Why is BD filing this 8-K?

BD is filing this 8-K to provide investors with recast historical financial information following the April 1, 2022 spin-off of its Diabetes Care business (embecta). This helps investors analyze BD's ongoing business performance by presenting the divested segment as discontinued operations.

What are 'non-GAAP measures' and why are they included?

Non-GAAP measures are financial metrics that exclude certain items from the standard GAAP (Generally Accepted Accounting Principles) calculations. BD includes them to provide a clearer view of its underlying operational performance and trends by excluding items that management considers unusual, non-recurring, or that affect period-to-period comparability, such as integration costs and regulatory compliance expenses.

What specific items are being excluded in the non-GAAP measures?

The non-GAAP measures exclude various items, including purchase accounting adjustments, integration and restructuring costs, transaction gains and losses, product and litigation-related matters, investment gains/losses, asset impairments, and costs related to establishing initial compliance with new European Union Medical Device Regulations. These excluded items are detailed in Exhibit 99.1.

How should investors use this information?

Investors should review the recast historical financial information to understand BD's standalone performance post-spin-off. They should also examine the non-GAAP measures in conjunction with the GAAP results to gain a deeper understanding of the company's operational performance and trends, while being mindful that non-GAAP measures may differ from those of other companies.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BD) filed an 8-K on May 31, 2022, to provide updated financial information following the spin-off of its Diabetes Care business (embecta) on April 1, 2022. The filing includes unaudited recast historical financial information for the three months ended March 31, 2022, and 2021, which presents the former Diabetes Care business as discontinued operations. This recast allows investors to analyze BD's standalone operating results from its continuing operations. Additionally, the filing furnishes certain non-GAAP financial measures that exclude specific items to provide a clearer view of underlying business performance. These adjustments include items like purchase accounting adjustments, integration and restructuring costs, transaction gains/losses, and notably, costs related to establishing initial compliance with new European Union Medical Device Regulations. BD's management believes these non-GAAP measures enhance comparability and provide better insight into operational trends and future prospects, though they should be reviewed alongside GAAP results.

Key Highlights

1BD has provided recast historical financial information to reflect the spin-off of its Diabetes Care business (embecta) as discontinued operations.
2This recast allows for a clearer analysis of BD's standalone performance from continuing operations for Q1 2022 and Q1 2021.
3The report includes non-GAAP financial measures that adjust for specific items impacting comparability.
4Adjustments are made for items such as purchase accounting, integration/restructuring costs, and litigation-related matters.
5Significant focus is placed on excluding costs associated with initial compliance with new European Union Medical Device Regulations.
6BD management utilizes these non-GAAP measures to better understand underlying trends and operational performance.
7Investors are advised to review both GAAP and non-GAAP measures for a comprehensive understanding.

BECTON DICKINSON & CO 8-K Report, Financial Results (May 31, 2022)

Summary

Key Highlights

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