Eli Lilly 2015 Annual Report Download - page 35

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F23
FINANCIAL REPORT
23
The following highlighted items affect comparisons of our 2015 and 2014 financial results:
2015
Acquisitions (Note 3 to the consolidated financial statements)
• We recognized expense of $153.0 million (pretax), or $0.10 per share, related to the fair value adjustments
to Novartis Animal Health (Novartis AH) acquisition date inventory that has been sold.
Acquired IPR&D (Notes 3 and 4 to the consolidated financial statements)
• We recognized acquired IPR&D charges of $535.0 million (pretax), or $0.33 per share, related to upfront
fees paid in connection with various collaboration agreements primarily with Pfizer, Inc. (Pfizer), as well
as the consideration paid to acquire the worldwide rights to Locemia Solutions' (Locemia) intranasal
glucagon.
Asset Impairment, Restructuring, and Other Special Charges (Note 5 to the consolidated financial statements)
• We recognized charges of $367.7 million (pretax), or $0.25 per share, related to severance costs,
integration costs, and intangible asset impairments.
Debt Repurchase (Notes 7 and 10 to the consolidated financial statements)
• We recognized net charges of $152.7 million (pretax), or $0.09 per share, attributable to the debt
extinguishment loss of $166.7 million from the purchase and redemption of certain fixed-rate notes,
partially offset by net gains from non-hedging interest rate swaps and foreign currency transactions
associated with the related issuance of lower interest rate euro-denominated notes.
2014
Acquired IPR&D (Notes 3 and 4 to the consolidated financial statements)
• We recognized acquired IPR&D charges of $200.2 million (pretax), or $0.12 per share, related to
acquired IPR&D from various collaboration agreements.
Collaborations (Note 4 to the consolidated financial statements)
• We recognized income of $92.0 million (pretax), or $0.06 per share, related to the transfer of our
linagliptin and empagliflozin commercial rights in certain countries to Boehringer Ingelheim.
Asset Impairment, Restructuring, and Other Special Charges (Note 5 to the consolidated financial statements)
• We recognized charges of $468.7 million (pretax), or $0.38 per share, related to severance costs
associated with our ongoing cost containment efforts to reduce our cost structure and global
workforce, and asset impairments primarily associated with the closure of a manufacturing site in
Puerto Rico.
Other
• We recognized a marketing, selling, and administrative expense of $119.0 million (non-tax
deductible), or $0.11 per share, for an extra year of the United States Branded Prescription Drug Fee
(U.S. Drug Fee) due to final regulations issued by the Internal Revenue Service (IRS) which required
us to accelerate into 2014 the recording of an expense for the 2015 fee.