EXHIBIT 11. STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE (Unaudited) Eli Lilly and Company and Subsidiaries Three Months Ended June 30, Six Months Ended June 30, 1999 1998 1999 1998 ------------------------------------------------------------ (Dollars in millions except per-share data) BASIC Net income....................................................... $ 576.4 $ 491.3 $ 1,202.1 $ 1,012.4 Preferred stock dividends........................................ - (.7) (.1) (1.3) ------------------------------------------------------------ Adjusted net income.............................................. $ 576.4 $ 490.6 $ 1,202.0 $ 1,011.1 ============================================================ Average number of common shares outstanding...................... 1,090.4 1,098.2 1,091.3 1,099.6 Contingently issuable shares..................................... - - .5 .6 ============================================================ Adjusted average shares.......................................... 1,090.4 1,098.2 1,091.8 1,100.2 Basic earnings per share......................................... $ .53 $ .45 $ 1.10 $ .92 ============================================================ DILUTED Net income....................................................... $ 576.4 $ 491.3 $ 1,202.1 $ 1,012.4 Preferred stock dividends........................................ - (.7) (.1) (1.3) ------------------------------------------------------------ Adjusted net income.............................................. $ 576.4 $ 490.6 $ 1,202.0 $ 1,011.1 ============================================================ Average number of common shares outstanding...................... 1,090.4 1,098.2 1,091.3 1,099.6 Incremental shares - stock options and contingently issuable shares................................................ 17.7 26.8 20.2 28.2 ============================================================ Adjusted average shares.......................................... 1,108.1 1,125.0 1,111.5 1,127.8 Diluted earnings per share....................................... $ .52 $ .44 $ 1.08 $ .90 ============================================================ Shares in millions. 19