What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to report Eli Lilly and Company's financial results for the fourth quarter and the full fiscal year ended December 31, 2003. It includes a press release and related financial statements for these periods.

Why is Eli Lilly using non-GAAP financial measures in this report?

Eli Lilly is using non-GAAP measures, such as adjusted net income and earnings per share, to provide investors with a more insightful view of the company's ongoing operational performance. These measures exclude certain significant, variable, and often unpredictable items like asset impairments, restructuring charges, and one-time gains or charges, which can otherwise obscure core business trends and make period-over-period comparisons difficult.

What specific items are being excluded from the GAAP results to calculate the non-GAAP measures?

The non-GAAP measures exclude asset impairments, restructuring and special charges incurred in 2003, a gain on the sale of patent rights to the compound dapoxetine in the fourth quarter of 2003, and a charge for acquired in-process research and development from the third quarter of 2002. These items are detailed in the attached press release and prior SEC filings.

How does management view the usefulness of these non-GAAP measures?

Management believes these non-GAAP measures are useful to investors as they help evaluate the company's ongoing operations, facilitate period-over-period comparisons, and identify operating trends that might otherwise be masked or distorted by the excluded items. Management also uses these measures internally for performance evaluation and resource allocation.

LLY 8-K SEC Disclosure — Jan 29, 2004

Summary

Eli Lilly and Company (LLY) filed an 8-K on January 29, 2004, to report its financial results for the fourth quarter and full year ended December 31, 2003. The filing includes a press release and financial statements detailing the company's operational performance for the period. A key aspect of this report is Lilly's use of non-GAAP financial measures, such as adjusted net income and earnings per share, to provide a clearer view of ongoing operational trends by excluding certain significant and variable items. These non-GAAP measures are presented to help investors better evaluate the company's core business performance by removing the impact of items like asset impairments, restructuring charges, special charges incurred in 2003, a gain from the sale of dapoxetine patent rights in Q4 2003, and an in-process R&D charge from 2002. Management utilizes these adjusted figures internally for performance evaluation and resource allocation, believing they offer valuable insights into period-over-period comparisons and operating trends that might otherwise be obscured by these one-time or unusual events.

Key Highlights

1Eli Lilly & Co. announced its financial results for the fourth quarter and full year ended December 31, 2003, via an 8-K filing on January 29, 2004.
2The company is utilizing non-GAAP financial measures (adjusted net income and diluted EPS) to present a clearer picture of its operational performance.
3These non-GAAP measures exclude significant items impacting GAAP results, including asset impairments, restructuring charges, and special charges from 2003.
4A gain on the sale of patent rights for the compound dapoxetine in Q4 2003 is also excluded from adjusted earnings.
5A charge for acquired in-process research and development from the third quarter of 2002 is also excluded in comparative non-GAAP figures.
6Management asserts that these non-GAAP measures aid investors in evaluating ongoing operations and identifying trends by removing variability from excluded items.
7The filing indicates that prospective earnings guidance may also be subject to adjustments for similar unpredictable matters.

ELI LILLY & Co 8-K Report (Jan 29, 2004)

Summary

Key Highlights

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