Eli Lilly and (LLY) 10-K 22 Feb 10 2009 FY Annual report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue	$21,836	20371.9	18633.5
Cost of sales	4,247	4376.7	4248.8
Research and development	4326.5	3840.9	3486.7
Marketing, selling, and administrative	6892.5	6626.4	6095.1
Acquired in-process research and development	90	4835.4	745.6
Asset impairments, restructuring, and other special charges	692.7	1,974	302.5
Other - net, expense (income)	229.5	26.1	(122)
Cost of sales, operating expenses, and other-net	16478.2	21679.5	14756.7
Income (loss) before income taxes	5357.8	-1307.6	3876.8
Income taxes	1,029	764.3	923.8
Net income (loss)	4328.8	-2071.9	$2,953
Earnings (loss) per share - basic and diluted	3.94	-1.89	2.71

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	4462.9	5496.7
Short-term investments	34.7	429.4
Accounts receivable, net of allowances of $109.9 (2009) and $97.4 (2008)	3343.3	2778.8
Other receivables	488.5	498.5
Inventories	2849.9	2493.2
Deferred income taxes	271	382.1
Prepaid expenses	1036.2	374.6
Total Current Assets	12486.5	12453.3
OTHER ASSETS
Investments	1155.8	1544.6
Goodwill and other intangibles - net	3699.8	3929.1
Sundry	1921.4	2659.3
Total other assets	6,777	8,133
Property and Equipment, net	8197.4	8626.3
Total assets	27460.9	29212.6
CURRENT LIABILITIES
Short-term borrowings and current maturities of long-term debt	27.4	5846.3
Accounts payable	968.1	885.8
Employee compensation	894.2	771
Sales rebates and discounts	1109.8	873.4
Dividends payable	538	536.8
Income taxes payable	346.7	229.2
Other current liabilities	2683.9	3967.2
Total current liabilities	6568.1	13109.7
OTHER LIABILITIES
Long-term debt	6634.7	4615.7
Accrued retirement benefit	2334.7	2387.6
Long-term income taxes payable	1088.4	906.2
Deferred income taxes	84.8	74.7
Other noncurrent liabilities	1224.9	1,381
Total noncurrent liabilities	11367.5	9365.2
SHAREHOLDERS' EQUITY
Common stock - no par value; Authorized shares: 3,200,000,000; Issued shares: 1,149,916,107 (2009) and 1,137,837,608 (2008)	718.7	711.1
Additional paid-in capital	4635.6	3976.6
Retained earnings	9830.4	7654.9
Employee benefit trust	-3013.2	(2,635)
Deferred costs - ESOP	-77.4	-86.3
Accumulated other comprehensive loss	-2471.9	-2786.8
Noncontrolling interests	1.6	2.4
Shareholders' equity, including treasury shares	9623.8	6836.9
Less cost of common stock in treasury; 2009 - 882,340 shares; 2008 - 888,998 shares	98.5	99.2
Total shareholders' equity	9525.3	6737.7
Total liabilities and shareholders' equity	27460.9	29212.6

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheets (Parenthetical)
Accounts receivable, allowances	109.9	97.4
Common Stock, No Par Value	0	0
Common Stock, Shares Authorized	3,200,000,000	3,200,000,000
Common Stock, Shares, Issued	1,149,916,107	1,137,837,608
Treasury Stock, Shares	882,340	888,998

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	4328.8	-2071.9	$2,953
Adjustments To Reconcile Net Income To Cash Flows From Operating Activities
Net marketing investigation charges accrued (paid)	-1313.6	1423.6	0
Depreciation and amortization	1297.8	1122.6	1047.9
Change in deferred taxes	189.9	442.6	60.7
Stock-based compensation expense	368.5	255.3	282
Acquired in-process research and development, net of tax	58.5	4792.7	692.6
Other, net	362.5	406.5	172.1
Operating income (loss) before working capital changes	5292.4	6371.4	5208.3
Changes in operating assets and liabilities, net of acquisitions
Receivables - (increase) decrease	-492.9	799.1	-842.7
Inventories - (increase) decrease	(179)	84.8	154.3
Other Assets - (increase) decrease	-84.9	1648.6	-355.8
Accounts payable and other liabilities - increase (decrease)	-200.1	-1608.3	990.4
Other changes in operating assets and liabilities, net of acquisitions	-956.9	924.2	-53.8
NET CASH PROVIDED BY OPERATING ACTIVITIES	4335.5	7295.6	5154.5
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(765)	-947.2	-1082.4
Disposal of property and equipment	17.7	25.7	32.3
Net change in short-term investments	399.1	957.6	-376.9
Proceeds from sales and maturities of noncurrent investments	1107.8	1597.3	800.1
Purchases of noncurrent investments	-432.3	-2412.4	-750.7
Purchase of in-process research and development	(90)	(122)	(111)
Cash paid for acquisitions, net of cash acquired	0	(6,083)	-2673.2
Other, net	-94.5	-284.8	-166.3
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	142.8	-7268.8	-4328.1
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	-2152.1	-2056.7	-1853.6
Net change in short-term borrowings	-5824.2	5060.5	-468.5
Proceeds from issuance of long-term debt	2,400	0.1	2512.6
Repayment of long-term debt	0	-649.8	-1059.5
Other, net	42.6	-8.1	24.1
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	-5533.7	2,346	-844.9
Effect of exchange rate changes on cash and cash equivalents	21.6	-96.6	129.7
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	-1033.8	2276.2	111.2
Cash and cash equivalents at beginning of year	5496.7	3220.5	3109.3
CASH AND CASH EQUIVALENTS AT END OF YEAR	4462.9	5496.7	3220.5

