Summary
Becton Dickinson and Company (BDX) filed an 8-K on November 7, 2012, to announce its financial results for the fourth fiscal quarter and full fiscal year ending September 30, 2012. The report highlights the company's use of non-GAAP financial measures to provide a clearer view of its underlying operational performance. These adjusted measures exclude the impact of foreign currency translation, pension settlement charges, and research program discontinuance costs, which are deemed outside of ordinary operations or affect period-to-period comparability. Management utilizes these non-GAAP figures for performance evaluation, budgeting, and to offer investors additional insight into the company's results. The company also provided guidance for fiscal year 2013, which further adjusts for the estimated impact of foreign currency fluctuations and the anticipated medical device excise tax under the U.S. healthcare reform law. This approach aims to allow investors to better understand the anticipated underlying performance and to compare future guidance against prior periods more effectively, despite the limitations of non-GAAP measures.
Key Highlights
- 1BDX announced its Q4 and full fiscal year 2012 financial results on November 7, 2012.
- 2The company is presenting non-GAAP financial measures to offer investors a better understanding of underlying operational performance.
- 3Adjusted measures exclude foreign currency translation effects to facilitate period-to-period comparisons.
- 4Significant non-GAAP adjustments include charges related to pension settlements and the discontinuance of a research program.
- 5BDX provided fiscal year 2013 guidance, also adjusted for foreign currency and the estimated impact of the U.S. medical device excise tax.
- 6Management uses these non-GAAP measures for internal performance evaluation and budgeting.
- 7Investors are advised to consider non-GAAP results in conjunction with GAAP results due to potential material impacts of excluded items on net income and EPS.