Eli Lilly 2012 Annual Report Download - page 91

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79
The activity in the Level 3 investments during the year ended December 31, 2011 was as follows:
Hedge
Funds Equity-like
Funds Real
Estate Total
Defined Benefit Pension Plans
Beginning balance at January 1, 2011. . . . . . . . . . . . . . . . . . . $ 1,241.9 $ 802.9 $ 126.5 $ 2,171.3
Actual return on plan assets, including changes in foreign
exchange rates:
Relating to assets still held at the reporting date . . . . . . . . (8.1) 34.4 3.9 30.2
Relating to assets sold during the period . . . . . . . . . . . . . . . (18.1) — — (18.1)
Purchases, sales, and settlements, net. . . . . . . . . . . . . . . . . . 32.7 32.9 7.6 73.2
Ending balance at December 31, 2011. . . . . . . . . . . . . . . . . . . $ 1,248.4 $ 870.2 $ 138.0 $ 2,256.6
Retiree Health Benefit Plans
Beginning balance at January 1, 2011. . . . . . . . . . . . . . . . . . . $ 106.6 $ 74.5 $ 181.1
Actual return on plan assets, including changes in foreign
exchange rates:
Relating to assets still held at the reporting date . . . . . . . . 0.5 3.3 3.8
Relating to assets sold during the period . . . . . . . . . . . . . . . (1.8) — (1.8)
Purchases, sales, and settlements, net. . . . . . . . . . . . . . . . . . — 2.1 2.1
Ending balance at December 31, 2011. . . . . . . . . . . . . . . . . . . $ 105.3 $ 79.9 $ 185.2
For the year ended December 31, 2013, we expect to contribute approximately $60 million to our defined
benefit pension plans to satisfy minimum funding requirements for the year. In addition, we expect to
contribute approximately $300 million of additional discretionary funding in the aggregate during the year
ended December 31, 2013 to several of our global defined benefit pension and post-retirement health benefit
plans.
Note 15: Contingencies
We are a party to various legal actions and government investigations. The most significant of these are
described below. It is not possible to determine the outcome of these matters, and we cannot reasonably
estimate the maximum potential exposure or the range of possible loss in excess of amounts accrued for any
of these matters; however, we believe that, except as specifically noted below with respect to the Alimta
Hatch-Waxman Act patent challenges, the resolution of all such matters will not have a material adverse
effect on our consolidated financial position or liquidity, but could possibly be material to our consolidated
results of operations in any one accounting period.
Patent Litigation
We are engaged in the following U.S. patent litigation matters involving Alimta brought pursuant to procedures
set out in the Hatch-Waxman Act (the Drug Price Competition and Patent Term Restoration Act of 1984). Teva
Parenteral Medicines, Inc. (Teva); APP Pharmaceuticals, LLC (APP); and Barr Laboratories, Inc. (Barr) each
submitted ANDAs seeking approval to market generic versions of Alimta prior to the expiration of the relevant
U.S. patents and data-based pediatric exclusivity period (compound patent licensed from the Trustees of
Princeton University and expiring in 2017, vitamin dosage regimen patent expiring in 2022) and alleging the
patents are invalid. We, along with Princeton, filed lawsuits in the U.S. District Court for the District of
Delaware against Teva, APP, and Barr seeking rulings that the compound patent is valid and infringed. In July
2011, the district court entered judgment in our favor, upholding that patent’s validity. In August 2012, the U.S.
Court of Appeals for the Federal Circuit (CAFC) affirmed the district court's judgment in our favor. Teva and
APP filed a petition for en banc review of the CAFC's panel decision, which was denied in November 2012. It is
possible that Teva and APP may seek review by the U.S. Supreme Court.
In October 2010, we filed a lawsuit in the U.S. District Court for the Southern District of Indiana against Teva,
APP, Pliva Hrvatska D.O.O., and Barr seeking rulings that our vitamin dosage regimen patent is valid and
infringed. Trial in this case is scheduled to begin in August 2013. In January 2012 and April 2012, we filed
similar lawsuits against Accord Healthcare Inc. and Apotex Inc., respectively. In addition, generic