Indiana (State or Other Jurisdiction of Incorporation) Lilly Corporate Center Indianapolis, Indiana (Address of Principal Executive Offices) | 001-06351 (Commission File Number) | 35-0470950 (I.R.S. Employer Identification No.) 46285 (Zip Code) |
No Change |
• | Unaudited pro forma condensed consolidated balance sheet at December 31, 2018. |
• | Unaudited pro forma condensed consolidated statements of operations for each of the years ended December 31, 2018, 2017 and 2016. |
• | Notes to the unaudited pro forma condensed consolidated financial statements. |
Exhibit Number | Description of Exhibit | |
99.1 | Eli Lilly and Company Unaudited Pro Forma Condensed Consolidated Financial Statements |
Exhibit Number | Description of Exhibit | |
By | /s/ Donald A. Zakrowski | |
Donald A. Zakrowski | ||
Vice President, Finance and Chief Accounting Officer |
Lilly Historical | Deconsolidation(1) | Effects of the Exchange(2) | Lilly Pro Forma | ||||||||||||||||
Elanco | Adjustments | ||||||||||||||||||
Assets : | |||||||||||||||||||
Cash and cash equivalents | $ | 7,998.2 | $ | (474.8 | ) | $ | (202.7 | ) | — | $ | 7,320.7 | ||||||||
Short-term investments | 88.2 | — | — | — | 88.2 | ||||||||||||||
Accounts receivable, net of allowances | 5,246.5 | (652.6 | ) | — | — | 4,593.9 | |||||||||||||
Receivables from Elanco | — | — | 268.7 | — | 268.7 | ||||||||||||||
Other receivables | 958.4 | (44.2 | ) | — | — | 914.2 | |||||||||||||
Inventories | 4,111.8 | (1,013.7 | ) | — | — | 3,098.1 | |||||||||||||
Prepaid expenses and other | 2,146.5 | (109.8 | ) | — | — | 2,036.7 | |||||||||||||
Total current assets | 20,549.6 | (2,295.1 | ) | 66.0 | — | 18,320.5 | |||||||||||||
Investments | 2,020.7 | (15.3 | ) | — | — | 2,005.4 | |||||||||||||
Investment in Elanco | — | — | 4,290.5 | (4,290.5 | ) | — | |||||||||||||
Goodwill | 4,347.5 | (2,958.0 | ) | — | — | 1,389.5 | |||||||||||||
Other intangibles, net | 3,521.0 | (2,453.0 | ) | — | — | 1,068.0 | |||||||||||||
Deferred tax assets | 2,657.7 | (35.6 | ) | (8.4 | ) | — | 2,613.7 | ||||||||||||
Sundry | 1,892.4 | (67.5 | ) | — | — | 1,824.9 | |||||||||||||
Total other assets | 14,439.3 | (5,529.4 | ) | 4,282.1 | (4,290.5 | ) | 8,901.5 | ||||||||||||
Property and equipment, net | 8,919.5 | (923.4 | ) | — | — | 7,996.1 | |||||||||||||
Total assets | $ | 43,908.4 | $ | (8,747.9 | ) | $ | 4,348.1 | $ | (4,290.5 | ) | $ | 35,218.1 | |||||||
Liabilities and Equity : | |||||||||||||||||||
Short-term borrowings and current maturities of long-term debt | $ | 1,131.2 | $ | (29.0 | ) | — | — | $ | 1,102.2 | ||||||||||
Accounts payable | 1,412.3 | (205.2 | ) | — | — | 1,207.1 | |||||||||||||
Employee compensation | 1,054.5 | (98.9 | ) | — | — | 955.6 | |||||||||||||
Sales rebates and discounts | 5,021.9 | (172.4 | ) | — | — | 4,849.5 | |||||||||||||
Dividend payable | 650.8 | — | — | — | 650.8 | ||||||||||||||
Income taxes payable | 404.0 | (10.6 | ) | — | — | 393.4 | |||||||||||||
Other current liabilities | 2,213.4 | (189.4 | ) | 12.6 | 30.0 | 2,066.6 | |||||||||||||
Total current liabilities | 11,888.1 | (705.5 | ) | 12.6 | 30.0 | 11,225.2 | |||||||||||||
Long-term debt | 11,639.7 | (2,443.3 | ) | — | — | 9,196.4 | |||||||||||||
Accrued retirement benefits | 2,911.3 | (109.1 | ) | — | — | 2,802.2 | |||||||||||||
Long-term income taxes payable | 3,724.6 | (24.6 | ) | — | — | 3,700.0 | |||||||||||||
