8-KEarnings & ResultsExhibits & Filings

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 1, 2007)

Filed November 1, 2007For Securities:BDX

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Becton, Dickinson and Company's (BDX) financial results for its fourth fiscal quarter and full fiscal year ending September 30, 2007, and to provide a press release containing these results. A significant portion of the filing is dedicated to explaining the non-GAAP financial measures that the company is presenting.

Non-GAAP measures are financial metrics that exclude certain items from the standard GAAP (Generally Accepted Accounting Principles) calculations. BDX is using them to provide investors with a clearer view of its underlying operational performance by removing the impact of items that management considers outside of ordinary operations or that affect period-to-period comparability, such as currency fluctuations, acquisition-related R&D charges, and the impact of insurance settlements.

Specific items being excluded in the non-GAAP calculations include revenue growth at constant foreign exchange rates, in-process R&D charges related to acquisitions (Plasso Technology, TriPath Imaging, GeneOhm Sciences), and insurance settlements (for fiscal year 2006). These exclusions apply to various metrics like selling and administrative expense, operating income, income taxes, income from continuing operations, and earnings per share.

BDX states that these non-GAAP measures are supplemental and should not be considered in isolation or as a substitute for GAAP results. Management uses them in conjunction with GAAP results to evaluate performance. Investors should also consider these non-GAAP figures alongside the company's official GAAP financial statements, as the excluded items can have a material impact on net income and earnings per share.