Lilly Reports Fourth-Quarter and Full-Year 2014 Results, Updates 2015 Guidance
- Fourth-quarter 2014 revenue declined 12 percent driven by the impact of U.S. patent expirations for Cymbalta and Evista and the unfavorable impact of foreign exchange rates, partially offset by strong volume growth in several other products.
- Fourth-quarter 2014 earnings per share were
$0.40 (reported), or$0.75 (non-GAAP). - Full-year 2014 revenue declined 15 percent to
$19.6 billion . - Full-year 2014 earnings per share totaled
$2.23 (reported), or$2.78 (non-GAAP). - Approximately
$2.9 billion in cash was returned to shareholders in 2014 through dividends and share repurchases. - 2015 EPS guidance is confirmed in the range of
$2.40 to$2.50 (reported), or$3.10 to$3.20 (non-GAAP); revenue and other elements of guidance have been revised as a result of recent strengthening of the U.S. dollar compared with several other currencies. - Clinical pipeline advancements during the fourth quarter included two
FDA approvals, completion of a rollingFDA submission and a positive Phase III data readout.
$ in millions, except per share data |
Fourth Quarter |
% |
Full Year |
% | ||||||||||||
2014 |
2013 |
Change |
2014 |
2013 |
Change | |||||||||||
Total Revenue - Reported |
$ |
5,121.3 |
$ |
5,808.8 |
(12)% |
$ |
19,615.6 |
$ |
23,113.1 |
(15)% | ||||||
Net Income - Reported |
428.5 |
727.5 |
(41)% |
2,390.5 |
4,684.8 |
(49)% | ||||||||||
EPS - Reported |
0.40 |
0.67 |
(40)% |
2.23 |
4.32 |
(48)% | ||||||||||
Net Income - non-GAAP |
797.6 |
796.9 |
0% |
2,987.6 |
4,502.6 |
(34)% | ||||||||||
EPS - non-GAAP |
0.75 |
0.74 |
1% |
2.78 |
4.15 |
(33)% | ||||||||||
Certain financial information for 2014 and 2013 is presented on both a reported and a non-GAAP basis. Some numbers in this press release may not add due to rounding. Reported results were prepared in accordance with generally accepted accounting principles (GAAP) and include all revenue and expenses recognized during the period. Non-GAAP measures exclude the items described in the reconciliation tables later in the release. The non-GAAP measures are presented in order to provide additional insights into the underlying trends in the company's business. The company's 2015 financial guidance is also being provided on both a reported and a non-GAAP basis.
"While Lilly's fourth-quarter 2014 results continue to reflect the impact of patent expirations, we are moving to a period of growth led by diabetes, oncology and animal health," said
Key Events Over the Last Three Months
- The acquisition of
Novartis Animal Health was completed onJanuary 1, 2015 in an all-cash transaction of approximately$5.4 billion . As part of the approval, certain animal health assets in the U.S. relating to the Sentinel® canine parasiticide franchise were divested to Virbac for approximately$410 million . The U.S. Food and Drug Administration (FDA) approved and the company launched Cyramza® (ramucirumab) in combination with docetaxel, for the treatment of patients with metastatic non-small cell lung cancer (NSCLC) with disease progression on or after platinum-based chemotherapy.- The
FDA approved and the company launched Cyramza in combination with paclitaxel as a treatment for people with advanced or metastatic gastric (stomach) or gastroesophageal junction (GEJ) adenocarcinoma whose cancer has progressed on or after prior fluoropyrimidine- or platinum-containing chemotherapy. The European Commission approved and the company launched Cyramza in combination with paclitaxel for the treatment of advanced gastric or GEJ adenocarcinoma following prior chemotherapy and as a monotherapy in this setting where treatment in combination with paclitaxel is not appropriate.- The company completed its rolling
FDA submission and the European submission for necitumumab in combination with gemcitabine and cisplatin for the first-line treatment of patients with locally advanced or metastatic squamous non-small cell lung cancer. The European Commission approved Trulicity™ (dulaglutide), a once-weekly GLP-1 receptor agonist treatment to help improve glycemic control in adults with type 2 diabetes. Trulicity has now launched in the U.S. andEurope .- The company announced a worldwide licensing collaboration with Adocia focused on developing an ultra-rapid insulin, known as BioChaperone Lispro, for treatment in people with type 1 and type 2 diabetes. BioChaperone Lispro is currently in Phase Ib studies.
