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

The primary purpose of this 8-K filing is to announce and provide details on Eli Lilly and Company's financial results for the fourth quarter and full fiscal year ended December 31, 2009. It includes a press release that offers a non-GAAP presentation of these results, along with forward-looking guidance for 2010.

Why is Eli Lilly providing non-GAAP financial measures?

Eli Lilly is providing non-GAAP financial measures to offer investors a clearer perspective on the company's ongoing operational performance. These measures exclude certain items that are typically volatile, difficult to predict, and can significantly impact reported results, such as asset impairments, restructuring charges, and legal settlements, allowing for more meaningful period-over-period comparisons.

What types of items are excluded in the non-GAAP presentation?

The non-GAAP presentation excludes a variety of items. For the periods discussed, these include asset impairments and restructuring charges related to cost reduction initiatives and site sales, charges related to Zyprexa settlements and investigations, and acquisition-related charges (including in-process R&D) associated with the ImClone Systems acquisition. Tax benefits related to settlements and IRS audits are also adjusted for.

Does the filing include guidance for 2010?

Yes, the press release furnished with this 8-K includes financial expectations for 2010. Specifically, it provides guidance on earnings per share growth on a non-GAAP basis.

LLY 8-K: Earnings & Results

Summary

Eli Lilly and Company (LLY) filed an 8-K on January 28, 2010, to announce its fourth quarter and full fiscal year 2009 results. The report primarily serves to furnish a press release detailing these results, which importantly includes a non-GAAP presentation of financial performance. Management utilizes these non-GAAP measures to provide a clearer view of ongoing operations, excluding items like asset impairments, restructuring charges, and significant legal settlements that can distort period-over-period comparisons. Investors should pay close attention to the non-GAAP figures as they are presented to help evaluate underlying business trends and operational performance. The company also provided financial expectations for 2010 on a non-GAAP basis, highlighting earnings per share growth. While these non-GAAP measures are considered beneficial for understanding operational trends, investors are reminded to view them alongside, not as a replacement for, GAAP-reported figures.

Key Highlights

1LLY announced Q4 and full-year 2009 financial results via an 8-K filing on January 28, 2010.
2The filing includes a press release detailing the company's operational and financial performance for the periods.
3A significant portion of the report focuses on non-GAAP financial measures (e.g., net income, EPS) to provide a clearer view of ongoing operations.
4Adjustments to GAAP figures exclude items such as asset impairments, restructuring charges, legal settlements (Zyprexa), and acquisition-related charges (ImClone).
5The non-GAAP presentation also adjusts for the Pro Forma impact of the ImClone Systems acquisition as if it occurred on January 1, 2008.
6The company provided financial expectations for 2010, including non-GAAP earnings per share growth projections.
7Investors are advised to consider non-GAAP measures alongside GAAP results for a comprehensive understanding.

ELI LILLY & Co 8-K Report, Financial Results (Jan 28, 2010)

Summary

Key Highlights

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