What are the main reasons BDX is presenting non-GAAP financial measures?

BDX is presenting non-GAAP financial measures to provide investors with additional insight into its financial results and underlying operational performance. These measures exclude significant items that management believes are not part of ordinary operations or affect period-to-period comparability, such as a "Litigation Charge" and a "Tax Benefit." The company also uses constant currency reporting to neutralize the impact of foreign currency fluctuations, allowing for a clearer view of organic growth.

How has foreign currency impacted BDX's results?

The significant strengthening of the U.S. dollar against most foreign currencies during fiscal year 2009 had a notable impact on BDX's reported financial results. This included affecting revenues, gross profit, operating expenses, and earnings per share. The company is presenting results at constant foreign exchange rates to help investors understand the performance of its business operations independent of these currency movements.

What is the "Litigation Charge" and "Tax Benefit" mentioned in the filing?

The "Litigation Charge" refers to a charge related to the pending settlement of certain antitrust class action suits. The "Tax Benefit" relates to various tax settlements that occurred in fiscal year 2009. BDX excludes these items when presenting its adjusted financial measures, as management considers them outside of ordinary operations and potentially impacting period-to-period comparability.

What is the status of the patent infringement lawsuit filed by Gen-Probe?

On October 19, 2009, Gen-Probe Incorporated filed a patent infringement lawsuit against BDX in the U.S. District Court for the Southern District of California, alleging that certain specimen collection products infringe eight of Gen-Probe's U.S. patents. Gen-Probe is seeking monetary damages and injunctive relief. BDX stated that it believes it has meritorious defenses and intends to defend the matter vigorously.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on November 4, 2009, to report its fourth fiscal quarter and full fiscal year 2009 financial results. The filing emphasizes the company's use of non-GAAP financial measures to provide a clearer view of underlying operational performance, excluding significant one-time items like a litigation charge and a tax benefit. These adjusted measures are presented alongside GAAP results to aid investor understanding and comparability across periods. The company also highlighted the impact of foreign currency fluctuations, particularly the strengthening U.S. dollar, on its reported revenues, gross profit, expenses, and earnings per share. By presenting results at constant foreign exchange rates, BD seeks to offer insights into organic growth and operational efficiency independent of currency movements. Investors should review both the GAAP and non-GAAP figures, as well as the provided reconciliations, to gain a comprehensive understanding of BD's financial health and performance.

Key Highlights

1BDX reported its Q4 and full fiscal year 2009 financial results on November 4, 2009.
2The company is utilizing non-GAAP financial measures to present a clearer picture of its operational performance, excluding specific charges and benefits.
3Key non-GAAP adjustments include excluding a "Litigation Charge" and a "Tax Benefit" to better reflect ordinary operations.
4Significant foreign currency translation impacts, driven by a strong U.S. dollar, are discussed, with results presented at constant exchange rates for better comparability.
5Adjusted measures are provided for revenues, gross profit, selling and administrative expense, R&D expense, operating income, income taxes, income from continuing operations, and EPS.
6Management uses these non-GAAP measures for performance evaluation and budgeting, believing they offer additional insight into underlying business performance.
7BDX is facing a patent infringement lawsuit from Gen-Probe Incorporated concerning specimen collection products, for which the company believes it has strong defenses.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 4, 2009)

Summary

Key Highlights

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