What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce Becton Dickinson and Company's (BDX) financial results for its second fiscal quarter ending March 31, 2009, and to disclose a significant settlement agreement resolving antitrust class action lawsuits.

What is the financial impact of the antitrust settlement?

BDX has agreed to pay $45 million into a settlement fund to resolve direct purchaser claims in antitrust class action lawsuits. The company is presenting adjusted financial metrics that exclude the impact of this settlement charge to show its underlying operational performance.

Why is BDX using non-GAAP financial measures?

BDX is using non-GAAP measures to provide investors with additional insights into the company's financial results. These measures exclude the impact of foreign currency exchange rate fluctuations and the charge related to the antitrust settlement, which management believes are not part of ordinary operations and affect period-to-period comparability. The company believes these adjusted metrics offer a more indicative view of performance.

What are the limitations of the non-GAAP measures presented?

The company cautions that its non-GAAP results should not be considered in isolation and are not a substitute for GAAP results. They may differ from similar measures used by other companies, and the excluded items could have a material impact on net income or earnings per share. Investors are advised to consider these limitations and evaluate the non-GAAP results in conjunction with GAAP results.

BDX 8-K: Earnings & Results

Summary

Becton Dickinson and Company (BDX) filed an 8-K on April 28, 2009, to announce its financial results for the second fiscal quarter ending March 31, 2009. The filing highlights the company's use of non-GAAP financial measures to provide a clearer view of its underlying operational performance, excluding the impact of foreign currency fluctuations and a significant charge related to an antitrust class action settlement. Investors should note that while these non-GAAP measures are presented to enhance comparability and understanding, they should be considered alongside GAAP results as they may differ from measures used by other companies and exclude items that could materially impact net income. The most significant event disclosed is the company's entry into a settlement agreement on April 27, 2009, to resolve certain antitrust class action suits concerning hypodermic products. This settlement involves a payment of $45 million into a settlement fund, which will result in a release of direct purchaser claims. The company is presenting adjusted financial metrics that exclude the impact of this settlement charge to reflect its ongoing operational performance.

Key Highlights

1BDX announced its Q2 fiscal year 2009 financial results via a press release furnished with this 8-K.
2The company is utilizing several non-GAAP financial measures, including constant currency revenue growth, adjusted selling and administrative expense, adjusted operating income, adjusted income taxes and tax rate, adjusted income from continuing operations, and adjusted diluted earnings per share.
3These non-GAAP measures are presented to exclude the impact of foreign currency fluctuations and a charge related to an antitrust class action settlement to provide better insight into underlying operational performance and comparability.
4BDX entered into a settlement agreement on April 27, 2009, to resolve direct purchaser claims in multiple antitrust class action lawsuits related to hypodermic products.
5The settlement requires BDX to pay $45 million into a settlement fund, subject to court approval.
6The company states that indirect purchaser claims in these cases have not been settled and will continue.
7Management emphasizes that these non-GAAP results should be considered supplemental and used in conjunction with GAAP results.

BECTON DICKINSON & CO 8-K Report, Financial Results (Apr 28, 2009)

Summary

Key Highlights

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