Rate Reconciliation

A reconciliation of the federal statutory tax rate to the Company’s effective income tax rate for continuing operations was as follows:

			2024						2023						2022
Federal statutory tax rate			21.0		%				21.0		%				21.0		%
State and local income taxes, net of federal tax benefit			(0.7)						(1.0)						(1.1)
Foreign income tax at rates other than 21%			(9.1)						(8.2)						(7.3)
Effect of foreign operations			4.3						(3.9)						5.6
Effect of Research Credits, FDII and Other Credits (a)			(22.1)						(3.2)						(2.2)
Effect of share-based compensation			(0.3)						(0.4)						(1.7)
Effect of gain on divestitures			—						3.2						—
Effect of valuation allowance			19.3						—						(5.5)
Effect of nondeductible costs (b)			2.2						—						—
Other, net			0.4						0.4						(0.5)
Effective income tax rate			15.0		%				7.9		%				8.3		%

(a) During fiscal year 2024, the Company was granted non-U.S. tax credits, for which a full valuation allowance was established.

(b) Primarily related to the estimated liability recorded as a result of the SEC investigation, as further discussed in Note 6.

Tax Holidays and Payments

The approximate tax impacts related to tax holidays in various countries in which the Company does business are provided below. The tax holidays expire at various dates through 2039. The Company’s income tax payments, net of refunds are also provided below.

(Millions of dollars, except per share amounts)			2024						2023						2022
Tax impact related to tax holidays			$	414					$	363					$	284
Impact of tax holiday on diluted earnings per share			1.42						1.26						0.99
Income tax payments, net of refunds			653						629						532

Note 18 — Leases

The Company leases real estate, vehicles and other equipment which are used in the Company’s manufacturing, administrative and research and development activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Company’s lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Company’s leases is approximately 8.3 years. An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option.

The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. For the longer-term lease arrangements that are recognized on the Company’s consolidated balance sheet, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Company’s short-term leases, as well as variable costs relating to the Company’s lease arrangements, are not material to its consolidated financial results.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under an arrangement. The weighted-average incremental borrowing rate that has been applied to measure the Company’s lease liabilities is 4.4%.

The Company’s lease costs recorded in its consolidated statements of income for the years ended September 30, 2024, 2023 and 2022 were $190 million, $145 million and $138 million, respectively. Cash payments arising from the Company’s lease arrangements are reflected on its consolidated statement of cash flows as outflows used for operating activities. The right-of-use assets and lease liabilities recognized on the Company’s consolidated balance sheet as of September 30, 2024 and 2023 were as follows:

(Millions of dollars)			2024						2023
Right-of-use assets recorded in Other Assets			$	876					$	517
Current lease liabilities recorded in Accrued expenses			142						117
Non-current lease liabilities recorded in Deferred Income Taxes and Other Liabilities			667						414

The Company’s payments due under its operating leases are as follows:

(Millions of dollars)
2025			$	174
2026			149
2027			113
2028			86
2029			77
Thereafter			389
Total payments due			988
Less: imputed interest			178
Total			$	809

Note 19 — Supplemental Financial Information

Other Expense, Net

(Millions of dollars)			2024						2023						2022
Other investment gains (losses), net (a)			$	5					$	(3)					$	(35)
Deferred compensation			57						32						(46)
Net pension and postretirement benefit cost (b)			(65)						(98)						(17)
Net foreign exchange losses (c)			(47)						(36)						(28)
Impacts of debt extinguishment (d)			—						—						(24)
Embecta service agreements income, net (e)			26						59						33
Other			(4)						—						1
Other expense, net			$	(28)					$	(46)					$	(117)

(a)The amounts include gains (losses) recognized relating to certain equity investments.

(b)Represents all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, including pension settlement expenses of $57 million and $73 million in fiscal years 2023 and 2022, respectively.

Notes to Consolidated Financial Statements — (Continued)

Becton, Dickinson and Company

(c)Represents net gains and losses from transactional foreign exchange exposures, offset by net gains and losses on undesignated foreign exchange derivatives.

(d)Represents losses recognized upon the extinguishment of certain senior notes.

(e)Consists of net income from transition and logistics service agreements with Embecta following the spin-off of the former diabetes care business in fiscal year 2022, as further discussed in Note 2.

Trade Receivables, Net

The amounts recognized in 2024, 2023 and 2022 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:

(Millions of dollars)			Allowance for Doubtful Accounts						Allowance for Cash Discounts						Total
Balance at September 30, 2021			$	73					$	18					$	91
Additions charged to costs and expenses			4						73						77
Deductions and other			(12)			(a)			(75)						(87)
Balance at September 30, 2022			$	65					$	16					$	81
Additions charged to costs and expenses			9						100						109
Deductions and other			(10)			(a)			(100)						(110)
Balance at September 30, 2023			$	65					$	16					$	81
Additions charged to costs and expenses			30						91						121
Deductions and other			(30)			(a)			(93)						(124)
Balance at September 30, 2024			$	64					$	15					$	79

(a)Accounts written off.

Inventories

Inventories at September 30 consisted of:

(Millions of dollars)			2024						2023
Materials			$	803					$	714
Work in process			443						381
Finished products			2,597						2,178
			$	3,843					$	3,273

The Company acquired $666 million of inventories in the Advanced Patient Monditoring transaction, which is further discussed in Note 11.

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net at September 30 consisted of:

(Millions of dollars)			2024						2023
Land			$	129					$	131
Buildings			3,733						3,537
Machinery, equipment and fixtures			10,197						9,609
Leasehold improvements			320						301
			14,378						13,578
Less accumulated depreciation and amortization			7,557						7,021
			$	6,821					$	6,557

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