c. r. bard, inc. 2014 annual report

C. R. Bard, Inc. 2014 Annual Report

FINANCIAL HIGHLIGHTS

Net Sales(in millions of dollars)

12 13

3,049.5+3%

3,323.6+9%

140.000000

553.933306

1107.866611

1661.799917

2215.733222

2769.666528

3323.599834

Diluted Earnings Per Share Available To Common Shareholders1

(in dollars)

1 Excluding the items identified

to the right

12

7.22

13

6.51-10%

8.40+29%

140.0

1.4

2.8

4.2

5.6

7.0

2,958.1

Cash Dividends Paid Per Share(in dollars)

12 13

.82+5%

.86+5%

140.000000

0.143334

0.286669

0.430003

0.573338

0.716672

.78


12 13

3,049.5+3%

3,323.6+9%

140.000000

553.933306

1107.866611

1661.799917

2215.733222

2769.666528

3323.599834


(in dollars)


to the right

12

7.22

13

6.51-10%

8.40+29%

140.0

1.4

2.8

4.2

5.6

7.0

2,958.1


12 13

.82+5%

.86+5%

140.000000

0.143334

0.286669

0.430003

0.573338

0.716672

.78


12 13

3,049.5+3%

3,323.6+9%

140.000000

553.933306

1107.866611

1661.799917

2215.733222

2769.666528

3323.599834


(in dollars)


to the right

12

7.22

13

6.51-10%

8.40+29%

140.0

1.4

2.8

4.2

5.6

7.0

2,958.1


12 13

.82+5%

.86+5%

140.000000

0.143334

0.286669

0.430003

0.573338

0.716672

.78

“ Net sales in constant currency” and “diluted earnings per share available to common shareholders excluding the items identified below” (adjusted EPS) are non-GAAP financial measures. For a reconciliation of net sales in constant currency, see page II-4 in the accompanying Annual Report on Form 10-K for the year ended December 31, 2014 (Form 10-K).

Net Income and Adjusted Earnings Per Share Reconciliation

• Described below are certain items in each of 2014, 2013 and 2012 that affect the comparability of the company’s results of operations between periods.

• For the year ended December 31, 2014, the following items affected the comparability of results between periods: (i) net charges of $31.9 million pre-tax for acquisition-related items including purchased research and development, transaction costs, purchase accounting adjustments and integration costs; (ii) a credit of $3.5 million pre-tax related to the excise tax paid on U.S. medical device sales in 2013 associated with an agreement reached with the IRS during 2014; (iii) a charge of $6.2 million pre-tax related to an asset impairment; (iv) charges of $288.6 million pre-tax related to estimated costs for product liability matters, net of recoveries, which includes $30.1 million of litigation-related defense costs in connection with the District Court’s pre-trial orders that the company prepare 500 individual cases for trial; (v) charges of $11.8 million pre-tax for restructuring and productivity initiatives; (vi) a gain of $7.1 million pre-tax related to the sale of an equity investment; and (vii) a decrease of $10.9 million in the income tax provision associated with the completion of IRS examinations for the tax years 2008 through 2010. The net effect of these items decreased net income by $291.5 million, or $3.72 diluted earnings per share available to common shareholders. Amortization of intangible assets was $108.8 million pre-tax, which decreased net income on an adjusted basis by $72.4 million, or $0.92 diluted earnings per share available to common shareholders.

• For the year ended December 31, 2013, the following items affected the comparability of results between periods: (i) charges of $50.3 million pre-tax for acquisition-related items including purchased research and development, transaction costs, purchase accounting adjustments and integration costs; (ii) charges of $12.3 million pre-tax related to asset impairments; (iii) a gain of $894.3 million pre-tax related to a patent infringement judgment against W. L. Gore & Associates, Inc.; (iv) charges of $428.0 million pre-tax related to estimated costs for product liability matters, net of recoveries, and other litigation matters; (v) a gain of $213.0 million pre-tax related to the sale of the electrophysiology division; (vi) a charge of $22.5 million pre-tax related to a contribution to the C. R. Bard Foundation, Inc.; (vii) charges of $17.5 million pre-tax for divestiture-related costs; (viii) a reversal of $1.4 million pre-tax of restructuring costs; and (ix) a decrease of $2.2 million in the income tax provision associated with the remeasurement of an uncertain tax position as a result of a legal settlement. The net effect of these items increased net income by $214.9 million, or $2.61 diluted earnings per share available to common shareholders. Amortization of intangible assets was $89.5 million pre-tax, which decreased net income on an adjusted basis by $60.2 million, or $0.73 diluted earnings per share available to common shareholders.