- The company announced an oncology clinical trial collaboration with Merck to evaluate the safety, tolerability and preliminary efficacy of Keytruda® (pembrolizumab), Merck's anti-PD-1 therapy, in combination with Lilly's pemetrexed (Alimta®), ramucirumab (Cyramza) and necitumumab in multiple clinical trials.
- The company announced a clinical trial collaboration with Bristol-Myers Squibb to evaluate the safety, tolerability and preliminary efficacy of Bristol-Myers Squibb's immunotherapy Opdivo® (nivolumab) in combination with Lilly's galunisertib (LY2157299) in multiple tumor types.
- The company and its partner, Boehringer Ingelheim, announced a change to the operational and financial structure of their diabetes alliance. Under the revised agreement, Lilly and Boehringer Ingelheim will continue co-promotion in 17 countries, representing approximately 90 percent of the alliance's anticipated market opportunity. In all other countries, the companies will exclusively commercialize the respective molecules they brought to the alliance.
- The company and Incyte Corporation announced that the primary endpoint of improved ACR20 response compared to placebo was met in the Phase III study of baricitinib in patients with moderately-to-severely active rheumatoid arthritis who previously failed one or more TNF inhibitors. The companies will share results of several ongoing Phase III studies in various disclosures in 2015.
- The company announced a dividend for the first quarter of 2015 of
$0.50 per share on outstanding common stock representing a 2 percent increase. The annual indicated rate is now$2.00 per share. - As part of its previously-announced share repurchase program, the company repurchased approximately
$300 million in company stock in the fourth quarter of 2014. For the full year 2014, the company returned approximately$2.9 billion in cash to shareholders through both its dividend and share repurchase program.
Fourth-Quarter Reported Results
In the fourth quarter of 2014, worldwide total revenue was
Gross margin decreased 13 percent to
Total operating expenses in the fourth quarter of 2014, defined as the sum of research and development, and marketing, selling and administrative expenses, were
In the fourth quarter of 2014, the company recognized acquired in-process research and development charges of
In the fourth quarter of 2014, the company recognized asset impairment, restructuring and other special charges of
Operating income in the fourth quarter of 2014 was
Other income (expense) was income of
The effective tax rate was 16.6 percent in the fourth quarter of 2014, compared with 20.0 percent in the fourth quarter of 2013. The effective tax rate for the fourth quarter of 2014 includes the benefit of the full-year renewal of the R&D tax credit in the U.S. at the end of 2014, partially offset by the tax impact of asset impairment, restructuring and other special charges.
In the fourth quarter of 2014, net income decreased 41 percent to
Fourth-Quarter 2014 Non-GAAP Measures
On a non-GAAP basis, fourth-quarter 2014 operating income decreased
For further detail of Non-GAAP measures, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this press release.
Fourth Quarter |
||||||||
2014 |
2013 |
% Change | ||||||
Earnings per share (reported) |
$ |
0.40 |
$ |
0.67 |
(40)% | |||
Acquired in-process research and development (a) |
.06 |
.03 |
||||||
Asset impairment, restructuring and other special charges |
.34 |
.03 |
||||||
Income associated with revisions to the agreement between Lilly and Boehringer Ingelheim |
(.06) |
- |
||||||
Earnings per share (non-GAAP) |
$ |
0.75 |
$ |
0.74 |
1% | |||
Numbers do not add due to rounding. | ||||||||
(a) Acquired in-process research and development charges in 2014 are associated with revisions to the agreement between Lilly and Boehringer Ingelheim and the collaboration agreement with Adocia. Charges in 2013 are related to the acquisition of the CGRP antibody. |
Full-Year 2014 Reported Results
For the full-year 2014, worldwide total revenue decreased 15 percent to
Gross margin decreased 19 percent to
Total operating expenses decreased 10 percent in 2014. Research and development expenses decreased 14 percent to
In 2014, the company recognized acquired in-process research and development charges of
In 2014, the company recognized asset impairment, restructuring, and other special charges of
Operating income in 2014 decreased 50 percent compared to 2013 to
Other income (expense) was income of
The effective tax rate was 20.3 percent in 2014, compared with 20.5 percent in 2013.
