Summary
Becton, Dickinson and Company (BDX) filed an 8-K on January 28, 2010, to announce its financial results for the first fiscal quarter ending December 31, 2009. The filing primarily serves to furnish a press release detailing these results, which includes the presentation of non-GAAP financial measures alongside GAAP figures. Investors should note that BDX utilizes these non-GAAP measures to provide a clearer understanding of the underlying operational performance by excluding the impact of foreign currency translation and certain one-time charges or benefits. These adjusted metrics are presented to facilitate comparisons to prior periods and to offer insight into management's evaluation of the company's performance.
Key Highlights
- 1BDX filed an 8-K on January 28, 2010, reporting Q1 fiscal year 2010 financial results ending December 31, 2009.
- 2The company is furnishing a press release (Exhibit 99.1) containing its Q1 financial results.
- 3BDX is presenting non-GAAP financial measures, including revenue growth and earnings per share (EPS) from continuing operations, to provide a better understanding of underlying performance.
- 4These non-GAAP measures exclude the impact of foreign currency translation and hedging activities.
- 5Additionally, Q1 EPS is presented excluding the impact of foreign currency translation, and FY2009 EPS is presented excluding charges from antitrust class action settlements and benefits from tax settlements.
- 6Management uses these non-GAAP measures for performance evaluation, budgeting, and comparison to prior periods.
- 7The filing also notes the availability of a reconciliation of non-GAAP financial measures (Exhibit 99.2).
Frequently Asked Questions
The primary purpose of this 8-K filing is to officially report Becton, Dickinson and Company's (BDX) financial results for its first fiscal quarter ending December 31, 2009, and to furnish the associated press release and financial reconciliations.
BDX is reporting non-GAAP measures for revenue growth rates (international and total company, and for safety-engineered devices) and diluted earnings per share (EPS) from continuing operations. These measures are adjusted to exclude the effects of foreign currency translation and hedging activities to better reflect underlying operational performance.
BDX uses non-GAAP measures to provide investors with additional insight into its financial results by removing the impact of foreign currency fluctuations and other items management deems outside of ordinary operations (like settlements). While management believes these measures are useful for evaluating performance and comparing periods, investors should consider them supplemental and review them alongside the company's GAAP results, as they may differ from other companies' measures and excluded items can still have a material impact.
Yes, the filing notes that for fiscal year 2009, the reported EPS excluded the impact of a charge related to a pending antitrust class action settlement and a tax benefit from various tax settlements. Management considers these items to be outside of ordinary operations and excluded them to provide a more indicative measure of performance for that period.