Summary
Becton, Dickinson and Company (BD) filed an 8-K on November 1, 2007, to report its fourth fiscal quarter and full fiscal year 2007 financial results. The core of the filing is the disclosure of financial metrics that deviate from Generally Accepted Accounting Principles (GAAP), which the company refers to as non-GAAP measures. BD states these non-GAAP adjustments are used internally for performance evaluation, budgeting, and to provide investors with a clearer view of underlying operational performance by excluding items deemed outside of ordinary operations or that impact period-to-period comparability. Key adjustments include presenting revenue growth at constant foreign exchange rates to remove currency volatility. For selling and administrative expenses, operating income, income taxes, income from continuing operations, and earnings per share, BD is excluding charges related to specific acquisitions (Plasso Technology, TriPath Imaging, and GeneOhm Sciences) and, for fiscal year 2006, the impact of insurance settlements. The company emphasizes that these non-GAAP measures are supplemental and should be considered alongside GAAP results, acknowledging that excluded items can materially impact reported figures.
Key Highlights
- 1BDX filed an 8-K on November 1, 2007, announcing fourth fiscal quarter and full fiscal year 2007 financial results.
- 2The filing primarily provides non-GAAP financial measures, adjusted to exclude certain non-operational or period-specific items.
- 3Revenue growth is presented at constant foreign exchange rates to neutralize currency fluctuations.
- 4Adjustments to operating income, income from continuing operations, and earnings per share exclude in-process R&D charges from acquisitions like Plasso, TriPath, and GeneOhm.
- 5Fiscal year 2006 results were also adjusted to exclude the impact of insurance settlements.
- 6BD management uses these non-GAAP measures for internal performance assessment and budgeting.
- 7The company provides these non-GAAP figures to investors as supplemental information for better insight into underlying business performance, but advises they should be viewed alongside GAAP results.