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This excerpt taken from the LLY 10-K filed Feb 22, 2010. Product
Litigation Liabilities and Other Contingencies
Product litigation liabilities and other contingencies are, by
their nature, uncertain and are based upon complex judgments and
probabilities. The factors we consider in developing our product
litigation liability reserves and other contingent liability
amounts include the merits and jurisdiction of the litigation,
the nature and the number of other similar current and past
litigation cases, the nature of the product and the current
assessment of the science subject to the litigation, and the
likelihood of settlement and current state of settlement
discussions, if any. In addition, we accrue for certain product
liability claims incurred, but not filed, to the extent we can
formulate a reasonable estimate of their costs. We estimate
these expenses based primarily on historical claims experience
and data regarding product usage. We accrue legal defense costs
expected to be incurred in connection with significant product
liability contingencies when probable and reasonably estimable.
We also consider the insurance coverage we have to diminish the
exposure for periods covered by insurance. In assessing our
insurance coverage, we consider the policy coverage limits and
exclusions, the potential for denial of coverage by the
insurance company, the financial condition of the insurers, and
the possibility of and length of time for collection. In the
past few years, we have been unable to obtain product liability
insurance due to a very restrictive insurance market. Therefore,
for substantially all of our currently marketed products, we
have been and expect that we will continue to be completely
self-insured for future product liability losses. In addition,
there can be no assurance that we will be able to fully collect
from our insurance carriers in the future.
The litigation accruals and environmental liabilities and the
related estimated insurance recoverables have been reflected on
a gross basis as liabilities and assets, respectively, on our
consolidated balance sheets.
We believe that the accruals and related insurance recoveries we
have established for product litigation liabilities and other
contingencies are appropriate based on current facts and
circumstances.
These excerpts taken from the LLY 10-K filed Feb 27, 2009. Product
Litigation Liabilities and Other Contingencies
Product litigation liabilities and other contingencies are, by
their nature, uncertain and are based upon complex judgments and
probabilities. The factors we consider in developing our product
litigation liability reserves and other contingent liability
amounts include the merits and jurisdiction of the litigation,
the nature and the number of other similar current and past
litigation cases, the nature of the product and the current
assessment of the science subject to the litigation, and the
likelihood of settlement and current state of settlement
discussions, if any. In addition, we accrue for certain product
liability claims incurred, but not filed, to the extent we can
formulate a reasonable estimate of their costs. We estimate
these expenses based primarily on historical claims experience
and data regarding product usage. We accrue legal defense costs
expected to be incurred in connection with significant product
liability contingencies when probable and reasonably estimable.
We also consider the insurance coverage we have to diminish the
exposure for periods covered by insurance. In assessing our
insurance coverage, we consider the policy coverage limits and
exclusions, the potential for denial of coverage by the
insurance company, the financial condition of the insurers, and
the possibility of and length of time for collection. In the
past few years, we have experienced difficulties in obtaining
product liability insurance due to a very restrictive insurance
market. Therefore, for substantially all of our currently
marketed products, we have been and expect that we will continue
to be completely self-insured for future product liability
losses. In addition, there is no assurance that we will be able
to fully collect from our insurance carriers in the future.
The litigation accruals and environmental liabilities and the
related estimated insurance recoverables have been reflected on
a gross basis as liabilities and assets, respectively, on our
consolidated balance sheets.
We believe that the accruals and related insurance recoveries we
have established for product litigation liabilities and other
contingencies are appropriate based on current facts and
circumstances.
Product Litigation Liabilities and Other Contingencies Product litigation liabilities and other contingencies are, by their nature, uncertain and are based upon complex judgments and probabilities. The factors we consider in developing our product litigation liability reserves and other contingent liability amounts include the merits and jurisdiction of the litigation, the nature and the number of other similar current and past litigation cases, the nature of the product and the current assessment of the science subject to the litigation, and the likelihood of settlement and current state of settlement discussions, if any. In addition, we accrue for certain product liability claims incurred, but not filed, to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. We accrue legal defense costs expected to be incurred in connection with significant product liability contingencies when probable and reasonably estimable. We also consider the insurance coverage we have to diminish the exposure for periods covered by insurance. In assessing our insurance coverage, we consider the policy coverage limits and exclusions, the potential for denial of coverage by the insurance company, the financial condition of the insurers, and the possibility of and length of time for collection. In the past few years, we have experienced difficulties in obtaining product liability insurance due to a very restrictive insurance market. Therefore, for substantially all of our currently marketed products, we have been and expect that we will continue to be completely self-insured for future product liability losses. In addition, there is no assurance that we will be able to fully collect from our insurance carriers in the future.
The litigation accruals and environmental liabilities and the related estimated insurance recoverables have been reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. We believe that the accruals and related insurance recoveries we have established for product litigation liabilities and other contingencies are appropriate based on current facts and circumstances. These excerpts taken from the LLY 10-K filed Oct 21, 2008. Product
Litigation Liabilities and Other Contingencies
Product litigation liabilities and other contingencies are, by
their nature, uncertain and are based upon complex judgments and
probabilities. The factors we consider in developing our product
litigation liability reserves and other contingent liability
amounts include the merits and jurisdiction of the litigation,
the nature and the number of other similar current and past
litigation cases, the nature of the product and the current
assessment of the science subject to the litigation, and the
likelihood of settlement and current state of settlement
discussions, if any. In addition, we accrue for certain product
liability claims incurred, but not filed, to the extent we can
formulate a reasonable estimate of their costs. We estimate
these expenses based primarily on historical claims experience
and data regarding product usage. We accrue legal defense costs
expected to be incurred in connection with significant product
liability contingencies when probable and reasonably estimable.
