Eli Lilly 2009 Annual Report Download - page 51

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Segment Information
We operate in one significant 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.
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions) Year Ended December 31 2009 2008 2007
Net sales—to unaffiliated customers
Neuroscience . . . .......................................$ 8,976.4 $ 8,371.5 $ 7,851.0
Endocrinology . . . ....................................... 5,677.4 5,493.5 5,037.7
Oncology . . . . . . . ....................................... 3,161.7 2,877.1 2,446.4
Cardiovascular . . ....................................... 1,971.1 1,882.7 1,624.1
Animal health . . . ....................................... 1,207.2 1,093.3 995.8
Other pharmaceuticals . . . . . . ............................. 177.7 207.7 219.7
Net product sales . . ....................................... 21,171.5 19,925.8 18,174.7
Collaboration and other revenue . ............................. 664.5 446.1 458.8
Total revenue . . . . . .......................................$21,836.0 $20,371.9 $18,633.5
Geographic Information
Total revenue—to unaffiliated customers
1
United States . . . .......................................$12,294.4 $10,930.1 $10,145.5
Europe ............................................... 5,227.2 5,333.5 4,731.8
Other foreign countries . . . . . . ............................. 4,314.4 4,108.3 3,756.2
$21,836.0 $20,371.9 $18,633.5
Long-lived assets
United States . . . .......................................$ 5,310.0 $ 5,750.0 $ 5,905.4
Europe ............................................... 2,313.3 2,119.0 2,057.7
Other foreign countries . . . . . . ............................. 1,723.3 1,753.0 1,768.6
$ 9,346.6 $ 9,622.0 $ 9,731.7
1
Net sales are attributed to the countries based on the location of the customer.
Our neuroscience group of products includes Zyprexa, Cymbalta, Strattera, and Prozac. Endocrinology
products consist primarily of Humalog, Humulin, Byetta, Actos, Evista, Forteo, and Humatrope. Oncology
products consist primarily of Alimta and Gemzar. Cardiovascular products consist primarily of Cialis,
ReoPro, Xigris, and Effient. Animal health products include Posilac, Tylan, Rumensin, Coban, and other
products for livestock and poultry, and Comfortis and other products for companion animals. The other
pharmaceuticals category includes anti-infectives, primarily Vancocin and Ceclor, and other miscellaneous
pharmaceutical products and services. Collaboration and other revenue includes our share of the
U.S. gross margin on Byetta and the global Erbitux royalty. See Note 4 for additional information.
Most of our pharmaceutical products are distributed through wholesalers that serve pharmacies,
physicians and other health care professionals, and hospitals. In 2009, our three largest wholesalers each
accounted for between 12 percent and 17 percent of consolidated total revenue. Further, they each
accounted for between 9 percent and 16 percent of accounts receivable as of December 31, 2009. 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.
Performance is evaluated based on profit 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
significant accounting policies in Note 1 to the consolidated financial statements. Income before income
taxes for the animal health business was approximately $217 million, $192 million, and $173 million in
2009, 2008, and 2007, 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 fluctuations
in foreign currency exchange rates.
39
FORM 10-K