• For the year ended December 31, 2012, the following items affected the comparability of results between periods: (i) charges of $9.4 million pre-tax for acquisition-related items including purchased research and development, transaction costs, purchase accounting adjustments and integration costs; (ii) charges of $22.2 million pre-tax related to asset impairments; (iii) net charges of $17.4 million pre-tax for restructuring costs; and (iv) an increase of $1.1 million in the income tax provision due to the write-down of a tax receivable in a foreign jurisdiction. The net effect of these items decreased net income by $35.2 million, or $0.41 diluted earnings per share available to common shareholders. Amortization of intangible assets was $82.7 million pre-tax, which decreased net income on an adjusted basis by $56.0 million, or $0.65 diluted earnings per share available to common shareholders.

Important Information Regarding Forward-Looking Statements

This report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “forecast”, “plan”, “believe”, and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. The company undertakes no obligation to update its forward-looking statements. Please refer to “Risks and Uncertainties; Cautionary Statement Regarding Forward-Looking Information” in the accompanying Form 10-K for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.

Operations as of and for the year ended December 31:

(dollars in millions except per share data) 2014 2013 2012

Net sales $ 3,323.6 $ 3,049.5 $ 2,958.1

Net income $ 294.5 $ 689.8 $ 530.1

Diluted earnings per share available

to common shareholders $ 3.76 $ 8.39 $ 6.16

Diluted earnings per share available

to common shareholders

excluding the items identified below $ 8.40 $ 6.51 $ 7.22

Cash dividends paid per share $ 0.86 $ 0.82 $ 0.78

Research and development expense $ 302.0 $ 295.7 $ 203.2

Return on shareholders’ investment 15.1% 34.4% 28.7%

Number of employees 13,900 13,000 12,200

C. R. Bard, Inc. 2014 Annual Report 1

C. R. Bard, Inc., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialties. We market our products and services worldwide to hospitals, individual health care professionals, extended-care facilities and alternate-site facilities. We pioneered the development of single-use medical products for hospital procedures, and we are committed to pursuing technological innovations that offer superior clinical benefits while helping to reduce overall health care costs.

ADVANCING LIVES AND THE DELIVERY OF HEALTH CARE ™

2 C. R. Bard, Inc. 2014 Annual Report

DEAR SHAREHOLDERS

Bard has come a long way in the two years since we outlined a new and ambitious three-year strategic investment plan. At the time, our organic growth was flat, and we explained that our focus would be on returning to growth. In 2014, we were pleased to see sequential improvement in our organic growth rate each quarter, finishing the year in the mid-single digits.

John H. WeilandPresident andChief Operating Officer

Timothy M. RingChairman andChief Executive Officer


As we move into 2015, we remain focused on the execution of this investment plan.

By continuing our efforts to expand into faster-growing geographies; invest in research and

development (R&D) in faster-growing product segments; and acquire new growth platforms,

we expect to continue to shift the mix of our product portfolio toward faster, sustainable

growth and profitability.

INTERNATIONAL MARKETS

We have expanded our presence in international markets. As anticipated in our strategic

investment plan, our emerging market sales continued to increase and, by the end of 2014,

represented about 9% of our total revenue. Overall, about a third of our worldwide sales

representatives are now located in emerging markets.

We are seeing higher productivity from our international teams as they become more

established and broaden their scope and capabilities. Today, 65% of our global work force

is located outside the United States. We have expanded our international product offerings

and have a pipeline of existing products that await regulatory approval in new markets.

In fact, last year, we registered 192 new products internationally.

