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. 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 related 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, 2021 the Plan held
1,790,191 shares of the Companys common stock with a fair value of $450,197,170. As of December 31, 2020, the Plan held 1,992,678 shares of the Companys common stock with a fair value of $498,607,896. During the year, the Plan
purchased and sold 19,414 shares for $4,815,522 and 221,901 shares for $54,342,266, respectively, of the Companys common stock and received $6,280,926 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
invests 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
On April 1, 2022, the Company
completed its spinoff of Embecta Corp (embecta), an independent publicly traded company, which holds BDs former Diabetes Care business. Consistent with other shareholders, the Trust received one share of embecta common stock for every five
shares of Company common stock held on March 22, 2022, the record date for the spin-off, with cash in lieu of fractional shares of embecta common stock. In connection with the spinoff, certain Company employees were transferred to embecta. As a
result, approximately $105 million of assets were transferred out of the Plan and Trust.
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