Eli Lilly 2008 Annual Report Download - page 56

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FINANCIALS
54
our common stock on the open market. Shares of common stock held by the ESOP will be allocated to participating
employees annually through 2017 as part of our savings plan contribution. The fair value of shares allocated each
period is recognized as compensation expense.
Note 11: Earnings (Loss) Per Share
Following is a reconciliation of the denominators used in computing earnings (loss) per share:
(Shares in thousands) 2008 2007 2006
Income (loss) available to common shareholders . . . . . . . . . . . . . . . . $ (2,071.9) $2,953.0 $2,662.7
Basic earnings (loss) per share
Weighted-average number of common shares outstanding,
including incremental shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,094,499 1,090,430 1,086,239
Basic earnings (loss) per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1.89) $2.71 $2.45
Diluted earnings (loss) per share
Weighted-average number of common shares outstanding . . . . . 1,092,041 1,088,929 1,085,337
Stock options and other incremental shares. . . . . . . . . . . . . . . . . . 2,458 1,821 2,153
Weighted-average number of common shares
outstanding—diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,094,499 1,090,750 1,087,490
Diluted earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1.89) $2.71 $2.45
Note 12: Income Taxes
Following is the composition of income tax expense:
2008 2007 2006
Current
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(207.6) $489.5 $ 197.7
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623.6 412.1 390.6
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.6) 27.7 (25.2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371.4 929.3 563.1
Deferred
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363.0 53.0 78.3
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.7 (27.9) 113.5
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 (30.6) 0.4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392.9 (5.5) 192.2
Income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 764.3 $923.8 $755.3