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Consolidated Statements of Operations $ in Millions	12 Months Ended
Dec. 31, 2009 USD ($) $ / shares	Dec. 31, 2008 USD ($) $ / shares	Dec. 31, 2007 USD ($) $ / shares
Statement [Line Items]
Revenue	$ 21,836.0	$ 20,371.9	$ 18,633.5
Cost of sales	4,247.0	4,376.7	4,248.8
Research and development	4,326.5	3,840.9	3,486.7
Marketing, selling, and administrative	6,892.5	6,626.4	6,095.1
Acquired in-process research and development	90.0	4,835.4	745.6
Asset impairments, restructuring, and other special charges	692.7	1,974.0	302.5
Other - net, expense (income)	229.5	26.1	(122.0)
Cost of sales, operating expenses, and other-net	16,478.2	21,679.5	14,756.7
Income (loss) before income taxes	5,357.8	(1,307.6)	3,876.8
Income taxes	1,029.0	764.3	923.8
Net income (loss)	$ 4,328.8	$ (2,071.9)	$ 2,953.0
Earnings (loss) per share - basic and diluted \| $ / shares	3.94	(1.89)	2.71

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$ 4,462.9	$ 5,496.7
Short-term investments	34.7	429.4
Accounts receivable, net of allowances of $109.9 (2009) and $97.4 (2008)	3,343.3	2,778.8
Other receivables	488.5	498.5
Inventories	2,849.9	2,493.2
Deferred income taxes	271.0	382.1
Prepaid expenses	1,036.2	374.6
Total Current Assets	12,486.5	12,453.3
OTHER ASSETS
Investments	1,155.8	1,544.6
Goodwill and other intangibles - net	3,699.8	3,929.1
Sundry	1,921.4	2,659.3
Total other assets	6,777.0	8,133.0
Property and Equipment, net	8,197.4	8,626.3
Total assets	27,460.9	29,212.6
CURRENT LIABILITIES
Short-term borrowings and current maturities of long-term debt	27.4	5,846.3
Accounts payable	968.1	885.8
Employee compensation	894.2	771.0
Sales rebates and discounts	1,109.8	873.4
Dividends payable	538.0	536.8
Income taxes payable	346.7	229.2
Other current liabilities	2,683.9	3,967.2
Total current liabilities	6,568.1	13,109.7
OTHER LIABILITIES
Long-term debt	6,634.7	4,615.7
Accrued retirement benefit	2,334.7	2,387.6
Long-term income taxes payable	1,088.4	906.2
Deferred income taxes	84.8	74.7
Other noncurrent liabilities	1,224.9	1,381.0
Total noncurrent liabilities	11,367.5	9,365.2
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	4,635.6	3,976.6
Retained earnings	9,830.4	7,654.9
Employee benefit trust	(3,013.2)	(2,635.0)
Deferred costs - ESOP	(77.4)	(86.3)
Accumulated other comprehensive loss	(2,471.9)	(2,786.8)
Noncontrolling interests	1.6	2.4
Shareholders' equity, including treasury shares	9,623.8	6,836.9
Less cost of common stock in treasury; 2009 - 882,340 shares; 2008 - 888,998 shares	98.5	99.2
Total shareholders' equity	9,525.3	6,737.7
Total liabilities and shareholders' equity	$ 27,460.9	$ 29,212.6

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 4,328.8	$ (2,071.9)	$ 2,953.0
Adjustments To Reconcile Net Income To Cash Flows From Operating Activities
Net marketing investigation charges accrued (paid)	(1,313.6)	1,423.6	0.0
Depreciation and amortization	1,297.8	1,122.6	1,047.9
Change in deferred taxes	189.9	442.6	60.7
Stock-based compensation expense	368.5	255.3	282.0
Acquired in-process research and development, net of tax	58.5	4,792.7	692.6
Other, net	362.5	406.5	172.1
Operating income (loss) before working capital changes	5,292.4	6,371.4	5,208.3
Changes in operating assets and liabilities, net of acquisitions
Receivables - (increase) decrease	(492.9)	799.1	(842.7)
Inventories - (increase) decrease	(179.0)	84.8	154.3
Other Assets - (increase) decrease	(84.9)	1,648.6	(355.8)
Accounts payable and other liabilities - increase (decrease)	(200.1)	(1,608.3)	990.4
Other changes in operating assets and liabilities, net of acquisitions	(956.9)	924.2	(53.8)
NET CASH PROVIDED BY OPERATING ACTIVITIES	4,335.5	7,295.6	5,154.5
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(765.0)	(947.2)	(1,082.4)
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	1,107.8	1,597.3	800.1
Purchases of noncurrent investments	(432.3)	(2,412.4)	(750.7)
Purchase of in-process research and development	(90.0)	(122.0)	(111.0)
Cash paid for acquisitions, net of cash acquired	0.0	(6,083.0)	(2,673.2)
Other, net	(94.5)	(284.8)	(166.3)
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	142.8	(7,268.8)	(4,328.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	(2,152.1)	(2,056.7)	(1,853.6)
Net change in short-term borrowings	(5,824.2)	5,060.5	(468.5)
Proceeds from issuance of long-term debt	2,400.0	0.1	2,512.6
Repayment of long-term debt	0.0	(649.8)	(1,059.5)
Other, net	42.6	(8.1)	24.1
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(5,533.7)	2,346.0	(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	(1,033.8)	2,276.2	111.2
Cash and cash equivalents at beginning of year	5,496.7	3,220.5	3,109.3
CASH AND CASH EQUIVALENTS AT END OF YEAR	$ 4,462.9	$ 5,496.7	$ 3,220.5

Implementation of New Financial Accounting Pronouncements	12 Months Ended
	Dec. 31, 2009
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 January 1, 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 al so 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 t o 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 January 1, 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 parent’s 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 shareholders̵ 7; equity in our consolidated statements of financial position at December 31, 2009 and reclassified the December 31, 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 January 1, 2009. This Statement requires entities to provide enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for, and how derivative instruments and related hedged items affect an entity’s financial position, results of operations, and cash flows. These disclosures are included in Note 6. We adopted the provisions of the Emerging Issues Task Force (EITF) guidance related to Collaborative Arrangements on January 1, 2009. This guidance defines collaborative arrangements and establishes reporting requirements for transactions between participants in a collaborative arrangement and between participants in the arrangement and third parties. This guidance has been applied retrospectively to all prior periods presented for significant collaborative arrangements existing as of the effective date by classifying revenues into two separate components: net product sales and collaboration and other revenue. See Note 4 for additional information. We adopted the provisions of the FASB Staff Position (FSP) relating to Investments on January 1, 2009. This FSP amends the other-than-temporary recognition guidance for debt securities and requires additional interim and annual disclosures of other-than-temporary impairments on debt and equity securities. Pursuant to the new guidance, an other-than-temporary impairment has occurred if a company does not expect to recover the entire amortized cost basis of the security. In this situation, if the company does not intend to sell the impaired security, and it is not more likely than not it will be required to sell the security before the recove ry of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings is limited to the portion attributed to the credit loss. The remaining portion of the other-than-temporary impairment is then recorded in other comprehensive income (loss). This FSP has been applied to existing and new securities as of January 1, 2009. The applicable disclosures are included in Note 6. The implementation of this FSP was not material to our consolidated financial position or results of operations and there was no cumulative effect adjustment. We adopted the provisions of a FSP relating to Fair Value Measurements and Disclosures, as of March 31, 2009. This FSP provides additional guidance on estimating fair value when the volume and level of activity for an asset or liability have significantly decreased in relation to normal market activity. The FSP also provides additional guidance on circumstances that may indicate that a transaction is not orderly and requires additional disclosures. The implementation of this FSP had no effect on our consolidated financial position or results of operations. We adopted the provisions of a FSP on Financial Instruments, as of March 31, 2009. This FSP required disclosures about fair value of all financial instruments for interim reporting periods. The implementation of this FSP had no effect on our consolidated financial position or results of operations. We adopted the provisions of a FSP on Compensation—Retirement Benefits, as of December 31, 2009. This FSP required disclosures about plan assets of a defined benefit pension or other postretirement plan. The applicable disclosures are included in Note 13. The implementation of this FSP had no effect on our consolidated financial position or results of operations. During 2009, we adopted the provisions of the FASB Statement on Subsequent Events. This Statement provides authoritative accounting literature and disclosure requirements for material events occurring subsequent to the balance sheet date and prior to the issuance of the financial statements. The implementation of this Statement had no effect on our consolidated financial position or results of operations. In 2009, the FASB issued a Statement on Transfers and Servicing, an amendment of previous authoritative guidance. The most significant amendments resulting from this Statement consist of the removal of the concept of a qualifying special-purpose entity (SPE) from previous authoritative guidance, and the elimination of the exception for qualifying SPEs from the Consolidation guidance regarding variable interest entities. This Statement is effective for us January 1, 2010 and is not expected to be material to our consolidated financial position or results of operations. In 2009, the FASB issued a Statement which amends the previous Consolidations guidance regarding variable interest entities and addresses the effects of eliminating the qualifying SPE concept from the guidance on Transfers and Servicing. This Statement responds to concerns about the application of certain key provisions of the previous guidance on Consolidations regarding variable interest entities, including concerns over the transparency of enterprises’ involvement with variable interest entities. This Statement is effective for us January 1, 2010 and is not expected to be material to our consolidated financial position or results of operations. In 2009, the FASB ratified EITF guidance related to Revenue Recognition that amends the previous guidance on arrangements with multiple deliverables. This guidance provides principles and application guidance on whether multiple deliverables exist, how the arrangements should be separated, and how the consideration should be allocated. It also clarifies the method to allocate revenue in an arrangement using the estimated selling price. This guidance is effective for us January 1, 2011 and is not expected to be material to our consolidated financial position or results of operations.

Acquisitions

12 Months Ended

Dec. 31, 2009

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 f inancial statements from the date of acquisition.

Most of these acquisitions included IPR&D, 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 IPR&D 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 independen tly. Pursuant to the existing rules, these acquired IPR&D intangible assets totaling $4.71 billion and $340.5 million 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 IPR&D related to these products of $90.0 million, $122.0 million, and $405.1 million 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 November 24, 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 $6.5 billion, 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 $425.9 million. No portion of this goodwill was or is expected to be deductible for tax purposes.

Allocation of Purchase Price

The purchase price was allocated based on the fair value of assets acquired and liabilities assumed as of the date of acquisition.


	Fair Value
	at November 24,
	2008


Cash and short-term investments	$	982.9
Inventories		136.2
Developed product technology (Erbitux)¹		1,057.9
Goodwill		425.9
Property and equipment		338.9
Debt assumed		(600.0	)
Deferred taxes		(311.5	)
Deferred income		(127.7	)
Other assets and liabilities—net		(81.1	)
Acquired in-process research and development		4,685.4

Total purchase price	$	6,506.9


¹	This intangible asset is being amortized on a straight-line basis through 2023 in the U.S. and 2018 in the rest of the world.