RESEARCH AND DEVELOPMENT

We had been eagerly anticipating the launch of the Lutonix® 035 drug-coated balloon

(see page 7) since we acquired the technology in late 2011. Following the most rigorous

clinical trial in our history and after a unanimous favorable vote from the U.S. Food & Drug

Administration (FDA) review panel, we received their approval to market the Lutonix® balloon

in the U.S. on October 10, 2014. We began shipping product to customers immediately,

with the first procedures performed the following day. In February 2015, the Centers for

Medicare and Medicaid Services approved a supplemental reimbursement to cover additional

costs to U.S. hospitals for treating Medicare beneficiaries with the Lutonix® balloon in the

outpatient setting. Less than 20 products have received such an approval since 2002 in all

of health care, including pharmaceuticals.

The Lutonix® balloon serves as a good example of how we intend to shift the mix of our

portfolio to faster revenue growth categories. We first acquired a potential game-changing

technology platform, invested in further development and clinical research, and then became the

first-to-market in the U.S. in a new fast-growing segment through careful and diligent execution.

Our investments in R&D led to the launch of over 40 new products in 2014. Besides the

Lutonix® balloon, key launches included xenmatrix™ AB, the first antibacterial-coated biological

mesh; a DigniShieLD® stool management system with medication delivery capabilities; the

Site~rite Vision® II ultrasound system with integrated tip tracking and tip confirmation for PICCs;

new cooling pad configurations for our arctic Sun® targeted temperature management system


for use with neonates and pediatric patients; new sizes of our FLuency® Plus endovascular

stent graft; the LiFeStream™ balloon expandable vascular covered stent; and the SureStep™

Foley tray system.

Last spring, we opened a new design center in China, further underscoring the importance

of this market not just in terms of sales, but in the generation of new technologies. Products

developed at this center will not only be designed to local regulatory requirements, but to

global standards with the potential to be sold in virtually any geographic market.

CHANGING THE MIX

In business development, we have focused on entering new markets with technologies that

offer the potential for above-average growth. Examples of new market segments we have

entered this way include drug-coated balloons, targeted temperature management, biosurgery,

valvuloplasty and home care.

This year we marked the one-year anniversaries of the acquisitions of Rochester Medical, Inc.,

(including the magic3® intermittent catheter featured on page 8) and Medafor, Inc., and

both have become key revenue drivers for our urology and biosurgery franchises, respectively.

We remain very active in the assessment of potential acquisitions that will help further

accelerate the growth profile of our product portfolio.

At the same time, we have been focusing on health and economic data to provide

Value Analysis Committees, and other stakeholders at hospitals and large integrated delivery

networks, with the clinical and economic evidence to support our products. These data typically

demonstrate how Bard’s products add value by solving clinical problems while reducing costs

across the spectrum of care.

REVISED MISSION STATEMENT

As the world of health care continues to evolve, we feel it is important that we acknowledge

all of the ways we access and serve our various customers. In 2014, we reviewed our Strategic

Summary and our Mission Statement and realized that while they still had a great deal of

validity, neither was broad enough to capture our mission as we see it today.

More people are receiving the care they need outside of the inpatient setting compared to

just a few years ago. We have been increasing our focus on patients wherever they may be while

continuing to build on our strong story of performance in the acute-care setting. We continue

to work alongside clinicians as they address variability in their care delivery. We can help them

improve quality while enhancing patient satisfaction and addressing the total cost along the

continuum of care, regardless of where the treatment occurs.

With these ideas in mind, we modified our Mission Statement to affirm Bard’s position as a

leader in the worldwide health care industry, today and in the future:


Toadvancelivesandthedeliveryofhealthcarebyprofitablydeveloping,manufacturing

andmarketingvalue-drivenproductswhichmeetthequality,integrity,serviceandinnovation

expectationsofourcustomersandpatientswhileprovidingopportunitiesforouremployees.

Asaresult,wewilloptimizeshareholdervalueandbearespectedworldwidehealthcarecompany.

MANAGEMENT AND THE BOARD OF DIRECTORS

We continue to benefit from the capable guidance and counsel of our experienced Board of

Directors, which remains unchanged since last year.

On the management side, we bid farewell to three executive officers: Gary D. Dolch, PhD,

Senior Vice President, Quality, Regulatory and Medical Affairs; Peter M. Kreindler, Senior Vice

President, General Counsel and Secretary; and Bronwen K. Kelly, Vice President, Human

Resources. We thank each of them for their contributions to Bard, and wish them all the

best in retirement.

