What are the key non-GAAP measures BDX is reporting and why?

BDX is reporting revenue growth at constant foreign exchange rates to show underlying performance without currency fluctuations. They are also reporting adjusted operating income, effective tax rate, income from continuing operations, and earnings per share for fiscal year 2007, excluding in-process R&D charges from the Plasso Technology and TriPath Imaging acquisitions. Management uses these non-GAAP measures to better assess operational performance and comparability to prior periods, and provides them to investors as supplemental information.

What are the significant executive leadership changes announced?

The company announced that Vincent A. Forlenza will become President on January 1, 2009, with Edward J. Ludwig remaining as Chairman and CEO. David V. Elkins will join as Executive Vice President and CFO on December 1, 2008, and Robert G. Oliynik will become Vice President and Controller on January 1, 2009.

What is the compensation package for the new CFO, David V. Elkins?

David V. Elkins will receive a base salary of $500,000, a target annual incentive of 70% of his salary, a $220,000 sign-on bonus, a $250,000 payment in January 2010 (to offset forfeited equity from his previous employer), and a sign-on award of restricted stock units valued at $300,000.

How should investors interpret the use of non-GAAP measures?

Investors should consider these non-GAAP measures as supplemental information that can provide additional insight into the company's underlying performance. However, they should not be viewed in isolation or as a substitute for GAAP results, as the excluded items can still have a material impact on the company's financial performance. Management typically uses non-GAAP results in conjunction with GAAP results.

BDX 8-K: Earnings & Results & Leadership Changes

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on November 5, 2008, primarily to announce its fourth fiscal quarter and full fiscal year 2008 financial results and to disclose significant executive leadership changes. The company provided non-GAAP financial measures for revenue growth at constant foreign exchange rates, and adjusted operating income, tax rate, income from continuing operations, and earnings per share for fiscal year 2007, excluding the impact of in-process R&D charges from acquisitions of Plasso Technology and TriPath Imaging. These non-GAAP measures are presented to offer investors a clearer view of the underlying operational performance and comparability, as management uses them for evaluation and budgeting. In addition to financial reporting, BDX announced key appointments in its executive team. Vincent A. Forlenza will assume the role of President effective January 1, 2009, succeeding Edward J. Ludwig who remains Chairman and CEO. David V. Elkins has been appointed Executive Vice President and CFO, effective December 1, 2008, joining from AstraZeneca with a compensation package including a sign-on bonus and restricted stock units. Robert G. Oliynik will become Vice President and Controller, serving as principal accounting officer, effective January 1, 2009. These leadership transitions indicate a planned succession and focus on financial and operational management.

Key Highlights

1BDX announced Q4 and full fiscal year 2008 financial results via press release (Exhibit 99.1).
2The company is providing non-GAAP financial measures to offer enhanced insight into underlying performance, excluding foreign exchange impacts and specific acquisition-related R&D charges.
3Adjusted metrics for FY 2007 include revenue growth at constant currency, operating income, effective tax rate, income from continuing operations, and EPS, excluding charges from Plasso Technology and TriPath Imaging acquisitions.
4Vincent A. Forlenza appointed President, effective January 1, 2009, succeeding Edward J. Ludwig (who remains Chairman & CEO).
5David V. Elkins appointed Executive Vice President and Chief Financial Officer, effective December 1, 2008.
6David V. Elkins' compensation includes a $500,000 base salary, 70% target annual incentive, a $220,000 sign-on bonus, a $250,000 retention payment, and $300,000 in restricted stock units.
7Robert G. Oliynik appointed Vice President and Controller, effective January 1, 2009, and will serve as principal accounting officer.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 5, 2008)

Summary

Key Highlights

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