All of the estimated fair value of the acquired IPR&D was attributable to oncology-related products in development, including $1.33 billion to line extensions for Erbitux. A significant portion (81 percent) of the remaining value of acquired IPR&D was attributable to ramucirumab, necitumumab, and cixutumumab. At the time of the acquisition, ramucirumab was in Phase III clinical testing, while necitumumab and cixutumumab were in Phase II clinical testing. The discount rate we used in valuing the acquired IPR&D projects was 13.5 percent, and the charge for acquired IPR&D of $4.69 billion recorded in the fourth quarter of 2008 was not deductible for tax purposes.

Pro Forma Financial Information (unaudited)

The following pro forma financial information presents the combined results of our operations with ImClone as if the acquisition and the financing for the acquisition had occurred as of the beginning of each of the years presented. We have adjusted the historical consolidated financial information to give effect to pro forma events that are directly attributable to the acquisition. The pro forma financial information is not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition at the beginning of each year. In addition, the pro forma financial information does not attempt to project the future results of operations of our combined company.


	2008		2007


Revenue	$	20,732.2	$	19,051.4
Net income¹		2,356.2		2,704.1
Earnings per share:
Basic and diluted		2.15		2.48


¹	The pro forma financial information above excludes the non-recurring charge incurred for acquired IPR&D of $4.69 billion and other merger-related costs.

The pro forma financial information above reflects the following:


	•	a reduction of the amortization of ImClone’s deferred income of $86.2 million (2008) and $98.4 million (2007);
	•	the increase of amortization expense of $78.8 million in 2008 and 2007 related to the estimated fair value of identifiable intangible assets from the purchase price allocation which are being amortized over their estimated useful lives through 2023 in the U.S. and through 2018 in the rest of the world. The change in depreciation expense related to the change in the estimated fair value of property and equipment from the book value at the time of the acquisition was not material;
	•	the adjustment to increase interest expense related to the debt incurred to finance the acquisition and the adjustment to decrease interest income related to the lost interest income on the cash used to purchase ImClone by a total of $301.0 million in 2008 and 2007;
	•	the reduction of ImClone’s income tax expense to provide for income taxes at the statutory tax rate and the adjustment to income taxes for pro forma adjustments at the statutory tax rate, totaling $139.3 million (2008) and $189.5 million (2007). This excludes the acquired IPR&D charge of $4.69 billion, which was not tax deductible;
	•	certain reclassifications to conform to accounting policies and classifications that are consistent with our practices (e.g., ImClone’s license fees and milestones were classified as other—net, expense (income), rather than net sales).

Posilac

On October 1, 2008, we acquired the worldwide rights to the dairy cow supplement Posilac, as well as the product’s supporting operations, from Monsanto Company (Monsanto). The acquisition of Posilac provides us with a product that complements those of our animal health business. Under the terms of the agreement, we acquired the rights to the Posilac brand, as well as the product’s U.S. sales force and manufacturing facility, for an aggregate purchase price of $403.9 million, which included a $300.0 million upfront payment, transaction costs, and an accrual for contingent consideration to Monsanto based on estimated future Posilac sales for which payment is considered likely beyond a reasonable doubt.

This acquisition has been accounted for as a business combination under the purchase method of accounting. We allocated $204.3 million to identifiable intangible assets related to Posilac, $167.6 million to inventories, and $99.5 million of the purchase price to property and equipment. We also assumed $67.5 million of liabilities. Substantially all of the identifiable intangible assets are being amortized over their estimated remaining useful lives of 20 years. The amount allocated to each of the intangible assets acquired is deductible for tax purposes.

SGX Pharmaceuticals, Inc.

On August 20, 2008, we acquired all of the outstanding common stock of SGX Pharmaceuticals, Inc. (SGX), a collaboration partner since 2003. The acquisition allows us to integrate SGX’s structure-guided drug discovery platform into our drug discovery efforts. It also gives us access to FAST^tm, SGX’s fragment-based, protein structure guided drug discovery technology, and to a portfolio of preclinical oncology compounds focused on a number of kinase targets. Under the terms of the agreement, the outstanding shares of SGX common stock were redeemed for an aggregate purchase price of $66.8 million.

The acquisition has been accounted for as a business combination under the purchase method of accounting. We allocated $29.6 million of the purchase price to deferred tax assets and $28.0 million to acquired IPR&D. The acquired IPR&D charge of $28.0 million was recorded in the third quarter of 2008 and was not deductible for tax purposes.

ICOS Corporation

On January 29, 2007, we acquired all of the outstanding common stock of ICOS Corporation (ICOS), our partner in the Lilly ICOS LLC joint venture for the manufacture and sale of Cialis for the treatment of erectile dysfunction. The acquisition brought the full value of Cialis to us and enabled us to realize operational efficiencies in the further development, marketing, and selling of this product. The aggregate cash purchase price of approximately $2.3 billion was financed through borrowings.

The acquisition has been accounted for as a business combination under the purchase method of accounting, resulting in goodwill of $646.7 million. No portion of this goodwill is expected to be deductible for tax purposes.

The other significant components of the purchase price allocation were developed product technology (Cialis) of $1,659.9 million, the tax benefit of net operating losses of $404.1 million, acquired IPR&D of $303.5 million, cash and short-term investments of $197.7 million, deferred tax liability of $583.5 million and long-term debt assumed of $275.6 million. The developed product technology is being amortized over the remaining expected patent lives of Cialis in each country; patent expiration dates range from 2015 to 2017.

Other Acquisitions

During the second quarter of 2007, we acquired all of the outstanding stock of both Hypnion, Inc. (Hypnion), a privately held neuroscience drug discovery company focused on sleep disorders, and Ivy Animal Health, Inc. (Ivy), a privately held applied research and pharmaceutical product development company focused on the animal health industry, for $445.0 million in cash.

The acquisition of Hypnion provided us with a broader and more substantive presence in the area of sleep disorder research and ownership of LY2624803, a novel Phase II compound with a dual mechanism of action aimed at promoting better sleep onset and sleep maintenance. This was Hypnion’s only significant asset. For this acquisition, we recorded an acquired IPR&D charge of $291.1 million, which was not deductible for tax purposes. Because Hypnion was a development-stage company, the transaction was accounted for as an acquisition of assets rather than as a business combination and, therefore, goodwill was not recorded.

The acquisition of Ivy provided us with products that complement those of our animal health business. This acquisition has been accounted for as a business combination under the purchase method of accounting. We allocated $88.7 million of the purchase price to other identifiable intangible assets, primarily related to marketed products, $37.0 million to acquired IPR&D, and $25.0 million to goodwill. The other identifiable intangible assets are being amortized over their estimated remaining useful lives of 10 to 20 years. The $37.0 million allocated to acquired IPR&D was charged to expense in the second quarter of 2007. Goodwill resulting from this acquisition was fully allocated to the animal health business segment. The amount allocated to each of the intangible assets acquired, inc luding goodwill of $25.0 million and the acquired IPR&D of $37.0 million, was deductible for tax purposes.

Product Acquisitions

In December 2009, we entered into a licensing and collaboration agreement with Incyte Corporation to acquire rights to its compound, and certain follow-on compounds, for the treatment of inflammatory and autoimmune diseases. The lead compound was in the development stage (Phase II clinical trials for rheumatoid arthritis) and had no alternative future use. As with many development-phase compounds, launch of the product, if approved, was not expected in the near term. The charge of $90.0 million for acquired IPR&D related to this arrangement was included in expense in the fourth quarter of 2009 and is deductible for tax purposes. As part of this agreement, Incyte has the option to co-develop these compounds and the option to co-promote in the United States.

In June 2008, we entered into a licensing and development agreement with TransPharma Medical Ltd. (TransPharma) to acquire rights to its product and related drug delivery system for the treatment of osteoporosis. The product, which is administered transdermally using TransPharma’s proprietary technology, was in Phase II clinical testing, and had no alternative future use. Under the arrangement, we also gained non-exclusive access to TransPharma’s ViaDerm drug delivery system for the product. As with many development-phase products, launch of the product, if approved, was not expected in the near term. The charge of $35.0 million for acquired IPR&D related to this arrangement was included as expense in the second quarter of 2008 and is deductible for tax purposes.

In January 2008, our agreement with BioMS Medical Corp. to acquire the rights to its compound for the treatment of multiple sclerosis became effective. At the inception of this agreement, this compound was in the development stage (Phase III clinical trials) and had no alternative future use. As with many development-phase compounds, launch of the product, if approved, was not expected in the near term. In the third quarter of 2009, data from the Phase III clinical trials showed there were no statistically significant differences between dirucotide and placebo on the primary or secondary endpoints of the study, and ongoing clinical trials and the arrangement were discontinued. The charge of $87.0 million for acquired IPR&D related to this arrangement was included as expense in the first quarter of 2008 and is deductible for tax purposes.

In October 2007, we entered into an agreement with Glenmark Pharmaceuticals Limited India to acquire the rights to a portfolio of transient receptor potential vanilloid sub-family 1 (TRPV1) antagonist molecules, including a clinical-phase compound. The compound was in early clinical phase development as a potential next-generation treatment for various pain conditions, including osteoarthritic pain, and had no alternative future use. As with many development-phase compounds, launch of the product, if approved, was not expected in the near term. The charge of $45.0 million for acquired IPR&D was deductible for tax purposes and was included as expense in the fourth quarter of 2007. Development of this compound has been suspended.

In October 2007, we entered into a global strategic alliance with MacroGenics, Inc. (MacroGenics) to develop and commercialize teplizumab, a humanized anti-CD3 monoclonal antibody, as well as other potential next-generation anti-CD3 molecules for use in the treatment of autoimmune diseases. As part of the arrangement, we acquired the exclusive rights to the molecule, which was in the development stage (Phase II/III clinical trial for individuals with recent-onset type 1 diabetes) and had no alternative future use. As with many development-phase compounds, launch of the product, if approved, was not expected in the near term. The charge of $44.0 million for acquired IPR&D was deductible for tax purposes and was included as expense in the fourth quarter of 2007.

In January 2007, we entered into an agreement with OSI Pharmaceuticals, Inc. to acquire the rights to its compound for the treatment of type 2 diabetes. At the inception of this agreement, this compound was in the development stage (Phase I clinical trials) and had no alternative future use. As with many development-phase compounds, launch of the product, if approved, was not expected in the near term. The charge of $25.0 million for acquired IPR&D related to this arrangement was included as expense in the first quarter of 2007 and was deductible for tax purposes.

In connection with these arrangements, our partners are generally entitled to future milestones and royalties based on sales should these products be approved for commercialization

Collaborations

12 Months Ended

Dec. 31, 2009

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. Royalty expense paid to third parties, net of any reimbursements received, is recorded as a reduction of collaboration and other revenue.

We are responsible for the manufacture and supply of all requirements of Erbitux in bulk-form active pharmaceutical ingredient (API) for clinical and commercial use in the territory, and BMS will purchase all of its requirements of API for commercial use from us, subject to certain stipulations per the agreement. Sales of Erbitux to BMS for commercial use are reported in net product sales.

