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FINANCIALS
33
Segment Information
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
We operate in one signifi cant business segment—human pharmaceutical products. Operations of the animal
health business segment are not material and share many of the same economic and operating characteristics
as human pharmaceutical products. Therefore, they are included with pharmaceutical products for purposes of
segment reporting.
Year Ended December 31 2008 2007 2006
Net sales—to unaffi liated customers
Neurosciences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,371.5 $ 7,851.0 $ 6,728.5
Endocrinology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,890.7 5,479.6 5,014.5
Oncology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,874.5 2,446.4 2,020.2
Cardiovascular . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,882.7 1,624.1 730.4
Animal health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093.3 995.8 875.5
Other pharmaceuticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265.3 236.6 321.9
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,378.0 $18,633.5 $15,691.0
Geographic Information
Net sales—to unaffi liated customers1
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,934.4 $10,145.5 $ 8,599.2
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,334.9 4,731.8 3,804.0
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,108.7 3,756.2 3,287.8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,378.0 $18,633.5 $15,691.0
Long-lived assets
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,750.0 $ 5,905.4 $ 6,207.4
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,119.0 2,057.7 1,733.8
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,753.0 1,768.6 1,718.4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,622.0 $ 9,731.7 $ 9,659.6
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, Cymbalta, Strattera,
and Prozac. Endocrinology products consist primarily of Humalog, Humulin, Byetta, Actos, Evista, Forteo, and
Humatrope. Oncology products consist primarily of Gemzar and Alimta. Cardiovascular products consist primarily
of Cialis, ReoPro®, and Xigris. Animal health products include Posilac, Tylan®, Rumensin®, Coban®, and other prod-
ucts for livestock and poultry, and Comfortis® and other products for companion animals. The other pharmaceuti-
cals 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 2008, our three largest wholesalers each accounted for
between 12 percent and 16 percent of consolidated net sales. Further, they each accounted for between 10 per-
cent and 15 percent of accounts receivable as of December 31, 2008. 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 profi t 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 signifi cant accounting poli-
cies in Note 1 to the consolidated fi nancial statements. Income before income taxes for the animal health business
was approximately $192 million, $173 million, and $184 million in 2008, 2007, and 2006, 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 operations,
and our results of operations and the value of our foreign assets are affected by fl uctuations in foreign currency
exchange rates.