BECTON, DICKINSON AND COMPANY ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On
quarter, and our estimated revenue growth for fiscal year 2020, after eliminating the effect of foreign currency translation, which can fluctuate from period to period. Management believes these adjustments help investors to better understand the underlying performance (and anticipated performance) of BD and evaluate such performance in comparison to the prior periods.
• Adjusted Earnings Per Share. We present diluted earnings per share ("EPS") for
the quarter and the prior period after eliminating items that we believe are
not part of our ordinary operations and affect the comparability of the
periods presented ("adjusted EPS"). We also present adjusted EPS for the full
2019 fiscal year. Adjusted EPS includes adjustments for purchase accounting
adjustments, integration and restructuring costs, divestiture and
investment-related gains, certain product recall and litigation costs, the
impact of the extinguishment of long-term debt, certain regulatory costs,
certain asset impairments, hurricane-related items, and the impact of tax
reform. We believe adjustments for these items allow investors to better
understand the underlying operating results of BD and facilitate comparisons
between the periods shown. We also show the growth in adjusted EPS compared to
the prior year period after eliminating the impact of foreign currency
translation to further enable investors to evaluate BD's underlying earnings
performance compared to the prior period. Details regarding these adjustments
can be found in the schedules included in the press release furnished as
Exhibit 99.1.
We also present our estimated adjusted EPS growth for our 2020 fiscal year after adjusting for the anticipated impact of foreign currency translation. Management believes that this adjustment allows investors to better evaluate BD's anticipated underlying earnings performance for our 2020 fiscal year in relation to our underlying 2019 fiscal year performance.
BD's management uses each of these non-GAAP measures in its own evaluation of BD's performance, particularly when comparing performance to past periods and to the performance of peer companies. Management also uses the non-GAAP results for budget planning purposes on a quarterly and annual basis. BD provides non-GAAP measures to investors on a supplemental basis in addition to our GAAP results, as they provide additional insight into BD's financial results. Management believes the non-GAAP results provide a reasonable measure of BD's underlying performance before the effects of items that are considered by management to be outside of BD's underlying operational results or that affect period to period comparability. However, non-GAAP results should not be considered in isolation and are not in accordance with, or a substitute for, GAAP results. Also, our non-GAAP results may differ from similar measures used by other companies, even if similar terms are used to identify such measures. Although BD's management believes non-GAAP results are useful in evaluating the performance of its business, its reliance on these measures is limited since items excluded from such measures may have a material impact on BD's net income, earnings per share or cash flows calculated in accordance with GAAP. Therefore, management typically uses non-GAAP results in conjunction with GAAP results to address these limitations. Investors should also consider these limitations when evaluating BD's results.
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ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit 99.1 Press release dated
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