Merck KGaA

A development and license agreement between ImClone and Merck KGaA (Merck) with respect to Erbitux granted Merck exclusive rights to market Erbitux outside of the U.S. and Canada, and co-exclusive rights with BMS and ImClone in Japan. Merck also has rights to manufacture Erbitux for supply in its territory. We manufacture and provide a portion of Merck’s requirements for API, which is included in net product sales. We also receive a royalty on the sales of Erbitux outside of the U.S. and Canada, which is included in collaboration and other revenue as earned. Collaborative reimbursements received for supply of product; for research and development; and marketing, selling, and administrative expenses are recorded as a reduction to the respective expense line items on the consolidated statement of operations. Royalty e xpense paid to third parties, net of any royalty reimbursements received, is recorded as a reduction of collaboration and other revenue.

Necitumumab

In January 2010, we restructured the collaboration agreement executed by ImClone and BMS in 2001 to allow for the co-development and co-commercialization of necitumumab, which is currently in Phase III clinical testing for non-small cell lung cancer. Within this restructured arrangement, we and BMS have agreed to share in the cost of developing and potentially commercializing necitumumab in the U.S., Canada, and Japan. We maintain exclusive rights to necitumumab in all other markets. We will fund 45 percent of the development costs for studies that will be used only in the U.S., and 72.5 percent for global studies. We will be responsible for the manufacturing of API and BMS will be responsible for manufacturing the finished product. We could receive a payment of $250.0 million upon approval in the U.S. In the U.S. and Canada, BMS will record sales and we will receive 45 percent of the profits for necitumumab, while we will provide 50 percent of the selling effort. In Japan, we and BMS will share costs and profits evenly.

Exenatide

We are in a collaborative arrangement with Amylin Pharmaceuticals (Amylin) for the joint development, marketing, and selling of Byetta (exenatide injection) and other forms of exenatide such as exenatide once weekly. Byetta is presently approved as an adjunctive therapy to improve glycemic control in patients with type 2 diabetes who have not achieved adequate glycemic control using metformin, a sulfonylurea or a combination of metformin and sulfonylurea; and in the U.S. only, using a thiazolidinedione (with or without metformin) and as a monotherapy. Lilly and Amylin are co-promoting exenatide in the U.S. Amylin is responsible for manufacturing and primarily utilizes third-party contract manufacturers to supply Byetta. However, we are manufacturing Byetta pen delivery devices for Amylin. We are responsible for development and commerc ialization costs outside the U.S.

Under the terms of our arrangement, we report as collaboration and other revenue our 50 percent share of gross margin on Amylin’s net product sales in the U.S. We report as net product sales 100 percent of sales outside the U.S. and our sales of Byetta pen delivery devices to Amylin. The following table summarizes the revenue recognized with respect to Byetta:


	2009		2008		2007


Net product sales	$	147.7	$	96.7	$	39.6
Collaboration and other revenue		300.8		299.4		291.1


Total revenue	$	448.5	$	396.1	$	330.7

We pay Amylin a percentage of the gross margin of exenatide sales outside of the U.S., and these costs are recorded in cost of sales. Under the 50/50 profit-sharing arrangement for the U.S., in addition to recording as revenue our 50 percent share of exenatide’s gross margin, we also report 50 percent of U.S. research and development costs and marketing and selling costs in the respective line items on the consolidated statements of operations.

A New Drug Application has been submitted to the U.S. Food and Drug Administration (FDA) for exenatide once weekly. Amylin is constructing and will operate a manufacturing facility for exenatide once weekly, and we have entered into a supply agreement in which Amylin will supply exenatide once weekly product to us for sales outside the U.S. The estimated total cost of the facility is approximately $550 million. In 2008, we paid $125.0 million to Amylin, which we will amortize to cost of sales over the estimated life of the supply agreement beginning with product launch. We would be required to reimburse Amylin for a portion of any future impairment of this facility, recognized in accordance with GAAP. A portion of the $125.0 million payment we made to Amylin would be creditable against any amount we would owe as a result of impairment. We have also agreed to loan up to $165.0 million to Amylin at an indexed rate beginning December 1, 2009; no amounts were loaned in 2009 and any borrowings have to be repaid by June 30, 2014. We have also agreed to cooperate with Amylin in the development, manufacturing, and marketing of exenatide once weekly in a dual-chamber cartridge pen configuration. We will contribute 60 percent of the total initial capital costs of the project, our portion of which will be approximately $130 million, of which we have contributed approximately $50 million as of December 31, 2009.

Cymbalta

Boehringer Ingelheim

We are in a collaborative arrangement with Boehringer Ingelheim (BI) to jointly market and promote Cymbalta, a product for the treatment of major depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, and fibromyalgia, outside the U.S. Pursuant to the terms of the agreement, we generally share equally in development, marketing, and selling expenses, and pay BI a commission on sales in the co-promotion territories. We manufacture the product for all territories. Reimbursements or payments for the cost sharing of marketing, selling, and administrative expenses are recorded in the respective expense line items in the consolidated statements of operations. The commission paid to BI is recognized in marketing, selling, and administrative expenses.

Quintiles

We were in a collaborative arrangement with Quintiles Transnational Corp. (Quintiles) to jointly market and promote Cymbalta in the U.S. since Cymbalta’s launch in 2004. Pursuant to the terms of the agreement, Quintiles shared in the costs to co-promote Cymbalta with us and receives a commission based upon net product sales. According to that agreement, Quintiles’ obligation to promote Cymbalta expired during 2009, and we will pay a lower rate on net product sales for three years after completion of the promotion efforts specified in that agreement. The commissions paid to Quintiles are recorded in marketing, selling, and administrative expenses.

Effient

We are in a collaborative arrangement with Daiichi Sankyo Company, Limited (D-S) to develop, market, and promote Effient, an antiplatelet agent for the treatment of patients with acute coronary syndromes (ACS) who are being managed with an artery-opening procedure known as percutaneous coronary intervention (PCI). The product was approved for marketing by the European Commission under the tradename Efient in February 2009, and the initial sales were recorded in the first quarter of 2009. The product was also approved for marketing by the FDA under the tradename Effient in July 2009, and the initial sales in the U.S. were recorded in the third quarter. Within this arrangement, we and D-S have agreed to co-promote under the same trademark in certain territories (including the U.S. and five major European markets), while we have exclusive marketing rights in certain other territories. D-S has exclusive marketing rights in Japan. Under the agreement, we paid D-S an upfront license fee and agreed to pay future success milestones. The parties share approximately 50/50 in the profits, as well as in the costs of development and marketing in the co-promotion territories. A third party manufactures bulk product, and we produce the finished product for our exclusive and co-promotion territories. We record product sales in our exclusive and co-promotion territories. In our exclusive territories, we will pay D-S a royalty specific to these territories. Profit share payments made to D-S are recorded as marketing, selling, and administrative expenses. All royalties paid to D-S and the third-party manufacturer are recorded in cost of sales. Worldwide Effient sales were $27.0 million in 2009. The product is in the early phases of launch in both the U.S. and Europe.

TPG-Axon Capital

In 2008, we entered into an agreement with an affiliate of TPG-Axon Capital (TPG) for the Phase III development of a gamma-secretase inhibitor and an A-beta antibody, our two lead molecules for the treatment of mild to moderate Alzheimer’s disease. Under the agreement, both we and TPG will provide funding for the Alzheimer’s clinical trials. Funding from TPG will not exceed $325 million and could extend into 2014. In exchange for their funding, TPG may receive success-based milestones totaling $330 million and mid- to high-single digit royalties that are contingent upon the successful development of the Alzheimer’s treatments. The royalties will be paid for approximately eight years after launch of a product. Reimbursements received from TPG for its portion of research and development co sts incurred related to the Alzheimer’s treatments are recorded as a reduction to the research and development expense line item on the consolidated statements of operations. The reimbursement from TPG is not expected to be material in any period.

Summary of Collaboration Related Commission and Profit Share Payments

The aggregate amount of commission and profit share payments included in marketing, selling, and administrative expense pursuant to the collaborations described above was $319.2 million, $307.6 million, and $217.5 million in 2009, 2008, and 2007, respectively.

