Business Context and Reporting Period
This Form 8-K filing by Becton, Dickinson and Company (BD) was submitted on November 7, 2012. The report announces the financial results for the fourth fiscal quarter and the full fiscal year ended September 30, 2012. The detailed financial data is 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 Growth: Presented after eliminating the effect of foreign currency translation to better reflect underlying operating results.
- Earnings Per Share (EPS): Diluted EPS from continuing operations is presented excluding non-cash pension settlement charges for Q4 and full-year 2012. For fiscal year 2011, EPS excludes a non-cash charge related to the discontinuance of a research program.
- EPS Growth: Calculated using adjusted EPS figures and excluding foreign currency translation effects.
Material Changes and Non-GAAP Adjustments
The filing details specific adjustments made to financial metrics to facilitate period-to-period comparisons:
- 2012 Adjustments: Exclusion of primarily non-cash pension settlement charges.
- 2011 Adjustments: Exclusion of non-cash charges resulting from the discontinuance of a research program within the Diagnostic Systems unit.
- Currency Impact: Revenue and EPS growth rates are adjusted to remove the impact of foreign currency translation.
Guidance, Outlook, and Risks
Management provides estimated EPS guidance for fiscal year 2013 with the following adjustments:
- Excludes the estimated impact of foreign currency translation.
- Excludes the estimated impact of the medical device excise tax, which becomes effective in 2013 under U.S. healthcare reform law.
Risks and Limitations: Management notes that non-GAAP measures should not be considered in isolation or as a substitute for GAAP results. Items excluded from non-GAAP measures may have a material impact on net income, EPS, or cash flows. Investors are advised to consider these limitations when evaluating performance.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific GAAP and non-GAAP numerical values for revenue, EPS, and cash flow.
- Verify the exact dollar amount of the non-cash pension settlement charges excluded from 2012 EPS.
- Confirm the specific impact of the medical device excise tax on the 2013 guidance.
- Assess the magnitude of foreign currency translation effects on reported revenue growth.