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

This 8-K filing primarily serves to inform investors about Becton Dickinson's (BDX) third fiscal quarter financial results and a significant legal development: a $22 million settlement agreement for antitrust class action lawsuits. It also details how the company uses non-GAAP financial measures to present its performance, which can offer additional insights beyond standard GAAP reporting.

What are the key non-GAAP adjustments BDX is making to its financial results?

BDX is adjusting its financial results by excluding the effects of foreign currency translation, the impact of a pending antitrust class action settlement, and the U.S. medical device excise tax that went into effect in January 2013. These adjustments are made to revenue growth and earnings per share (EPS) calculations to allow for a clearer understanding of the company's underlying operational performance and to facilitate comparisons to prior periods.

What is the status and financial impact of the antitrust class action settlement?

BDX has agreed to pay $22 million into a settlement fund to resolve several antitrust class action lawsuits brought by indirect purchasers of its products. This settlement is contingent upon preliminary and final court approval. While the $22 million payment will impact the company's financials, the non-GAAP measures presented in the earnings release exclude this impact for comparative purposes, and management considers it separate from ordinary operations.

How does BDX's use of non-GAAP measures affect investor analysis?

BDX uses non-GAAP measures to provide investors with a supplemental view of its financial performance, aiming to highlight underlying operational results by removing items that can distort period-to-period comparisons or are not considered part of ordinary operations. Investors should consider these non-GAAP figures alongside GAAP results, as they may differ from similar measures used by other companies and exclude items that could materially affect net income or EPS.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on August 1, 2013, reporting on its third fiscal quarter results ending June 30, 2013, and disclosing a significant legal settlement. The company announced its financial results via a press release, which included the use of non-GAAP measures to provide a clearer view of underlying operational performance. These adjusted measures exclude the impact of foreign currency translation, a pending antitrust class action settlement, and the U.S. medical device excise tax, allowing for better comparison to prior periods and management's assessment of future performance. Of particular note, BD disclosed a $22 million settlement agreement to resolve several antitrust class action lawsuits brought by indirect purchasers of its products. This settlement is subject to court approval and aims to release the company from these claims. Investors should monitor the court's decision on the preliminary and final approval of this settlement, as it will impact the company's financial condition and operations.

Key Highlights

1BDX reported its third fiscal quarter (ending June 30, 2013) financial results via a press release furnished with the 8-K.
2The company utilizes non-GAAP financial measures, excluding foreign currency impacts, to present revenue growth and earnings per share (EPS), aiming for better period-over-period comparability.
3Adjusted EPS figures also exclude the impact of a pending antitrust class action settlement and the U.S. medical device excise tax, providing insight into underlying operational performance.
4BDX has entered into a settlement agreement for approximately $22 million to resolve multiple antitrust class action lawsuits filed by indirect purchasers of its products.
5The settlement agreement requires preliminary and final court approval, and a release of claims from potential class members who do not opt out.
6The company provided full fiscal year 2013 EPS estimates, adjusted for the settlement and other items, to offer investors guidance on anticipated performance.
7Management uses these non-GAAP measures for internal performance evaluation, budget planning, and comparison with peers.

BECTON DICKINSON & CO 8-K Report, Financial Results (Aug 1, 2013)

Summary

Key Highlights

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