Eli Lilly 2012 Annual Report Download - page 55

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43
Consolidated Statements of Cash Flows
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions) Year Ended December 31 2012 2011 2010
Cash Flows from Operating Activities
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,088.6 $ 4,347.7 $ 5,069.5
Adjustments to Reconcile Net Income
to Cash Flows from Operating Activities
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462.2 1,373.6 1,328.2
Change in deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 126.0 (268.5) 559.7
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . 141.5 147.4 231.0
Impairment charges, indefinite lived intangibles . . . . . . . . . . . . . . . 205.0 151.5 —
Acquired in-process research and development, net of tax. . . . . . . —252.2 32.5
Income related to prepayment of revenue-sharing obligation
(Note 4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (787.8) — —
Other operating activities, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120.5 (17.8) (178.6)
Changes in operating assets and liabilities, net of acquisitions
Receivables—(increase) decrease . . . . . . . . . . . . . . . . . . . . . . . . . 361.8 (188.8) (319.1)
Inventories—(increase) decrease. . . . . . . . . . . . . . . . . . . . . . . . . . (307.9) 203.1 157.0
Other assets—(increase) decrease . . . . . . . . . . . . . . . . . . . . . . . . 231.0 642.7 340.5
Accounts payable and other liabilities—increase (decrease). . . . (336.1) 591.4 (363.9)
Net Cash Provided by Operating Activities . . . . . . . . . . . . . . . . . . . . . . 5,304.8 7,234.5 6,856.8
Cash Flows from Investing Activities
Purchases of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . (905.4) (672.0) (694.3)
Disposals of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.0 25.3 24.6
Net change in short-term investments. . . . . . . . . . . . . . . . . . . . . . . . . . 375.1 (250.9) (686.5)
Proceeds from sales and maturities of noncurrent investments. . . . . 4,355.7 2,138.5 584.7
Purchases of noncurrent investments . . . . . . . . . . . . . . . . . . . . . . . . . . (7,618.6) (4,459.4) (1,067.2)
Purchase of product rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (138.8) (632.9) (442.4)
Purchases of in-process research and development. . . . . . . . . . . . . . . —(388.0) (50.0)
Cash paid for acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . (199.3) (307.8) (609.4)
Net change in loan to collaboration partner (Note 4). . . . . . . . . . . . . . . 165.0 (165.0) —
Proceeds from prepayment of revenue-sharing obligation (Note 4) . . 1,212.1 — —
Other investing activities, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100.6) (112.2) (219.3)
Net Cash Used for Investing Activities. . . . . . . . . . . . . . . . . . . . . . . . . . (2,832.8) (4,824.4) (3,159.8)
Cash Flows from Financing Activities
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,187.4) (2,180.1) (2,165.3)
Net change in short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . (10.5) (141.2) 125.1
Repayments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,500.6) (54.6) (1.1)
Purchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (721.1) — —
Other financing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —6.0 19.4
Net Cash Used for Financing Activities . . . . . . . . . . . . . . . . . . . . . . . . . (4,419.6) (2,369.9) (2,021.9)
Effect of exchange rate changes on cash and cash equivalents. . . . . . 43.9 (110.9) (144.8)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . (1,903.7) (70.7) 1,530.3
Cash and cash equivalents at beginning of year. . . . . . . . . . . . . . . . . . . 5,922.5 5,993.2 4,462.9
Cash and Cash Equivalents at End of Year. . . . . . . . . . . . . . . . . . . . . . . $ 4,018.8 $ 5,922.5 $ 5,993.2
See notes to consolidated financial statements.