Business Context and Reporting Period
Company: Becton, Dickinson and Company (BD)
Filing Type: Form 8-K (Current Report)
Report Date: August 2, 2011
Reporting Period: Third fiscal quarter ended June 30, 2011
This filing serves to announce the company's financial results for the third quarter of fiscal year 2011. The report includes a press release (Exhibit 99.1) containing both GAAP and non-GAAP financial measures.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The provided filing text does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are referenced as being contained within the press release furnished as Exhibit 99.1, which is not included in the input text.
Non-GAAP Measures Discussed:
- Revenue Growth: Presented after eliminating the effect of foreign currency translation and hedging gains/losses to show underlying operating results.
- Earnings Per Share (EPS): Adjusted for the first nine months and full fiscal year 2010 to exclude a non-cash charge related to health care reform impacting Medicare Part D reimbursements. EPS growth for Q3 and the first nine months of 2011 is also presented excluding foreign currency effects.
Material Changes and Comparisons
The filing highlights the use of non-GAAP measures to facilitate comparisons to prior periods by removing the volatility of foreign currency translation and specific one-time charges (Medicare Part D reform). The text does not provide specific percentage changes or dollar amounts comparing the current period to the prior comparable period.
Guidance, Outlook, and Management Commentary
Management Commentary: Management utilizes these non-GAAP measures for internal evaluation, budget planning, and to provide investors with insight into underlying performance. They assert that these measures allow for a better assessment of EPS guidance for fiscal year 2011.
Risks and Contingencies: The filing notes that non-GAAP results should not be considered in isolation or as a substitute for GAAP results. Management acknowledges that items excluded from non-GAAP measures (such as foreign currency effects and specific charges) may have a material impact on net income, EPS, and cash flows calculated under GAAP.
Guidance: Specific numerical guidance for future periods is not detailed in this text, though the filing states that the adjusted EPS measures are intended to help investors assess the company's EPS guidance for fiscal year 2011.
Investor Verification Checklist
- Review the full text of the press release (Exhibit 99.1) to obtain specific GAAP and non-GAAP revenue, EPS, and cash flow figures.
- Verify the reconciliation between GAAP and non-GAAP EPS, specifically regarding the Medicare Part D non-cash charge and foreign currency adjustments.
- Assess the impact of foreign currency translation on the reported revenue growth rates versus the constant currency growth rates.
- Confirm the specific EPS guidance for fiscal year 2011 referenced in the management commentary.