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income (loss)	4328.8	-2071.9	$2,953
Other comprehensive income (loss)
Foreign currency translation gains (losses)	284.9	-766.1	756.6
Net unrealized gains (losses) on securities	289.8	-190.6	-11.4
Defined benefit pension and retiree health benefit plans	-280.3	-2941.2	943.8
Effective portion of cash flow hedges	48.2	23.2	-0.1
Other comprehensive income (loss) before income taxes	342.6	-3874.7	1688.9
Provision for income taxes related to other comprehensive income (loss) items	-27.7	1074.7	(287)
Other comprehensive income (loss)	314.9	(2,800)	1401.9
Comprehensive income (loss)	4643.7	-4871.9	4354.9

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information [Text Block]	We operate in one significant business segmenthuman 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 salesto 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 revenueto unaffiliated customers1 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 Note4 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 12percent and 17percent of consolidated total revenue. Further, they each accounted for between 9percent and 16percent of accounts receivable as of December31, 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 anim

Selected Quarterly Data

Selected Quarterly Data (unaudited)
	3 Months Ended Dec. 31, 2009
Selected Quarterly Data (unaudited) [Abstract]
Selected Quarterly Data (unaudited) [Text Block]	ELI LILLY AND COMPANY AND SUBSIDIARIES (Dollars in millions, except per-share data) 2009 Fourth Third Second First Revenue $ 5,934.2 $ 5,562.0 $ 5,292.8 $ 5,047.0 Cost of sales 1,431.3 1,051.9 947.4 816.4 Operating expenses 3,170.0 2,823.9 2,748.6 2,476.5 Acquired in-process research and development 90.0 Asset impairments, restructuring, and other special charges 37.9 549.8 105.0 Othernet, expense 67.8 66.9 24.1 70.7 Income before income taxes 1,137.2 1,069.5 1,467.7 1,683.4 Net income 915.4 941.8 1,158.5 1,313.1 Earnings per sharebasic and diluted .83 .86 1.06 1.20 Dividends paid per share .49 .49 .49 .49 Common stock closing prices High 37.51 35.15 35.95 40.57 Low 32.47 32.40 31.88 27.47 2008 Fourth Third Second First Revenue $ 5,204.4 $ 5,209.5 $ 5,150.4 $ 4,807.6 Cost of sales 909.3 1,155.2 1,200.9 1,111.3 Operating expenses 2,785.9 2,602.2 2,651.6 2,427.6 Acquired in-process research and development 4,685.4 28.0 35.0 87.0 Asset impairments, restructuring, and other special charges 80.0 1,659.4 88.9 145.7 Othernet, expense (income) 81.2 (2.5) (32.3) (20.3) Income (loss) before income taxes (3,337.4) (232.8) 1,206.3 1,056.3 Net income (loss)1 (3,629.4) (465.6) 958.8 1,064.3 Earnings (loss) per sharebasic and diluted (3.31) (.43) .88 .97 Dividends paid per share .47 .47 .47 .47 Common stock closing prices High 43.69 49.25 53.06 57.18 Low 29.91 43.92 45.61 47.81 Our common stock is listed on the New York, London, and Swiss stock exchanges. 1 We incurred tax expense of $764.3million in 2008, despite having a loss before income taxes of $1.31billion. Our net loss was driven by the $4.69billion acquired in-process research and development (IPRD) charge for ImClone in the fourth quarter and the $1.48billion Zyprexa investigation settlements recorded in the third quarter. The IPRD charge was not tax deductible, and only a portion of the Zyprexa investigation settlements was deductible. In addition, we recorded tax expense associated with the ImClone acquisition in the fourth quarter in 2008, as well as a discrete income tax benefit of $210.3million in the first quarter of 2008 for the resolution of a substantial portion of the 2001-2004 Internal Revenue Service (IRS) audit.

Selected Financial Data

Selected Financial Data (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Financial Data (unaudited) [Abstract]
Selected Financial Data (unaudited) [Text Block]	ELI LILLY AND COMPANY AND SUBSIDIARIES (Dollars in millions, except total revenue per employee and per-share data) 2009 2008 2007 2006 2005 Operations Revenue $ 21,836.0 $ 20,371.9 $ 18,633.5 $ 15,691.0 $ 14,645.3 Cost of sales 4,247.0 4,376.7 4,248.8 3,546.5 3,474.2 Research and development 4,326.5 3,840.9 3,486.7 3,129.3 3,025.5 Marketing, selling, and administrative 6,892.5 6,626.4 6,095.1 4,889.8 4,497.0 Other 1,012.2 6,835.51 926.1 707.4 931.1 Income (loss) before income taxes and cumulative effect of a change in accounting principle 5,357.8 (1,307.6) 3,876.8 3,418.0 2,717.5 Income taxes 1,029.0 764.3 923.8 755.3 715.9 Net income (loss) 4,328.8 (2,071.9) 2,953.0 2,662.7 1,979.6 Net income as a percent of revenue 19.8% NM 15.8% 17.0% 13.5% Net income (loss) per share diluted 3.94 (1.89) 2.71 2.45 1.81 Dividends declared per share 1.96 1.90 1.75 1.63 1.54 Weighted-average number of shares outstandingdiluted (thousands) 1,098,367 1,094,499 1,090,750 1,087,490 1,092,150 Financial Position Current assets $ 12,486.5 $ 12,453.3 $ 12,316.1 $ 9,753.6 $ 10,855.0 Current liabilities 6,568.1 13,109.7 5,436.8 5,254.0 5,884.8 Property and equipmentnet 8,197.4 8,626.3 8,575.1 8,152.3 7,912.5 Total assets 27,460.9 29,212.6 26,874.8 22,042.4 24,667.8 Long-term debt 6,634.7 4,615.7 4,593.5 3,494.4 5,763.5 Shareholders equity 9,525.3 6,737.7 13,510.3 10,825.3 10,636.6 Supplementary Data Return on shareholders equity 51.0% (16.3)% 24.3% 24.8% 18.5% Return on assets 15.8% (7.5)% 12.1% 11.1% 8.2% Capital expenditures $ 765.0 $ 947.2 $ 1,082.4 $ 1,077.8 $ 1,298.1 Depreciation and amortization 1,297.8 1,122.6 1,047.9 801.8 726.4 Effective tax rate 19.2% NM 2 23.8% 22.1% 26.3% Revenue per employee $ 540,000 $ 504,000 $ 459,000 $ 378,000 $ 344,000 Number of employees 40,360 40,450 40,600 41,500 42,600 Number of shareholders of record 38,400 39,800 41,700 44,800 50,800 NMNot Meaningful 1 The increase reflects the in-process research and development expense of $4.69billion associated with the ImClone acquisition and $1.48billion associated with the Zyprexa investigation settlements. 2 We incurred tax expense of $764.3million in 2008, despite having a loss before income taxes of $1.31billion. Our net loss was driven by the $4.69billion acquired IPRD

