Business Context and Reporting Period
Becton, Dickinson and Company (BD) filed this Form 8-K on May 2, 2013, to announce financial results for its second fiscal quarter ending March 31, 2013. The filing references a press release (Exhibit 99.1) containing the detailed results.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It focuses on the methodology for presenting non-GAAP financial measures rather than the results themselves.
- Revenue Growth: Presented after eliminating the effect of foreign currency translation to show underlying operating results.
- Earnings Per Share (EPS): Growth rates for the second quarter and first six months of fiscal 2013 are presented excluding foreign currency translation and the impact of the U.S. medical device excise tax (effective January 2013).
Material Changes and Adjustments
Management highlights specific adjustments to facilitate period-to-period comparability:
- Medical Device Excise Tax: The impact of this tax, introduced under U.S. healthcare reform in January 2013, is excluded from non-GAAP EPS calculations.
- Foreign Currency: Revenue and EPS growth rates exclude foreign currency translation effects.
- Prior Year Adjustments: Fiscal year 2012 EPS guidance comparisons exclude a pension settlement charge recorded in the fourth quarter of fiscal 2012, which management does not consider part of ordinary operations.
Guidance, Outlook, and Risks
Management provides estimated EPS guidance for fiscal year 2013 using the adjusted non-GAAP methodology described above. The filing includes standard disclosures regarding the limitations of non-GAAP measures, noting they should not be considered in isolation or as a substitute for GAAP results. Management uses these measures for internal evaluation, budget planning, and peer comparisons.
Investor Verification Checklist
- Review the attached press release (Exhibit 99.1) for specific GAAP and non-GAAP financial figures.
- Verify the reconciliation between GAAP and non-GAAP EPS to understand the exact impact of the medical device excise tax and foreign currency.
- Confirm the magnitude of the pension settlement charge excluded from the prior year's adjusted EPS.
- Assess the company's full-year 2013 EPS guidance against the adjusted historical performance.