Asset Impairments, Restructuring, and Other Special Charges	12 Months Ended
	Dec. 31, 2009
Asset Impairments, Restructuring, And Other Special Charges [Abstract]
Asset Impairments, Restructuring, And Other Special Charges [Text Block]	div div!-- 2.0.3657.28464 --div!-- body --div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"The components of the charges included in asset impairments, restructuring, and other special charges in our consolidated statements of operations are described below./div div style="margin-top: 12pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; margin-right: 0%; font-family: Arial, Helvetica;" align="left"strongAsset Impairments and Related Restructuring and Other Charges/strong/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"Asset impairments, restructuring, and other special charges of $37.9nbsp;million 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./div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We recognized asset impairments, restructuring, and other special charges of $424.8nbsp;million 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 towar d 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.nbsp;sales employees. Components of the third-quarter restructuring charge include non-cash asset impairment charges and other charges of $363.7nbsp;million, and $61.1nbsp;million 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./div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We incurred asset impairments, restructuring, and other special charges of $80.0nbsp;million 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 $35.1nbsp;million for the write down of impaired assets, all of which have no future use, and other charges of $44.9nbsp;million, 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./div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"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 $182.4nbsp;million. We sold our Greenfield, Indiana site to Covance, a global drug development services firm, and entered into a font class="_mt" style="white-space: nowrap;"10-year/font service agreement under which Covance will provide preclinical toxicology work and perform additional clinical trials for us as well as operate the site to meet our needs and those of other pharmaceutical industry clients. In addition, we signed agreeme nts with Quintiles for clinical trial monitoring services and with i3 for clinical data management services. Components of the third-quarter restructuring charge include non-cash charges of $148.3nbsp;million primarily related to the loss on sale of assets sold to Covance, severance costs of $27.8nbsp;million, and exit costs of $6.3nbsp;million. Substantially all of these costs were paid in 2008./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"In the second quarter of 2008, we recognized restructuring and other special charges of $88.9nbsp;million. In addition, we recognized non-cash charges of $57.1nbsp;million for the write down of impaired manufacturing assets that had no future use, which were included in cost of sales. In April 2008, we announced a voluntary exit program that was offered to employees primarily in manufacturing. Components of the second-quarter restructuring charge include total severance costs of $53.5nbsp;million related to these programs and $35.4nbsp;million related to exit costs incurred during the second quarter in connection with previously announced strategic decisions made in prior periods. Substantially all of these costs were paid by the end of July 2008./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"In March 2008, we terminated development of our AIR Insulin program, which was being conducted in collaboration with Alkermes, Inc. The program had been in Phasenbsp;III clinical development as a potential treatment for type 1 and type 2 diabetes. This decision was not a result of any observations during AIR Insulin trials relating to the safety of the product, but rather was a result of increasing uncertainties in the regulatory environment, and a thorough evaluation of the evolving commercial and clinical potential of the product compared to existing medical therapies. As a result of this decision, we halted our ongoing clinical studies and transitioned the AIR Insulin patients in these studies to other appropriate therapies. We implemented a patient program in the U.S., and other regions of the world where allowed, to provide clinical trial participants with appropriate financial support to fund their medications and diagnostic supplies through the end of 2008./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We recognized asset impairments, restructuring, and other special charges of $145.7nbsp;million in the first quarter of 2008. These charges were primarily related to the decision to terminate development of AIR Insulin. Components of these charges included non-cash charges of $40.9nbsp;million for the write down of impaired manufacturing assets that had no use beyond the AIR Insulin program, as well as charges of $91.7nbsp;million for estimated contractual obligations and wind-down costs associated with the termination of clinical trials and certain development activities, and costs associated with the patient program to transition participants from AIR Insulin. This amount includes an estimate of Alkermes#8217; wind-down costs for which we were contractually obligated. The wind-down activities and patient programs were sub stantially complete by the end of 2008. The remaining component of these charges, $13.1nbsp;million, is related to exit costs incurred in the first quarter of 2008 in connection with previously announced strategic decisions made in prior periods./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We incurred asset impairments, restructuring, and other special charges of $67.6nbsp;million in the fourth quarter of 2007. These charges were a result of decisions approved by management in the fourth quarter as well as previously announced strategic decisions. Components of this charge include non-cash charges of $42.5nbsp;million for the write down of impaired assets, all of which have no future use, and other charges of $25.1nbsp;million, primarily related to additional severance and environmental cleanup charges related to previously announced strategic decisions. The impairment charges were necessary to adjust the carrying value of the assets to fair value. These restructuring activities were substantially complete at Decembernbsp;31, 2007./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"In connection with previously announced strategic decisions, we recorded asset impairments, restructuring, and other special charges of $123.0nbsp;million in the first quarter of 2007. These charges primarily related to a voluntary severance program at one of our U.S.nbsp;plants and other costs related to this action as well as management actions taken in the fourth quarter of 2006 to close two research and development facilities and one production facility outside the U.S.nbsp;The component of these charges related to the non-cash asset impairment was $67.6nbsp;million, and were necessary to adjust the carrying value of the assets to fair value. These restructuring activities were substantially complete at Decembernbsp;31, 2007./div div style="margin-top: 12pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"strongProduct Liability and Other Special Charges/strong/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"In the second and the third quarters of 2009, we incurred other special charges of $105.0nbsp;million and $125.0nbsp;million, respectively, related to advanced discussions with the attorneys general for several states that were not part of the Eastern District of Pennsylvania settlement, seeking to resolve their Zyprexa-related claims. The charge represents the currently probable and estimable exposures in connection with the states#8217; claims. Refer to Notenbsp;14 for additional information./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"As discussed further in Notenbsp;14, in the third quarter of 2008, we recorded a charge of $1.48nbsp;billion related to the Zyprexa investigations led by the U.S.nbsp;Attorney for the Eastern District of Pennsylvania, as well as the resolution of a multi-state investigation regarding Zyprexa involving 32nbsp;states and the District of Columbia./div div style="margin-top: 6pt; font-size: 1pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"As a result of our product liability exposures, the substantial majority of which were related to Zyprexa, we recorded net pretax charges of $111.9nbsp;million in 2007. These charges, which are net of anticipated insurance recoveries, include the costs of product liability settlements and related defense costs, reserves for product liability exposures and defense costs regarding known product liability claims, and expected future claims to the extent we could formulate a reasonable estimate of the probable number and cost of the claims. See Notenbsp;14 for further discussion./div !-- XBRL Pagebreak Begin --!-- body --/div/div /div

Financial Instruments and Investments

12 Months Ended

Dec. 31, 2009

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 cr edit-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 December 31, 2009, we had outstanding foreign currency forward commitments to purchase 518 million British pounds and sell 578 million euro, commitments to purchase 194 million U.S. dollars and sell 131 million euro, and commitments to buy 151 million euro and sell 218 million U.S. dollars, which will settle within 35 days.

At December 31, 2009, approximately 97 percent of our total debt is at a fixed rate. We have converted approximately 65 percent 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 $369.5 million. All of these amounts net to zero and are included in other-net, expense (income).

We expect to reclassify $12.0 million 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 12 months.

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 $10.2 million, and the net gains on foreign exchange contracts not designated as hedging instruments recognized in income of $43.4 million. 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 $38.0 million.

During the years ended December 31, 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
						Active
						Markets		Significant
						for		Other			Significant
						Identical		Observable			Unobservable
	Carrying			Amortized		Assets		Inputs			Inputs		Fair
Description	Amount			Cost		(Level 1)		(Level 2)			(Level 3)		Value


December 31, 2009
Short-term investments
Corporate debt securities	$	15.8		$	16.1	$	—	$	15.8		$	—	$	15.8
U.S. government and agencies		18.5			18.8		18.5		—			—		18.5
Other securities		0.4			0.4		—		0.4			—		0.4


	$	34.7		$	35.3


Noncurrent investments
Corporate debt securities	$	185.9		$	195.4	$	—	$	185.9		$	—	$	185.9
Mortgage-backed		240.3			310.0		—		240.3			—		240.3
Asset-backed		78.7			94.1		—		78.7			—		78.7
U.S. government and agencies		81.3			81.7		81.3		—			—		81.3
Other debt securities		34.4			12.8		—		3.6			30.8		34.4
Marketable equity		378.7			184.0		378.7		—			—		378.7
Equity method and other investments		156.5			156.5		—		—			—		NA


	$	1,155.8		$	1,034.5


Long-term debt, including current portion	$	(6,655.0	)		NA	$	—	$	(6,827.8	)	$	—	$	(6,827.8	)
Risk-management instruments
Interest rate contracts designated as hedging instruments
Sundry	$	134.9			NA	$	—	$	134.9		$	—	$	134.9
Other noncurrent liabilities		(6.2	)		NA		—		(6.2	)		—		(6.2	)
Foreign exchange contracts not designated as hedging instruments
Prepaid expenses		8.8			NA		—		8.8			—		8.8
Other current liabilities		(10.7	)		NA		—		(10.7	)		—		(10.7	)
December 31, 2008
Short-term investments
Corporate debt securities	$	172.4		$	180.1	$	—	$	172.4		$	—	$	172.4
U.S. government and agencies		212.3			212.0		212.3		—			—		212.3
Other securities		44.7			41.8		—		44.7			—		44.7


	$	429.4		$	433.9


						Fair Value Measurements Using
						Quoted
						Prices in
						Active
						Markets		Significant
						for		Other			Significant
						Identical		Observable			Unobservable
	Carrying			Amortized		Assets		Inputs			Inputs		Fair
Description	Amount			Cost		(Level 1)		(Level 2)			(Level 3)		Value


Noncurrent investments
Corporate debt securities	$	466.4		$	542.2	$	—	$	466.4		$	—	$	466.4
Mortgage-backed		330.6			436.6		—		330.6			—		330.6
Asset-backed		204.0			240.1		—		204.0			—		204.0
U.S. government and agencies		179.2			176.8		179.2		—			—		179.2
Other debt securities		14.7			10.6		—		3.6			11.1		14.7
Marketable equity		221.9			175.1		221.9		—			—		221.9
Equity methods and other investments		127.8			127.8		—		—			—		NA


	$	1,544.6		$	1,709.2


Long-term debt, including current portion	$	(5,036.1	)		NA	$	—	$	(5,180.1	)	$	—	$	(5,180.1	)
Risk-management instruments
Interest rate contracts designated as hedging instruments
Sundry	$	500.3			NA	$	—	$	500.3		$	—	$	500.3
Foreign exchange contracts not designated as hedging instruments
Prepaid expenses		12.0			NA		—		12.0			—		12.0
Other current liabilities		(57.3	)		NA		—		(57.3	)		—		(57.3	)

NA—Not applicable

We determine fair values based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses. The fair value of equity method and other investments is not readily available. Approximately $235 million of our investments in debt securities, measured at fair value, mature within five years.

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 at December 31 follows:


	2009		2008


Unrealized gross gains	$	222.4	$	69.9
Unrealized gross losses		101.7		239.0
Fair value of securities in an unrealized gain position		579.8		767.5
Fair value of securities in an unrealized loss position		449.4		1,046.1

As discussed further in Note 2, a new accounting pronouncement effective in 2009 changed the accounting for other-than-temporary impairment losses for debt securities, providing that the amount of the other-than-temporary losses recorded in earnings is limited to the portion attributed to credit losses, with the remaining portion recorded in other comprehensive income (loss). A summary of other-than-temporary losses on our investments in debt securities follows:


	2009


Losses recognized in the statement of operations	$	22.4
Losses recognized in other comprehensive income (loss)		9.6

Total other-than-temporary impairment losses	$	32.0

The other-than-temporary losses recognized in the statement of operations primarily relate to credit losses on certain mortgage-backed 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 are comprised of fixed-rate debt securities of varying maturities. The value of fixed income securities is sensitive to changes to the yield curve and other market conditions which led to the decline in value during 2008. Approximately 50 percent of the securities in a loss position are investment-grade debt securities. The majority of these securities first moved into an unrealized loss position during 2008. 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 th e 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, 2009. The fair values of our auction rate securities and collateralized debt obligations held at December 31, 2009 were determined using Level 3 inputs. We do not hold securities issued by structured investment vehicles at December 31, 2009.

The net adjustment to unrealized gains and losses (net of tax) on available-for-sale securities increased (decreased) other comprehensive income (loss) by $186.6 million, $(125.8) million, and $(5.4) million in 2009, 2008, and 2007, respectively. Activity related to our available-for-sale investment portfolio was as follows:


	2009		2008		2007


Proceeds from sales	$	1,227.4	$	1,876.4	$	1,212.1
Realized gross gains on sales		68.9		45.7		21.4
Realized gross losses on sales		6.8		8.7		6.1

Stock-Based Compensation

12 Months Ended

Dec. 31, 2009

Stock-Based Compensation [Abstract]

Stock-Based Compensation [Text Block]

Stock-based compensation expense in the amount of $368.5 million, $255.3 million, and $282.0 million was recognized in 2009, 2008, and 2007, respectively, as well as related tax benefits of $128.9 million, $88.6 million, and $96.4 million, 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 o ption 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 December 31, 2009, additional stock-based compensation awards may be granted under the 2002 Lilly Stock Plan for not more than 84.6 million 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 2.8 million shares, 2.5 million shares, and 2.3 million shares were issued in 2009, 2008, and 2007, respectively. Approximately 4.4 million shares are expected to be issued in 2010. As of December 31, 2009, the total remaining unrecognized compensation cost related to nonvested PAs amounted to $88.8 million, which will be amortized over the weighted-average remaining requisite service period of 12.0 months.