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies [Text Block]	Basis of presentation:The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The accounts of all wholly-owned and majority-owned subsidiaries are included in the consolidated financial statements. Where our ownership of consolidated subsidiaries is less than 100percent, the non-controlling shareholders interests are reflected in shareholders equity. All intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. We issued our financial statements by filing with the Securities and Exchange Commission on February22, 2010. We have evaluated subsequent events up to the time of the filing. All per-share amounts, unless otherwise noted in the footnotes, are presented on a diluted basis, that is, based on the weighted-average number of outstanding common shares plus the effect of dilutive stock options and other incremental shares. Cash equivalents:We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value. Inventories:We state all inventories at the lower of cost or market. We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental United States, or approximately 40percent of our total inventories. Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current replacement cost. Inventories at December 31 consisted of the following: 2009 2008 Finished products $ 938.3 $ 771.0 Work in process 1,830.1 1,657.1 Raw materials and supplies 227.8 236.3 2,996.2 2,664.4 Reduction to LIFO cost (146.3 ) (171.2 ) $ 2,849.9 $ 2,493.2 Investments:Substantially all of our investments in debt and marketable equity securities are classified as available-for-sale. Investment securities with maturity dates of less than one year from the date of the balance sheet are classified as short-term. Available-for-sale securities are carried at fair value with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss). The credit portion of unrealized losses on our debt securities considered to be other-than-temporary are recognized in earnings. The remaining portion of the other-than-temporary impairment on our debt securities is then recorded in other comprehensive income (loss). The entire amount of other-than-temporary impairment on our equity securities is recognized in earnings. We do not evaluate cost-method investments for impairment unless there is an indicator of impairment. We review these investments for indicators of impairment

Implementation of New Financial

Implementation of New Financial Accounting Pronouncements
	12 Months Ended Dec. 31, 2009 USD / shares
New Accounting Pronouncements [Abstract]
Implementation of New Financial Accounting Pronouncements [Text Block]	The Financial Accounting Standards Board (FASB) Statement on Business Combinations was effective for us for business combinations with the acquisition date on or after January1, 2009. This Statement, with its amendment, changes the way in which the acquisition method is to be applied in a business combination. The primary revisions require an acquirer in a business combination to measure assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, at their fair values as of that date, with limited exceptions specified in the Statement. This Statement also requires the acquirer in a business combination achieved in stages to recognize the identifiable assets and liabilities, as well as the noncontrolling interest in the acquiree, at the full amounts of their fair values (or other amounts determined in accordance with the Statement). Assets acquired and liabilities assumed arising from contingencies are to be measured at fair value if it can be determined during the measurement period. If fair value cannot be determined, the asset or liability should be recognized at the acquisition date if it is probable that an asset existed or a liability had been incurred and the amount can be reasonably estimated. This Statement significantly amends other authoritative guidance on Business Combinations as well, and now requires the capitalization of research and development assets acquired in a business combination at their acquisition-date fair values, separately from goodwill. The accounting for income taxes was also amended by this Statement to require the acquirer to recognize changes in the amount of its deferred tax benefits that are recognizable because of a business combination either in income from continuing operations in the period of the combination or directly in contributed capital, depending on the circumstances. We adopted the provisions of the FASB Statement on Consolidations relating to the accounting for noncontrolling interests on January1, 2009. This Statement amends previous authoritative guidance, by requiring companies to report a noncontrolling interest in a subsidiary as equity in its consolidated financial statements. Disclosure of the amounts of consolidated net income attributable to the parent and the noncontrolling interest will be required. This Statement also clarifies that transactions that result in a change in a parents ownership interest in a subsidiary that do not result in deconsolidation will be treated as equity transactions, while a gain or loss will be recognized by the parent when a subsidiary is deconsolidated. We now classify our noncontrolling interest in a subsidiary as part of shareholders equity in our consolidated statements of financial position at December31, 2009 and reclassified the December31, 2008 balances accordingly. The net income attributed to the noncontrolling interest in a subsidiary for 2009 and 2008 is not material and is included in other-net, expense (income). We adopted the provisions of the FASB Statement on disclosures relating to Derivatives and Hedging on January1, 2009. This Statement requires entities to provide enhanced di

