Business Context and Reporting Period
This Form 8-K filing by Becton, Dickinson and Company (BD) was submitted on February 4, 2014. The report announces the company's financial results for its first fiscal quarter ending December 31, 2013. The detailed results are contained in a press release furnished as Exhibit 99.1.
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 methodology for presenting non-GAAP financial measures:
- Revenue: Presented with growth rates for international and total revenue after eliminating the effect of foreign currency translation.
- Earnings Per Share (EPS): Diluted EPS from continuing operations is presented with adjustments to eliminate the impact of foreign currency translation and the medical device excise tax (effective January 2013).
- Historical Adjustments: Fiscal year 2013 EPS is adjusted to exclude charges related to an antitrust class action settlement, litigation with Retractable Technologies, Inc., and non-cash pension settlements.
Material Changes and Non-GAAP Adjustments
The filing highlights specific items that management excludes from non-GAAP measures to facilitate period-to-period comparisons:
- Foreign Currency Translation: Adjusted out to reveal underlying operating results.
- Medical Device Excise Tax: Adjusted out as it was not in effect during the prior year period.
- One-Time Charges: Fiscal 2013 results are adjusted for antitrust settlements, litigation verdicts, and pension settlement charges, which management deems outside of ordinary operations.
Guidance, Outlook, and Risks
Management provides estimated EPS guidance for fiscal year 2014, adjusted for anticipated foreign currency translation impacts and the incremental impact of the medical device excise tax compared to fiscal 2013. The filing includes a risk disclosure stating that non-GAAP results should not be considered 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 results for Q1 2014.
- Verify the reconciliation between GAAP and non-GAAP EPS figures to understand the magnitude of the excise tax and currency impacts.
- Confirm the specific dollar amounts of the antitrust settlement, litigation verdict, and pension charges excluded from the 2013 comparison.
- Assess the full-year 2014 EPS guidance provided in the press release against the adjusted metrics described in this filing.