For the full-year 2014, net income decreased 49 percent to
Full-Year 2014 non-GAAP Measures
Operating income decreased 38 percent to
For further detail of Non-GAAP measures, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this press release.
Full-Year |
||||||||
2014 |
2013 |
% Change | ||||||
Earnings per share (reported) |
$ |
2.23 |
$ |
4.32 |
(48)% | |||
U.S. Branded Prescription Drug Fee (a) |
.11 |
- |
||||||
Acquired in-process research and development (b) |
.12 |
.03 |
||||||
Asset impairment, restructuring and other special charges |
.38 |
.08 |
||||||
Income associated with revisions to the agreement between Lilly and Boehringer Ingelheim |
(.06) |
- |
||||||
Income related to the termination of the exenatide collaboration with Amylin |
- |
(.29) |
||||||
Earnings per share (non-GAAP) |
$ |
2.78 |
$ |
4.15 |
(33)% | |||
Numbers do not add due to rounding. | ||||||||
(a) Final regulations from the | ||||||||
(b) Acquired in-process research and development charges in 2014 are associated with revisions to the agreement between Lilly and Boehringer Ingelheim, and collaboration agreements with Adocia, AstraZeneca and |
Revenue Highlights
(Dollars in millions) |
|
% Change Over/ (Under) |
Full-Year |
% Change Over/ (Under) | |||||||||||||||||
2014 |
2013 |
2013 |
2014 |
2013 |
2013 |
||||||||||||||||
Alimta |
$ |
725.0 |
$ |
726.2 |
0% |
$ |
2,792.0 |
$ |
2,703.0 |
3% |
|||||||||||
Humalog® |
729.1 |
733.9 |
(1)% |
2,785.2 |
2,611.2 |
7% |
|||||||||||||||
Cialis® |
622.4 |
588.3 |
6% |
2,291.0 |
2,159.4 |
6% |
|||||||||||||||
Cymbalta |
367.3 |
883.2 |
(58)% |
1,614.7 |
5,084.4 |
(68)% |
|||||||||||||||
Humulin® |
395.6 |
369.5 |
7% |
1,400.1 |
1,315.8 |
6% |
|||||||||||||||
Forteo® |
380.8 |
359.8 |
6% |
1,322.0 |
1,244.9 |
6% |
|||||||||||||||
Zyprexa® |
253.1 |
348.2 |
(27)% |
1,037.3 |
1,194.8 |
(13)% |
|||||||||||||||
Strattera® |
194.9 |
201.1 |
(3)% |
738.5 |
709.2 |
4% |
|||||||||||||||
Effient® |
137.8 |
130.6 |
6% |
522.2 |
508.7 |
3% |
|||||||||||||||
Evista |
72.1 |
275.9 |
(74)% |
419.8 |
1,050.4 |
(60)% |
|||||||||||||||
|
633.3 |
578.4 |
9% |
2,346.6 |
2,151.5 |
9% |
|||||||||||||||
Total Revenue |
$ |
5,121.3 |
$ |
5,808.8 |
(12)% |
$ |
19,615.6 |
$ |
23,113.1 |
(15)% |
Alimta
For the fourth quarter of 2014, Alimta generated sales of
For the full year of 2014, worldwide Alimta sales increased 3 percent to
Humalog
For the fourth quarter of 2014, worldwide Humalog sales decreased 1 percent, to
For the full year of 2014, worldwide Humalog sales increased 7 percent to
Cialis
Cialis sales for the fourth quarter of 2014 increased 6 percent to
For the full year of 2014, worldwide Cialis sales increased 6 percent to
Cymbalta
For the fourth quarter of 2014, Cymbalta generated
For the full year of 2014, worldwide Cymbalta sales decreased 68 percent to
Humulin
Worldwide Humulin sales increased 7 percent in the fourth quarter of 2014, to
For the full year of 2014, worldwide Humulin sales increased 6 percent to
Forteo
Fourth-quarter 2014 sales of Forteo were
For the full year of 2014, worldwide Forteo sales increased 6 percent to
Zyprexa
In the fourth quarter of 2014, Zyprexa sales totaled
For the full year of 2014, worldwide Zyprexa sales decreased 13 percent to
Strattera
During the fourth quarter of 2014, Strattera generated
For the full year of 2014, worldwide Strattera sales increased 4 percent to
Effient
Effient sales were
For the full year of 2014, worldwide Effient sales increased 3 percent to
Evista
Evista sales for the fourth quarter of 2014 decreased 74 percent to
For the full year of 2014, worldwide Evista sales decreased 60 percent to
In the fourth quarter of 2014, worldwide animal health sales totaled
For the full year of 2014, worldwide animal health sales increased 9 percent to