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions [Text Block]	During 2008 and 2007 we acquired several businesses. These acquisitions were accounted for as business combinations under the purchase method of accounting. Under the purchase method of accounting, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The determination of estimated fair value required management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of these acquisitions are included in our consolidated financial statements from the date of acquisition. Most of these acquisitions included IPRD, which represented compounds, new indications, or line extensions under development that had not yet achieved regulatory approval for marketing. There are several methods that can be used to determine the estimated fair value of the IPRD acquired in a business combination. We utilized the income method which applies a probability weighting to the estimated future net cash flows that are derived from projected sales revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products, and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each project independently. Pursuant to the existing rules, these acquired IPRD intangible assets totaling $4.71billion and $340.5million in 2008 and 2007, respectively, were expensed immediately subsequent to the acquisition because the products had no alternative future use. The ongoing expenses with respect to each of these products in development are not material to our total research and development expense currently and are not expected to be material to our total research and development expense on an annual basis in the future. In addition to the acquisitions of businesses, we also acquired several products in development. The acquired IPRD related to these products of $90.0million, $122.0million, and $405.1million in 2009, 2008, and 2007, respectively, was also written off by a charge to income immediately upon acquisition because the products had no alternative future use. ImClone Acquisition On November24, 2008, we acquired all of the outstanding shares of ImClone Systems Inc. (ImClone), a biopharmaceutical company focused on advancing oncology care, for a total purchase price of approximately $6.5billion, which was financed through borrowings. This strategic combination offered both targeted therapies and oncolytic agents along with a pipeline spanning all phases of clinical development. The combination also expanded our biotechnology capabilities. The acquisition was accounted for as a business combination under the purchase method of accounting, resulting in goodwill of $425.9million. No portion of this goodwill was or is expected to be deductible for tax purposes. Allocation of Purchase Price The purchase price was

Collaborations

Collaborations
	12 Months Ended Dec. 31, 2009 USD / shares
Collaborations [Abstract]
Collaborations [Text Block]	We often enter into collaborative arrangements to develop and commercialize drug candidates. Collaborative activities might include research and development, marketing and selling (including promotional activities and physician detailing), manufacturing, and distribution. These collaborations often require milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development, as well as expense reimbursements or payments to the third party. Revenues related to products sold by us pursuant to these arrangements are included in net product sales, while other sources of revenue (e.g., royalties and profit share payments) are included in collaboration and other revenue. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item, net of any payments made to or reimbursements received from our collaboration partners. Each collaboration is unique in nature, and our more significant arrangements are discussed below. Erbitux Prior to our acquisition in November 2008, ImClone entered into several collaborations with respect to Erbitux, a product approved to fight cancer, while still in its development phase. The most significant collaborations operate in these geographic territories: the U.S., Japan, and Canada (Bristol-Myers Squibb Company); and worldwide except the U.S.and Canada (Merck KGaA). The agreements are expected to expire in 2018, upon which all of the rights with respect to Erbitux in the U.S.and Canada return to us. The following table summarizes the revenue recognized with respect to Erbitux: 2009 2008 Net product sales $ 92.5 $ 2.7 Collaboration and other revenue 298.3 26.7 Total revenue $ 390.8 $ 29.4 Bristol-Myers Squibb Company Pursuant to a commercial agreement with Bristol-Myers Squibb Company and E.R. Squibb (collectively, BMS), relating to Erbitux, ImClone is co-developing and co-promoting Erbitux in the U.S.and Canada with BMS, exclusively, and in Japan with BMS and Merck KGaA. The companies have jointly agreed to expand the investment in the ongoing clinical development plan for Erbitux to further explore its use in additional tumor types. Under this arrangement, Erbitux research and development and other costs, up to threshold amounts, are the sole responsibility of BMS, with costs in excess of the thresholds shared by both companies according to a predetermined ratio. Responsibilities associated with clinical and other ongoing studies are apportioned between the parties as determined pursuant to the agreement. Collaborative reimbursements received by ImClone for supply of clinical trial materials; for research and development; and for a portion of marketing, selling, and administrative expenses are recorded as a reduction to the respective expense line items on the consolidated statement of operations. We receive a distribution fee in the form of a royalty from BMS, based on a percentage of net sales in the U.S.and Canada, which is recorded in collaboration and other revenue. Royal

Asset Impairments, Restructurin

Asset Impairments, Restructuring, and Other Special Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Impairments, Restructuring, And Other Special Charges [Abstract]
Asset Impairments, Restructuring, And Other Special Charges [Text Block]	The components of the charges included in asset impairments, restructuring, and other special charges in our consolidated statements of operations are described below. Asset Impairments and Related Restructuring and Other Charges Asset impairments, restructuring, and other special charges of $37.9million were recognized in the fourth quarter of 2009 as a result of our announced initiatives to reduce our cost structure and global workforce. These charges relate to severance costs which are expected to be paid in the first half of 2010. We recognized asset impairments, restructuring, and other special charges of $424.8million in the third quarter of 2009 primarily due to the sale of our Tippecanoe Laboratories manufacturing site to an affiliate of Evonik Industries AG (Evonik) in early 2010. In connection with the sale of the site, we entered into a nine-year supply and services agreement, whereby Evonik will manufacture final and intermediate step active pharmaceutical ingredient (API) for certain of our human and animal health products. The decision to sell the site was based upon a projected decline in utilization of the site due to several factors, including upcoming patent expirations on certain medicines made at the site; our strategic decision to purchase, rather than manufacture, many late-stage chemical intermediates; and the evolution of our pipeline toward more biotechnology medicines. In addition to the sale of the Tippecanoe site, in the third quarter of 2009 we announced a voluntary exit program for certain U.S.sales employees. Components of the third-quarter restructuring charge include non-cash asset impairment charges and other charges of $363.7million, and $61.1million in severance related charges, substantially all of which is expected to be paid in cash by early 2010. The fair value of assets used in determining impairment charges was based on contracted sales prices. We incurred asset impairments, restructuring, and other special charges of $80.0million in the fourth quarter of 2008. These charges were the result of decisions approved by management in the fourth quarter as well as previously announced strategic decisions. The primary components of this charge include non-cash asset impairments of $35.1million for the write down of impaired assets, all of which have no future use, and other charges of $44.9million, primarily related to severance and environmental cleanup charges in connection with previously announced strategic decisions made in prior periods. Substantially all of these costs were paid during 2009. Further, in the third quarter of 2008, as a result of our previously announced agreements with Covance Inc. (Covance), Quintiles Transnational Corp. (Quintiles), and Ingenix Pharmaceutical Services, Inc., doing business as i3 Statprobe (i3), and as part of our efforts to transform into a more flexible organization, we recognized asset impairments, restructuring, and other special charges of $182.4million. We sold our Greenfield, Indiana site to Covance, a global drug development services firm, and entered into a 10-year service agreement under which Covance will provide preclinical toxicology wor

