Why is BDX using non-GAAP financial measures?

BDX is using non-GAAP measures to provide investors with a clearer view of its underlying operational performance, especially after the significant acquisition of CareFusion. These measures exclude certain items that management believes are not part of ordinary operations or can distort period-to-period comparability, such as acquisition-related costs, purchase accounting adjustments, and foreign currency fluctuations.

What specific adjustments are being made to the financial results?

Adjustments include excluding financing, transaction, integration, and restructuring costs related to the CareFusion acquisition, as well as purchase accounting adjustments and litigation charges from EPS. Revenues are adjusted for a deferred revenue write-down from the CareFusion acquisition and the impact of foreign currency translation. 'Comparable' revenue measures are also provided by assuming the CareFusion acquisition occurred at the beginning of fiscal year 2015.

How should investors interpret these non-GAAP results?

Investors should view these non-GAAP results as supplemental information that provides additional insight into BD's financial performance. They should not be considered in isolation or as a substitute for GAAP results. The company acknowledges that these non-GAAP measures may differ from those used by other companies and that the excluded items can still have a material impact on GAAP results.

BDX 8-K: Earnings & Results

Q: 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 first fiscal quarter ended December 31, 2015. It also details the non-GAAP financial measures used by the company to present its performance.

Summary

This 8-K filing from Becton, Dickinson and Company (BDX) on February 3, 2016, primarily serves to announce the company's financial results for its first fiscal quarter ended December 31, 2015. The report highlights the use of non-GAAP financial measures to provide investors with a clearer understanding of the company's performance, particularly in light of the significant CareFusion acquisition completed in March 2015. Investors should note BD's emphasis on adjusted revenue and earnings per share (EPS) figures. These non-GAAP measures are presented to exclude items such as the impact of purchase accounting adjustments, financing, transaction, integration, and restructuring costs related to the CareFusion acquisition, as well as foreign currency translation effects. BD believes these adjusted figures offer better insights into the underlying operational performance and facilitate comparisons to prior periods and the company's fiscal year 2016 guidance.

Key Highlights

1BDX reported its financial results for the first fiscal quarter ended December 31, 2015.
2The company is providing non-GAAP financial measures to offer a more insightful view of performance, especially post-CareFusion acquisition.
3Key non-GAAP adjustments include removing the impact of CareFusion acquisition-related costs (financing, transaction, integration, restructuring), purchase accounting, and litigation charges.
4Revenue figures are presented with adjustments for a deferred revenue write-down related to the CareFusion acquisition and foreign currency translation effects.
5Adjusted EPS is provided to allow for better understanding of underlying operational results and period-over-period comparisons.
6The company is also presenting 'comparable' revenue measures assuming the CareFusion acquisition occurred at the start of fiscal year 2015.
7BDX's management utilizes these non-GAAP measures for performance evaluation, budget planning, and comparison with peers.

BECTON DICKINSON & CO 8-K Report, Financial Results (Feb 3, 2016)

Summary

Key Highlights

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