Business Context and Reporting Period
Company: Becton, Dickinson and Company (BD)
Filing Type: Form 8-K (Current Report)
Report Date: February 5, 2013
Period Covered: First fiscal quarter ending December 31, 2012
This filing announces the issuance of a press release containing financial results for the first quarter of fiscal year 2013. The report details the company's methodology for presenting non-GAAP financial measures to facilitate investor understanding of underlying operating results.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it outlines the definitions and adjustments applied to non-GAAP measures included in the accompanying press release (Exhibit 99.1):
- Revenue Growth: Presented for international and total revenue (company-wide, by segment/unit, and for safety-engineered devices) after eliminating the effect of foreign currency translation.
- Earnings Per Share (EPS): Q1 2013 EPS growth is presented after eliminating foreign currency translation effects.
- Guidance Adjustments: Estimated full-year 2013 EPS guidance excludes estimated foreign currency translation impacts and the impact of the new medical device excise tax.
Material Changes and Adjustments
The filing highlights specific adjustments made to financial metrics to ensure comparability with prior periods:
- Foreign Currency: Growth rates for revenue and EPS are adjusted to remove the impact of foreign currency translation.
- Medical Device Excise Tax: Full-year 2013 guidance excludes the impact of the medical device excise tax, which took effect in 2013 under U.S. healthcare reform law.
- Pension Settlement Charge: Fiscal year 2013 EPS growth rates are calculated by adjusting fiscal year 2012 EPS to exclude a pension settlement charge recorded in Q4 2012, which management does not consider part of ordinary operations.
Guidance, Outlook, and Risks
Management Commentary: Management asserts that eliminating foreign currency effects and specific one-time charges (pension settlement) or new tax impacts (medical device excise tax) allows investors to better assess underlying performance and compare guidance to prior periods.
Outlook: The filing references estimated EPS guidance for fiscal year 2013, though specific numerical targets are not contained within this 8-K text.
Risks and Contingencies: The filing notes the implementation of the medical device excise tax as a factor affecting 2013 results and guidance.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding Q1 2012 revenue, EPS, and full-year 2013 guidance.
- Verify the magnitude of the foreign currency translation impact on reported versus non-GAAP growth rates.
- Confirm the estimated financial impact of the medical device excise tax on 2013 earnings.
- Examine the details of the Q4 2012 pension settlement charge excluded from comparative EPS calculations.