What are the main reasons BDX is presenting non-GAAP financial measures?

BDX presents non-GAAP measures to provide investors with a better understanding of the company's underlying operational performance and trends. These measures exclude items that management believes do not reflect ordinary operations or can distort period-to-period comparability, such as acquisition-related costs, purchase accounting adjustments, foreign currency fluctuations, and the impact of divestitures. This allows for a clearer view of revenue and earnings growth.

How does the CareFusion acquisition impact the reported financial results?

The acquisition of CareFusion in March 2015 has a notable impact on BDX's reported results. The filing specifically mentions a 'write down of deferred revenue' related to CareFusion, which lowered reported revenues. BDX provides 'adjusted revenues' that exclude this write-down to show underlying revenue growth. Additionally, adjustments are made to EPS to exclude acquisition-related financing, transaction, integration, and restructuring costs.

What does BDX mean by 'adjusted revenue' and 'organic revenue'?

'Adjusted revenue' is a term BDX uses for various revenue calculations that exclude specific items to provide a better view of performance. This includes adjustments for the CareFusion deferred revenue write-down, foreign currency impacts, and changes in distribution agreements. 'Organic revenue' specifically refers to total company revenue growth after eliminating the impact of acquisitions and divestitures, which helps in evaluating the performance of the existing business.

Does the company provide any forward-looking guidance?

Yes, the filing indicates that BDX provided estimated growth in adjusted revenues and adjusted EPS for fiscal year 2017. These forward-looking figures are presented after excluding the estimated impact of foreign currency fluctuations and anticipated divestitures (including the Respiratory Solutions unit), aiming to illustrate the expected performance of the company's core, ongoing business.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on November 3, 2016, to report its financial results for the fourth fiscal quarter and full fiscal year ending September 30, 2016. The filing primarily serves to furnish a press release detailing these results. A key focus of the report is the presentation of 'non-GAAP measures,' which BD uses to provide investors with a clearer understanding of the company's underlying operational performance by excluding certain items. These adjustments are made to revenue and earnings per share (EPS) to account for factors like acquisition-related impacts (specifically from the CareFusion acquisition), foreign currency fluctuations, and divestitures. Investors should note that BD is providing adjusted revenue figures to better reflect organic growth, free from the effects of the CareFusion deferred revenue write-down, currency impacts, and distribution agreement changes. Similarly, adjusted EPS is presented to offer insight into core operational profitability, excluding items like purchase accounting adjustments, integration costs, and other non-recurring charges. The company also provides forward-looking guidance for fiscal year 2017, with adjustments to reflect anticipated divestitures and currency impacts, aiming to showcase the expected performance of its ongoing business.

Key Highlights

1BDX reported its fourth fiscal quarter and full fiscal year 2016 financial results on November 3, 2016.
2The company utilizes and explains various non-GAAP financial measures to present a clearer view of underlying business performance.
3Adjusted revenue figures are provided to account for impacts of the CareFusion acquisition (deferred revenue write-down, distribution agreement changes) and foreign currency fluctuations.
4Adjusted Earnings Per Share (EPS) are presented to exclude acquisition-related costs, purchase accounting adjustments, and other non-operational items.
5The filing emphasizes the importance of these non-GAAP measures for understanding revenue and earnings growth trends compared to prior periods.
6BDX provided forward-looking estimates for fiscal year 2017 adjusted revenue and EPS, factoring in anticipated divestitures and currency impacts.
7The press release furnished as Exhibit 99.1 contains the detailed financial results and non-GAAP reconciliations.

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

Summary

Key Highlights

Frequently Asked Questions