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2016 Lilly Report of Political Financial Support

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2016 Lilly Report of Political Financial Support 16 2016 Lilly Report of Political Financial Support 1 16 2016 Lilly Report of Political Financial Support PUBLIC POLICY As a biopharmaceutical company that is working to discover and bring life-changing medicines to those who need them, Lilly plays a significant role in public health and its related policy debates. It is important that our company shapes global public policy debates on issues specific to the patients we serve and to our other key stakeholders, including shareholders and employees. Our engagement in the political arena helps address the most pressing issues related to ensuring that patients have access to needed medications—leading to improved patient outcomes. Through public policy engagement, we provide a way for all of our locations globally to shape the public policy environment in a manner that supports access to innovative medicines. We engage on issues specific to local business environments. Based on our company’s strategy and the most recent trends in the policy environment, our company has decided to focus on the following key areas: health care reform, intellectual property, trade, tax reform, value-based pricing, and biosimilars. More detailed information on key issues can be found in our 2016 Integrated Report and on Lilly.com. Through our policy research, development, and stakeholder dialogue activities, Lilly develops positions and advocates on these key issues. U.S. POLITICAL ENGAGEMENT Government actions such as price controls, pharmaceutical manufacturer rebates, and access to Lilly medicines affect our ability to invest in innovation. Lilly has a comprehensive government relations operation to have a voice in the public policymaking process at the federal, state, and local levels. Lilly is committed to participating in the political process as a responsible corporate citizen to help inform the U.S. debate over health care and pharmaceutical innovation. As a company that operates in a highly competitive and regulated industry, Lilly must participate in the political process to fulfill its fiduciary responsibility to its shareholders, and its overall responsibilities to its customers and its employees. When engaging in lobbying efforts or making political contributions, we comply with the laws that govern such activities. All financial support and lobbying activity are overseen at the Board level by the Public Policy and Compliance Committee (PPCC), which is composed entirely of outside directors. The PPCC members receive a copy of the “Lilly Report of Political Financial Support” annually and a detailed briefing on company political engagement every two years in alignment with the U.S. election cycle. We lobby and make political contributions only where allowed under law. All decisions are made without regard for the private personal preferences of the company’s 3 16 2016 Lilly Report of Political Financial Support officers and executives. All of our employees must also comply with the policies in our written “Code of Business Conduct,” The Red Book, which includes Lilly’s core values, legal obligations, and global policies, including our “Global Policy on Political Financial Support and Involvement.” All individuals who recommend political contributions in the U.S. are trained on our policies on corporate political contributions and LillyPAC contributions. FINANCIAL SUPPORT Elected officials, no matter what level, have an impact on public policy issues affecting Lilly. In the U.S., we are committed to backing candidates of any party who support public policies that contribute to the health needs of the patient, pharmaceutical innovation, and the interests of our company. In addition to disclosing support for individual candidates and independent expenditures, Lilly will disclose any company contributions to the political process via 527 organizations (e.g., political action committees for individuals or parties). Lilly will only fund other non-candidate expenditures by exception (e.g., certain ballot initiatives) and those contributions will be disclosed. The General Counsel and the Chief Financial Officer, or their designees, must approve all corporate political contributions before they are made. Our annual “Report of Political Financial Support” provides details of our company’s independent-political contributions; the activities of our political action committee, LillyPAC, which is funded solely by eligible employee contributions; and the governance processes for both. The LillyPAC Governing Board (the board) oversees all contributions made by LillyPAC. The board is comprised of 13 U.S.