Eli Lilly 2005 Annual Report Download - page 34

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FI NA NCI A L S
32
Selected Quarterly Data (unaudited)
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions, except per-share data)
2005 Fourth Third Second First
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,879.1 $3,601.1 $3,667.7 $3,497.4
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898.2 845.7 871.3 859.0
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,999.5 1,821.9 1,908.5 1,792.6
Asset impairments, restructuring, and other
special charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171.9 — 1,073.4 —
Other—net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (85.2) (85.0) (45.4) (98.6)
Income (loss) before income taxes and cumulative
effect of a change in accounting principle . . . . . . . . . . . . . 894.7 1,018.5 (140.1) 944.4
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700.62,4 794.4 (252.0)1 736.6
Earnings (loss) per share—basic. . . . . . . . . . . . . . . . . . . . . . . .64 .73 (.23) .68
Earnings (loss) per share—diluted . . . . . . . . . . . . . . . . . . . . . .64 .73 (.23) .68
Dividends paid per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 .38 .38 .38
Common stock closing prices
High. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.81 57.26 60.44 57.78
Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.76 52.52 51.19 51.73
2004 Fourth Third Second First
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,644.3 $3,280.4 $3,556.3 $3,376.9
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865.7 810.1 796.4 751.7
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,803.7 1,606.7 1,854.4 1,710.5
Acquired in-process research and development. . . . . . . . . . 29.9 — — 362.3
Asset impairments, restructuring, and other
special charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.1 — 108.9 —
Other—net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (69.1) (104.6) (41.6) (63.1)
Income before income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . 520.0 968.2 838.2 615.5
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.4)3 755.2 656.9 400.4
Earnings per share—basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .70 .61 .37
Earnings per share—diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .69 .60 .37
Dividends paid per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .355 .355 .355 .355
Common stock closing prices
High. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.01 69.37 76.26 74.70
Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.44 60.05 67.60 65.00
Our common stock is listed on the New York, London, and other stock exchanges.
1 In the second quarter of 2005, we incurred a tax expense of $111.9 million despite reporting a net loss before income taxes for the
quarter. The product liability charge of $1.07 billion (Note 13) in the second quarter resulted in a tax benefit that was less than our
effective tax rate, as the tax benefit was calculated based upon existing tax laws in the countries in which we reasonably expect to
deduct the charge.
2 A fourth-quarter 2005 analysis, which included the impact of a recently completed IRS examination for tax years 1998 to 2000, led us
to conclude that our tax rate for 2005 should be 26.3 percent. As a result, the fourth-quarter tax rate declined to 19.2 percent.
3 The net loss in the fourth quarter of 2004 included tax expenses of $465.0 million associated with the anticipated repatriation of $8.00
billion of our earnings reinvested outside the U.S. as a result of the American Jobs Creation Act (Note 11).
4 Reflects the impact of a cumulative effect of a change in accounting principle in the fourth quarter of $22.0 million, net of income
taxes of $11.8 million. The diluted earnings per share impact of this cumulative effect of a change in accounting principle was $.02.
The net income per diluted share before the cumulative effect of a change in accounting principle was $.66. See Note 2 for additional
information.