We are excited to welcome Samrat S. Khichi as Senior Vice President, General Counsel

and Secretary, and Betty D. Larson as Vice President, Human Resources. In addition,

Patricia G. Christian was promoted to Vice President, Quality, Regulatory and Medical

Affairs with the retirement of Gary Dolch.

THE YEAR AHEAD

Our objective is to position Bard to deliver above-market revenue growth for years to come.

We believe the investments we have made—and plan to make in 2015—will improve the organic

engine of the company in both revenue and profitability.

We can only achieve sustainable long-term growth with the entire organization aligned

and focused on the execution of our strategic investment plan. We thank our employees for

the hard work and commitment they demonstrated in 2014.

As we work to further accelerate the growth profile of the business, we thank you, our

shareholders, for your steadfast support.

Sincerely,

February 23, 2015

Timothy M. RingChairman and Chief Executive Officer

John H. WeilandPresident and Chief Operating Officer


“ I was very fortunate that my doctor asked me to be part of a study.”


After winding down his career as a pediatric dentist in suburban Boston, Terry Hoover and his wife Ann retired to a cottage on the banks of the Potomac River in rural Maryland. It’s a long way from the bustle of the city, but the active couple enjoy the expansive views from their porch and the opportunity to trap fresh blue crabs right off their own dock. While taking his dog out for a brisk walk one day in 2011, Terry developed a small twinge in the calf of his right leg. Hoping it would resolve itself in a couple of days, he tried to walk through the pain, but it only worsened. “As the weeks went by, it became more difficult for me to effectively leave my house,” he remembers. His local cardiologist suspected peripheral arterial disease (PAD) and referred him to Nelson Bernardo, MD, a cardiologist at Washington Hospital Center in Washington, DC, to have the narrowed artery opened via balloon angioplasty. Two and a half months after his initial procedure, the pain in Terry’s leg returned. “I went back to see Dr. Bernardo, and I was very fortunate in that not only was he willing to try again, but he asked me to be part of a study,” says Terry. That study was the LEVANT 2 clinical trial—the first FDA-approved pivotal trial for a drug-coated balloon. The LEVANT 2 trial compared a Lutonix® balloon coated with a therapeutic dose of the drug paclitaxel to a plain, uncoated balloon for treatment of PAD in the femoropopliteal arteries. Paclitaxel has been shown to delay or prevent the regrowth of fibrous tissue, allowing the diseased vessel to stay open. Three years after his treatment with the Lutonix® drug-coated balloon, Terry remains free of pain and full of energy. “Part of my life is spent taking care of our property, which I enjoy,” he says. “I’m looking forward to the future and living on the water with my wife for many years ahead.”

OPEN TO A NEW TREATMENT


Wake up. Let the dogs out. Drop the kids off at school. Go to work or run some errands—or both. Most parents can relate to the routine hustle and bustle of daily life with school-age children, but few can comprehend such a busy lifestyle while being paralyzed from the waist down. Leslie Ostrander—married mother of two boys, writer, motivational speaker, advocate for the disabled, and a C-7 quadriplegic since a car accident when she was only four years old—is active by any standard. She met her husband while she was on a ski trip. He was an instructor with experience in adaptive sports. “The first thing Aaron ever said to me was, ‘Nice wheels, babe!’” she laughs. “It didn’t take long before he introduced me to other sports, from tubing to wheelchair racing.” They also enjoy some more relaxing pursuits, such as fishing and boating on the Gulf of Mexico and camping with their sons. Whatever the activity, Leslie does not want to waste time worrying about emptying her bladder. “When I was a child, the only option was to use indwelling catheters,” she recalls. “Like so many people with paralysis, I had more than my share of urinary tract infections.” Eventually, intermittent self-catheterization became available, providing a better option for consumers. Leslie has experienced the evolution of the technology firsthand, and today she favors the innovative magic3® catheter because of its comfort and convenience. It combines the benefits of an all-silicone design and packaging for easy handling, comfort and convenience. When she’s out and about, the closed system gives her total freedom. “The sterile, single-use packages are discreet and easy to use, whether I’m at a campsite or a shopping center,” says Leslie. “I can put catheterization out of my mind and instead focus on family, friends and the things that matter most.”

