Eli Lilly 2007 Annual Report Download - page 32
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30
Segment Information
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
We operate in one signicant 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 2007 2006 2005
Net sales—to unafliated customers
Neurosciences $ 7,851.0 $ 6,7285 $ 6,0800
Endocrinology 5,479.6 5,0145 4,6369
Oncology 2,446.4 2,0202 1,8010
Cardiovascular2 1,624.1 7304 7788
Animal health 995.8 8755 8637
Other pharmaceuticals 236.6 3219 4849
Net sales $18,633.5 $15,6910 $14,6453
Geographic Information
Net sales—to unafliated customers1
United States $10,145.5 $ 8,5992 $ 7,7981
Europe 4,844.5 3,8943 3,8186
Other foreign countries 3,643.5 3,1975 3,0286
$18,633.5 $15,6910 $14,6453
Long-lived assets
United States $ 5,905.4 $ 6,2074 $ 6,5245
Europe 2,057.7 1,7338 1,5549
Other foreign countries 1,768.6 1,7184 1,7489
$ 9,731.7 $ 9,6596 $ 9,8283
1Net sales are attributed to the countries based on the location of the customer
2Cialis sales for 2007 are included in Cardiovascular, and 2006 and 2005 Cialis sales have been reclassied from other pharmaceuti-
cals to be consistent with the 2007 presentation
The largest category of products is the neurosciences group, which includes Zyprexa, Cymbalta, Strattera,
and Prozac Endocrinology products consist primarily of Humalog, Humulin, Actos, Byetta, Evista, Forteo, and
Humatrope Oncology products consist primarily of Gemzar and Alimta Cardiovascular products consist primar-
ily of Cialis, ReoPro®, and Xigris Animal health products include Tylan, Rumensin, Coban®, and other products
for livestock and poultry The other pharmaceuticals category includes anti-infectives, primarily Ceclor® and
Vancocin®, and other miscellaneous pharmaceutical products and services
Most of our pharmaceutical products are distributed through wholesalers that serve pharmacies, physicians
and other health care professionals, and hospitals In 2007, our three largest wholesalers each accounted for be-
tween 12 percent and 16 percent of consolidated net sales Further, they each accounted for between 9 percent and
13 percent of accounts receivable as of December 31, 2007 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 Per-
formance is evaluated based on prot or loss from operations before income taxes The accounting policies of the
individual segments are substantially the same as those described in the summary of signicant accounting poli-
cies in Note 1 to the consolidated nancial statements Income before income taxes for the animal health business
was approximately $173 million, $184 million, and $215 million in 2007, 2006, and 2005, 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 uctuations in foreign cur-
rency exchange rates