-based employees who represent components throughout the company. LillyPAC meets all disclosure requirements and is audited annually by Ernst and Young. For more information, view the reports for the current year and for four years of history: • 2016 Lilly Report of Political Financial Support (You are now viewing this report.) • Previous years’ (2010 to 2015) Lilly Report of Political Financial Support LOBBYING Lilly invests in direct lobbying efforts at the federal, state, and local levels to educate policymakers on the specific implications that various legislation may have on the company, our community, and patients. Information on our federal lobbying activities is reported to the U.S. Congress in accordance with the Lobbying Disclosure Act of 1995. Information on our state lobbying activities is reported as required in those states where we engage in lobbying activities. 4 16 2016 Lilly Report of Political Financial Support For more information, view the following reports: • Q4 2016 U.S. Congress Lobbying Disclosure • Q3 2016 U.S. Congress Lobbying Disclosure • Q2 2016 U.S. Congress Lobbying Disclosure • Q1 2016 U.S. Congress Lobbying Disclosure • 2016 State Lobbying Disclosure MEMBERSHIPS In addition to direct political contributions, Lilly maintains memberships in certain 501(c)4s – trade associations that report lobbying activity to the U.S. government. We support organizations that champion public policies that contribute to pharmaceutical innovation, healthy patients, and a healthy business climate. The “Lilly Report of Political Financial Support” also notes our memberships in trade associations that report lobbying activity to the U.S. government and to which we contribute $50,000 per year or more. Organizations where Lilly has a board seat are also noted. MEMBERSHIPS IN 2016 American Feed Industry Association (board seat), Animal Health Institute (board seat), Biotechnology Innovation Organization (board seat), Greater Indianapolis Chamber of Commerce (board seat), Healthcare Leadership Council (board seat), Indiana Chamber of Commerce (board seat), National Association of Manufacturers (board seat), PhRMA (board seat), and U.S. Chamber of Commerce. 5 2016 Lilly Report of Political Financial Support CORPORATE CONTRIBUTIONS Candidate Organization / Committee State Party Office Amount 16 Alabama Republican Party - Non-Federal Account AL R State Party Committee $1,500 Alabama Republican Party - Non-Federal Account AL R State Party Committee $3,000 Alabama Republican Party - Non-Federal Account AL R State Party Committee $4,500 Arkansas House Democratic Caucus AR D State Party Committee $2,500 Calderon, Ian Ian Calderon for Assembly 2016 CA D State House $1,500 Fong, Vince Vince Fong for Assembly CA R State House $1,000 Huff, Bob Huff for Supervisor 2016 CA R Los Angeles County Board of Supervisors $1,500 Kiley, Kevin Kevin Kiley for Assembly CA R State House $1,500 Veenker, Vicki Vicki Veenker for Assembly CA D State House $1,000 California African American PAC CA State PAC $5,000 Independent Voter PAC CA State PAC $10,000 Colorado Citizen's Alliance CO $1,500 Colorado Leadership Fund CO R $1,500 Common Sense Values CO $2,500 Senate Majority Fund CO State PAC $2,500 Altman, Thad Thad Altman Campaign FL R State House $1,000 Brodeur, Jason Committee to Elect Jason Brodeur FL R State House $1,000 Cummings, W. Travis Campaign to Re-Elect W. Travis Cummings FL R State House $1,000 Diaz, Jose Felix Committee to Elect Jose Felix Diaz FL R State House $1,000 Fine, Randall Committee to Elect Randall Fine FL R State House $1,000 Fine, Randall Committee to Elect Randall Fine FL R State House $1,000 Flores, Anitere Committee to Elect Anitere Flores FL R State Senate $1,000 Garcia, Rene Rene Garcia Senate Campaign FL R State Senate $1,000 Harrison, Shawn Committee to Elect Shawn Harrison FL R State House $1,000 Latava, Chris Committee to Elect Chris Latava FL R State House $1,000 Miller, Mike Campaign to Elect Mike Miller FL R State House $1,000 Montford, Bill Campaign to Re-Elect Bill Montford FL D State Senate $1,000 Murphy, Amanda Committee to Elect Amanda Murphy FL D State House $1,000 Negron, Joe Committee to Elect Joe Negron FL R State Senate $1,000 Nunez, Jeanette M. Committee to Elect Jeanette M. Nunez FL R State House $1,000 Passidomo, Kathleen C. Kathleen C. Passidomo Campaign FL R State Senate $1,000 Raschein, Holly Committee to Elect Holly Raschein FL R State House $1,000 Raschein, Holly Committee to Elect Holly Raschein FL R State House $1,000 Renner, Paul Campaign to Elect Paul Renner FL R State House $1,000 Sprowls, Chris Campaign to Elect Chris Sprowls FL R State House $1,000 Stargel, Kelli Campaign for Kelli Stargel FL R State Senate $1,000 Trujilo, Carlos Committee to Elect Carlos Trujilo FL R State House $1,000 Waldman, James James Waldman House Campaign FL D State Senate $1,000 Workman, Ritch Ritch Workman House Campaign FL R State Senate $1,000 Young, Dana Dana Young Campaign FL
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