NO TIME TO WORRY


“ I can put catheterization out of my mind and instead focus on the things that matter most.”


“ The idea that in a couple of years, no synthetic material would be left in my body really appealed to me.”


The word “retirement” is not in the vocabulary of Evangelos “Angel” Levas. He started working when he was 10, slicing buns at the hot dog stand that his parents owned in downtown Lexington, Kentucky. After he graduated from the University of Kentucky on an ROTC scholarship, he served as an Air Force officer in Germany before returning home to partner with his brother, John Levas, transforming their parents’ business into the premier fine dining destination in the city. “I was married to the restaurant,” he recalls. “A short day was 14 hours.” When he closed the restaurant, he entered the next phase of his career, selling microsurgery devices for ophthalmology. “I figured if I could sell hot dogs, I could sell anything,” he jokes. Angel still takes an active interest in the business at the age of 83, as it gives him time to indulge his passion for travel—including to his parents’ homeland of Crete—and leaves time for his many other interests and activities. Early in 2013, Angel had open surgery on his intestine, and he spent two weeks recovering in the hospital. Less than a year later, he developed an incisional hernia when part of his intestine began to push through his abdominal wall where it had been weakened by the surgery. Frustrated, he sought the advice of J. Scott Roth, MD, a surgeon at the University of Kentucky, who recommended using Bard’s phaSix™ mesh to repair the hernia. Dr. Roth explained that the phaSix™ mesh is a fully resorbable synthetic hernia patch that provides a strong, durable repair without leaving foreign material permanently in the body. “The idea that in a couple of years, no synthetic material would be left in my body really appealed to me,” says Angel. Now fully recovered, he’s already planning several trips, including visits to ophthalmology symposia in San Diego and Barcelona and his annual visit to Crete. “I don’t have time to put life on hold for another surgery.”

NOTHING LEFT BEHIND


PRODUCT GROUP REVIEW

Key Products

EndovascularBiopsy DevicesValvuloplasty DevicesPeripheral Angioplasty CathetersDrug-coated PTA BalloonsVena Cava FiltersPeripheral Vascular Stents and Stent GraftsGraftsDialysis Access GraftsPeripheral Vascular Grafts

ConstantVascular Reported Currency

EP* -66% -66%Endovascular** 28% 28%Grafts -3% -3%

Total Vascular 12% 12%

Vascular

Five-Year Compound Growth Rate: 6.4%

2014 Net Sales Growth

141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

ConstantUrology Reported Currency

Basic Drainage 7% 7%Continence 33% 33%Urological Specialties 5% 5%Catheter Stabilization -2% -2%

Total Urology 8% 8%

Urology



141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

Key Products

Basic DrainageIntermittent Self CathetersUrinary Catheters and TraysInfection Control Foley CathetersUreteral Catheters and StentsUrine Collection DevicesContinenceSurgical Continence ProductsFecal Incontinence ProductsContinence Management DevicesUrological SpecialtiesBrachytherapy Services, Seeds and AccessoriesSpecialty Foley CathetersStone Management DevicesCatheter Stabilization

Targeted Temperature Management Products

Key Products

Implantable PortsChronic CathetersPeripherally Inserted Central Catheters (PICCs)Dialysis Access CathetersVascular Access UltrasoundEnteral Feeding Devices

ConstantOncology Reported Currency

Ports 3% 3%PICCs and Midlines 10% 10%Dialysis & Other 4% 4%

Total Oncology 6% 7%

Oncology



141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

Key Products

Soft Tissue RepairInguinal Hernia Repair ProductsVentral Hernia Repair ProductsComplex Hernia Repair ProductsBreast Reconstruction ProductsSurgical Fixation DevicesPerformance IrrigationOrthopedic and Hysteroscopic DevicesLaparoscopic Devices and AccessoriesBiosurgical ProductsTopical Blood Clotting ProductsSurgical Hemostats Surgical Sealants

Surgical Specialties

ConstantSurgical Specialties Reported Currency

Soft Tissue Repair 5% 5%Performance Irrigation -10% -10%Biosurgical Products 71% 72%

