UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 16, 2013
Lorillard, Inc.
(Exact name of registrant as specified in its charter)
| DELAWARE | 001-34097 | 13-1911176 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
714 Green Valley Road
Greensboro, North Carolina 24708-7018
(Address of principal executive offices, including zip code)
(336) 335-7000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01 | Regulation FD Disclosure. |
As Lorillard, Inc. (“Lorillard” or the “Company”) previously announced, its Board of Directors declared a three-for-one stock split of Lorillard common stock. The record date for the stock split was December 14, 2012, and the additional shares were distributed beginning January 15, 2013. Lorillard’s shareholders of record at the close of business on the record date received two additional shares of Lorillard common stock for each share then owned.
The Company has made available on its website at www.lorillard.com, in the “Investor Relations” section, supplemental financial information for each quarterly period in 2011 and 2012 and for the full year 2011 to illustrate how certain previously reported share and per share amounts were impacted as a result of the stock split. The supplemental financial information that will be posted on the website is furnished as Exhibit 99.1 to this Current Report on Form 8-K (“Form 8-K”).
The information under Item 7.01 and in Exhibit 99.1 in this Form 8-K are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 99.1 | Supplemental Financial Information of Lorillard, Inc. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LORILLARD, INC. | ||
| (Registrant) | ||
| By: | /s/ David H. Taylor | |
| David H. Taylor | ||
| Executive Vice President, Finance and Planning and Chief Financial Officer | ||
Dated: January 16, 2013
Exhibit 99.1
Supplemental Financial Information of Lorillard, Inc.
As previously announced, the Board of Directors of Lorillard, Inc. (the “Company) declared a three-for-one split of the Company’s common stock. The split did not affect the number of authorized shares included in the Company’s certificate of incorporation. The record date for the stock split was December 14, 2012, and the additional shares were distributed on January 15, 2013. Each shareholder of record on the close of business on the record date received two additional shares of common stock for each share held.
The following table sets forth, as supplemental information, share and per share data that reflects the impact of the Company’s stock split (in millions, except per share data) (all amounts other than net income for the year ended December 31, 2011 are unaudited):
| 2011 | 2012 | |||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
| Net income |
$ | 248 | $ | 291 | $ | 267 | $ | 310 | $ | 1,116 | $ | 223 | $ | 284 | $ | 283 | ||||||||||||||||
| Basic earnings per share |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.77 | $ | 2.67 | $ | 0.57 | $ | 0.72 | $ | 0.72 | ||||||||||||||||
| Diluted earnings per share |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.77 | $ | 2.66 | $ | 0.57 | $ | 0.72 | $ | 0.72 | ||||||||||||||||
| Weighted average shares outstanding - basic |
434.39 | 425.36 | 410.21 | 399.78 | 417.32 | 391.45 | 390.53 | 390.21 | ||||||||||||||||||||||||
| Effect of dilutive securities |
0.42 | 0.52 | 0.84 | 0.89 | 0.74 | 0.95 | 0.91 | 0.84 | ||||||||||||||||||||||||
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| Weighted average shares outstanding - diluted |
434.81 | 425.88 | 411.05 | 400.67 | 418.06 | 392.40 | 391.44 | 391.05 | ||||||||||||||||||||||||
Note: Certain rows may not add due to rounding. Certain amounts may not recalculate using the rounded dollar amounts provided.
The following table sets forth, as supplemental information, per share data after considering items impacting comparability (non-GAAP) that reflects the impact of the Company’s stock split (in millions, except per share data) (unaudited):
| 2011 | 2012 | |||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
| Adjusted net income (non-GAAP) |
$ | 248 | $ | 291 | $ | 267 | $ | 295 | $ | 1,101 | $ | 229 | $ | 287 | $ | 283 | ||||||||||||||||
| Adjusted diluted earnings per share (non-GAAP) |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.73 | $ | 2.63 | $ | 0.58 | $ | 0.73 | $ | 0.72 | ||||||||||||||||
Note: Certain rows may not add due to rounding. Certain amounts may not recalculate using the rounded dollar amounts provided.
The following tables set forth the items considered in the calculation of the per share data set forth in the table above after considering items impacting comparability (non-GAAP) as well as a reconciliation of reported (GAAP) per share data to the per share data after considering items impacting comparability (non-GAAP) (in millions, except per share data) (all amounts other than net income for the year ended December 31, 2011 are unaudited):
| 2011 | 2012 | |||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
| Net income (GAAP) |
$ | 248 | $ | 291 | $ | 267 | $ | 310 | $ | 1,116 | $ | 223 | $ | 284 | $ | 283 | ||||||||||||||||
| GAAP results include the following: |
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| Impact of RAI mark-to-market adjustments on Lorillard’s tobacco settlement expense included in cost of sales |
— | — | — | (15 | ) | (15 | ) | — | — | — | ||||||||||||||||||||||
| Impact of RJRT adjustments to its 2001-2005 operating income and restructuring charges on Lorillard’s tobacco settlement expense included in cost of sales |
— | — | — | — | — | 6 | — | — | ||||||||||||||||||||||||
| Expenses incurred in conjunction with the acquisition of blu eCigs |
— | — | — | — | — | — | 3 | — | ||||||||||||||||||||||||
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| Adjusted net income (non-GAAP) |
$ | 248 | $ | 291 | $ | 267 | $ | 295 | $ | 1,101 | $ | 229 | $ | 287 | $ | 283 | ||||||||||||||||
| Weighted average shares outstanding - diluted |
434.81 | 425.88 | 411.05 | 400.67 | 418.06 | 392.40 | 391.44 | 391.05 | ||||||||||||||||||||||||
| Adjusted diluted earnings per share (non-GAAP) |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.73 | $ | 2.63 | $ | 0.58 | $ | 0.73 | $ | 0.72 | ||||||||||||||||
Note: Certain rows may not add due to rounding. Certain amounts may not recalculate using the rounded dollar amounts provided.
| 2011 | 2012 | |||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
| Diluted earnings per share (GAAP) |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.77 | $ | 2.66 | $ | 0.57 | $ | 0.72 | $ | 0.72 | ||||||||||||||||
| Impact of adjustments on diluted earnings per share |
— | — | — | (0.04 | ) | (0.03 | ) | 0.01 | 0.01 | — | ||||||||||||||||||||||
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| Adjusted diluted earnings per share (non-GAAP) |
$ | 0.57 | $ | 0.68 | $ | 0.65 | $ | 0.73 | $ | 2.63 | $ | 0.58 | $ | 0.73 | $ | 0.72 | ||||||||||||||||
Note: Certain rows may not add due to rounding. Certain amounts may not recalculate using the rounded dollar amounts provided.