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LLY » Topics » Pro Forma Financial Information (unaudited)

This excerpt taken from the LLY 10-K filed Feb 22, 2010.
Pro Forma Financial Information (unaudited)
The following pro forma financial information presents the combined results of our operations with ImClone as if the acquisition and the financing for the acquisition had occurred as of the beginning of each of the years presented. We have adjusted the historical consolidated financial information to give effect to pro forma events that are directly attributable to the acquisition. The pro forma financial information is not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition at the beginning of each year. In addition, the pro forma financial information does not attempt to project the future results of operations of our combined company.
 
                 
    2008     2007  
   
 
Revenue
  $ 20,732.2     $ 19,051.4  
Net income1
    2,356.2       2,704.1  
Earnings per share:
               
Basic and diluted
    2.15       2.48  
 
1 The pro forma financial information above excludes the non-recurring charge incurred for acquired IPR&D of $4.69 billion and other merger-related costs.
 
The pro forma financial information above reflects the following:
 
  •  a reduction of the amortization of ImClone’s deferred income of $86.2 million (2008) and $98.4 million (2007);
 
  •  the increase of amortization expense of $78.8 million in 2008 and 2007 related to the estimated fair value of identifiable intangible assets from the purchase price allocation which are being amortized over their estimated useful lives through 2023 in the U.S. and through 2018 in the rest of the world. The change in depreciation expense related to the change in the estimated fair value of property and equipment from the book value at the time of the acquisition was not material;
 
  •  the adjustment to increase interest expense related to the debt incurred to finance the acquisition and the adjustment to decrease interest income related to the lost interest income on the cash used to purchase ImClone by a total of $301.0 million in 2008 and 2007;
 
 
49

 

 
 
  •  the reduction of ImClone’s income tax expense to provide for income taxes at the statutory tax rate and the adjustment to income taxes for pro forma adjustments at the statutory tax rate, totaling $139.3 million (2008) and $189.5 million (2007). This excludes the acquired IPR&D charge of $4.69 billion, which was not tax deductible;
 
  •  certain reclassifications to conform to accounting policies and classifications that are consistent with our practices (e.g., ImClone’s license fees and milestones were classified as other—net, expense (income), rather than net sales).
 
These excerpts taken from the LLY 10-K filed Feb 27, 2009.
Pro Forma Financial Information
 
The following unaudited pro forma financial information presents the combined results of our operations with ImClone as if the acquisition and the financing for the acquisition had occurred as of the beginning of each of the years presented. We have adjusted the historical consolidated financial information to give effect to pro forma events that are directly attributable to the acquisition. The unaudited pro forma financial information is not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition at the beginning of each year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of our combined company.
 
                 
    2008     2007  
       
 
Net sales
  $ 20,801.8     $ 19,051.4  
Net income1
    2,356.2       2,704.1  
Earnings per share:
               
Basic and diluted
    2.15       2.48  
 
 
1 The unaudited pro forma financial information above excludes the non-recurring charge incurred for acquired IPR&D of $4.69 billion and other merger-related costs.
 
The unaudited pro forma financial information above reflects the following:
 
•  a reduction of the amortization of ImClone’s deferred income of $86.2 million (2008) and $98.4 million (2007);
 
•  the increase of amortization expense of $78.8 million in 2008 and 2007 related to the estimated fair value of identifiable intangible assets from the purchase price allocation which are being amortized over their estimated useful lives through 2023 in the U.S. and through 2018 in the rest of the world. The change in depreciation expense related to the change in the estimated fair value of property and equipment from the book value at the time of the acquisition was not material;
 
•  the adjustment to increase interest expense related to the debt incurred to finance the acquisition and the adjustment to decrease interest income related to the lost interest income on the cash used to purchase ImClone by a total of $301.0 million in 2008 and 2007;
 
•  the reduction of ImClone’s income tax expense to provide for income taxes at the statutory tax rate and the adjustment to income taxes for pro forma adjustments at the statutory tax rate, totaling $139.3 million (2008) and $189.5 million (2007). This excludes the acquired IPR&D charge of $4.69 billion, which was not tax deductible;
 
•  certain reclassifications to conform to accounting policies and classifications that are consistent with our practices (e.g., ImClone’s license fees and milestones were classified as other — net, rather than net sales).
 
Pro
Forma Financial Information


 



The following unaudited pro forma financial information presents
the combined results of our operations with ImClone as if the
acquisition and the financing for the acquisition had occurred
as of the beginning of each of the years presented. We have
adjusted the historical consolidated financial information to
give effect to pro forma events that are directly attributable
to the acquisition. The unaudited pro forma financial
information is not necessarily indicative of what our
consolidated results of operations actually would have been had
we completed the acquisition at the beginning of each year. In
addition, the unaudited pro forma financial information does not
attempt to project the future results of operations of our
combined company.


 














































































                 

 

 

2008

 

 

2007

 

 

 

 

 
 


Net sales


 

$

20,801.8

 

 

$

19,051.4

 


Net
income1



 

 

2,356.2

 

 

 

2,704.1

 


Earnings per share:


 

 

 

 

 

 

 

 


Basic and diluted


 

 

2.15

 

 

 

2.48

 






 




 



















1
The unaudited pro forma financial
information above excludes the non-recurring charge incurred for
acquired IPR&D of $4.69 billion and other
merger-related costs.


 



The unaudited pro forma financial information above reflects the
following:


 


















































• 
 a reduction of the amortization of ImClone’s deferred
income of $86.2 million (2008) and $98.4 million
(2007);
 
• 
 the increase of amortization expense of $78.8 million in
2008 and 2007 related to the estimated fair value of
identifiable intangible assets from the purchase price
allocation which are being amortized over their estimated useful
lives through 2023 in the U.S. and through 2018 in the rest
of the world. The change in depreciation expense related to the
change in the estimated fair value of property and equipment
from the book value at the time of the acquisition was not
material;
 
• 
 the adjustment to increase interest expense related to the debt
incurred to finance the acquisition and the adjustment to
decrease interest income related to the lost interest income on
the cash used to purchase ImClone by a total of
$301.0 million in 2008 and 2007;
 
• 
 the reduction of ImClone’s income tax expense to provide
for income taxes at the statutory tax rate and the adjustment to
income taxes for pro forma adjustments at the statutory tax
rate, totaling $139.3 million (2008) and
$189.5 million (2007). This excludes the acquired
IPR&D charge of $4.69 billion, which was not tax
deductible;
 
• 
 certain reclassifications to conform to accounting policies and
classifications that are consistent with our practices (e.g.,
ImClone’s license fees and milestones were classified as
other — net, rather than net sales).


 




EXCERPTS ON THIS PAGE:

10-K
Feb 22, 2010
10-K (2 sections)
Feb 27, 2009

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