Total Surgical 11% 12%



141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

141312111009


0.000000

154.716775

309.433551

464.150326

618.867101

773.583876 681.5

755.9+11%

842.4+11%

845.0+0%

830.0-2%

928.3+12%

141312111009


0.000000

139.316704

278.633408

417.950112

557.266816

696.583520700.3

718.1+3%

734.8+2%

757.8+3%

776.6+2%

835.9+8%

141312111009


0.000000

151.816707

303.633414

455.450121

607.266828

759.083535 678.7

724.8+7%

779.5+8%

812.4+4%

857.1+6%

910.9+6%

141312111009


0.000000

92.516663

185.033325

277.549988

370.066650

462.583313

555.099976

387.8

434.6+12%

450.0+4%

455.1+1%

499.0+10%

555.1+11%

TotalNet Sales

27%

17%

25%

28%

TotalNet Sales

TotalNet Sales

TotalNet Sales

* In November 2013, Bard sold its electrophysiology division to Boston Scientific, retaining only the guidewire and temporary pacing electrode product lines.

** In 2014, the company began receiving royalty payments from W. L. Gore & Associates, Inc.


These employees were nominated by their colleagues for their exemplary performance and commitment to Bard’s principles of Quality, Integrity, Service and Innovation. Each has also demonstrated the highest of personal values through a dedication to community and family.

Front, L-R:

Samuel Andres Villegas GiorgiEMEA Marketing DirectorDavol, Bard EMEABarcelona, Spain

Josie Barnés MastacheSr. Director of Human Resources Bard Shannon Ltd. & Bridger MontanaHumacao, PR

Carol PeglerDirector of Human Resources Australia/NZ and Rest of Asia Sydney, Australia

Middle, L-R:

Alex WangNational Sales Operation Manager/BAS Bard ChinaWuhan, China

Keith DorseyDirector of Commercial Project ManagementDavol Inc.Warwick, RI

Myra McGinleySenior ManagerCorporate GovernanceBard CorporateMurray Hill, NJ

Pamela WelchQuality Engineer IIGlens Falls Technology CenterQueensbury, NY

Rear, L-R:

Michael DeTempleField ManagerBard Peripheral VascularTempe, AZ

Frances ProtanoSales Training CoordinatorDavol Inc.Warwick, RI

Robert ProctorPrincipal Software EngineerBMD MedivanceLouisville, CO

Russell StevensControllerWorld Wide OperationsBard CorporateMurray Hill, NJ

Robert HigginsAssociate DirectorQuality AssuranceBard Access SystemsSalt Lake City, UT

Not shown:

David BarcombPlanning & Purchasing Manager/LutonixGlens Falls Technology CenterQueensbury, NY

2014 CHARLES RUSSELL BARD AWARD RECIPIENTS


Timothy M. RingChairman and Chief Executive Officer C. R. Bard, Inc.

John C. KellyRetired Vice President and ControllerWyeth

David M. Barrett, MDEmeritus President and Chief Executive Officer The Lahey ClinicClinical Professor of SurgeryDartmouth Medical School

Marc C. BreslawskyRetired Chairman and Chief Executive Officer Imagistics International Inc.

Herbert L. HenkelRetired Chairman and Chief Executive OfficerIngersoll-Rand Company

David F. MelcherChief Executive Officer and PresidentExelis, Inc.

Tommy G. ThompsonFormer U.S. Department of Health & Human Services SecretaryFormer Governor of Wisconsin

John H. WeilandPresident and Chief Operating OfficerC. R. Bard, Inc.

Anthony WeltersExecutive Chairman of BlackIvy Group LLC and Senior Advisor to the Chief Executive Officer of UnitedHealth Group, Inc.

Tony L. WhiteRetired Chairman, President and Chief Executive OfficerApplied Biosystems, Inc.

Gail K. Naughton, PhDChairman and Chief Executive OfficerHistogen, Inc.

