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

The primary purpose of this 8-K filing is to communicate Eli Lilly's updated financial guidance for 2012 and its financial expectations for 2013 to investors, along with explanations of the non-GAAP measures used.

Why does Lilly use non-GAAP financial measures for EPS?

Lilly uses non-GAAP EPS to provide investors with a view of its ongoing operations. These measures exclude items that are typically highly variable, difficult to predict, and can significantly impact reported earnings, such as one-time income or restructuring charges, to allow for more meaningful comparisons over time.

What were the key adjustments made to Lilly's EPS for 2012 and 2013?

For 2012, adjusted EPS excluded a $.43 per share income from an early payment related to Amylin's exenatide obligation and $.05 per share for asset impairment and restructuring charges. For 2013, projected adjusted EPS excludes an estimated $.28 per share related to exenatide income contingent upon the transfer of commercial rights.

Should investors rely solely on the non-GAAP EPS figures?

No, investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, the company's financial performance measures prepared in accordance with GAAP. Lilly believes they offer useful insights but should be viewed alongside GAAP figures.

LLY 8-K: Earnings & Results

Summary

Eli Lilly & Company (LLY) filed an 8-K on January 4, 2013, to provide updates on its financial outlook. The company issued a press release and held a conference call on January 3, 2013, to discuss its financial guidance for the full year 2012 and provide projections for 2013. A key aspect of this filing is Lilly's use of non-GAAP financial measures to present earnings per share (EPS), which exclude certain significant items to offer a clearer view of ongoing operations.

Key Highlights

1Lilly provided updated financial guidance for 2012 and introduced its financial expectations for 2013.
2The company utilizes non-GAAP EPS to report results and guidance, excluding specific items that impact comparability.
3For 2012, non-GAAP EPS excluded a $.43 per share income from the early payment of Amylin's exenatide revenue sharing obligation.
4Also excluded from 2012 non-GAAP EPS were asset impairment and restructuring charges of $.05 per share recognized in the first nine months.
5For 2013, non-GAAP EPS projections exclude an estimated $.28 per share related to exenatide income contingent upon the transfer of exenatide commercial rights outside the U.S. to Amylin.
6Lilly emphasizes that these non-GAAP measures are intended to help investors assess ongoing operations and facilitate meaningful period-over-period comparisons.
7The information furnished in this Item 2.02 and the attached press release are considered 'furnished' and not 'filed' for regulatory purposes.

ELI LILLY & Co 8-K Report, Financial Results (Jan 4, 2013)

Summary

Key Highlights

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