Business Context and Reporting Period
Company: Becton, Dickinson and Company (BD)
Filing Type: Form 8-K (Current Report)
Report Date: February 7, 2011
Reporting Period: First fiscal quarter ended December 31, 2010
This filing announces the issuance of a press release detailing financial results for the first quarter of fiscal year 2011. The report includes both GAAP and non-GAAP financial measures.
Key Financial Metrics
The filing text serves as a cover document referencing the press release (Exhibit 99.1) and reconciliation tables (Exhibit 99.2). The specific numerical values for revenue, profit, cash flow, margins, debt, and liquidity are not provided in the text of this 8-K filing.
Management highlights the following non-GAAP adjustments to better reflect underlying performance:
- Revenue Growth: Presented after eliminating the effect of foreign currency translation and hedging gains/losses.
- Earnings Per Share (EPS): Adjusted to exclude a non-cash charge related to health care reform impacting Medicare Part D reimbursements.
- EPS Growth (Q1 2011): Presented after eliminating foreign currency translation effects.
Material Changes and Non-GAAP Adjustments
The filing details specific items excluded from non-GAAP measures to facilitate period-to-period comparisons:
- Foreign Currency: Volatility from currency translation and hedging activities is removed from revenue and EPS growth metrics.
- Health Care Reform: A non-cash charge associated with Medicare Part D reimbursement changes is excluded from fiscal year 2010 EPS calculations, as management does not consider it part of ordinary operations.
Guidance, Outlook, and Risks
Management Commentary: Management utilizes these non-GAAP measures for internal evaluation, budget planning, and to assist investors in assessing underlying operational performance and future EPS guidance for fiscal year 2011.
Risks and Limitations: The filing explicitly states that non-GAAP results should not be considered in isolation or as a substitute for GAAP results. Management notes that excluded items may have a material impact on net income, EPS, or cash flows calculated under GAAP. Investors are advised to consider these limitations alongside GAAP figures.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific revenue, net income, and EPS figures for Q1 2010 and Q1 2011.
- Examine Exhibit 99.2 for the detailed reconciliation between GAAP and non-GAAP financial measures.
- Verify the magnitude of the non-cash charge related to Medicare Part D reimbursements excluded from EPS.
- Assess the impact of foreign currency fluctuations on reported revenue growth versus constant currency growth.