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 stock, historical volatility of our stock price, and other factors. Similarly, the dividend yield is based on historical experience and our estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The weighted-average fair values of the SVA units granted during 2009, 2008, and 2007 were $33.97, $43.46, and $49.85, respectively, determined using the following assumptions:


	2009		2008		2007


Expected dividend yield		4.00%		3.00%		2.75%
Risk-free interest rate		.44% - 1.48%		2.05% - 2.29%		4.81% - 5.16%
Range of volatilities		24.34% - 24.92%		20.48% - 21.48%		22.54% - 23.90%

A summary of the SVA activity is presented below:


	Units
	Attributable to SVAs
	(In thousands)


Outstanding at January 1, 2007		—
Granted		969
Forfeited or expired		(47	)

Outstanding at December 31, 2007		922
Granted		1,282
Forfeited or expired		(301	)

Outstanding at December 31, 2008		1,903
Granted		1,416
Forfeited or expired		(559	)

Outstanding at December 31, 2009		2,760

The maximum number of shares that could ultimately be issued upon vesting of the SVA units outstanding at December 31, 2009, is 3.7 million. Approximately 0.4 million shares are expected to be issued in 2010. As of December 31, 2009, the total remaining unrecognized compensation cost related to nonvested SVAs amounted to $48.1 million, which will be amortized over the weighted-average remaining requisite service period of 20.7 months.

Stock Option Program

Stock options were granted prior to 2007 to officers and management at exercise prices equal to the fair market value of our stock price at the date of grant. No stock options were granted subsequent to 2007. Options fully vest three years from the grant date and have a term of 10 years.

Stock option activity during 2009 is summarized below:


	Shares of
	Common Stock					Weighted-Average
	Attributable to			Weighted-Average		Remaining		Aggregate
	Options			Exercise		Contractual Term		Intrinsic
	(in thousands)			Price of Options		(in years)		Value


Outstanding at January 1, 2009		72,025		$	69.35
Exercised		(14	)		15.08
Forfeited or expired		(12,562	)		69.51

Outstanding at December 31, 2009		59,449			69.36		3.0	$	1.2
Exercisable at December 31, 2009		59,449			69.36		3.0		1.2

A summary of the status of nonvested options as of December 31, 2009, and changes during the year then ended, is presented below:


				Weighted-Average
	Shares			Grant Date
	(in thousands)			Fair Value


Nonvested at January 1, 2009		3,992		$	15.26
Vested		(3,918	)		17.49
Forfeited		(74	)		16.06

Nonvested at December 31, 2009		—

The intrinsic value of options exercised during 2009, 2008, and 2007 amounted to $0.3 million, $4.8 million, and $1.5 million, respectively. The total grant date fair value of options vested during 2009, 2008, and 2007 amounted to $68.5 million, $84.1 million, and $381.8 million, respectively. We received cash of $0.2 million, $2.9 million, and $15.2 million from exercises of stock options during 2009, 2008, and 2007, respectively. The recognized related tax benefits for all three years were not material.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2009
Shareholders' Equity [Abstract]
Shareholders' Equity [Text Block]	div div!-- 2.0.3657.28464 --div!-- body --p class="MsoNormal" style="margin: 0in -0.25in 0pt 0in; mso-pagination: widow-orphan lines-together; tab-stops: .25in right 2.5in left 207.0pt decimal 4.25in 5.0in left 5.5in decimal 495.0pt;"/p p class="MsoNormal" style="margin: 0in 0.9pt 0pt 0in; text-align: left; mso-pagination: widow-orphan lines-together; tab-stops: .25in right 2.5in left 207.0pt decimal 4.25in 5.0in left 5.5in;" align="left"/p div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left" div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"Changes in certain components of shareholders#8217; equity were as follows:/div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp; table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"!-- Table Width Row BEGIN -- tr style="font-size: 1pt;" valign="bottom" td width="47%"nbsp;nbsp;/td !-- colindex=01 type=maindata -- td width="1%"nbsp;nbsp;/td !-- colindex=02 type=gutter -- td align="right" width="1%"nbsp;nbsp;/td !-- colindex=02 type=lead -- td align="right" width="6%"nbsp;nbsp;/td !-- colindex=02 type=body -- td align="left" width="1%"nbsp;nbsp;/td !-- colindex=02 type=hang1 -- td width="3%"nbsp;nbsp;/td !-- colindex=03 type=gutter -- td align="right" width="1%"nbsp;nbsp;/td !-- colindex=03 type=lead -- td align="right" width="6%"nbsp;nbsp;/td !-- colindex=03 type=body -- td align="left" width="1%"nbsp;nbsp;/td !-- colindex=03 type=hang1 -- td width="3%"nbsp;nbsp;/td !-- colindex=04 type=gutter -- td align="right" width="1%"nbsp;nbsp;/td !-- colindex=04 type=lead -- td align="right" width="5%"nbsp;nbsp;/td !-- colindex=04 type=body -- td align="left" width="1%"nbsp;nbsp;/td !-- colindex=04 type=hang1 -- td width="3%"nbsp;nbsp;/td !-- colindex=05 type=gutter -- td align="right" width="1%"nbsp;nbsp;/td !-- colindex=05 type=lead -- td align="right" width="9%"nbsp;nbsp;/td !-- colindex=05 type=body -- td align="left" width="1%"nbsp;nbsp;/td !-- colindex=05 type=hang1 -- td width="3%"nbsp;nbsp;/td !-- colindex=06 type=gutter -- td align="right" width="1%"nbsp;nbsp;/td !-- colindex=06 type=lead -- td align="right" width="4%"nbsp;nbsp;/td !-- colindex=06 type=body -- td align="left" width="1%"nbsp;nbsp;/td !-- colindex=06 type=hang1 --/tr !-- Table Width Row END --!-- TableOutputHead -- tr style="font-size: 8pt;" valign="bottom" align="center" td valign="bottom" align="center" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bAdditionalbr //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bDeferredbr //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td style="border-bottom: #000000 1px solid;" valign="bottom" align="center" colspan="6"bCommon Stock in Treasury/b/td tdnbsp;nbsp;/td /tr tr style="font-size: 8pt;" valign="bottom" align="center" td valign="bottom" align="center" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bPaid-inbr //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bRetainedbr //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bCosts -br //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bSharesbr //b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td /tr tr style="font-size: 8pt;" valign="bottom" align="center" td valign="bottom" align="center" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bCapital/b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bEarnings/b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bESOP/b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"b(in thousands)/b/td tdnbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="center" colspan="2" nowrap="nowrap"bAmount/b/td tdnbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" align="center" td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="center" colspan="20"nbsp;nbsp;/td tdnbsp;nbsp;/td /tr tr style="font-size: 1pt; line-height: 3pt;" tdnbsp;nbsp;/td /tr !-- TableOutputBody -- tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Balance at Januarynbsp;1, 2007/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"3,571.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"10,766.2/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"(100.7/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"910/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"101.4/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Net income/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"2,953.0/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Cash dividends declared per share: $1.75/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(1,903.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Retirement of treasury shares/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(3.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(76/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(3.9/td td valign="bottom" align="left" nowrap="nowrap")/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Issuance of stock under employee stock font class="_mt" style="white-space: nowrap;"plans-net/font/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(55.2/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"65/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"3.0/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Stock-based compensation/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"282.0/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"ESOP transactions/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"10.4/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"5.5/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"FINnbsp;48 implementation (Notenbsp;12)/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(8.6/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" colspan="19"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" tdnbsp;nbsp;/td tdnbsp;nbsp;/td td style="border-top: #000000 1px solid;" colspan="19"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Balance at Decembernbsp;31, 2007/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"3,805.2/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"11,806.7/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(95.2/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"899/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"100.5/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Net loss/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(2,071.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Cash dividends declared per share: $1.90/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(2,079.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Retirement of treasury shares/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(10.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(170/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(11.1/td td valign="bottom" align="left" nowrap="nowrap")/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Issuance of stock under employee stock font class="_mt" style="white-space: nowrap;"plans-net/font/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(84.9/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"160/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"9.8/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Stock-based compensation/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"255.3/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"ESOP transactions/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"11.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"8.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" colspan="19"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" tdnbsp;nbsp;/td tdnbsp;nbsp;/td td style="border-top: #000000 1px solid;" colspan="19"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Balance at Decembernbsp;31, 2008/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"3,976.6/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"7,654.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(86.3/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"889/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"99.2/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Net income/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"4,328.8/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Cash dividends declared per share: $1.96/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(2,153.3/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Retirement of treasury shares/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(3.3/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(132/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(3.3/td td valign="bottom" align="left" nowrap="nowrap")/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Issuance of stock under employee stock font class="_mt" style="white-space: nowrap;"plans-net/font/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"(85.0/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"125/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"2.6/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"Stock-based compensation/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"368.5/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" nowrap="nowrap" div style="margin-left: 9pt; text-indent: -9pt;"ESOP transactions/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"6.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"8.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="background: #cceeff;" valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Employee benefit trust contribution/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"371.9/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" colspan="19"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" tdnbsp;nbsp;/td tdnbsp;nbsp;/td td style="border-top: #000000 1px solid;" colspan="19"nbsp;nbsp;/td /tr tr valign="bottom" td valign="bottom" align="left" div style="margin-left: 9pt; text-indent: -9pt;"Balance at Decembernbsp;31, 2009/div /td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"4,635.6/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"9,830.4/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"(77.4/td td valign="bottom" align="left" nowrap="nowrap")/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td td valign="bottom" align="right" nowrap="nowrap"882/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" align="left" nowrap="nowrap"$/td td valign="bottom" align="right" nowrap="nowrap"98.5/td td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" td valign="bottom" align="left" nowrap="nowrap"nbsp;nbsp;/td tdnbsp;nbsp;/td td valign="bottom" colspan="19"nbsp;nbsp;/td /tr tr style="font-size: 1pt;" valign="bottom" tdnbsp;nbsp;/td tdnbsp;nbsp;/td td style="border-top: #000000 1px solid;" colspan="19"nbsp;nbsp;/td /tr /table div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"/div !-- XBRL Pagebreak Begin -- div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div /div div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"/div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"As of Decembernbsp;31, 2009, we have purchased $2.58nbsp;billion of our announced $3.0nbsp;billion share repurchase program. No shares were repurchased in 2009, 2008, or 2007./div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We have 5nbsp;million authorized shares of preferred stock. As of Decembernbsp;31, 2009 and 2008, no preferred stock has been issued./div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We have funded an employee benefit trust with 50nbsp;million and 40nbsp;million shares of our common stock at Decembernbsp;31, 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 10nbsp;million shares to the employee benefit trust, which resulted in a reclassification within equity from additional font class="_mt" style="white-space: nowrap;"paid-in capital/font of $371.9nbsp;million and common stock of $6.3nbsp;million to the employee benefit trust of $378.2nbsp;million. The funding had no net impact on shareholders#8217; equity as we consolidate the employee benefit trust. The cost basis of the shares held in the trust was $3.01nbsp;billion and $2.64 p;nbsp;billion at Decembernbsp;31, 2009 and 2008, respectively, and is shown as a reduction in shareholders#8217; equity, which offsets the resulting increases of $2.98nbsp;billion and $2.61nbsp;billion in additional paid-in capital and $31.3nbsp;million and $25.0nbsp;million in common stock at Decembernbsp;31, 2009 and 2008, respectively. Any dividend transactions between us and the trust are eliminated. Stock held by the trust is not considered outstanding in the computation of earnings per share. The assets of the trust were not used to fund any of our obligations under these employee benefit plans in 2009, 2008, or 2007./div div style="margin-top: 6pt; font-size: 1pt;"nbsp;nbsp;/div div style="font-size: 9pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: Arial, Helvetica;" align="left"We have an ESOP as a funding vehicle for the existing employee savings plan. The ESOP used the proceeds of a loan from us to purchase shares of common stock from the treasury. The ESOP issued $200.0nbsp;million of third-party debt, repayment of which was guaranteed by us (see Notenbsp;7). The proceeds were used to purchase shares of 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./div !-- XBRL Pagebreak Begin --/div !-- XBRL Pagebreak Begin --!-- body --/div/div /div

Income Taxes

12 Months Ended

Dec. 31, 2009

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 assets—net	$	511.2		$	773.4

At December 31, 2009, we had net operating losses and other carryforwards for international and U.S. income tax purposes of $942.8 million: $126.3 million will expire within 5 years; $804.0 million will expire between 5 and 20 years; and $12.5 million 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 $738.2 million available to reduce future income taxes; $268.7 million will be carried back; $37.6 million of the tax credit carryforwards will expire between 10 and 20 years; and $12.9 ;million of the tax credit carryforwards will never expire. The remaining portion of the tax credit carryforwards is related to federal tax credits of $94.6 million and state tax credits of $324.4 million, both of which are fully reserved.

