SEC Filing Summary: Becton, Dickinson and Company (BDX)
Business Context and Reporting Period
This Form 8-K, dated November 5, 2019, reports the financial results for Becton, Dickinson and Company (BD) for the fourth fiscal quarter and the full fiscal year ended September 30, 2019. The filing serves to disseminate a press release (Exhibit 99.1) containing both GAAP and non-GAAP financial measures.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references a press release (Exhibit 99.1) where these figures are detailed. The document focuses on defining the methodology for non-GAAP measures used to evaluate performance.
- Revenue Growth: Reported on a currency-neutral and "comparable" basis, adjusting for the C.R. Bard, Inc. acquisition, divestitures, and reclassifications.
- Earnings Per Share (EPS): Reported as "Adjusted EPS," excluding items such as acquisition costs, restructuring, debt extinguishment, regulatory costs, litigation, and tax reform impacts.
- Debt Instruments: The company lists multiple registered notes trading on the New York Stock Exchange with maturities ranging from 2021 to 2026.
Material Changes and Non-GAAP Adjustments
The filing details significant adjustments made to financial metrics to ensure comparability with prior periods, particularly regarding the C.R. Bard acquisition:
- Comparable Revenue: Adjustments include eliminating divestiture revenues, reflecting cumulative customer rebates from fiscal year 2018, reclassifying Bard royalties, and removing intercompany revenues.
- Adjusted EPS: Excludes purchase accounting adjustments, transaction and integration costs, hurricane-related items, asset impairments, and the dilutive impact of shares issued for the Bard acquisition.
- Currency Impact: Growth rates are presented after eliminating the fluctuating effects of foreign currency translation.
Guidance, Outlook, and Management Commentary
Management utilizes these non-GAAP measures for internal budget planning and to evaluate underlying operational performance against peer companies. The filing notes that BD provides estimated revenue growth and adjusted EPS growth for the 2020 fiscal year, adjusted for anticipated foreign currency impacts. Management cautions that non-GAAP results should not be viewed in isolation or as a substitute for GAAP results, as excluded items may materially impact net income and cash flows.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific GAAP and non-GAAP numerical values for Q4 and full-year 2019.
- Verify the reconciliation schedules in the press release to understand the magnitude of adjustments made to reach "Adjusted EPS."
- Assess the impact of the C.R. Bard acquisition integration on the "comparable" revenue growth figures.
- Confirm the specific details of the 2020 fiscal year guidance for revenue and adjusted EPS growth.
- Examine the outstanding debt instruments listed to understand maturity profiles and interest rate obligations.