Financial Instruments and Inves

Financial Instruments and Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments and Investments [Abstract]
Financial Instruments and Investments [Text Block]	Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Wholesale distributors of life-sciences products account for a substantial portion of trade receivables; collateral is generally not required. The risk associated with this concentration is mitigated by our ongoing credit review procedures and insurance. Major financial institutions represent the largest component of our investments in corporate debt securities. In accordance with documented corporate policies, we limit the amount of credit exposure to any one financial institution or corporate issuer. We are exposed to credit-related losses in the event of nonperformance by counterparties to risk-management instruments but do not expect any counterparties to fail to meet their obligations given their high credit ratings. At December31, 2009, we had outstanding foreign currency forward commitments to purchase 518million British pounds and sell 578million euro, commitments to purchase 194million U.S.dollars and sell 131million euro, and commitments to buy 151million euro and sell 218million U.S.dollars, which will settle within 35days. At December31, 2009, approximately 97percent of our total debt is at a fixed rate. We have converted approximately 65percent of our fixed-rate debt to floating rates through the use of interest rate swaps. The Effect of Risk-Management Instruments on the Statement of Operations Both the gains on the hedged fixed-rate debt and the offsetting losses on the related interest rate swaps for 2009 were $369.5million. All of these amounts net to zero and are included in other-net, expense (income). We expect to reclassify $12.0million of pretax net losses on cash flow hedges of the variability in expected future interest payments on floating rate debt from accumulated other comprehensive loss to earnings during the next 12months. Other-net, expense (income) for 2009 includes the effective portion of losses on interest rate contracts in designated cash flow hedging relationships reclassified from accumulated other comprehensive loss into income of $10.2million, and the net gains on foreign exchange contracts not designated as hedging instruments recognized in income of $43.4million. The effective portions of net gains on interest rate contracts in designated cash flow hedging relationships recorded in other comprehensive income (loss) for 2009 was $38.0million. During the years ended December31, 2009, 2008, and 2007, net losses related to ineffectiveness and net losses related to the portion of our risk-management hedging instruments, fair value and cash flow hedges excluded from the assessment of effectiveness were not material. Fair Value of Financial Instruments The following tables summarize certain fair value information at December 31 for assets and liabilities measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments: Fair Value Measurements Using Quoted Prices in

Borrowings

Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Borrowings [Abstract]
Borrowings [Text Block]	Long-term debt at December 31 consisted of the following: 2009 2008 3.55 to 7.13percent notes (due 2012-2037) $ 6,387.4 $ 3,987.4 Floating rate bonds (due 2037) 400.0 Other, including capitalized leases 105.3 116.8 Fair value adjustment 162.3 531.9 6,655.0 5,036.1 Less current portion (20.3 ) (420.4 ) $ 6,634.7 $ 4,615.7 In March 2009, we issued $2.40billion of fixed-rate notes with interest to be paid semi-annually. The $400.0million of floating rate bonds outstanding at December31, 2008 were repaid with proceeds from this issuance. The 6.55percent Employee Stock Ownership Plan (ESOP) debentures are obligations of the ESOP but are shown on the consolidated balance sheet because we guarantee them. The principal and interest on the debt are funded by contributions from us and by dividends received on certain shares held by the ESOP. Because of the amortizing feature of the ESOP debt, bondholders will receive both interest and principal payments each quarter. The balance was $72.8million and $81.9million at December31, 2009 and 2008, respectively, and is included in Other in the table above. The aggregate amounts of maturities on long-term debt for the next five years are as follows: 2010, $20.3million; 2011, $15.8million; 2012, $1.51billion; 2013, $13.9million; and 2014, $1.01billion. At December31, 2009 and 2008, short-term borrowings included $7.1million and $5.43billion, respectively, of notes payable to banks and commercial paper. Commercial paper was issued in late 2008 for the acquisition of ImClone. At December31, 2009, we have $1.24billion of unused committed bank credit facilities, $1.20billion of which backs our commercial paper program and matures in May, 2011. Compensating balances and commitment fees are not material, and there are no conditions that are probable of occurring under which the lines may be withdrawn. We have converted approximately 65percent of all fixed-rate debt to floating rates through the use of interest rate swaps. The weighted-average effective borrowing rates based on debt obligations and interest rates at December31, 2009 and 2008, including the effects of interest rate swaps for hedged debt obligations, were 3.07percent and 4.77percent, respectively. In 2009, 2008, and 2007, cash payments of interest on borrowings totaled $205.9million, $203.1million, and $159.2million, respectively, net of capitalized interest. In accordance with the requirements of derivatives and hedging guidance, the portion of our fixed-rate debt obligations that is hedged is reflected in the consolidated balance sheets as an amount equal to the sum of the debts carrying value plus the fair value adjustment representing changes in fair value of the hedged debt attributable to movements in market interest rates subsequent to the inception of the hedge.