Domestic and Puerto Rican companies contributed approximately 39 percent and 7 percent 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 incentive grant will not expire prior to 2017.

At December 31, 2009, we had an aggregate of $15.46 billion of unremitted earnings of foreign subsidiaries that have been or are intended to be permanently reinvested for continued use in foreign operations and that, if distributed, would result in additional income tax expense at approximately the U.S. statutory rate.

Cash payments (refunds) of income taxes totaled $1.14 billion, $(52.0) million, and $1.01 billion in 2009, 2008, and 2007, respectively.

Following is a reconciliation of the income tax expense (benefit) applying the U.S. federal statutory rate to income (loss) before income taxes to reported income tax expense:


	2009			2008			2007


Income tax (benefit) at the U.S. federal statutory tax rate	$	1,875.2		$	(457.7	)	$	1,356.9
Add (deduct)
International operations, including Puerto Rico		(741.1	)		(641.3	)		(450.7	)
General business credits		(79.4	)		(58.0	)		(60.3	)
Government investigation charges		0.6			359.3			—
Acquisitions and non-deductible acquired in-process research and development		—			1,819.4			208.1
IRS audit conclusion		(54.4	)		(210.3	)		—
Sundry		28.1			(47.1	)		(130.2	)


Income tax expense	$	1,029.0		$	764.3		$	923.8

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	2009			2008


Beginning balance at January 1	$	1,012.3		$	1,657.4
Additions based on tax positions related to the current year		179.1			115.6
Additions for tax positions of prior years		133.2			288.8
Reductions for tax positions of prior years		(104.2	)		(234.9	)
Lapses of statutes of limitation		(3.3	)		(216.2	)
Settlements		(178.8	)		(598.4	)


Balance at December 31	$	1,038.3		$	1,012.3

The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was $836.8 million and $863.8 million at December 31, 2009 and 2008, respectively.

We file income tax returns in the U.S. federal jurisdiction and various state, local, and non-U.S. jurisdictions. We are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations in major taxing jurisdictions for years before 2002. During the first quarter of 2008, we completed and effectively settled our IRS audit of tax years 2001-2004 except for one matter for which we were seeking resolution through the IRS administrative appeals process. As a result of the IRS audit conclusion, gross unrecognized tax benefits were reduced by approximately $618 million, and the consolidat ed results of operations were benefited by $210.3 million through a reduction in income tax expense. The majority of the reduction in gross unrecognized tax benefits related to intercompany pricing positions that were agreed with the IRS in a prior audit cycle for which a prepayment of tax was made in 2005. Application of the prepayment and utilization of tax carryovers resulted in a refund of approximately $50 million.

The IRS began its examination of tax years 2005-2007 during the third quarter of 2008. In addition, the IRS administrative appeals matter from the 2001-2004 IRS audit was settled in the third quarter of 2009. Considering the current status of the 2005-2007 IRS examination and the settlement of the IRS administrative appeals matter from the 2001-2004 audit, gross unrecognized tax benefits were reduced approximately $190 million in the third quarter of 2009. As a result, our income tax expense was reduced by $54.4 million. After utilization of all tax credit carryovers , a cash payment of $52.8 million was paid in the third quarter of 2009 upon settlement of the IRS appeals matter. While the IRS is currently examining tax years 2005-2007, the resolution of all issues in this audit period will likely extend beyond the next 12 months.

We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2009, 2008, and 2007, we recognized income tax expense (benefits) of $(1.9) million, $(118.0) million, and $66.6 million, respectively, related to interest and penalties. At December 31, 2009 and 2008, our accruals for the payment of interest and penalties totaled $166.7 million and $177.6 million, respectively. Substantially all of the expense (benefit) and accruals relate to interest.

Retirement Benefits

12 Months Ended

Dec. 31, 2009

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 consisted of
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 December 31, 2009.

In 2010, we expect to recognize from accumulated other comprehensive loss as components of net periodic benefit cost, $176.4 million of unrecognized net actuarial loss and $6.4 million of unrecognized prior service cost related to our defined benefit pension plans, and $86.5 million of unrecognized net actuarial loss and $37.2 million of unrecognized prior service benefit related to our retiree health benefit plans. We do not expect any plan assets to be returned to us in 2010.

The following represents our weighted-average assumptions as of December 31:

Defined

Benefit

Retiree

Pension

Health

Plans

Benefit Plans

(Percents)

2009

2008

2009

2008

Weighted-average assumptions as of December 31

Discount rate for benefit obligation

5.9

6.7

6.0

6.9

Discount rate for net benefit costs

6.7

6.4

6.9

6.7

Rate of compensation increase for benefit obligation

3.7

4.1

—

Rate of compensation increase for net benefit costs

4.1

4.6

—

Expected return on plan assets for net benefit costs

8.8

9.0

9.0

9.0

In evaluating the expected return on plan assets, we have considered our historical assumptions compared with actual results, an analysis of current market conditions, our current and expected asset allocations, and the views of leading financial advisers and economists for future asset class returns. Our plan assets in our U.S. defined benefit pension and retiree health plans comprise approximately 83 percent of our worldwide benefit plan assets. Including the investment losses due to overall market conditions in 2001, 2002, and 2008, our 20-year annualized rate of return on our U.S. defined benefit pension plans and retiree health benefit plan was approximately 8.3 percent as of December 31, 2009. Health-care-cost trend rates are as sumed to increase at an annual rate of 8.0 percent in 2010, decreasing by approximately 0.3 percent per year to an ultimate rate of 5.3 percent by 2018.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:


	2010			2011			2012			2013			2014			2015-2019


Defined benefit pension plans	$	385.0		$	391.3		$	400.6		$	411.6		$	427.9		$	2,385.2



Retiree health benefit plans-gross	$	104.3		$	109.6		$	110.1		$	115.7		$	116.3		$	656.0
Medicare rebates		(19.8	)		(8.6	)		(10.1	)		(11.0	)		(12.6	)		(81.1	)


Retiree health benefit plans-net	$	84.5		$	101.0		$	100.0		$	104.7		$	103.7		$	574.9

The total accumulated benefit obligation for our defined benefit pension plans was $6.67 billion and $5.64 billion at December 31, 2009 and 2008, respectively. The projected benefit obligation and fair value of the plan assets for the defined benefit pension plans with projected benefit obligations in excess of plan assets were $7.55 billion and $6.01 billion, respectively, as of December 31, 2009, and $6.35 billion and $4.80 billion, respectively, as of December 31, 2008. The accumulated benefit obligation and fair value of the plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets were $1.01 billion and $107.4 million, respectively, as of December 31, 2009, and $4.98 bil lion and $4.06 billion, respectively, as of December 31, 2008.

Net pension and retiree health benefit expense included the following components:


	Defined Benefit									Retiree Health
	Pension Plans									Benefit Plans

	2009			2008			2007			2009			2008			2007


Components of net periodic benefit cost
Service cost	$	242.1		$	260.1		$	287.1		$	53.7		$	62.1		$	70.4
Interest cost		417.5			409.8			362.4			119.6			105.7			101.4
Expected return on plan assets		(584.9	)		(603.0	)		(548.2	)		(117.9	)		(118.4	)		(102.1	)
Amortization of prior service cost (benefit)		8.0			8.2			7.7			(36.0	)		(36.0	)		(15.7	)
Recognized actuarial loss		84.5			76.6			130.0			71.8			62.7			95.0


Net periodic benefit cost	$	167.2		$	151.7		$	239.0		$	91.2		$	76.1		$	149.0

If the health-care-cost trend rates were to be increased by one percentage point each future year, the December 31, 2009, accumulated postretirement benefit obligation would increase by $167.5 million (8.3 percent) and the aggregate of the service cost and interest cost components of the 2009 annual expense would increase by $18.9 million (10.9 percent). A one percentage point decrease in these rates would decrease the December 31, 2009, accumulated postretirement benefit obligation by $153.0 million (7.6 percent) and the aggregate of the 2009 service cost and interest cost by $15.8 million (9.1 percent).

The following represents the amounts recognized in other comprehensive income (loss) in 2009:


	Defined Benefit			Retiree Health
	Pension Plans			Benefit Plans


Actuarial loss arising during period	$	371.0		$	1.0
Plan amendments during period		—			(8.4	)
Amortization of prior service cost (benefit) included in net income		(8.0	)		36.0
Amortization of net actuarial loss included in net income		(84.5	)		(71.8	)
Foreign currency exchange rate changes		43.4			1.6


Total other comprehensive loss (gain) during period	$	321.9		$	(41.6	)

We have defined contribution savings plans that cover our eligible employees worldwide. The purpose of these defined contribution plans is generally to provide additional financial security during retirement by providing employees with an incentive to save. Our contributions to the plan are based on employee contributions and the level of our match. Expenses under the plans totaled $127.6 million, $114.1 million, and $112.3 million for the years 2009, 2008, and 2007, respectively.

We provide certain other postemployment benefits primarily related to disability benefits and accrue for the related cost over the service lives of employees. Expenses associated with these benefit plans in 2009, 2008, and 2007 were not significant.

Benefit Plan Investments

Our benefit plan investment policies are set with specific consideration of return and risk requirements in relationship to the respective liabilities. U.S. plans represent 83 percent of our global investments. Given the long term nature of our U.S. liabilities, the U.S. plans have the flexibility to manage an above average degree of risk in the asset portfolios. At the investment policy level, there are no specifically prohibited investments. However, within individual investment manager mandates, restrictions and limitations are contractually set to align with our investment objectives, ensure risk control, and limit concentrations.

