Eli Lilly 2004 Annual Report Download - page 42

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FINANCIALS
40
Shares exercisable at December 31, 2004, 2003, and 2002, were 54.1 million, 48.7 million, and 44.6 million,
respectively.
As noted above, the number of shares ultimately issued for the performance award program is dependent
upon the earnings achieved during the vesting period. Pursuant to this plan, approximately 0.4 million shares were
issued in 2002. No shares were issued in 2003 or 2004, and approximately 0.8 million shares will be issued in 2005.
At December 31, 2004, additional options, performance awards, or restricted stock grants may be granted
under the 2002 Lilly Stock Plan for not more than 58.1 million shares.
Note 8: Other Assets and Other Liabilities
Our sundry assets include our capitalized computer software, prepaid retiree health benefi t (Note 12), goodwill and
other intangible assets (Note 1), long-term deferred income tax assets (Note 11), estimated insurance recoveries from
our product litigation and environmental contingencies (Note 13), and a variety of other items. The increase in sundry
assets is primarily attributable to an increase in capitalized computer software and prepaid retiree health benefi ts.
Our other current liabilities include our deferred income from our collaboration and out-licensing arrangements,
other taxes, interest payable, deferred income tax liabilities, and a variety of other items. Major contributors to the
increase in other current liabilities are interest payable, deferred income tax liabilities, and other taxes payable.
Our other noncurrent liabilities include the accrued liabilities from our pension and retiree health plans (Note
12), deferred income from our collaboration and out-licensing arrangements, product liability litigation and envi-
ronmental accruals (Note 13), and a variety of other items. The decrease in other noncurrent liabilities is primar-
ily attributable to a decrease in deferred income from collaboration and out-licensing arrangements offset by an
increase to accrued liabilities from our pension and retiree health plans.
None of the components of sundry assets exceeds 5 percent of total assets, and none of the components of
other current liabilities or other noncurrent liabilities exceeds 5 percent of current or total liabilities, respectively.
Note 9: Shareholders’ Equity
Changes in certain components of shareholders’ equity were as follows:
Common Stock in Treasury
Additional Retained Deferred Shares
Paid-in Capital Earnings Costs—ESOP (in thousands) Amount
Balance at January 1, 2002. . . . . . . . . . . . . . . . . . . . $2,610.0 $ 7,411.2 $ (129.1) 985 $ 107.4
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,707.9
Cash dividends declared per share: $1.27 . . . . . . . (1,370.7)
Retirement of treasury shares . . . . . . . . . . . . . . . . . (393.9) (4,677) (396.8)
Purchase for treasury . . . . . . . . . . . . . . . . . . . . . . . . 4,532 389.2
Issuance of stock under employee stock plans . . . 131.8 168 9.7
ESOP transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.8 5.8
Reclassifi cation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248.3 (248.3)
Balance at December 31, 2002. . . . . . . . . . . . . . . . . 2,610.0 8,500.1 (123.3) 1,008 109.5
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,560.8
Cash dividends declared per share: $1.36 . . . . . . . (1,465.4)
Retirement of treasury shares . . . . . . . . . . . . . . . . . (289.1) (3,180) (291.2)
Purchase for treasury . . . . . . . . . . . . . . . . . . . . . . . . 2,976 276.8
Issuance of stock under employee stock plans . . . 150.4 148 9.1
ESOP transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.6 4.7
Reclassifi cation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.1 (125.1)
Balance at December 31, 2003. . . . . . . . . . . . . . . . . 2,610.0 9,470.4 (118.6) 952 104.2
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,810.1
Cash dividends declared per share: $1.45 . . . . . . . (1,555.9)
Retirement of treasury shares . . . . . . . . . . . . . . . . . (17.4) (271) (17.6)
Issuance of stock under employee stock plans . . . 163.7 262 17.2
ESOP transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2 6.7
Acquisition of AME . . . . . . . . . . . . . . . . . . . . . . . . . . . 349.9
Balance at December 31, 2004. . . . . . . . . . . . . . . . . $3,119.4 $9,724.6 $(111.9) 943 $103.8