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

The main purpose of this 8-K filing is to announce and provide detailed financial results for Becton, Dickinson and Company's third fiscal quarter ending June 30, 2009. It specifically highlights the company's use of non-GAAP financial measures to present a clearer view of its operational performance, excluding certain non-recurring or unusual items.

Why is BDX presenting non-GAAP financial measures?

BDX is presenting non-GAAP financial measures because management believes they provide additional insight into the company's underlying operational performance, free from the impact of items that are considered outside of ordinary operations or that affect period-to-period comparability. These measures are used by management for evaluation and planning, and the company provides them to investors to facilitate a better understanding of core business results.

What specific items are being excluded in the non-GAAP measures?

The non-GAAP measures exclude the impact of fluctuations in foreign currency exchange rates (for revenue growth), a charge related to a pending antitrust class action settlement, and tax benefits from various tax settlements. These exclusions are applied to metrics such as revenue, selling and administrative expense, operating income, income taxes, income from continuing operations, and earnings per share.

Are these non-GAAP measures a replacement for GAAP results?

No, BDX clearly states that non-GAAP results should not be considered in isolation and are not a substitute for GAAP results. The company provides these measures supplementally, and management typically uses them in conjunction with GAAP results, acknowledging that the excluded items may still have a material impact on net income and other GAAP measures.

BDX 8-K: Earnings & Results & Corporate Changes

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on July 29, 2009, reporting its financial results for the third fiscal quarter ending June 30, 2009. The primary focus of this filing is the disclosure of non-GAAP financial measures, which the company utilizes to provide investors with a clearer view of its underlying operational performance, distinct from the impact of certain unusual or non-operational items. These non-GAAP adjustments include presenting revenue growth at constant foreign exchange rates to mitigate currency fluctuations, and excluding charges related to an antitrust class action settlement and tax benefits from various settlements. By doing so, BDX aims to offer more comparable metrics for selling and administrative expenses, operating income, income taxes, income from continuing operations, and earnings per share, allowing investors to better assess the company's core business performance over time. The filing also notes minor amendments to the company's By-Laws concerning shareholder meetings and committee procedures.

Key Highlights

1BDX reported its third fiscal quarter 2009 financial results on July 30, 2009, via a press release furnished with this 8-K.
2The company provided several non-GAAP financial measures to offer additional insight into its underlying operational performance.
3Non-GAAP adjustments include constant currency reporting for revenue growth to remove foreign exchange rate impacts.
4Charges related to a pending antitrust class action settlement were excluded from selling and administrative expense and operating income.
5Adjustments were made to income taxes, effective tax rate, income from continuing operations, and diluted earnings per share to exclude the impact of the antitrust settlement and certain tax settlements.
6BDX management uses these non-GAAP measures for performance evaluation, budget planning, and comparisons to prior periods.
7The company's By-Laws were amended on July 28, 2009, to allow adjournment of shareholder meetings without a quorum and to provide a procedure for selecting acting committee chairs.

BECTON DICKINSON & CO 8-K Report, Financial Results (Jul 30, 2009)

Summary

Key Highlights

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