EX-12 4 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES Statement re: Computation of Ratio of Earnings (Loss) to Fixed Charges

EXHIBIT 12. STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES

Eli Lilly and Company and Subsidiaries

(Dollars in millions)

 

    Years Ended December 31,  
    2010     2009     2008     2007     2006  

Consolidated pretax income (loss)

   $ 6,525.2      $ 5,357.8      ($ 1,307.6 )    $ 3,876.8      $ 3,418.0   

Interest1

     211.5        291.5        276.5        322.5        344.8   

Less interest capitalized during the period

     (26.0 )      (30.2 )      (48.2 )      (94.2 )      (106.7 ) 
       

Earnings (loss)

   $ 6,710.7      $ 5,619.1      ($ 1,079.3 )    $ 4,105.1      $ 3,656.1   
       

Fixed charges

   $ 211.5      $ 291.5      $ 276.5      $ 322.5      $ 344.8   
       

Ratio of earnings to fixed charges

     31.7        19.3        N/M 2      12.7        10.6   
       

N/M – Not Meaningful

 

1

Interest is based upon interest expense reported as such in the consolidated income statement 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, as described in greater detail in the notes to the accompanying consolidated financial statements.