Summary
Becton, Dickinson and Company (BDX) filed an 8-K on May 2, 2013, to report its financial results for the second fiscal quarter ending March 31, 2013. The filing primarily highlights the company's use of non-GAAP financial measures to provide investors with a clearer understanding of its underlying operational performance. These adjusted measures exclude the impact of foreign currency translation and, for the first time, the effects of the new U.S. medical device excise tax implemented in January 2013 under healthcare reform. BD believes these adjustments facilitate better comparisons to prior periods and peer companies. Furthermore, the company provided its fiscal year 2013 earnings per share (EPS) guidance, which is also adjusted for foreign currency impacts, the medical device excise tax, and a pension settlement charge from the prior year. Management utilizes these non-GAAP metrics for internal performance evaluation and budgeting, emphasizing their supplemental value for investors in assessing BD's performance before the effects of items considered outside of ordinary operations or that hinder period-to-period comparability. Investors are cautioned, however, to consider these non-GAAP results in conjunction with GAAP measures due to the potential for material impact from excluded items.
Key Highlights
- 1BDX announced its second fiscal quarter 2013 financial results on May 2, 2013.
- 2The company is utilizing non-GAAP financial measures to present results, excluding foreign currency translation effects.
- 3New in this reporting period, non-GAAP measures also exclude the impact of the U.S. medical device excise tax effective January 2013.
- 4These non-GAAP adjustments are intended to enhance the understanding of underlying operating performance and facilitate period-to-period comparisons.
- 5BDX provided fiscal year 2013 EPS guidance, also adjusted for foreign currency, the medical device excise tax, and a prior year pension settlement charge.
- 6Management uses these non-GAAP measures for internal evaluation and budgeting.
- 7The company emphasizes that non-GAAP results are supplemental and should be considered alongside GAAP financial statements.