Accounting principles generally accepted in the United States require plan management to evaluate uncertain
tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS or the Puerto Rico Department of
Treasury. The Plan administrator has analyzed the tax positions taken by the Plan and has concluded that, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties relation to uncertain tax
positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
7.
Related Parties and Party-In-Interest Transactions
As of
December 31, 2020, the Plan held 74,714 shares of Becton, Dickinson and Company common stock with a fair value of $18,694,878. As of December 31, 2019, the Plan held 85,612 shares of Becton, Dickinson and Company common stock with a fair
value of $23,284,116. During the year, the Plan purchased and sold 925 shares for $212,924 and 11,824 shares for $1,671,757, respectively, of Becton, Dickinson and Company common stock and received $248,708 in dividends on the shares of common
stock.
Party-in-interest transactions also include the Trusts
investments in certain common collective trusts and mutual funds that are managed by the investment managers of the Plan. Among which, Northern Trust funds held by the Trust are managed by Northern Trust, whereas Black Rock funds are managed by
Black Rock, Inc., Fidelity funds are managed by the Trustee, Vanguard funds are managed by The Vanguard Group, and State Street funds are managed by State Street Global Advisors. These transactions qualify as party-in-interest transactions; however, they are exempt from the prohibited transaction rules under ERISA.
8. Risks and Uncertainties
The Trust and the Plan invest
in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that
changes in the values of investment securities will occur in the near term and that such changes could materially affect participants account balances and the amounts reported in the statements of net assets available for benefits.
9. Subsequent Events
The Company announced, on
May 6, 2021 the spin-off of the Diabetes Care business into an independent publicly traded company which is not expected to have a material impact on the plan.
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