ELI LILLY & Co

We believe our available cash and cash equivalents, together with our ability to generate operating cash flow and our access to short-term and long-term borrowings, are sufficient to fund our existing and planned capital requirements. For a discussion of our capital requirements, see "Management's Discussion and Analysis of Results of Operations and Financial Condition" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

We are making investments in global facilities to manufacture existing and future products. These investments, and other capital investments that support our operations, have increased our capital expenditures and will result in higher capital expenditures over the next several years.

As we expand our manufacturing capacity in order to meet existing and expected demand of our medicines, we have entered, and expect to continue to enter, into various agreements for contract manufacturing and for supply of materials. The executed agreements could, under certain circumstances, require us to pay up to approximately $11.5 billion if we do not purchase specified amounts of goods or services primarily related to our incretin medicines over the durations of the agreements, which are generally up to 8 years.

In the third quarter of 2024, we acquired Morphic for approximately $2.67 billion, net of cash acquired. We funded this acquisition with proceeds from the issuance of debt. See Note 3 and Note 7 to the consolidated condensed financial statements for additional information.

Cash and cash equivalents increased to $3.37 billion as of September 30, 2024, compared with $2.82 billion as of December 31, 2023. Refer to the consolidated condensed statements of cash flows for additional information on the significant sources and uses of cash for the nine months ended September 30, 2024 and 2023.

In addition to our cash and cash equivalents, we held total investments of $3.35 billion and $3.16 billion as of September 30, 2024 and December 31, 2023, respectively. See Note 7 to the consolidated condensed financial statements for additional information.

As of September 30, 2024, total debt was $31.12 billion, an increase of $5.89 billion compared with $25.23 billion as of December 31, 2023. In August 2024, we issued $5.00 billion of fixed-rate notes and used a portion of the net cash proceeds to fund the acquisition of Morphic and related fees and expenses, with any remaining funds used for general business purposes, including the repayment of outstanding commercial paper. In February 2024, we issued $6.50 billion of fixed-rate notes and used, or may be using, the net cash proceeds for general business purposes, including the repayment of outstanding commercial paper, repayment of current maturities of long-term debt, and repayment of the $750.0 million of fixed-rate notes due in 2026. See Note 7 to the consolidated condensed financial statements for additional information.

As of September 30, 2024, we had a total of $8.42 billion of unused committed bank credit facilities, $8.00 billion of which is available to support our commercial paper program. See Note 7 to the consolidated condensed financial statements for additional information. We believe that amounts accessible through existing commercial paper markets should be adequate to fund short-term borrowing needs.

During the nine months ended September 30, 2024, we repurchased $521.1 million of shares under our $5.00 billion share repurchase program authorized in May 2021. As of September 30, 2024, we had $1.98 billion remaining under this program.

During the nine months ended September 30, 2024, we paid dividends of $3.51 billion, or $3.90 per share, to our shareholders. In October 2024, we declared a dividend for the fourth quarter of 2024 of $1.30 per share of outstanding common stock. The dividend of approximately $1.17 billion is payable on December 10, 2024 to shareholders of record at the close of business on November 15, 2024.

See "Executive Overview—Other Matters—Patent Matters" for information regarding losses of patent protection.

Both domestically and abroad, we monitor the potential impacts of the economic environment and international tension and conflicts; the creditworthiness of our wholesalers and other customers, including foreign government-backed agencies and suppliers; the uncertain impact of healthcare legislation; various international government funding levels; and fluctuations in interest rates, foreign currency exchange rates (see "Executive Overview—Other Matters—Foreign Currency Exchange Rates"), and fair values of equity securities.