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

The primary purpose of this 8-K filing is to announce and disseminate Eli Lilly's financial results for the second quarter and the first six months ended June 30, 2010. It includes a press release with detailed financial statements and commentary, along with the company's financial outlook for the full year 2010.

What are 'non-GAAP' financial measures, and why does Lilly use them?

Non-GAAP financial measures are financial metrics that exclude certain items from the standard GAAP (Generally Accepted Accounting Principles) calculations. Lilly uses them to provide investors with a clearer view of its ongoing operational performance by excluding items that are often highly variable, difficult to predict, and can significantly impact reported results. Examples include in-process R&D, restructuring charges, and settlement-related costs.

What specific items are being excluded in Lilly's non-GAAP reporting for this period?

For the Q2 and H1 2010 reporting period, Lilly excluded in-process R&D charges related to an Acrux in-licensing transaction, restructuring charges for strategic actions impacting workforce, and charges from 2009 related to potential Zyprexa settlements. For 2009 comparisons and 2010 guidance, other items such as asset impairments, R&D charges from an Incyte agreement, and charges related to the Tippecanoe site sale were also excluded.

What financial guidance does Lilly provide for the full year 2010?

Lilly provides financial expectations for the full year 2010, including earnings per share (EPS) guidance on both a GAAP and a non-GAAP basis. The non-GAAP guidance is adjusted to exclude specific items that are considered to have a substantial impact and are difficult to predict, offering a view of underlying earnings growth.

LLY 8-K: Earnings & Results

Summary

Eli Lilly and Company (LLY) filed an 8-K on July 22, 2010, reporting its financial results for the second quarter and first six months ended June 30, 2010. The report primarily disseminates a press release detailing these results, including both GAAP and non-GAAP financial figures. Investors are provided with a non-GAAP presentation which adjusts for significant items such as in-process R&D charges, restructuring costs, and charges related to past Zyprexa settlements. The company also provided financial expectations for the full year 2010, offering guidance on both GAAP and non-GAAP earnings per share. Lilly emphasizes that its non-GAAP measures are intended to provide a clearer view of ongoing operations and facilitate meaningful period-over-period comparisons, excluding highly variable and unpredictable items. Investors are advised to consider these non-GAAP measures alongside, and not as a substitute for, GAAP results.

Key Highlights

1Announcement of Q2 and H1 2010 financial results.
2Use of non-GAAP financial measures (e.g., non-GAAP net income, EPS) for reporting and comparison.
3Exclusion of specific charges in non-GAAP reporting: in-process R&D (Acrux), restructuring costs, and Zyprexa settlement charges (2009).
4Quantification of the impact of foreign exchange rate changes and U.S. healthcare reform on Q2 2010 results.
5Provision of 2010 financial expectations, including both GAAP and non-GAAP EPS guidance.
6Explanation of the rationale behind using non-GAAP measures to provide insight into ongoing operations and trends.
7Information furnished to the SEC, not deemed filed for Section 18 purposes.

ELI LILLY & Co 8-K Report, Financial Results (Jul 22, 2010)

Summary

Key Highlights

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