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation [Abstract]
Stock-Based Compensation [Text Block]	Stock-based compensation expense in the amount of $368.5million, $255.3million, and $282.0million was recognized in 2009, 2008, and 2007, respectively, as well as related tax benefits of $128.9million, $88.6million, and $96.4million, respectively. Our stock-based compensation expense consists primarily of performance awards (PAs), and shareholder value awards (SVAs). We recognize the stock-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. We provide newly issued shares and treasury stock to satisfy stock option exercises and for the issuance of PA and SVA shares. We classify tax benefits resulting from tax deductions in excess of the compensation cost recognized for exercised stock options as a financing cash flow in the consolidated statements of cash flows. At December31, 2009, additional stock-based compensation awards may be granted under the 2002 Lilly Stock Plan for not more than 84.6million shares. Performance Award Program PAs are granted to officers and management and are payable in shares of our common stock. The number of PA shares actually issued, if any, varies depending on the achievement of certain pre-established earnings-per-share targets. In 2009, we granted both a one-year and a two-year award to all global management as a transition to a two-year performance period for all PAs granted beginning in 2010. PA shares are accounted for at fair value based upon the closing stock price on the date of grant and fully vest at the end of the fiscal year of the grant. The fair values of performance awards granted in 2009 were $36.17 for the one-year award and $34.12 for the two-year award. The fair values of PAs granted in 2008 and 2007 were $51.22 and $54.23, respectively. The number of shares ultimately issued for the performance award program is dependent upon the earnings achieved during the vesting period. Pursuant to this plan, approximately 2.8million shares, 2.5million shares, and 2.3million shares were issued in 2009, 2008, and 2007, respectively. Approximately 4.4million shares are expected to be issued in 2010. As of December31, 2009, the total remaining unrecognized compensation cost related to nonvested PAs amounted to $88.8million, which will be amortized over the weighted-average remaining requisite service period of 12.0months. Shareholder Value Award Program In 2007, we implemented a SVA program, which replaced our stock option program. SVAs are granted to officers and management and are payable in shares of common stock at the end of a three-year period. The number of shares actually issued varies depending on our stock price at the end of the three-year vesting period compared to pre-established target stock prices. We measure the fair value of the SVA unit on the grant date using a Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model are based on implied volatilities from traded options on our

Other Assets and Other Liabilit

Other Assets and Other Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Other Assets and Other Liabilities [Abstract]
Other Assets and Other Liabilities [Text Block]	Our other receivables include receivables from our collaboration partners, tax receivables, interest receivable for our interest rate swaps, and a variety of other items. The decrease in other receivables is primarily attributable to a decrease in receivables from our collaboration partners and a decrease in tax receivables, offset by an increase in interest rate swap receivables. Our prepaid expenses include prepaid income taxes and other global prepaid expenses. The increase in prepaid expenses is primarily attributable to income taxes paid on prepaid intercompany royalties. Our sundry assets primarily include our capitalized computer software, deferred tax assets (Note12), receivables from our collaboration partners, and the fair value of our interest rate swaps. The decrease in sundry assets is primarily attributable to a decrease in deferred tax assets and a decrease in the fair value of our interest rate swaps. Our other current liabilities include product litigation, tax liabilities, deferred income from our collaboration arrangements, and a variety of other items. The decrease in other current liabilities is caused primarily by a decrease in product litigation liabilities, specifically, the $1.42billion related to the EDPA settlements which was paid in 2009 as discussed in Note14, and a decrease in current deferred taxes. Our other noncurrent liabilities include deferred income from our collaboration and out-licensing arrangements, the long-term portion of our estimated product return liabilities, product litigation, and a variety of other items. The decrease in other noncurrent liabilities is primarily due to a decrease in deferred income and a decrease in product litigation reserves.

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity [Abstract]
Shareholders' Equity [Text Block]	Changes in certain components of shareholders equity were as follows: Additional Deferred Common Stock in Treasury Paid-in Retained Costs - Shares Capital Earnings ESOP (in thousands) Amount Balance at January1, 2007 $ 3,571.9 $ 10,766.2 $ (100.7 ) 910 $ 101.4 Net income 2,953.0 Cash dividends declared per share: $1.75 (1,903.9 ) Retirement of treasury shares (3.9 ) (76 ) (3.9 ) Issuance of stock under employee stock plans-net (55.2 ) 65 3.0 Stock-based compensation 282.0 ESOP transactions 10.4 5.5 FIN48 implementation (Note12) (8.6 ) Balance at December31, 2007 3,805.2 11,806.7 (95.2 ) 899 100.5 Net loss (2,071.9 ) Cash dividends declared per share: $1.90 (2,079.9 ) Retirement of treasury shares (10.9 ) (170 ) (11.1 ) Issuance of stock under employee stock plans-net (84.9 ) 160 9.8 Stock-based compensation 255.3 ESOP transactions 11.9 8.9 Balance at December31, 2008 3,976.6 7,654.9 (86.3 ) 889 99.2 Net income 4,328.8 Cash dividends declared per share: $1.96 (2,153.3 ) Retirement of treasury shares (3.3 ) (132 ) (3.3 ) Issuance of stock under employee stock plans-net (85.0 ) 125 2.6 Stock-based compensation 368.5 ESOP transactions 6.9 8.9 Employee benefit trust contribution 371.9 Balance at December31, 2009 $ 4,635.6 $ 9,830.4 $ (77.4 ) 882 $ 98.5 As of December31, 2009, we have purchased $2.58billion of our announced $3.0billion share repurchase program. No shares were repurchased in 2009, 2008, or 2007. We have 5million authorized shares of preferred stock. As of December31, 2009 and 2008, no preferred stock has been issued. We have funded an employee benefit trust with 50million and 40million shares of our common stock at December31, 2009 and 2008, respectively, to provide a source of funds to assist us in meeting our obligations under various employee benefit plans. In February 2009, we contributed an additional 10million shares to the employee benefit trust, which resulted in a reclassification within equity from additional paid-in capital of $371.9million and common stock of $6.3million to the employee benefit trust of $378.2million. The funding had no net impact on shareholders equity as we consolidate the employee benefit trust. The cost basis of the shares held in the trust was $3.01billion and $2.64billion at December31, 2009 and 2008,

