Summary
Eli Lilly and Company (LLY) filed an 8-K on April 26, 2016, reporting its first-quarter 2016 financial results. The filing primarily serves to furnish a press release announcing these results and detailing the company's financial condition and operational performance for the period ended March 31, 2016. Investors should note that Lilly utilizes non-GAAP financial measures, such as non-GAAP net income and earnings per share, which exclude items like amortization of intangible assets from acquisitions and other volatile items. The company asserts these non-GAAP measures offer a clearer view of ongoing operations and aid in period-over-period comparisons, aligning with management's internal performance evaluations.
Key Highlights
- 1The 8-K filing announces Eli Lilly's first-quarter 2016 financial results, reported on April 26, 2016.
- 2The primary purpose of the filing is to furnish a press release detailing the company's operations and financial condition for the quarter ended March 31, 2016.
- 3Lilly employs non-GAAP financial measures, including non-GAAP net income and EPS, to present its results.
- 4These non-GAAP measures exclude items such as amortization of intangible assets from acquisitions and other unpredictable, significant items.
- 5The company believes these non-GAAP metrics enhance investor understanding of ongoing operations and facilitate meaningful comparisons.
- 6Management utilizes these non-GAAP measures for internal performance evaluation, resource allocation, and incentive compensation assessment.
- 7The filing emphasizes that non-GAAP measures should be considered alongside, not as a substitute for, GAAP measures.
Frequently Asked Questions
The main purpose of this 8-K filing is to officially report Eli Lilly's financial results for the first quarter of 2016, as announced in their press release on April 26, 2016. It also includes details on the company's financial condition and operational performance.
Non-GAAP financial measures are financial metrics that are not prepared in accordance with Generally Accepted Accounting Principles (GAAP). Lilly uses them to provide a clearer picture of its ongoing operations by excluding items like amortization of acquired intangible assets and other unpredictable costs. The company believes these measures help investors make better period-over-period comparisons and identify underlying business trends.
No, investors should consider Lilly's non-GAAP financial measures in addition to, and not as a substitute for or superior to, measures prepared in accordance with GAAP. The company itself advises this approach to ensure a comprehensive understanding of its financial performance.
The non-GAAP financial measures used by Lilly typically exclude the impact of significant acquisitions and divestitures, including the amortization of intangible assets primarily associated with acquired or licensed products. They also exclude other highly variable and unpredictable items that could significantly impact reported results.