We manage our portfolio to minimize any concentration of risk by allocating funds within asset categories. In addition, within a category we use different managers with various management objectives to eliminate any significant concentration of risk.

Our global benefit plans may enter into contractual arrangements (derivatives) to implement the local investment policy or manage particular portfolio risks. Derivatives are principally used to increase or decrease exposure to a particular public equity, fixed income, commodity or currency market more rapidly or less expensively than could be accomplished through the use of the cash markets. The plans utilize both exchange traded and over-the-counter instruments. The maximum exposure to either a market or counterparty credit loss is limited to the carrying value of the receivable, and is managed within contractual limits. We expect all of our counterparties to meet their obligations. The gross values of these derivative receivables and payables are not material to the global ass et portfolio, and their values are reflected within the tables below.

The U.S. defined benefit pension and retiree health benefit plan allocation strategy is currently comprised of approximately 88 percent growth investments and 12 percent fixed income investments. The growth investment allocation encompasses U.S. and international public equity securities, hedge funds, and private equity-like investments. These portfolio allocations are intended to reduce overall risk by providing diversification, while seeking moderate to high returns over the long term.

Public equity securities are well diversified and invested in U.S. and international small-to-large companies across various asset managers and styles. The remaining portion of the growth portfolio is invested in private alternative investments.

Hedge funds are privately owned institutional investment funds that generally have moderate liquidity. Hedge funds seek specified levels of absolute return regardless of overall market conditions, and generally have low correlations to public equity and debt markets. Hedge funds often invest substantially in financial market instruments (stocks, bonds, commodities, currencies, derivatives, etc.) using a very broad range of trading activities to manage portfolio risks. Hedge fund strategies focus primarily on security selection and seek to be neutral with respect to market moves. Common groupings of hedge fund strategies include relative value, tactical, and event driven. Relative value strategies include arbitrage, when the same asset can simultaneously be bought and sold at different prices, achieving an immediate profit. Tactical strategies often take long and short positions to reduce or eliminate overall market risks while seeking a particular investment opportunity. Event strategy opportunities can evolve from specific company announcements such as mergers and acquisitions, and typically have little correlation to overall market directional movements. Our hedge fund investments are made through limited partnership interests primarily in fund of funds structures to ensure diversification across many strategies and many individual managers.

Private equity-like investment funds typically have low liquidity and are made through long-term partnerships or joint ventures that invest in pools of capital invested in primarily non-publicly traded entities. Underlying investments include venture capital (early stage investing), buyout, and special situation investing. Private equity management firms typically acquire and then reorganize private companies to create increased long term value. Private equity-like funds usually have a limited life of approximately 10-15 years, and require a minimum investment commitment from their limited partners. Our private investments are made both directly into funds and through fund of funds structures to ensure broad diversificatio n of management styles and assets across the portfolio.

Fixed income investments are primarily made in investment grade fixed income securities in U.S. Treasuries and Agencies, investment grade corporates, mortgage-backed securities and commercial mortgage-backed obligations.

Other assets include cash and cash equivalents and mark-to-market value of derivatives.

The cash value of the trust-owned insurance contract is invested in investment grade publicly traded equity and fixed income securities.

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2009 by asset category are as follows:


					Fair Value Measurements Using
					Quoted Prices in
					Active Markets for		Significant		Significant
					Identical Assets		Observable Inputs		Unobservable Inputs
Asset Category	2008 Total		2009 Total		(Level 1)		(Level 2)		(Level 3)


Defined Benefit Pension Plans
Public equity securities
U.S.	$	437.7	$	864.7	$	354.4	$	510.3	$	—
International		1,532.6		2,160.2		1,105.9		1,050.4		3.9
Fixed income		493.0		600.5		76.0		521.0		3.5
Private alternative investments Hedge funds		1,387.1		1,381.5		—		—		1,381.5
Equity-like funds		699.7		743.6		—		—		743.6
Other		246.0		258.0		241.8		16.2		—


Total	$	4,796.1	$	6,008.5	$	1,778.1	$	2,097.9	$	2,132.5


Retiree Health Benefit Plans
Public equity securities
U.S.	$	43.6	$	87.0	$	34.8	$	52.2	$	—
International		98.6		154.0		85.8		67.8		0.4
Fixed income		43.4		46.9		—		46.5		0.4
Private alternative investments Hedge funds		137.1		140.9		—		—		140.9
Equity-like funds		64.9		63.6		—		—		63.6
Cash value of trust owned insurance contract		490.9		675.7		—		675.7		—
Other		27.1		12.6		12.0		0.6		—


Total	$	905.6	$	1,180.7	$	132.6	$	842.8	$	205.3

The activity in the Level 3 investments during 2009 was as follows:


	Hedge			Equity-like			International			Fixed
	Funds			Funds			Equity			Income			Total


Defined Benefit Pension Plans
Beginning balance at January 1, 2009	$	1,387.1		$	699.6		$	3.6		$	6.5		$	2,096.8
Actual return on plan assets, including changes in foreign exchange rates:
Relating to assets still held at the reporting date		158.0			(41.6	)		0.7			1.1			118.2
Relating to assets sold during the period		—			(22.9	)		—			—			(22.9	)
Purchases, sales and settlements		(163.6	)		108.5			(0.4	)		1.5			(54.0	)
Transfers in and/or out of Level 3		—			—			—			(5.6	)		(5.6	)


Ending balance at December 31, 2009	$	1,381.5		$	743.6		$	3.9		$	3.5		$	2,132.5


Retiree Health Benefit Plans
Beginning balance at January 1, 2009	$	137.1		$	64.8		$	0.4		$	0.7		$	203.0
Actual return on plan assets, including changes in foreign exchange rates:
Relating to assets still held at the reporting date		15.2			(4.4	)		0.1			0.1			11.0
Relating to assets sold during the period		—			—			—			—			—
Purchases, sales and settlements		(11.4	)		3.2			(0.1	)		0.2			(8.1	)
Transfers in and/or out of Level 3		—			—			—			(0.6	)		(0.6	)


Ending balance at December 31, 2009	$	140.9		$	63.6		$	0.4		$	0.4		$	205.3

In 2010, we expect to contribute approximately $100 million to our defined benefit pension plans to satisfy minimum funding requirements for the year. In addition, we expect to contribute approximately $300 million of additional discretionary funding in 2010 to our global defined benefit pension and post retirement health benefit plans.

Contingencies

12 Months Ended

Dec. 31, 2009

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 rulin gs 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. Teva’s ANDAs have been approved by the FDA; however, Teva must provide 90 days notice prior to marketing generic Gemzar to allow time for us to seek a preliminary injunction. Both suits against Hospira have been administratively closed, and the parties have agreed to be bound by the results of the Teva suit. In November 2007, Sun filed a declaratory judgment action in the United States District Court for the Eastern District of Michigan, seeking rulings that our method-of-use and compound patents are invalid or unenforceable, or would not be infringed by the sale of Sun’s generic product. In August 2009, the District Court granted a motion by Sun for partial summary judgment, invalidating our method-of-use patent. We have appealed this decision. This ruling has no bearing on the compound patent. The trial originally scheduled for December 2009 has been postponed while the court considers Sun’s second summary judgment motion, related to the validity of our compound patent. Sun and APP have received tentative approval for their products from the FDA, but are prohibited from entering the market by 30-month stays, which expire in June 2010 for Sun and May 2012 for APP.

•

Alimta: Teva Parenteral Medicines, Inc. (Teva), APP, and Barr Laboratories, Inc. (Barr) each submitted ANDAs seeking approval to market generic versions of Alimta prior to the expiration of the relevant U.S. patent (licensed from the Trustees of Princeton University and expiring in 2016), and alleging the patent is invalid. We, along with Princeton, filed lawsuits in the U.S. District Court for the District of Delaware against Teva, APP, and Barr seeking rulings that the compound patent is valid and infringed. Trial is scheduled for November 2010 against Teva and APP.

•

Evista: In 2006, Teva Pharmaceuticals USA, Inc. (Teva) submitted an ANDA seeking permission to market a generic version of Evista prior to the expiration of our relevant U.S. patents (expiring in 2012-2017) and alleging that these patents are invalid, not enforceable, or not infringed. In June 2006, we filed a lawsuit against Teva in the U.S. District Court for the Southern District of Indiana, seeking a ruling that these patents are valid, enforceable, and being infringed by Teva. The trial against Teva was completed in March 2009. In September 2009, the court upheld our method-of-use patents (the last expires in 2014). Teva has appealed that ruling. In addition, the court held that our particle-size patent (expiring 2017) is invalid. We have appealed that ruling.

•

Strattera: Actavis Elizabeth LLC (Actavis), Apotex Inc. (Apotex), Aurobindo Pharma Ltd. (Aurobindo), Mylan Pharmaceuticals Inc. (Mylan), Sandoz Inc. (Sandoz), Sun Pharmaceutical Industries Limited (Sun), and Teva Pharmaceuticals USA, Inc. (Teva) each submitted an ANDA seeking permission to market generic versions of Strattera prior to the expiration of our relevant U.S. patent (expiring in 2017), and alleging that this patent is invalid. In 2007, we brought a lawsuit against Actavis, Apotex, Aurobindo, Mylan, Sandoz, Sun, and Teva in the United States District Court for the District of New Jersey. The court has ruled on all pending summary judgment motions, and granted our infringement motion. The remaining invalidity defenses will be decided at trial, which could take place as early as the third quarter of 2010. Several companies have received tentative approval to market generic atomoxetine, but are prohibited from entering the market by a 30-month stay which expires in November 2010.

We believe each of these Hatch-Waxman challenges is without merit and expect to prevail in this litigation. However, it is not possible to determine the outcome of this litigation, and accordingly, we can provide no assurance that we will prevail. An unfavorable outcome in any of these cases could have a material adverse impact on our future consolidated results of operations, liquidity, and financial position.

We have received challenges to Zyprexa patents in a number of countries outside the U.S.:


	•	In Canada, several generic pharmaceutical manufacturers have challenged the validity of our Zyprexa patent (expiring in 2011). In April 2007, the Canadian Federal Court ruled against the first challenger, Apotex Inc. (Apotex), and that ruling was affirmed on appeal in February 2008. In June 2007, the Canadian Federal Court held that an invalidity allegation of a second challenger, Novopharm Ltd. (Novopharm), was justified and denied our request that Novopharm be prohibited from receiving marketing approval for generic olanzapine in Canada. Novopharm began selling generic olanzapine in Canada in the third quarter of 2007. In September 2009, the Canadian Federal Court ruled against us in the Novapharm suit, finding our patent invalid. We have appealed this decision. If the decision is upheld, we could face liability for damages related to delays in the launch of generic olanzapine products; however, we have concluded at this time that the damages are not probable or estimable.
	•	In Germany, the German Federal Supreme Court upheld the validity of our Zyprexa patent (expiring in 2011) in December 2008, reversing an earlier decision of the Federal Patent Court. Following the decision of the Supreme Court, the generic companies who launched generic olanzapine based on the earlier decision either agreed to withdraw from the market or were subject to injunction. We are pursuing these companies for damages arising from infringement.
	•	We have received challenges in a number of other countries, including Spain, the United Kingdom (U.K.), and several smaller European countries. In Spain, we have been successful at both the trial and appellate court levels in defeating the generic manufacturers’ challenges, but additional actions are now pending. In the U.K., the generic pharmaceutical manufacturer Dr. Reddy’s Laboratories (UK) Limited (Dr. Reddy’s) has challenged the validity of our Zyprexa patent (expiring in 2011). In October 2008, the Patents Court in the High Court, London ruled that our patent was valid. Dr. Reddy’s appealed this decision. The U.K. Court of Appeal affirmed the validity of the patent in December 2009. Dr. Reddy’s did not seek further appeal to the U.K. Supreme Court, therefore the U.K. proceedings are concluded.

