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

The primary purpose of this 8-K filing is to report Becton Dickinson and Company's (BDX) financial results for its fourth fiscal quarter and full fiscal year ended September 30, 2018. It also provides context for how the company is presenting these results, particularly through the use of non-GAAP financial measures.

Why is BDX using non-GAAP financial measures in this report?

BDX is using non-GAAP measures such as currency-neutral revenue growth, comparable revenue growth, and adjusted EPS to provide investors with a better understanding of the company's underlying operational performance. These measures exclude the impact of currency fluctuations, acquisition-related costs (like the C.R. Bard acquisition), divestitures, and other items that management believes are not part of ordinary operations, thereby enhancing period-to-period comparability.

How does the C.R. Bard acquisition impact the reported financial results?

The C.R. Bard acquisition significantly influences the 'Comparable Revenue Growth' metric. This metric is adjusted to assume the acquisition occurred at the beginning of the preceding fiscal year. This adjustment, along with others related to divestitures and product line movements, aims to provide investors with a more consistent view of the combined company's performance over time and for future guidance.

Should investors rely solely on the non-GAAP measures presented?

No, investors should not rely solely on the non-GAAP measures. The filing explicitly states that these measures are presented on a supplemental basis to U.S. GAAP results. While management believes they offer additional insights, they should be considered in conjunction with GAAP results, as the excluded items can have a material impact on net income and EPS. Investors should also be aware that non-GAAP measures may differ from those used by other companies.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on November 6, 2018, reporting its financial results for the fourth fiscal quarter ending September 30, 2018. The report primarily focuses on providing investors with insights into the company's performance through the use of non-GAAP financial measures. These measures are presented to offer a clearer understanding of the underlying operational performance, particularly in light of recent acquisitions and currency fluctuations. Key non-GAAP metrics highlighted include currency-neutral revenue growth and comparable revenue growth. Comparable revenue growth specifically adjusts for the impact of the C.R. Bard acquisition as if it occurred at the beginning of the prior fiscal year, along with other specified adjustments for divestitures and product line movements. Adjusted Earnings Per Share (EPS) is also provided, excluding items deemed not part of ordinary operations, such as acquisition-related costs, purchase accounting adjustments, and the impact of recent tax legislation, to enhance period-to-period comparability. Management utilizes these non-GAAP measures to evaluate performance, plan budgets, and compare against peers, offering investors a supplemental view of BD's financial health beyond standard GAAP reporting.

Key Highlights

1BDX announced fourth fiscal quarter and full fiscal year 2018 financial results via a press release filed on November 6, 2018.
2The company is emphasizing non-GAAP financial measures to provide a clearer view of operational performance.
3Key non-GAAP metrics include 'Currency-Neutral Revenue Growth' and 'Comparable Revenue Growth' to isolate underlying business trends.
4Comparable Revenue Growth is adjusted to reflect the C.R. Bard acquisition as if it occurred at the start of the prior fiscal year.
5Adjusted Earnings Per Share (EPS) is presented to exclude one-time or non-operational items for better comparability.
6These non-GAAP measures are used by management for performance evaluation, budgeting, and peer comparison.
7The company provides these non-GAAP measures supplementally to GAAP results, acknowledging their limitations and potential differences from other companies' measures.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 6, 2018)

Summary

Key Highlights

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