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 (BD) financial results for its second fiscal quarter ending March 31, 2017, and to furnish the press release detailing these results.

Why does BD present non-GAAP financial measures?

BD presents non-GAAP measures, such as 'comparable' revenue growth and adjusted EPS, to provide investors with a clearer view of the company's underlying operational performance. These measures exclude items like divestitures, foreign currency impacts, acquisition-related costs, and other non-recurring items, which management believes do not reflect ordinary operations and can affect period-to-period comparability.

How should investors interpret the non-GAAP financial information presented?

Investors should consider the non-GAAP financial information as supplemental to the GAAP results. While these measures offer insights into underlying performance, BD cautions that items excluded can materially impact net income and EPS. Therefore, it's important to analyze both GAAP and non-GAAP results together and be aware that BD's non-GAAP measures may differ from those used by other companies.

What specific items are excluded from BD's non-GAAP earnings per share calculation?

Items excluded from BD's non-GAAP EPS calculation include purchase accounting adjustments, acquisition-related transaction, integration and restructuring costs, the reversal of a litigation reserve, and losses from the extinguishment of certain long-term debt. For full-year estimates, a pension settlement from fiscal year 2016 and anticipated foreign currency translation impacts for fiscal year 2017 are also excluded.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BD) filed an 8-K on May 2, 2017, to announce its second fiscal quarter results ending March 31, 2017. The report primarily furnished a press release detailing financial results, including both Generally Accepted Accounting Principles (GAAP) and non-GAAP measures. The company emphasized the use of non-GAAP metrics to provide a clearer understanding of underlying operational performance and facilitate period-over-period comparisons, by excluding items such as divestitures, foreign currency translation impacts, purchase accounting adjustments, acquisition-related costs, debt extinguishment, and litigation reserve reversals. Investors should note BD's rationale for presenting these adjusted figures, which management believes are crucial for evaluating operational efficiency and future growth potential, particularly in revenue and earnings per share. While these non-GAAP measures offer additional insights, the company cautions that they are supplementary and should be considered alongside GAAP results, as excluded items can materially impact reported financials. The filing highlights BD's focus on transparency regarding the factors influencing its financial performance and strategic outlook.

Key Highlights

1BD announced its financial results for the second fiscal quarter ending March 31, 2017, via an 8-K filing on May 2, 2017.
2The filing includes a press release (Exhibit 99.1) containing both GAAP and non-GAAP financial measures.
3BD presented 'comparable' revenue growth rates, excluding divestitures (like the Respiratory Solutions business) and foreign currency translation.
4Adjusted earnings per share (EPS) were also provided, excluding items such as purchase accounting, acquisition costs, debt extinguishment, and litigation reserve changes to reflect underlying operations.
5The company believes these non-GAAP measures offer investors a better understanding of BD's underlying performance and future revenue/earnings growth.
6BD's management utilizes these non-GAAP metrics for performance evaluation, budgeting, and comparison with peers.
7The report emphasizes that non-GAAP results are supplemental and should be considered alongside GAAP figures, as excluded items can have a material impact.

BECTON DICKINSON & CO 8-K Report, Financial Results (May 2, 2017)

Summary

Key Highlights

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