We are vigorously contesting the various legal challenges to our Zyprexa patents on a country-by-country basis. We cannot determine the outcome of this litigation. The availability of generic olanzapine in additional markets could have a material adverse impact on our consolidated results of operations.

Xigris and Evista: In June 2002, Ariad Pharmaceuticals, Inc. (Ariad), the Massachusetts Institute of Technology, the Whitehead Institute for Biomedical Research, and the President and Fellows of Harvard College in the U.S. District Court for the District of Massachusetts sued us, alleging that sales of two of our products, Xigris and Evista, were inducing the infringement of a patent related to the discovery of a natural cell signaling phenomenon in the human body, and seeking royalties on past and future sales of these products. Following jury and bench trials on separate issues, the U.S. District Court of Massachusetts entered final judgment in September 2007 that Ariad’s claims were valid, infringed, and enforceable, and finding damages in the amount of $65 million plus a 2.3 percent ro yalty on net U.S. sales of Xigris and Evista since the time of the jury decision. However, the Court deferred the requirement to pay any damages until after all rights to appeal are exhausted. In April 2009, the Court of Appeals for the Federal Circuit overturned the District Court judgment, concluding that Ariad’s asserted patent claims are invalid. In August 2009, the Court of Appeals agreed to review this decision en banc, thereby vacating the Court of Appeals decision. The en banc hearing occurred in December 2009 and we are awaiting a decision. Nevertheless, we believe that these allegations are without legal merit, that we will ultimately prevail on these issues, and therefore that the likelihood of any monetary damages is remote.

Zyprexa Litigation

We have been named as a defendant in a large number of Zyprexa product liability lawsuits in the U.S. and have been notified of many other claims of individuals who have not filed suit. The lawsuits and unfiled claims (together the “claims”) allege a variety of injuries from the use of Zyprexa, with the majority alleging that the product caused or contributed to diabetes or high blood-glucose levels. The claims seek substantial compensatory and punitive damages and typically accuse us of inadequately testing for and warning about side effects of Zyprexa. Many of the claims also allege that we improperly promoted the drug. Almost all of the federal lawsuits are part of a Multi-District Litigation (MDL) proceeding before The Honorable Jack Weinstein in the Federal District Court for the Eastern District of N ew York (MDL No. 1596).

Since June 2005, we have entered into agreements with various claimants’ attorneys involved in U.S. Zyprexa product liability litigation to settle a substantial majority of the claims. The agreements cover a total of approximately 32,670 claimants, including a large number of previously filed lawsuits and other asserted claims. The two primary settlements were as follows:


	•	In 2005, we settled and paid more than 8,000 claims for $690.0 million, plus $10.0 million to cover administration of the settlement.
	•	In 2007, we settled and paid more than 18,000 claims for approximately $500 million.

We are prepared to continue our vigorous defense of Zyprexa in all remaining claims. The U.S. Zyprexa product liability claims not subject to these agreements include approximately 170 lawsuits in the U.S. covering approximately 260 plaintiffs, of which about 140 cases covering about 150 plaintiffs are part of the MDL. The MDL cases have been scheduled for trial in groups, and no specific trial dates for trial groups have been assigned. We also have trials scheduled in Texas state court in May and August 2010 and in Ohio in August 2010.

In January 2009, we reached resolution with the Office of the U.S. Attorney for the Eastern District of Pennsylvania (EDPA), and the State Medicaid Fraud Control Units of 36 states and the District of Columbia, of an investigation related to our U.S. marketing and promotional practices with respect to Zyprexa. As part of the resolution, we pled guilty to one misdemeanor violation of the Food, Drug, and Cosmetic Act for the off-label promotion of Zyprexa in elderly populations as treatment for dementia, including Alzheimer’s dementia, between September 1999 and March 2001. We recorded a charge of $1.42 billion for this matter in the third quarter of 2008. In 2009, we paid substantially all of this amount, as required by the settlement agreements. As part of the settlement, we have entered into a cor porate integrity agreement with the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services (HHS), which requires us to maintain our compliance program and to undertake a set of defined corporate integrity obligations for five years. The agreement also provides for an independent third-party review organization to assess and report on the company’s systems, processes, policies, procedures, and practices.

In October 2008, we reached a settlement with 32 states and the District of Columbia related to a multistate investigation brought under various state consumer protection laws. While there is no finding that we have violated any provision of the state laws under which the investigations were conducted, we accrued and paid $62.0 million and agreed to undertake certain commitments regarding Zyprexa for a period of six years, through consent decrees filed with the settling states.

We have been served with lawsuits filed by the states of Alaska, Arkansas, Connecticut, Idaho, Louisiana, Minnesota, Mississippi, Montana, New Mexico, Pennsylvania, South Carolina, Utah, and West Virginia alleging that Zyprexa caused or contributed to diabetes or high blood-glucose levels, and that we improperly promoted the drug. These suits seek to recover the costs paid for Zyprexa through Medicaid and other drug-benefit programs, as well as the costs alleged to have been incurred and that will be incurred by the states to treat Zyprexa-related illnesses. The Connecticut, Idaho, Louisiana, Minnesota, Mississippi, Montana, New Mexico, and West Virginia cases are part of the MDL proceedings in the EDNY. The Alaska case was settled in March 2008 for a payment of $15.0 million, plus terms designed to ensure, subject to certain limitati ons and conditions, that Alaska is treated as favorably as certain other states that may settle with us in the future over similar claims. We are in advanced discussions with the attorneys general for several of these states, seeking to resolve their Zyprexa-related claims, and we have agreed to settlements with the states of Arkansas, Connecticut, Idaho, Mississippi, New Mexico, South Carolina, Utah, and West Virginia. In the second and third quarters of 2009, we incurred pretax charges of $105.0 million and $125.0 million, respectively, reflecting the currently probable and estimable exposures in connection with these claims. The Pennsylvania case is set for trial in April 2010 in state court.

In 2005, two lawsuits were filed in the EDNY purporting to be nationwide class actions on behalf of all consumers and third-party payors, excluding governmental entities, which have made or will make payments for their members or insured patients being prescribed Zyprexa. These actions have now been consolidated into a single lawsuit, which is brought under certain state consumer protection statutes, the federal civil RICO statute, and common law theories, seeking a refund of the cost of Zyprexa, treble damages, punitive damages, and attorneys’ fees. Two additional lawsuits were filed in the EDNY in 2006 on similar grounds. In September 2008, Judge Weinstein certified a class consisting of third-party payors, excluding governmental entities and individual consumers. We appealed the certification order, and Judge Weinstein’s order denying our motion for summary judgment, in September 2008. While the Second Circuit Court of Appeals heard oral arguments on the appeal in December 2009, no opinions have been rendered. In 2007, The Pennsylvania Employees Trust Fund brought claims in state court in Pennsylvania as insurer of Pennsylvania state employees, who were prescribed Zyprexa on similar grounds as described in the New York cases. As with the product liability suits, these lawsuits allege that we inadequately tested for and warned about side effects of Zyprexa and improperly promoted the drug. In December 2009, the court granted our summary judgment motion dismissing the case. Plaintiffs have appealed this decision.

In early 2005, we were served with four lawsuits seeking class action status in Canada on behalf of patients who took Zyprexa. One of these four lawsuits has been certified for residents of Quebec, and a second has been certified in Ontario and includes all Canadian residents except for residents of Quebec and British Columbia. The allegations in the Canadian actions are similar to those in the product liability litigation pending in the U.S. We are in advanced discussions to resolve all Zyprexa class-action litigation in Canada.

We cannot determine with certainty the additional number of lawsuits and claims that may be asserted. The ultimate resolution of Zyprexa product liability and related litigation could have a material adverse impact on our consolidated results of operations, liquidity, and financial position.

Other Product Liability Litigation

We have been named as a defendant in numerous other product liability lawsuits involving primarily diethylstilbestrol (DES), thimerosal, and Byetta. The majority of these claims are covered by insurance, subject to deductibles and coverage limits.

Product Liability Insurance

Because of the nature of pharmaceutical products, it is possible that we could become subject to large numbers of product liability and related claims for other products in the future. In the past several years, we have been unable to attain product liability insurance due to a very restrictive insurance market. Therefore, for substantially all of our currently marketed products, we have been and expect that we will continue to be completely self-insured for future product liability losses. In addition, there is no assurance that we will be able to fully collect from our insurance carriers in the future.

Environmental Matters

Under the Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as Superfund, we have been designated as one of several potentially responsible parties with respect to fewer than 10 sites. Under Superfund, each responsible party may be jointly and severally liable for the entire amount of the cleanup. We also continue remediation of certain of our own sites. We have accrued for estimated Superfund cleanup costs, remediation, and certain other environmental matters. This takes into account, as applicable, available information regarding site conditions, potential cleanup methods, estimated costs, and the extent to which other parties can be expected to contribute to payment of those costs. We have limited liability insurance coverage for certain environmental liabilities.

Consolidated Balance Sheets (Parenthetical) $ in Millions	Dec. 31, 2009	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008	Dec. 31, 2008 USD ($) shares
Consolidated Balance Sheets (Parenthetical)
Accounts receivable, allowances \| $		$ 109.9		$ 97.4
Common Stock, No Par Value	pure 0		pure 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 Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Net income (loss)	$ 4,328.8	$ (2,071.9)	$ 2,953.0
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)	(2,941.2)	943.8
Effective portion of cash flow hedges	48.2	23.2	(0.1)
Other comprehensive income (loss) before income taxes	342.6	(3,874.7)	1,688.9
Provision for income taxes related to other comprehensive income (loss) items	(27.7)	1,074.7	(287.0)
Other comprehensive income (loss)	314.9	(2,800.0)	1,401.9
Comprehensive income (loss)	$ 4,643.7	$ (4,871.9)	$ 4,354.9

Other Assets and Other Liabilities	12 Months Ended
Other Assets and Other Liabilities	Dec. 31, 2009
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 (Note 12), 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 $1.42 billion related to the EDPA settlements which was paid in 2009 as discussed in Note 14, 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.

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

Entity Information - USD ($)	12 Months Ended
Entity Information - USD ($)	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