Eli Lilly 2013 Annual Report Download - page 68

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54
The table below summarizes the contractual maturities of our investments in debt securities measured at fair
value as of December 31, 2013:
Maturities by Period
Total
Less Than
1 Year
1-5
Years
6-10
Years
More Than
10 Years
Fair value of debt securities . . . . . . . . . . . . . . $ 8,400.2 $ 1,210.8 $ 5,977.4 $ 471.3 $ 740.7
A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the
amount of unrealized gains and losses (pretax) in accumulated other comprehensive loss follows:
2013 2012
Unrealized gross gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 375.6 $ 140.5
Unrealized gross losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59.8 29.0
Fair value of securities in an unrealized gain position . . . . . . . . . . . . . . . . . . . . . . 4,982.7 5,246.0
Fair value of securities in an unrealized loss position . . . . . . . . . . . . . . . . . . . . . . 3,664.7 2,102.0
Other-than-temporary impairment losses on investment securities of $11.3 million, $22.6 million, and
$31.1 million were recognized in the consolidated statements of operations for the years ended December 31,
2013, 2012, and 2011, respectively. For fixed-income securities, the amount of credit losses represents the
difference between the present value of cash flows expected to be collected on these securities and the
amortized cost. Factors considered in assessing the credit loss were the position in the capital structure,
vintage and amount of collateral, delinquency rates, current credit support, and geographic concentration.
The securities in an unrealized loss position include fixed-rate debt securities of varying maturities. The value
of fixed-income securities is sensitive to changes in the yield curve and other market conditions.
Approximately 90 percent of the securities in a loss position are investment-grade debt securities. At this time,
there is no indication of default on interest or principal payments for debt securities other than those for which
an other-than-temporary impairment charge has been recorded. We do not intend to sell and it is not more
likely than not we will be required to sell the securities in a loss position before the market values recover or
the underlying cash flows have been received, and we have concluded that no additional other-than-
temporary loss is required to be charged to earnings as of December 31, 2013.
Activity related to our investment portfolio, substantially all of which related to available-for-sale securities,
was as follows:
2013 2012 2011
Proceeds from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,753.5 $ 6,529.8 $ 2,268.3
Realized gross gains on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.5 82.3 140.0
Realized gross losses on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4 10.9 9.9
Note 8: Goodwill and Other Intangibles
Goodwill and other indefinite-lived intangible assets at December 31 were as follows:
2013 2012
Goodwill (by segment):
Human pharmaceutical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,354.7 $ 1,364.2
Animal health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.1 137.1
Total goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,516.8 1,501.3
In-process research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.6 65.0
Total indefinite-lived intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,550.4 $ 1,566.3
No impairments occurred with respect to the carrying value of goodwill for the years ended December 31,
2013, 2012, and 2011.