What are the primary non-GAAP measures BDX is presenting in this filing?

BDX is presenting revenue growth rates and earnings per share (EPS) on a non-GAAP basis. These measures exclude the effects of foreign currency translation and hedging activities. For specific periods, adjusted EPS also excludes the impact of health care reform (Medicare Part D) and certain one-time items such as tax settlements and litigation provisions.

Why is BDX providing these non-GAAP measures?

BDX provides non-GAAP measures to offer investors a better understanding of the company's underlying operational performance and to facilitate comparisons to prior periods. Management uses these measures internally for performance evaluation and budget planning.

Are these non-GAAP results the official financial results for BDX?

No, these non-GAAP results are supplemental and not a substitute for GAAP (Generally Accepted Accounting Principles) results. BDX states that non-GAAP results should not be considered in isolation and that the excluded items may materially impact net income and EPS calculated under GAAP. Investors are advised to consider these non-GAAP measures alongside the official GAAP financial statements.

What specific financial events are being excluded from the adjusted EPS for fiscal year 2010?

For fiscal year 2010, the adjusted EPS excludes a non-cash charge related to health care reform impacting Medicare Part D reimbursements.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on November 3, 2010, to report its financial results for the fourth fiscal quarter and full fiscal year ending September 30, 2010. The filing includes a press release (Exhibit 99.1) detailing these results and provides explanations for the non-GAAP financial measures used by the company. These non-GAAP measures are presented to offer investors a clearer view of the underlying operational performance by excluding certain items that management deems outside of ordinary operations or that affect period-to-period comparability. Key adjustments highlighted include reporting revenue growth rates excluding the impact of foreign currency translation and hedging activities, which management believes aids in understanding underlying business trends. Additionally, earnings per share (EPS) are presented both on a GAAP basis and on an adjusted basis, excluding the impact of health care reform (Medicare Part D) for fiscal year 2010 and specific tax settlements and antitrust litigation provisions for fiscal year 2009. BD emphasizes that these non-GAAP measures are supplemental and should be considered alongside GAAP results, as the excluded items can materially impact net income and EPS.

Key Highlights

1BDX announced its Q4 and full fiscal year 2010 financial results on November 3, 2010.
2The company utilizes and reports non-GAAP financial measures to provide additional insight into its performance.
3Key non-GAAP adjustments include excluding foreign currency translation effects on revenue and EPS.
4Adjusted EPS for FY2010 excludes the impact of health care reform related to Medicare Part D reimbursements.
5Adjusted EPS for FY2009 excluded benefits from tax settlements and charges from an antitrust litigation settlement.
6Management uses these non-GAAP measures for internal evaluation, budget planning, and to facilitate comparisons to prior periods.
7The filing emphasizes that non-GAAP measures are supplemental and should be reviewed in conjunction with GAAP results.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 3, 2010)

Summary

Key Highlights

Frequently Asked Questions