Earnings

Earnings (Loss) Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings (Loss) Per Share [Abstract]
Earnings (Loss) Per Share [Text Block]	Following is a reconciliation of the denominators used in computing earnings (loss) per share: 2009 2008 2007 (Shares in thousands) Income (loss) available to common shareholders $ 4,328.8 $ (2,071.9 ) $ 2,953.0 Basic earnings (loss) per share Weighted-average number of common shares outstanding, including incremental shares 1,098,338 1,094,499 1,090,430 Basic earnings (loss) per share $ 3.94 $ (1.89 ) $ 2.71 Diluted earnings (loss) per share Weighted-average number of common shares outstanding 1,094,623 1,092,041 1,088,929 Stock options and other incremental shares 3,744 2,458 1,821 Weighted-average number of common shares outstandingdiluted 1,098,367 1,094,499 1,090,750 Diluted earnings (loss) per share $ 3.94 $ (1.89 ) $ 2.71

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes [Text Block]	Following is the composition of income tax expense: 2009 2008 2007 Current Federal $ 45.7 $ (207.6 ) $ 489.5 Foreign 772.2 623.6 412.1 State 49.2 (44.6 ) 27.7 867.1 371.4 929.3 Deferred Federal 82.5 363.0 53.0 Foreign 79.8 23.7 (27.9 ) State (0.4 ) 6.2 (30.6 ) 161.9 392.9 (5.5 ) Income taxes $ 1,029.0 $ 764.3 $ 923.8 Significant components of our deferred tax assets and liabilities as of December 31 are as follows: 2009 2008 Deferred tax assets Compensation and benefits $ 1,153.2 $ 1,154.6 Tax credit carryforwards and carrybacks 738.2 755.0 Tax loss carryforwards and carrybacks 458.2 562.3 Intercompany profit in inventories 270.6 473.9 Asset purchases 253.4 251.5 Asset disposals 173.6 3.2 Contingencies 162.0 345.2 Sale of intangibles 122.6 117.9 Product return reserves 85.0 100.8 Debt 45.9 211.6 Other 510.2 310.4 3,972.9 4,286.4 Valuation allowances (836.8 ) (845.4 ) Total deferred tax assets 3,136.1 3,441.0 Deferred tax liabilities Intangibles (818.4 ) (860.2 ) Property and equipment (623.8 ) (620.7 ) Inventories (544.4 ) (431.6 ) Unremitted earnings (442.9 ) (467.3 ) Other (195.4 ) (287.8 ) Total deferred tax liabilities (2,624.9 ) (2,667.6 ) Deferred tax assetsnet $ 511.2 $ 773.4 At December31, 2009, we had net operating losses and other carryforwards for international and U.S.income tax purposes of $942.8million: $126.3million will expire within 5years; $804.0million will expire between 5 and 20years; and $12.5million of the carryforwards will never expire. The primary component of the remaining portion of the deferred tax asset for tax loss carryforwards and carrybacks is related to net operating losses for state income tax purposes that are fully reserved. We also have tax credit carryforwards and carrybacks of $738.2million available to reduce future income taxes; $268.7million will be carried back; $37.6million of the tax credit carryforwards will expire between 10 and 20years; and $12.9million of the tax credit carryforwards will never expire. The remaining portion of the tax credit carryforwards is related to federal tax credits of $94.6million and state tax credits of $324.4million, both of which are fully reserved. Domestic and Puerto Rican companies contributed approximately 39percent and 7percent in 2009 and 2007, respectively, to consolidated income before income taxes and generated the entire consolidated loss before income taxes in 2008. We have a subsidiary operating in Puerto Rico under a tax incentive grant. The current tax inc

Retirement Benefits

Retirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Benefits [Abstract]
Retirement Benefits [Text Block]	We use a measurement date of December 31 to develop the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our defined benefit pension and retiree health benefit plans, which were as follows: Defined Benefit Retiree Health Pension Plans Benefit Plans 2009 2008 2009 2008 Change in benefit obligation Benefit obligation at beginning of year $ 6,353.7 $ 6,561.0 $ 1,796.3 $ 1,622.8 Service cost 242.1 260.1 53.7 62.1 Interest cost 417.5 409.8 119.6 105.7 Actuarial (gain) loss 819.9 (257.4 ) 162.0 101.6 Benefits paid (351.7 ) (338.4 ) (94.5 ) (92.2 ) Plan amendments (2.4 ) (8.4 ) Foreign currency exchange rate changes and other adjustments 72.4 (279.0 ) 4.1 (3.7 ) Benefit obligation at end of year 7,553.9 6,353.7 2,032.8 1,796.3 Change in plan assets Fair value of plan assets at beginning of year 4,796.1 7,304.2 905.6 1,348.5 Actual return on plan assets 1,033.8 (2,187.8 ) 278.9 (438.6 ) Employer contribution 447.6 236.0 90.7 87.9 Benefits paid (351.7 ) (338.4 ) (94.5 ) (92.2 ) Foreign currency exchange rate changes and other adjustments 82.7 (217.9 ) Fair value of plan assets at end of year 6,008.5 4,796.1 1,180.7 905.6 Funded status (1,545.4 ) (1,557.6 ) (852.1 ) (890.7 ) Unrecognized net actuarial loss 3,804.3 3,474.8 1,340.5 1,409.6 Unrecognized prior service cost (benefit) 65.1 72.7 (234.1 ) (261.6 ) Net amount recognized $ 2,324.0 $ 1,989.9 $ 254.3 $ 257.3 Amounts recognized in the consolidated balance sheet consistedof Other current liabilities $ (56.8 ) $ (52.9 ) $ (6.0 ) $ (7.8 ) Accrued retirement benefit (1,488.6 ) (1,504.7 ) (846.1 ) (882.9 ) Accumulated other comprehensive loss before income taxes 3,869.4 3,547.5 1,106.4 1,148.0 Net amount recognized $ 2,324.0 $ 1,989.9 $ 254.3 $ 257.3 The unrecognized net actuarial loss and unrecognized prior service cost (benefit) have not yet been recognized in net periodic pension costs and are included in accumulated other comprehensive loss at December31, 2009. In 2010, we expect to recognize from accumulated other comprehensive loss as components of net periodic benefit cost, $176.4million of unrecognized net actuarial loss and $6.4million of unrecognized prior service cost related to our defined benefit pension plans, and $86.5million of unrecognized net actuarial loss and $37.2million of unrecognized prior service benefit related to our retiree hea

