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

The main purpose of this 8-K filing is to announce Becton, Dickinson and Company's (BDX) financial results for its third fiscal quarter ended June 30, 2014, and to provide context through the use of non-GAAP financial measures.

What types of adjustments does BDX make to its financial results?

BDX adjusts its financial results to exclude the impact of foreign currency translation, research and development charges, antitrust class action settlement costs, asset write-offs, termination costs for distributor agreements, gains from equity investments, and the incremental impact of the U.S. medical device excise tax. These adjustments are made to revenue and earnings per share (EPS) figures.

Why does BDX use non-GAAP financial measures?

BDX uses non-GAAP financial measures because management believes they provide investors with a better understanding of the company's underlying operational performance and facilitate more meaningful comparisons to prior periods and peer companies. These measures are used internally for performance evaluation and budgeting.

Are these non-GAAP results the only financial information investors should consider?

No, BDX explicitly states that non-GAAP results should not be considered in isolation and are not a substitute for GAAP results. Investors should consider these non-GAAP measures on a supplemental basis alongside the company's GAAP financial results, acknowledging that the excluded items may have a material impact.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on July 31, 2014, primarily to report its third fiscal quarter financial results ending June 30, 2014. The filing highlights the company's use of non-GAAP financial measures, which exclude the impact of foreign currency translation and specific one-time charges. These adjustments are presented to provide investors with a clearer view of the underlying operational performance and to facilitate comparisons with prior periods. Key adjustments discussed include foreign currency impacts on revenue and EPS growth, a research and development charge, a charge related to an antitrust class action settlement, asset write-offs in the BD Biosciences segment, termination costs for a distributor agreement, a gain from an equity investment sale, and the incremental impact of the U.S. medical device excise tax. BD's management utilizes these non-GAAP measures for internal performance evaluation and budgeting, believing they offer additional insight into the company's financial results beyond GAAP reporting.

Key Highlights

1BDX announced its third fiscal quarter 2014 financial results on July 31, 2014.
2The company is utilizing non-GAAP financial measures, excluding foreign currency translation effects, to report revenue and EPS growth.
3Specific adjustments were made to EPS calculations for the third quarter and year-to-date periods to exclude charges such as R&D expenses, antitrust settlement costs, and asset write-offs.
4Management believes these non-GAAP measures provide a better understanding of underlying operating results and facilitate period-over-period comparisons.
5The filing also details adjustments made to fiscal year 2013 EPS for comparison purposes, including litigation charges and non-cash pension settlements.
6BDX is providing estimated EPS and EPS growth for fiscal year 2014, adjusted for specific items and foreign currency impacts, to offer forward-looking insights.
7The company emphasizes that non-GAAP measures are supplemental and should be considered alongside GAAP results.

BECTON DICKINSON & CO 8-K Report, Financial Results (Jul 31, 2014)

Summary

Key Highlights

Frequently Asked Questions