BECTON DICKINSON & CO — Earnings Release 2008

Jul 24, 2008

8-K 1 c54363_8k.htm

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

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FORM 8-K

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CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 24, 2008

| BECTON, DICKINSON AND
COMPANY |
| --- |
| (Exact Name of Registrant as Specified in Its Charter) |

New Jersey
(State or Other Jurisdiction of Incorporation)

001-4802	22-0760120
(Commission File Number)	(IRS Employer Identification No.)

| 1 Becton Drive, Franklin
Lakes, New Jersey | 07417-1880 |
| --- | --- |
| (Address
of Principal Executive Offices) | (Zip
Code) |

(201) 847-6800
(Registrant’s Telephone Number, Including Area Code)

N/A
(Former Name or Former Address, if Changed Since Last Report)

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Check the appropriate box below if the Form 8-K Filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230425)

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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 24, 2008, Becton, Dickinson and Company (“BD”) issued a press release announcing its financial results for the fiscal quarter ending June 30, 2008. A copy of the press release is furnished as Exhibit 99.1 to this report.

The press release furnished as Exhibit 99.1 contains certain financial measures that differ from those presented in accordance with U.S. generally accepted accounting principles (GAAP), as follows:

• Revenues . We present international and total company revenue growth rates at constant foreign exchange rates. We believe that presenting revenue growth rates at constant foreign exchange rates allows investors to view the underlying operating results of BD and of its segments without the impact of fluctuations in foreign currency exchange rates, thereby facilitating comparisons to prior periods.
• Operating Income . We present BD’s operating income, both alone and as a percentage of revenues, for the third quarter of fiscal year 2007 after excluding the impact of the in-process research and development (“R&D”) charge relating to our acquisition of Plasso Technology, Ltd. (“Plasso”). We also present BD’s operating income, both alone and as a percentage of revenues, for the first nine months of fiscal year 2007 after excluding the impact of the in-process R&D charges relating to our acquisition of Plasso and our acquisition of TriPath Imaging, Inc. (“TriPath”). These charges affected reported operating income for the periods presented, but are not considered by management to be part of ordinary operations. Accordingly, management believes that these adjusted measures of operating income are more indicative of BD’s underlying performance, and allow investors to better understand BD’s comparative operating performance for the periods presented.
• Effective Tax Rate . We present BD’s effective tax rate for the third quarter of fiscal year 2007 after excluding the impact of the in-process R&D charges relating to our acquisition of Plasso. We also present BD’s effective tax rate for the first nine months of fiscal year 2007 after excluding the impact of the in-process R&D charges relating to our acquisition of TriPath and Plasso. These charges, which are not considered part of ordinary operations by management and are not tax deductible, caused our effective tax rate for such periods to be higher than it otherwise would have been. Management believes that these adjusted measures of our effective tax rate are more indicative of BD’s underlying results, and allow investors to better understand BD’s comparative effective tax rate for such periods.
• Income from Continuing Operations . We present BD’s income from continuing operations, both alone and as a percentage of revenues, for the third quarter of fiscal year 2007 after excluding the impact of the in-process R&D charge relating to our acquisition of Plasso. We also present BD’s income from continuing operations, both alone and as a percentage of revenues, for the first nine months of fiscal year 2007 after excluding the impact of the in-process R&D charges relating to our acquisition of TriPath and Plasso. These charges affected reported income from continuing operations for the periods presented, but are not considered by management to be part of ordinary operations. Accordingly, management believes that these adjusted measures of income from continuing operations are more indicative of BD’s underlying performance, and allow investors to better understand BD’s comparative income from continuing operations for such periods.
• Earnings Per Share . We present BD’s earnings per share from continuing operations for the third quarter of fiscal year 2007 after excluding the impact of the in-process R&D charge relating to our acquisition of Plasso. We also present earnings per share from continuing operations for the first nine months of fiscal year 2007 and for the full 2007 fiscal year after excluding the impact of the in-process R&D charges relating to our acquisition of TriPath and Plasso. These charges caused reported earnings per share for such periods to be lower than they otherwise would have been, although these charges are not considered by management to be part of ordinary operations. We believe that measures of earnings per share that are adjusted for the impact of these charges are more indicative of BD’s underlying performance and allow investors to more easily compare BD’s results for the periods presented to other periods.

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. 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, 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.

Non-GAAP results should not be considered in isolation and are not in accordance with, or a substitute for, GAAP results. 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.

| ITEM 9.01 FINANCIAL
STATEMENTS AND EXHIBITS. |
| --- |
| Exhibits. —
Exhibit 99.1 Press release dated July 24, 2008, which is furnished pursuant
to Item 2.02. |

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BECTON, DICKINSON AND COMPANY (Registrant)
By: /s/ Dean J. Paranicas
Dean J. Paranicas Vice President, Corporate Secretary and Public Policy

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Date: July 24, 2008

INDEX TO EXHIBITS

| Exhibit Number | Description
of Exhibits |
| --- | --- |
| 99.1 | Press
release dated July 24, 2008, which is furnished pursuant to Item 2.02. |