Acquisitions Bard On December 29, 2017, the Company completed its acquisition of Bard, to create a medical technology company which is uniquely positioned to improve both the treatment of disease for patients and the process of care for health care providers. Under the terms of the transaction, Bard common shareholders received approximately $222.93 in cash and 0.5077 shares of BD stock per Bard share. The Company financed the cash portion of total consideration transferred with available cash, which included net proceeds raised in the third quarter of fiscal year 2017 through registered public offerings of equity securities and debt transactions of approximately $4.8 billion and $9.6 billion , respectively. The operating activities of Bard from the acquisition date through December 31, 2017 were not material to the Companys consolidated results of operations. As such, Bard's operating results were included in the Companys consolidated results of operations beginning on January 1, 2018. The acquisition-date fair value of consideration transferred consisted of the components below. The fair value of the shares and equity awards issued as consideration was recognized as a $6.5 billion increase to Capital in excess of par value and a $2.1 billion decrease to Common stock in treasury. (Millions of dollars) Cash consideration $ 16,400 Non-cash consideration-fair value of shares issued 8,004 Non-cash consideration-fair value of equity awards issued 613 Total consideration transferred $ 25,017 The acquisition-date fair value of the Companys ordinary shares issued to Bard shareholders was calculated per the following (shares in millions): (Millions of dollars, except per share data) Total Bard shares outstanding 73.359 Conversion factor 0.5077 Conversion of Bard shares outstanding 37.243 Conversion of pre-acquisition equity awards 0.104 Total number of the Company's share issued 37.347 Closing price of the Companys stock $ 214.32 Fair value of the Companys issued shares $ 8,004 Allocation of Consideration Transferred to Net Assets Acquired As discussed in Note 6 , the majority of Bard's product offerings are reported, beginning with the second quarter of fiscal year 2018, under the Interventional segment and Bard's remaining product offerings are reported under the Company's Medical segment. 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. The preliminary allocations of the purchase price below provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. These provisional estimates will be adjusted upon the availability of further information regarding events or circumstances which existed at the acquisition date and such adjustments may be significant. The assets acquired and liabilities assumed in this acquisition, as recorded in the Company's consolidated balance sheet at September 30, 2018 , were largely allocated to the Company's new Interventional segment. (Millions of dollars) Cash and equivalents $ 1,480 Trade receivables 472 Inventories 974 Property, plant and equipment 553 Developed technology 10,469 Customer relationships 1,146 Other assets 624 Total identifiable assets acquired 15,718 Payables, accrued expenses and other liabilities 1,276 Short term and long-term debt 1,692 Product liability and other legal reserves 2,029 Deferred tax liabilities 1,713 Total liabilities assumed 6,711 Net identifiable assets acquired 9,007 Goodwill 16,009 Net assets acquired $ 25,017 Identifiable Intangible Assets Acquired The developed technology assets acquired represented Bards developed technologies in the fields of vascular, urology, oncology, and surgical specialties. The technologies fair values were determined based on the present value of projected cash flows utilizing an income approach with a risk-adjusted discount rate of 8% . The technologies will be amortized over an estimated weighted-average amortization period of 14 years , which is the weighted average period over which the technologies are expected to generate substantial cash flows. The customer relationships assets acquired represented Bards relationships with its customers. The fair value of these customer relationships was determined based on the present value of projected cash flows utilizing an income approach with a risk-adjusted discount rate of 8% . The estimated weighted-average amortization period of the customer relationships was determined to be 13 years and this period corresponds with the weighted average of lives determined for the product technology which underlies the customer contracts. Goodwill Goodwill typically results through expected synergies from combining operations of the acquiree and the acquirer, as well as from intangible assets that do not qualify for separate recognition. The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the Company's leadership in medication management and infection prevention with an expanded offering of solutions across the care continuum. Additionally, Bard's strong product portfolio and innovation pipeline are expected to increase the Company's opportunities in fast-growing clinical areas. Revenue synergies are also expected to result from enhanced growth opportunities for the combined company in non-U.S. markets. No portion of goodwill from this acquisition was deductible for tax purposes. Amounts Related to Bard's Legal Proceedings and Claims Accruals for Bard-related product liability and other legal matters represented approximately $2.0 billion of the liabilities assumed. Cash and equivalents include a restricted cash balance acquired which largely represents funds that are restricted for certain product liability matters assumed. Additional disclosures regarding Bard's legal proceedings and claims are provided in Note 5 . The Tax Cuts and Job Act Transition Tax The net assets acquired included approximately $175 million of transition tax payable based on the Companys best estimate of its transition tax liability under new U.S. tax legislation which is further discussed in Note 16 . Transaction Costs Transaction costs related to this acquisition incurred during the years ended September 30, 2018 and 2017 were approximately $56 million and $25 million , respectively. These transaction costs were recorded as Acquisitions and other restructurings and consisted of legal, advisory and other costs. See Note 11 for discussion regarding restructuring costs incurred relative to the Bard acquisition in 2018 . Unaudited Pro Forma Information As noted above, Bard's operating activities from the acquisition date through December 31, 2017 were not material and the Company included Bard in its consolidated results of operations beginning on January 1, 2018. Revenues in 2018 were $3 billion . Net Income in 2018 included loss attributable to Bard of $(107) million . The following table provides the pro forma results for the fiscal years 2018 and 2017 as if Bard had been acquired as of October 1, 2016. (Millions of dollars, except per share data) 2018 2017 Revenues $ 16,947 $ 15,781 Net Income $ 390 $ 1,145 Diluted Earnings per Share $ 0.90 $ 3.60 The pro forma results above include the impact of the following adjustments, as necessary: additional amortization and depreciation expense relating to assets acquired; interest and other financing costs relating to the acquisition transaction; and the elimination of one-time or nonrecurring items. The one-time or nonrecurring items eliminated for the year ended September 30, 2018 were primarily comprised of fair value step-up adjustments of $478 million recorded relative to Bard's inventory on the acquisition date, the transaction costs discussed above, as well as certain Bard-related restructuring costs disclosed in Note 11 . In addition, amounts previously reported by Bard as revenues related to a royalty income stream have been reclassified to Other income (expense), net to conform to the Company's reporting classification. The pro forma results do not include any anticipated cost savings or other effects of the planned integration of Bard. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. Other Transactions During the fourth quarter of fiscal year 2018, the Company acquired TVA Medical, Inc., a company that develops minimally invasive vascular access solutions for patients with chronic kidney disease requiring hemodialysis. This acquisition did not materially impact the Company's consolidated financial results. The Company has completed various other acquisitions during fiscal year 2018 which were not material individually or in the aggregate. Upon the Company's acquisition of CareFusion, it acquired a 40% ownership interest in Caesarea Medical Electronics ("CME"), an Israeli-based global infusion pump systems manufacturer. The Company previously accounted for this interest as an equity investment. On April 3, 2017, the Company acquired the remaining 60% ownership interest in CME. This acquisition did not materially impact the Company's consolidated financial results.