2015 Financial Guidance
The company has revised certain elements of its 2015 financial guidance solely to reflect the recent strengthening of the U.S. dollar compared with several other currencies. The company still expects full-year 2015 earnings per share to be in the range of
2015 Expectations |
||
Earnings per share (reported) |
| |
Exclusion of amortization of intangible assets |
.44 |
|
Exclusion of |
.27 |
|
Earnings per share (non-GAAP) |
|
Amortization and inventory step-up costs associated with the
The company now anticipates 2015 revenue of between
The company now anticipates that gross margin as a percent of revenue will be approximately 75.0 percent in 2015 on a reported basis and 78.0 percent on a non-GAAP basis, reflecting the exclusion of inventory step-up costs associated with the acquisition of
On a reported basis, marketing, selling and administrative expenses are now expected to be in the range of
Other income (expense) is still expected to be in a range between
The 2015 tax rate is still expected to be approximately 18.5 percent on a reported basis and 21.5 percent on a non-GAAP basis, assuming a full-year 2015 benefit of the R&D tax credit and other tax provisions up for extension. If these items are not extended, the 2015 tax rate would be approximately 1.5 percentage points higher. The 2015 expected reported tax rate includes the tax impact of costs associated with the
Capital expenditures are still expected to be approximately
The company's 2015 financial guidance does not include a potential charge related to the collaboration with Pfizer to develop and commercialize tanezumab, an NGF monoclonal antibody being studied for the treatment of pain. As previously communicated, if the partial clinical hold for the molecule is removed and Lilly and Pfizer move forward with development, Lilly will pay a
The following table summarizes the company's 2015 financial guidance.
2015 Guidance | |||
Prior |
Revised | ||
Total Revenue |
|
| |
Gross Margin % of Revenue (reported) |
Approx. 73.5% |
Approx. 75.0% | |
Gross Margin % of Revenue (non-GAAP) |
Approx. 76.5% |
Approx. 78.0% | |
Marketing, Selling & Admin (reported) |
|
| |
Marketing, Selling & Admin (non-GAAP) |
|
| |
Research & Development |
|
| |
Other Income/(Expense) |
|
| |
Tax Rate (reported) |
Approx. 18.5% |
Approx. 18.5% | |
Tax Rate (non-GAAP) |
Approx. 21.5% |
Approx. 21.5% | |
Earnings per Share (reported) |
|
| |
Earnings per Share (non-GAAP) |
|
| |
Capital Expenditures |
Approx. |
Approx. |
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the fourth-quarter 2014 financial results conference call through a link on Lilly's website at www.lilly.com. The conference call will be held today from
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and voluntarism. To learn more about Lilly, please visit us at www.lilly.com and http://newsroom.lilly.com/social-channels. F-LLY
This press release contains management's current intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "project", "intend", "expect", "believe", "target" and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees with respect to pipeline products that the products will receive the necessary clinical and manufacturing regulatory approvals or that they will prove to be commercially successful. Pharmaceutical products can develop unexpected safety or efficacy concerns. The company's results may also be affected by such
