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

The primary purpose of this 8-K filing is to announce Becton, Dickinson and Company's (BD) financial results for its fourth fiscal quarter and full fiscal year ending September 30, 2011. It also provides non-GAAP financial measures to offer investors a better understanding of the company's underlying operational performance.

What types of adjustments are being made to the financial results?

BD is adjusting its financial results by excluding items such as the effect of foreign currency translation on revenue and EPS, gains or losses from hedging activities, a non-cash charge from a discontinued research program, and a non-cash charge impacting Medicare Part D reimbursements due to healthcare reform.

Why is BD providing non-GAAP financial measures?

BD provides non-GAAP measures to allow investors to better understand the company's underlying operating results and facilitate comparisons to prior periods. Management uses these measures to evaluate performance and for budget planning, believing they provide insight into performance before the effects of items considered outside of ordinary operations or that impact period-to-period comparability.

Should investors rely solely on the non-GAAP measures presented?

No, investors should not consider non-GAAP results in isolation. BD states that these measures are supplemental and not a substitute for GAAP results. Items excluded from non-GAAP measures may have a material impact on net income, earnings per share, or cash flows calculated under GAAP. Management uses both GAAP and non-GAAP results to evaluate performance.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BD) filed an 8-K on November 2, 2011, to announce its fourth fiscal quarter and full fiscal year 2011 financial results. The filing primarily focuses on providing non-GAAP financial measures to offer investors a clearer view of the company's underlying operational performance by excluding certain items that can affect period-to-period comparability. Key adjustments include the presentation of revenue growth rates excluding the impact of foreign currency translation and gains/losses from hedging activities. Additionally, earnings per share (EPS) are adjusted to exclude a non-cash charge related to a discontinued research program in the Diagnostic Systems unit for fiscal year 2011. For fiscal year 2010, EPS was adjusted to exclude a non-cash charge impacting Medicare Part D reimbursements due to healthcare reform. BD emphasizes that these non-GAAP measures are intended to supplement, not replace, GAAP results and are used by management for performance evaluation and budgeting.

Key Highlights

1BDX announced Q4 and full fiscal year 2011 financial results via an 8-K filing.
2The company is providing non-GAAP financial measures for enhanced investor understanding of underlying performance.
3Revenue growth rates are presented excluding foreign currency translation effects and hedging impacts.
4Diluted EPS for FY2011 excludes a non-cash charge from a discontinued research program in Diagnostic Systems.
5FY2010 EPS was adjusted to remove a non-cash charge related to Medicare Part D reimbursements from healthcare reform.
6Management uses these non-GAAP measures for performance evaluation, budgeting, and comparability.
7The filing includes a press release (Exhibit 99.1) detailing the financial results.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 2, 2011)

Summary

Key Highlights

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