BOARD OF DIRECTORS


Timothy M. Ring*Chairman and Chief Executive Officer

John H. Weiland*President and Chief Operating Officer

Christopher S. Holland*Senior Vice President and Chief Financial Officer

Jim C. Beasley*Group President

Timothy P. Collins*Group President

John P. Groetelaars*Group Vice President

Sharon M. Luboff*Group Vice President

John A. DeFord, PhD*Senior Vice President Science, Technology and Clinical Affairs

Samrat S. Khichi*Senior Vice President,General Counsel and Secretary

Andrea J. CasperVice President Regulatory Affairs

Patricia G. Christian*Vice PresidentQuality, Regulatory and Medical Affairs

Todd W. GarnerVice President Investor Relations

Charles A. KraussVice PresidentIntellectual Property and Operational Excellence

Betty D. Larson*Vice President Human Resources

Brian J. LeddinVice President Global Ethics and Compliance Officer

Scott T. LowryVice President and Treasurer

Frank Lupisella Jr.*Vice President and Controller

Patrick D. RocheVice President Information Technology Solutions

Richard C. RosenzweigVice President Law and Assistant Secretary

Gin SchulzVice PresidentQuality Assurance

*DenotesExecutiveOfficer

CORPORATE LEADERSHIP TEAM


Corporate Offices730 Central AvenueMurray Hill, New Jersey 07974(908) 277-8000www.crbard.com

AuditorsKPMG LLP51 John F. Kennedy ParkwayShort Hills, New Jersey 07078-2778

Annual Meeting10:00 a.m., Wednesday, April 15, 2015Wyndham Hamilton Park Hotel and Conference Center175 Park Avenue Florham Park, NJ 07932

Shareholder InformationAdditional shareholder or investor information on Bard’s reports or filings with the SEC, Corporate Governance Guidelines, Code of Ethics for Senior Financial Officers and other governance materials are posted on Bard’s web site at www.crbard.com. Shareholders may receive, without charge, printed copies of these documents by contacting:

Todd W. GarnerVice President – Investor RelationsC. R. Bard, Inc.730 Central AvenueMurray Hill, New Jersey 07974(908) 277-8065

Comparison of Five-Year Cumulative Total ReturnsThe graph below compares the cumulative total shareholder return on Bard common stock for the last five years with the cumulative total return on the S&P 500 Index and the S&P 500 Health Care Equipment Index over the same period. The graph assumes the investment of $100 in each of Bard common stock, the S&P 500 Index and the S&P 500 Health Care Equipment Index on December 31, 2009, and that all dividends were reinvested.

Stock ListedNew York Stock Exchange (NYSE)Symbol: BCR

Registrar and Transfer AgentComputershare Trust Company, N.A.Shareholder Relations250 Royall StreetCanton, Massachusetts 02021(800) 446-2617www.computershare.com/investor

Please direct inquiries regarding change of address, lost certificates and other share transfer matters to the above address.

Computershare Investment Plan for ShareholdersRegistered shareholders and non-shareholders may purchase Bard common stock at any time with a low fee structure compared with normal brokerage fees. Dividends may be reinvested in Bard common stock at no cost to the shareholder. The plan is a convenient and economical way for shareholders to initiate and increase their investment in Bard through the purchase of shares with voluntary cash payments and/or all or part of their dividends. Cash payments may be made by mail or through automatic monthly deductions from their bank account.

For details or enrollment in the Computershare Investment Plan or for direct deposit of dividends, simply contact Computershare, which administers these programs for Bard. Please direct inquiries to:

Computershare Investment Planfor Shareholders of C. R. Bard, Inc.Computershare Trust Company, N.A.250 Royall StreetCanton, Massachusetts 02021(800) 446-2617www.computershare.com/investor

Proposed Next Four Dividend Dates

2015 Record Date Payment Date

Second April 27 May 8 Third July 20 July 31Fourth October 26 November 6

2016

First January 25 February 5

Advancing Lives and the Delivery of Health Care, Bard, Arctic Sun, DigniShield, Fluency, LifeStream, Lutonix, Magic3, Medafor, Phasix, Rochester, Site~Rite Vision, SureStep and XenMatrix are trademarks and/or registered trademarks of C. R. Bard, Inc.

All other trademarks are the property of their respective owners.

© 2015 C. R. Bard, Inc. All Rights Reserved.

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250

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C.R. Bard, Inc. S&P 500 Index S&P 500 Health Care Equipment Index

CORPORATE INFORMATION

C. R. Bard, Inc.

730 Central AvenueMurray Hill, New Jersey 07974www.crbard.com

c. r. bard, inc. 2014 annual report

Documents