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies [Abstract]
Contingencies [Text Block]	We are a party to various legal actions, government investigations, and environmental proceedings. The most significant of these are described below. While it is not possible to determine the outcome of these matters, we believe that, except as specifically noted below, the resolution of all such matters will not have a material adverse effect on our consolidated financial position or liquidity, but could possibly be material to our consolidated results of operations in any one accounting period. Patent Litigation We are engaged in the following patent litigation matters brought pursuant to procedures set out in the Hatch-Waxman Act (the Drug Price Competition and Patent Term Restoration Act of 1984): Cymbalta:Sixteen generic drug manufacturers have submitted Abbreviated New Drug Applications (ANDAs) seeking permission to market generic versions of Cymbalta prior to the expiration of our relevant U.S.patents (the earliest of which expires in 2013). Of these challengers, all allege non-infringement of the patent claims directed to the commercial formulation, and nine allege invalidity of the patent claims directed to the active ingredient duloxetine. Of the nine challengers to the compound patent claims, one further alleges invalidity of the claims directed to the use of Cymbalta for treating fibromyalgia, and one alleges the patent having claims directed to the active ingredient is unenforceable. In November 2008 we filed lawsuits in U.S.District Court for the Southern District of Indiana against Actavis Elizabeth LLC; Aurobindo Pharma Ltd.; Cobalt Laboratories, Inc.; Impax Laboratories, Inc.; Lupin Limited; Sandoz Inc.; and Wockhardt Limited, seeking rulings that the patents are valid, infringed, and enforceable. We filed similar lawsuits in the same court against Sun Pharma Global, Inc. in December 2008 and against Anchen Pharmaceuticals, Inc. in August 2009. The cases have been consolidated and actions against all but Wockhardt Limited have been stayed pursuant to stipulations by the defendants to be bound by the outcome of the litigation through appeal. Gemzar:Mayne Pharma (USA) Inc., now Hospira, Inc. (Hospira); Fresenius Kabi Oncology Plc (Fresenius); Sicor Pharmaceuticals, Inc., now Teva Parenteral Medicines, Inc. (Teva); and Sun Pharmaceutical Industries Inc. (Sun) each submitted an ANDA seeking permission to market generic versions of Gemzar prior to the expiration of our relevant U.S.patents (compound patent expiring in 2010 and method-of-use patent expiring in 2013), and alleging that these patents are invalid. Sandoz Inc. (Sandoz) and APP Pharmaceuticals, LLC (APP) have similarly challenged our method-of-use patent. We filed lawsuits in the U.S.District Court for the Southern District of Indiana against Teva (February 2006), Hospira (October 2006 and January 2008), Sandoz (October 2009), APP (December 2009), and Fresenius (February 2010), seeking rulings that our patents are valid and are being infringed. Sandoz withdrew its ANDA and the suit against it was dismissed in February 2010. The trial against Teva was held in September 2009 and we are waiting for a ruling. Tevas ANDAs have been approved by the FDA

Other Comprehensive Income

Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income Note [Abstract]
Comprehensive Income (Loss) [Text Block]	The accumulated balances related to each component of other comprehensive income (loss) were as follows: Defined Foreign Unrealized Benefit Effective Accumulated Currency Gains Pension and Portion of Other Translation (Losses) on Retiree Health Cash Flow Comprehensive Gains Securities Benefit Plans Hedges Loss Beginning balance at January1, 2009 $ 550.9 $ (111.2 ) $ (3,076.4 ) $ (150.1 ) $ (2,786.8 ) Other comprehensive income (loss) 284.9 186.6 (187.9 ) 31.3 314.9 Balance at December31, 2009 $ 835.8 $ 75.4 $ (3,264.3 ) $ (118.8 ) $ (2,471.9 ) The amounts above are net of income taxes. The income taxes associated with the unrecognized net actuarial losses and prior service costs on our defined benefit pension and retiree health benefit plans (Note13)were a benefit of $92.4million for 2009. The income taxes associated with the unrealized gains (losses) on securities was an expense of $103.2million for 2009. The income taxes related to the other components of comprehensive income (loss) were not significant, as income taxes were not provided for foreign currency translation. The unrealized gains (losses) on securities is net of reclassification adjustments of net gains (losses) of $19.0million, $(1.7)million, and $5.8million, net of tax, in 2009, 2008, and 2007, respectively, for net realized gains (losses) on sales of securities included in net income. The effective portion of cash flow hedges is net of reclassification adjustments of zero, $9.6million, and $8.8million, net of tax, in 2009, 2008, and 2007, respectively, for realized losses on foreign currency options and $6.7million, $7.9million, and $11.6million, net of tax, in 2009, 2008, and 2007, respectively, for interest expense on interest rate swaps designated as cash flow hedges. Generally, the assets and liabilities of foreign operations are translated into U.S.dollars using the current exchange rate. For those operations, changes in exchange rates generally do not affect cash flows; therefore, resulting translation adjustments are made in shareholders equity rather than in income.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	Lilly Eli & Co
Entity Central Index Key	0000059478
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$35,217,500,000
Entity Common Stock, Shares Outstanding		1,153,145,432