Other noncurrent liabilities | 2,835.6 | (227.9 | ) | 62.6 | — | 2,670.3 | |||||||||||||
Total other liabilities | 21,111.2 | (2,804.9 | ) | 62.6 | — | 18,368.9 | |||||||||||||
Common stock | 661.0 | — | — | — | 661.0 | ||||||||||||||
Additional paid-in capital | 6,583.6 | — | — | — | 6,583.6 | ||||||||||||||
Retained earnings | 11,395.9 | — | — | 3,707.1 | 15,103.0 | ||||||||||||||
Employee benefit trust | (3,013.2 | ) | — | — | — | (3,013.2 | ) | ||||||||||||
Accumulated other comprehensive loss | (5,729.2 | ) | 222.2 | (177.5 | ) | — | (5,684.5 | ) | |||||||||||
Cost of common stock in treasury | (69.4 | ) | — | — | (8,027.6 | ) | (8,097.0 | ) | |||||||||||
Other capital | — | (5,459.7 | ) | 5,459.7 | — | — | |||||||||||||
Total Eli Lilly and Company shareholders' equity | 9,828.7 | (5,237.5 | ) | 5,282.2 | (4,320.5 | ) | 5,552.9 | ||||||||||||
Noncontrolling interests | 1,080.4 | — | (1,009.3 | ) | — | 71.1 | |||||||||||||
Total equity | 10,909.1 | (5,237.5 | ) | 4,272.9 | (4,320.5 | ) | 5,624.0 | ||||||||||||
Total liabilities and equity | $ | 43,908.4 | $ | (8,747.9 | ) | $ | 4,348.1 | $ | (4,290.5 | ) | $ | 35,218.1 |
Lilly Historical | Deconsolidation(1) | Lilly Pro Forma | ||||||||||||||
Elanco | Adjustments | |||||||||||||||
Revenue | $ | 24,555.7 | $ | (3,066.8 | ) | $ | 4.4 | $ | 21,493.3 | |||||||
Costs, expenses, and other: | ||||||||||||||||
Cost of sales | 6,430.0 | (1,778.1 | ) | 29.8 | 4,681.7 | |||||||||||
Research and development | 5,307.1 | (258.9 | ) | 3.0 | 5,051.2 | |||||||||||
Marketing, selling and administrative | 6,631.8 | (760.6 | ) | 103.9 | 5,975.1 | |||||||||||
Acquired in-process research and development | 1,983.9 | — | — | 1,983.9 | ||||||||||||
Asset impairment, restructuring and other special charges | 482.0 | (129.0 | ) | (86.1 | ) | 266.9 | ||||||||||
Other-net, income/expense | (74.8 | ) | (26.1 | ) | (44.7 | ) | (145.6 | ) | ||||||||
20,760.0 | (2,952.7 | ) | 5.9 | 17,813.2 | ||||||||||||
Income from continuing operations before income taxes | 3,795.7 | (114.1 | ) | (1.5 | ) | 3,680.1 | ||||||||||
Income taxes | 563.7 | (27.6 | ) | (6.6 | ) | 529.5 | ||||||||||
Income from continuing operations | $ | 3,232.0 | $ | (86.5 | ) | $ | 5.1 | $ | 3,150.6 | |||||||
Earnings per share from continuing operations | ||||||||||||||||
Basic | $ | 3.14 | $ | 3.07 | ||||||||||||
Diluted | $ | 3.13 | $ | 3.05 | ||||||||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 1,027.7 | 1,027.7 | ||||||||||||||
Diluted | 1,033.7 | 1,033.7 | ||||||||||||||
Pro forma adjusted earnings per share from continuing operations | ||||||||||||||||
Basic | $ | 3.27 | ||||||||||||||
Diluted | $ | 3.25 | ||||||||||||||
Pro forma adjusted weighted average number of shares outstanding (2) | ||||||||||||||||
Basic | 1,027.7 | (65.0 | ) | 962.7 | ||||||||||||
Diluted | 1,033.7 | (65.0 | ) | 968.7 |
Lilly Historical | Deconsolidation(1) | Lilly Pro Forma | ||||||||||||||
Elanco | Adjustments | |||||||||||||||
Revenue | $ | 22,871.3 | $ | (2,889.0 | ) | $ | (8.6 | ) | $ | 19,973.7 | ||||||
Costs, expenses, and other: | ||||||||||||||||
Cost of sales | 6,150.8 | (1,710.4 | ) | 14.3 | 4,454.7 | |||||||||||
Research and development | 5,357.3 | (252.4 | ) | (8.8 | ) | 5,096.1 | ||||||||||
Marketing, selling and administrative | 6,680.1 | (806.7 | ) | 109.0 | 5,982.4 | |||||||||||
Acquired in-process research and development | 1,112.6 | — | — | 1,112.6 | ||||||||||||
