Eli Lilly 2004 Annual Report Download - page 29

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FINANCIALS
27
Segment Information
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
We operate in one signifi cant business segment—pharmaceutical products. Operations of the animal health busi-
ness segment are not material and share many of the same economic and operating characteristics as pharma-
ceutical products. Therefore, they are included with pharmaceutical products for purposes of segment reporting.
Year Ended December 31 2004 2003 2002
Net sales—to unaffi liated customers
Neurosciences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,052.5 $ 5,554.8 $ 4,668.3
Endocrinology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,290.9 3,926.7 3,444.6
Oncology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,366.2 1,039.8 893.1
Animal health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798.7 726.6 693.1
Cardiovascular . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658.7 669.3 624.9
Anti-infectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478.0 489.9 577.4
Other pharmaceutical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212.9 175.4 176.1
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,857.9 $12,582.5 $11,077.5
Geographic Information
Net sales—to unaffi liated customers1 . . . . . . . . . . . . . . . . . . . . . . . . .
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,668.5 $ 7,221.6 $ 6,582.3
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,534.7 3,102.9 2,471.9
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,654.7 2,258.0 2,023.3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,857.9 $12,582.5 $11,077.5
Long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,874.1 $ 5,296.0 $ 4,725.1
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,606.7 1,279.1 997.1
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,577.3 1,209.2 673.3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,058.1 $ 7,784.3 $ 6,395.5
1Net sales are attributed to the countries based on the location of the customer.
The largest category of products is the neurosciences group, which includes Zyprexa, Prozac, Strattera, Cym-
balta, Permax®, Symbyax, and Yentreve. Endocrinology products consist primarily of Humalog, Humulin, Actos,
Evista, Forteo, and Humatrope. Oncology products consist primarily of Gemzar and Alimta. Animal health products
include Tylan®, Rumensin®, Coban®, and other products for livestock and poultry. Cardiovascular products consist
primarily of ReoPro and Xigris. Anti-infectives include primarily Ceclor® and Vancocin®. The other pharmaceutical
product group includes Cialis, Axid®, and other miscellaneous pharmaceutical products and services.
Most of the pharmaceutical products are distributed through wholesalers that serve pharmacies, physicians and
other health care professionals, and hospitals. In 2004, our three largest wholesalers each accounted for between 13
percent and 17 percent of consolidated net sales. Further, they each accounted for between 1 percent and 13 percent
of accounts receivable as of December 31, 2004. Animal health products are sold primarily to wholesale distributors.
Our business segments are distinguished by the ultimate end user of the product: humans or animals. Perfor-
mance is evaluated based on profi t or loss from operations before income taxes. The accounting policies of the in-
dividual segments are substantially the same as those described in the summary of signifi cant accounting policies
in Note 1 to the consolidated fi nancial statements. Income before income taxes for the animal health business was
approximately $223 million, $204 million, and $221 million in 2004, 2003, and 2002, respectively.
The assets of the animal health business are intermixed with those of the pharmaceutical products business.
Long-lived assets disclosed above consist of property and equipment and certain sundry assets.
We are exposed to the risk of changes in social, political, and economic conditions inherent in foreign opera-
tions, and our results of operations and the value of our foreign assets are affected by fl uctuations in foreign cur-
rency exchange rates.