factors as the timing of anticipated regulatory approvals and launches of new products; market uptake of recently launched products; competitive developments affecting current products; the expiration of intellectual property protection for certain of the company's products; the company's ability to protect and enforce patents and other intellectual property; the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals, including U.S. health care reform; regulatory compliance problems or government investigations; regulatory actions regarding currently marketed products; unexpected safety or efficacy concerns associated with the company's products; issues with product supply stemming from manufacturing difficulties or disruptions; regulatory changes or other developments; changes in patent law or regulations related to data-package exclusivity;
litigation involving current or future products; the extent to which third party indemnification obligations relating to product liability litigation and similar matters will be performed; unauthorized disclosure of trade secrets or other confidential data stored in the company's information systems and networks; changes in tax law and regulations; changes in inflation, interest rates, and foreign currency exchange rates; asset impairments and restructuring charges; changes in accounting standards promulgated by the
Alimta® (pemetrexed, Lilly)
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Cyramza® (ramucirumab, Lilly)
Effient® (prasugrel, Lilly)
Evista® (raloxifene hydrochloride, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Keytruda® (pembrolizumab, Merck)
Opdivo® (nivolumab, Bristol-Myers Squibb Company)
Sentinel® (lufenuron and milbemycin oxime, Virbac)
Strattera® (atomoxetine
hydrochloride, Lilly)
Trajenta® (linagliptin, Boehringer Ingelheim)
Trulicity™ (dulaglutide, Lilly)
Zyprexa® (olanzapine, Lilly)
| ||
|
| |
Worldwide Employees |
39,135* |
37,925 |
*Employment totals as of |
| |||||||||||||||
Operating Results (Unaudited) - REPORTED | |||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
|
| ||||||||||||||
2014 |
2013 |
% Chg. |
2014 |
2013 |
% Chg. | ||||||||||
Total revenue |
$ |
5,121.3 |
$ |
5,808.8 |
(12)% |
$ |
19,615.6 |
$ |
23,113.1 |
(15)% | |||||
Cost of sales |
1,253.1 |
1,386.5 |
(10)% |
4,932.5 |
4,908.1 |
0% | |||||||||
Research and development |
1,185.7 |
1,475.4 |
(20)% |
4,733.6 |
5,531.3 |
(14)% | |||||||||
Marketing, selling and administrative |
1,799.9 |
1,953.6 |
(8)% |
6,620.8 |
7,125.6 |
(7)% | |||||||||
Acquired in-process research |
105.2 |
57.1 |
84% |
200.2 |
57.1 |
NM | |||||||||
Asset impairment, restructuring and other special charges |
401.0 |
35.4 |
NM |
468.7 |
120.6 |
NM | |||||||||
Operating income |
376.4 |
900.8 |
(58)% |
2,659.8 |
5,370.4 |
(50)% | |||||||||
Net interest income (expense) |
(13.2) |
(5.5) |
(27.8) |
(40.4) |
|||||||||||
Other income - Special |
— |
— |
— |
495.4 |
|||||||||||
Net other income (expense)
|
150.4 |
14.6 |
368.3 |
63.9 |
|||||||||||
Other income (expense) |
137.2 |
9.1 |
NM |
340.5 |
518.9 |
(34)% | |||||||||
Income before income taxes |
513.6 |
909.9 |
(44)% |
3,000.3 |
5,889.3 |
(49)% | |||||||||
Income taxes |
85.1 |
182.4 |
(53)% |
609.8 |
1,204.5 |
(49)% | |||||||||
Net income |
$ |
428.5 |
$ |
727.5 |
(41)% |
$ |
2,390.5 |
$ |
4,684.8 |
(49)% | |||||
Earnings per share - diluted |
$ |
0.40 |
$ |
0.67 |
(40)% |
$ |
2.23 |
$ |
4.32 |
(48)% | |||||
Dividends paid per share |
$ |
0.49 |
$ |
0.49 |
0% |
$ |
1.96 |
$ |
1.96 |
0% | |||||
Weighted-average shares outstanding (thousands) - diluted |
1,069,787 |
1,078,976 |
1,074,286 |
1,084,766 |
|||||||||||
NM - not meaningful |
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Three Months Ended |
Three Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments |
Non-GAAP Adjusted(a) |
GAAP Reported |
Adjustments |
Non-GAAP Adjusted(a) | |||||||||||||
Total revenue |
$ |
5,121.3 |
$ |
— |
$ |
5,121.3 |
$ |
5,808.8 |
$ |
— |
$ |
5,808.8 |
||||||
Cost of sales |
1,253.1 |
— |
1,253.1 |
1,386.5 |
— |
1,386.5 |
||||||||||||
Operating expenses(b) |
2,985.6 |
— |
2,985.6 |
