Eli Lilly & Co. (LLY)

Revenue from sales of products is recognized at the point where the customer obtains control of the goods and Lilly satisfies the performance obligation, which generally is at the time Lilly ships the product to the customer. Payment terms differ by jurisdiction and customer, but payment terms in most of Lilly’s major jurisdictions typically range from 30 to 75 days from date of shipment. Revenue for the product sales has not been adjusted for the effects of a financing component as Lilly expects, at contract inception, that the period between when Lilly transfers control of the product and when Lilly receives payment will be one year or less. Any exceptions are either not material or Lilly collects interest for payments made after the due date. Provisions for rebates and discounts, and returns are established in the same period the related sales are recognized. Lilly generally ships product shortly after orders are received; therefore, Lilly generally only has a few days of orders received but not yet shipped at the end of any reporting period. Shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation. Lilly excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are imposed on the sales of product and collected from a customer.

Source: 10-K (filing date: 2019-02-19).

Eli Lilly & Co., Income Statement, Revenues

US$ in thousands

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Endocrinology
	Oncology
	Cardiovascular
	Neuroscience
	Immunology
	Other human pharmaceutical products
	Human pharmaceutical products
	Animal health products
	Revenue

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-19).