8-KEarnings & ResultsExhibits & Filings

ELI LILLY & Co 8-K Report, Financial Results (Oct 20, 2011)

Filed October 20, 2011For Securities:LLY

Summary

Eli Lilly and Company (LLY) filed an 8-K on October 20, 2011, to report its financial results for the third quarter and the first nine months of 2011. The filing includes a press release detailing these results, as well as a teleconference for analysts and media to discuss the performance. Notably, the company is providing non-GAAP financial measures alongside GAAP results to offer a clearer view of ongoing operations, excluding items like restructuring charges, in-process R&D expenses, and the impact of U.S. healthcare reform. Investors are encouraged to review these non-GAAP figures, as they are used by management for performance evaluation and resource allocation, and provide a basis for more meaningful period-over-period comparisons. The press release also contains financial expectations for the full year 2011, including GAAP and non-GAAP earnings per share guidance. The information furnished in this 8-K, particularly Item 2.02 and its accompanying press release, is intended to provide investors with insights into the company's financial condition and operational trends.

Key Highlights

  • 1Announcement of Q3 and year-to-date 2011 financial results via press release and analyst teleconference.
  • 2Company is presenting both GAAP and non-GAAP financial measures, including net income and earnings per share.
  • 3Non-GAAP results exclude significant items such as restructuring charges and in-process R&D costs.
  • 4Restructuring charges are primarily related to workforce reductions and cost structure initiatives.
  • 5In-process R&D charges are associated with collaborations, specifically with Boehringer Ingelheim (diabetes) and an in-licensing transaction with Acrux.
  • 6The impact of foreign exchange rate changes and U.S. healthcare reform on results is quantified.
  • 7Financial expectations for the full year 2011 are provided, including both GAAP and non-GAAP EPS guidance.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce Eli Lilly's financial results for the third quarter and the first nine months of 2011. It also includes a press release with detailed financial statements and provides the company's financial outlook for the full year 2011.

Eli Lilly is providing non-GAAP financial measures to offer investors a more insightful view of its ongoing operations. These measures exclude items that are often volatile, difficult to predict, or substantial in impact, such as restructuring charges and in-process R&D expenses. Management uses these non-GAAP figures internally to evaluate business performance and make period-over-period comparisons.

The non-GAAP results presented exclude restructuring charges (primarily severance costs from strategic actions), in-process research and development charges (related to collaborations like the one with Boehringer Ingelheim for diabetes and an in-licensing with Acrux), and also quantify the impact of foreign exchange rates and U.S. healthcare reform.

Yes, the filing includes financial expectations for the full year 2011. This guidance is provided on both a GAAP basis and a non-GAAP basis, allowing investors to assess the company's projected performance under different accounting methods.