Summary
Eli Lilly & Co. (LLY) filed an 8-K on January 31, 2012, to report its fourth quarter and full-year 2011 financial results. The report highlights the company's use of non-GAAP financial measures to provide investors with a clearer view of ongoing operational performance, excluding items such as restructuring charges, a special charge related to the withdrawal of Xigris, and in-process R&D charges. A significant development mentioned is Lilly's consultation with the SEC regarding the accounting treatment for the termination of its alliance with Amylin Pharmaceuticals. While this consultation is not expected to impact cash flows, it could potentially lead to material changes in Lilly's 2011 reported results and 2012 financial guidance. The company is working to resolve this with the SEC before filing its next 10-K.
Key Highlights
- 1Eli Lilly announced its Q4 and full-year 2011 financial results, providing an income statement for these periods.
- 2The company utilized non-GAAP financial measures (e.g., non-GAAP net income and EPS) to present results, excluding specific items to offer insight into ongoing operations.
- 3Excluded items from non-GAAP reporting include restructuring charges, a special charge for Xigris withdrawal, and in-process R&D charges.
- 4The impact of foreign exchange rate changes and U.S. healthcare reform on financial results was also quantified.
- 5Lilly provided 2012 financial expectations, including non-GAAP EPS growth.
- 6The company is consulting with the SEC on the accounting treatment for the termination of its Amylin Pharmaceuticals alliance.
- 7This SEC consultation, while not affecting cash flows, could lead to material changes in reported 2011 results and 2012 guidance.