Asset impairment, restructuring and other special charges | 1,673.6 | (352.3 | ) | 3.3 | 1,324.6 | |||||||||||
Other-net, income/expense | (300.5 | ) | 0.2 | (1.2 | ) | (301.5 | ) | |||||||||
20,673.9 | (3,121.6 | ) | 116.6 | 17,668.9 | ||||||||||||
Income/loss from continuing operations before income taxes | 2,197.4 | 232.6 | (125.2 | ) | 2,304.8 | |||||||||||
Income taxes | 2,401.5 | (78.1 | ) | 67.8 | 2,391.2 | |||||||||||
Loss from continuing operations | $ | (204.1 | ) | $ | 310.7 | $ | (193.0 | ) | $ | (86.4 | ) | |||||
Loss per share from continuing operations | ||||||||||||||||
Basic | $ | (0.19 | ) | $ | (0.08 | ) | ||||||||||
Diluted | $ | (0.19 | ) | $ | (0.08 | ) | ||||||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 1,052.0 | 1,052.0 | ||||||||||||||
Diluted | 1,052.0 | 1,052.0 | ||||||||||||||
Pro forma adjusted loss per share from continuing operations | ||||||||||||||||
Basic | $ | (0.09 | ) | |||||||||||||
Diluted | $ | (0.09 | ) | |||||||||||||
Pro forma adjusted weighted average number of shares outstanding(2) | ||||||||||||||||
Basic | 1,052.0 | (65.0 | ) | 987.0 | ||||||||||||
Diluted | 1,052.0 | (65.0 | ) | 987.0 |
Lilly Historical | Deconsolidation(1) | Lilly Pro Forma | ||||||||||||||
Elanco | Adjustments | |||||||||||||||
Revenue | $ | 21,222.1 | $ | (2,913.5 | ) | $ | 4.2 | $ | 18,312.8 | |||||||
Costs, expenses, and other: | — | |||||||||||||||
Cost of sales | 5,710.1 | (1,572.0 | ) | 22.4 | 4,160.5 | |||||||||||
Research and development | 5,310.3 | (266.6 | ) | (3.7 | ) | 5,040.0 | ||||||||||
Marketing, selling and administrative | 6,528.0 | (791.7 | ) | 105.6 | 5,841.9 | |||||||||||
Acquired in-process research and development | 30.0 | — | — | 30.0 | ||||||||||||
Asset impairment, restructuring and other special charges | 382.5 | (308.4 | ) | (1.2 | ) | 72.9 | ||||||||||
Other-net, income/expense | (112.8 | ) | 2.8 | 1.2 | (108.8 | ) | ||||||||||
17,848.1 | (2,935.9 | ) | 124.3 | 15,036.5 | ||||||||||||
Income/loss from continuing operations before income taxes | 3,374.0 | 22.4 | (120.1 | ) | 3,276.3 | |||||||||||
Income taxes | 636.4 | (25.5 | ) | (59.5 | ) | 551.4 | ||||||||||
Income/loss from continuing operations | $ | 2,737.6 | $ | 47.9 | $ | (60.6 | ) | $ | 2,724.9 | |||||||
Earnings per share from continuing operations | ||||||||||||||||
Basic | $ | 2.59 | $ | 2.57 | ||||||||||||
Diluted | $ | 2.58 | $ | 2.57 | ||||||||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 1,058.3 | 1,058.3 | ||||||||||||||
Diluted | 1,061.8 | 1,061.8 | ||||||||||||||
Pro forma adjusted earnings per share from continuing operations | ||||||||||||||||
Basic | $ | 2.74 | ||||||||||||||
Diluted | $ | 2.73 | ||||||||||||||
Pro forma adjusted weighted average number of shares outstanding (2) | ||||||||||||||||
Basic | 1,058.3 | (65.0 | ) | 993.3 | ||||||||||||
Diluted | 1,061.8 | (65.0 | ) | 996.8 |
Shares of Elanco common stock owned by Lilly | 293,290,000 | |||
Exchange ratio | 4.5121 | |||
Total shares of Lilly common stock accepted | 65,000,775 |
(In millions) | |||
Fair value of Lilly common stock accepted (65,000,775 shares acquired at the Lilly closing price of $123.50 per share as of March 11, 2019) | $ | 8,027.6 | |
Lilly's carrying value in Elanco at December 31, 2018 | (4,290.5 | ) | |
Estimated transaction costs | (30.0 | ) | |
Net gain on exchange offer of Elanco common stock | $ | 3,707.1 |