We also consider the insurance coverage we have to diminish the
exposure for periods covered by insurance. In assessing our
insurance coverage, we consider the policy coverage limits and
exclusions, the potential for denial of coverage by the
insurance company, the financial position of the insurers, and
the possibility of and the length of time for collection.
The litigation accruals and environmental liabilities and the
related estimated insurance recoverables have been reflected on
a gross basis as liabilities and assets, respectively, on our
consolidated balance sheets.
We believe that the accruals and related insurance recoveries we
have established for product litigation liabilities and other
contingencies are appropriate based on current facts and
circumstances.
Table of Contents
Product Litigation Liabilities and Other Contingencies Product litigation liabilities and other contingencies are, by their nature, uncertain and are based upon complex judgments and probabilities. The factors we consider in developing our product litigation liability reserves and other contingent liability amounts include the merits and jurisdiction of the litigation, the nature and the number of other similar current and past litigation cases, the nature of the product and the current assessment of the science subject to the litigation, and the likelihood of settlement and current state of settlement discussions, if any. In addition, we accrue for certain product liability claims incurred, but not filed, to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. We accrue legal defense costs expected to be incurred in connection with significant product liability contingencies when probable and reasonably estimable. We also consider the insurance coverage we have to diminish the exposure for periods covered by insurance. In assessing our insurance coverage, we consider the policy coverage limits and exclusions, the potential for denial of coverage by the insurance company, the financial position of the insurers, and the possibility of and the length of time for collection. The litigation accruals and environmental liabilities and the related estimated insurance recoverables have been reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. We believe that the accruals and related insurance recoveries we have established for product litigation liabilities and other contingencies are appropriate based on current facts and circumstances.
Table of ContentsThese excerpts taken from the LLY 10-K filed Feb 29, 2008. Product
Litigation Liabilities and Other Contingencies
Product litigation liabilities and other contingencies are, by
their nature, uncertain and are based upon complex judgments and
probabilities. The factors we consider in developing our product
litigation liability reserves and other contingent liability
amounts include the merits and jurisdiction of the litigation,
the nature and the number of other similar current and past
litigation cases, the nature of the product and the current
assessment of the science subject to the litigation, and the
likelihood of settlement and current state of settlement
discussions, if any. In addition, we accrue for certain product
liability claims incurred, but not filed, to the extent we can
formulate a reasonable estimate of their costs. We estimate
these expenses based primarily on historical claims experience
and data regarding product usage. We accrue legal defense costs
expected to be incurred in connection with significant product
liability contingencies when probable and reasonably estimable.
We also consider the insurance coverage we have to diminish the
exposure for periods covered by insurance. In assessing our
insurance coverage, we consider the policy coverage limits and
exclusions, the potential for denial of coverage by the
insurance company, the financial position of the insurers, and
the possibility of and the length of time for collection.
The litigation accruals and environmental liabilities and the
related estimated insurance recoverables have been reflected on
a gross basis as liabilities and assets, respectively, on our
consolidated balance sheets.
We believe that the accruals and related insurance recoveries we
have established for product litigation liabilities and other
contingencies are appropriate based on current facts and
circumstances.
Product Litigation Liabilities and Other Contingencies Product litigation liabilities and other contingencies are, by their nature, uncertain and are based upon complex judgments and probabilities. The factors we consider in developing our product litigation liability reserves and other contingent liability amounts include the merits and jurisdiction of the litigation, the nature and the number of other similar current and past litigation cases, the nature of the product and the current assessment of the science subject to the litigation, and the likelihood of settlement and current state of settlement discussions, if any. In addition, we accrue for certain product liability claims incurred, but not filed, to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. We accrue legal defense costs expected to be incurred in connection with significant product liability contingencies when probable and reasonably estimable. We also consider the insurance coverage we have to diminish the exposure for periods covered by insurance. In assessing our insurance coverage, we consider the policy coverage limits and exclusions, the potential for denial of coverage by the insurance company, the financial position of the insurers, and the possibility of and the length of time for collection. The litigation accruals and environmental liabilities and the related estimated insurance recoverables have been reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. We believe that the accruals and related insurance recoveries we have established for product litigation liabilities and other contingencies are appropriate based on current facts and circumstances.
This excerpt taken from the LLY 10-K filed Feb 28, 2007. Product
Litigation Liabilities and Other Contingencies
Product litigation liabilities and other contingencies are, by
their nature, uncertain and are based upon complex judgments and
probabilities. The factors we consider in developing our product
litigation liability reserves and other contingent liability
amounts include the merits and jurisdiction of the litigation,
the nature and the number of other similar current and past
litigation cases, the nature of the product and the current
assessment of the science subject to the litigation, and the
likelihood of settlement and current state of settlement
discussions, if any. In addition, we accrue for certain product
liability claims incurred, but not filed, to the extent we can
formulate a reasonable estimate of their costs. We estimate
these expenses based primarily on historical claims experience
and data regarding product usage. We accrue legal defense costs
expected to be incurred in connection with significant product
liability contingencies when probable and reasonably estimable.
We also consider the insurance coverage we have to diminish the
exposure for periods covered by insurance. In assessing our
insurance coverage, we consider the policy coverage limits and
exclusions, the potential for denial of coverage by the
insurance company, the financial position of the insurers, and
the possibility of and the length of time for collection.
The litigation accruals and environmental liabilities and the
related estimated insurance recoverables have been reflected on
a gross basis as liabilities and assets, respectively, on our
consolidated balance sheets.
We believe that the accruals and related insurance recoveries we
have established for product litigation liabilities and other
contingencies are appropriate based on current facts and
circumstances.
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