Business Context and Reporting Period
Company: Becton, Dickinson and Company (BD)
Filing Type: Form 8-K (Current Report)
Report Date: February 5, 2015
Reporting Period: First fiscal quarter ended December 31, 2014
This filing announces the issuance of a press release detailing financial results for the first quarter of fiscal year 2015. The report focuses on the methodology for presenting non-GAAP financial measures to facilitate period-over-period comparisons.
Key Financial Metrics
Note: This 8-K filing serves as a notice of the press release and defines non-GAAP adjustments. It does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Investors must refer to the attached press release (Exhibit 99.1) for specific figures.
- Revenue Growth: Presented on a constant currency basis (eliminating foreign currency translation effects) for international and total revenue.
- Earnings Per Share (EPS): Adjusted EPS is presented excluding specific one-time and non-cash items.
- Non-GAAP Adjustments:
- Financing, transaction, and integration costs related to the pending acquisition of CareFusion Corporation.
- Non-cash amortization of acquisition-related intangible assets.
- Plaintiff attorney fees regarding antitrust and false advertising litigation with Retractable Technologies, Inc.
Material Changes and Comparisons
The filing outlines the framework for comparing the first quarter of fiscal 2015 to the prior year period. Management emphasizes that non-GAAP measures are used to strip out the impact of foreign currency translation and specific charges to reveal underlying operating performance. The filing does not explicitly state the magnitude of changes in revenue or profit in this text; it only defines the metrics used to calculate them.
Guidance, Outlook, and Risks
- Guidance: BD provides estimated EPS guidance for fiscal year 2015. This guidance is adjusted for anticipated foreign currency translation impacts and excludes specific costs and charges expected in fiscal 2015 and 2014.
- Management Commentary: Management utilizes these non-GAAP measures for internal budget planning and peer comparisons, believing they offer a clearer view of underlying performance.
- Risks and Contingencies:
- Acquisition: Ongoing integration and transaction costs associated with the pending CareFusion acquisition.
- Litigation: Ongoing antitrust and false advertising litigation with Retractable Technologies, Inc.
- Limitations: Management notes that non-GAAP results should not be viewed in isolation as excluded items may materially impact GAAP net income and cash flows.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific GAAP and non-GAAP revenue and EPS figures.
- Verify the specific dollar amounts excluded from EPS due to CareFusion acquisition costs and litigation fees.
- Confirm the quantitative impact of foreign currency translation on reported revenue growth.
- Assess the full scope of the fiscal year 2015 EPS guidance provided in the press release.