3,429.0 |
— |
3,429.0 |
||||||||||||
Acquired in-process research and development(c) |
105.2 |
(105.2) |
— |
57.1 |
(57.1) |
— |
||||||||||||
Asset impairment, restructuring and other special charges(d) |
401.0 |
(401.0) |
— |
35.4 |
(35.4) |
— |
||||||||||||
Other income (expense)(e) |
137.2 |
(92.0) |
45.2 |
9.1 |
— |
9.1 |
||||||||||||
Income taxes |
85.1 |
45.1 |
130.2 |
182.4 |
23.2 |
205.5 |
||||||||||||
Net income |
$ |
428.5 |
369.1 |
$ |
797.6 |
$ |
727.5 |
69.3 |
$ |
796.9 |
||||||||
Earnings per share - diluted
|
$ |
0.40 |
0.35 |
$ |
0.75 |
$ |
0.67 |
0.07 |
$ |
0.74 |
Numbers do not add due to rounding. | |
(a) |
The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The items that are excluded when non-GAAP measures or expectations provided are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. The company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the company's ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. |
(b) |
Operating expenses include research and development, marketing, selling and administrative expenses. |
(c) |
Certain GAAP reported measures have been adjusted to eliminate acquired in-process research and development expenses. During the three months ended |
(d) |
Certain GAAP reported measures have been adjusted to eliminate asset impairment, restructuring and other special charges. During the three months ended |
(e) |
Certain GAAP reported measures have been adjusted to eliminate a portion of other income (expense). During the three months ended |
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Twelve Months Ended |
Twelve Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments |
Non-GAAP Adjusted(a) |
GAAP Reported |
Adjustments |
Non-GAAP Adjusted(a) | |||||||||||||
Total revenue |
$ |
19,615.6 |
$ |
— |
$ |
19,615.6 |
$ |
23,113.1 |
$ |
— |
$ |
23,113.1 |
||||||
Cost of sales |
4,932.5 |
— |
4,932.5 |
4,908.1 |
— |
4,908.1 |
||||||||||||
Operating expenses(b) |
11,354.4 |
(119.0) |
11,235.3 |
12,656.9 |
— |
12,656.9 |
||||||||||||
Acquired in-process research and development(c) |
200.2 |
(200.2) |
— |
57.1 |
(57.1) |
— |
||||||||||||
Asset impairment, restructuring and other special charges(d) |
468.7 |
(468.7) |
— |
120.6 |
(120.6) |
— |
||||||||||||
Other income (expense) (e) |
340.5 |
(92.0) |
248.5 |
518.9 |
(495.4) |
23.5 |
||||||||||||
Income taxes |
609.8 |
98.9 |
708.7 |
1,204.5 |
(135.4) |
1,069.0 |
||||||||||||
Net income |
$ |
2,390.5 |
597.1 |
$ |
2,987.6 |
$ |
4,684.8 |
(182.3) |
$ |
4,502.6 |
||||||||
Earnings per share - diluted
|
$ |
2.23 |
0.55 |
$ |
2.78 |
$ |
4.32 |
(0.17) |
$ |
4.15 |
Numbers do not add due to rounding. | |
(a) |
The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The items that are excluded when non-GAAP measures or expectations provided are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. The company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the company's ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. |
(b) |
Operating expenses include research and development, marketing, selling and administrative expenses. Certain GAAP reported measures have been adjusted to eliminate a portion of operating expenses. During the twelve months ended |
(c) |
Certain GAAP reported measures have been adjusted to eliminate acquired in-process research and development charges. During the twelve months ended |
(d) |
Certain GAAP reported measures have been adjusted to eliminate asset impairment, restructuring and other special charges. During the twelve months ended |
(e) |
Certain GAAP reported measures have been adjusted to eliminate a portion of other income (expense). During the twelve months ended |
Refer to:
(317) 277-6524 -
(317) 655-6874 -
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