EX-12 3 lly-630x2012x10qxexhibit12.htm STATEMENT RE:COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES LLY-6.30-2012-10Q-Exhibit 12


EXHIBIT 12. Statement Re: Computation of Ratio of Earnings (Loss) to Fixed Charges
(Unaudited)
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
 
 
 
Six Months Ended June 30,
 
Years Ended December 31,
 
 
2012
 
2011
 
2010
 
2009
 
2008
 
2007
Consolidated pretax income (loss)
 
$
2,521.0

 
$
5,349.5

 
$
6,525.2

 
$
5,357.8

 
$(1,307.6)
 
$
3,876.8

Interest1
 
99.1

 
211.7

 
211.5

 
291.5

 
276.5

 
322.5

Less interest capitalized during the period
 
(10.8
)
 
(25.7
)
 
(26.0
)
 
(30.2
)
 
(48.2
)
 
(94.2
)
Earnings (loss)
 
$
2,609.3

 
$
5,535.5

 
$
6,710.7

 
$
5,619.1

 
$
(1,079.3
)
 
$
4,105.1

Fixed charges
 
$
99.1

 
$
211.7

 
$
211.5

 
$
291.5

 
$
276.5

 
$
322.5

Ratio of earnings (loss) to fixed charges
 
26.3

 
26.1

 
31.7

 
19.3

 
NM 2

 
12.7

NM – Not Meaningful
1 
Interest is based upon interest expense reported as such in the consolidated condensed statements of operations and does not include any interest related to unrecognized tax benefits, which is included in income tax expense.
2 
For such ratio, earnings were $1.31 billion less than fixed charges. The loss for the year ended December 31, 2008, included special charges related to the EDPA settlement of $1.48 billion and acquired in-process research and development expense of $4.69 billion associated with the ImClone acquisition.