Amgen 2007 Annual Report Download - page 77

Item 6. SELECTED FINANCIAL DATA
Years Ended December 31,
Consolidated Statement of Income Data: 2007 2006 2005 2004 2003
(In millions, except per share data)
Revenues:
Product sales ................................... $14,311 $13,858 $12,022 $ 9,977 $7,868
Other revenues ................................. 460 410 408 573 488
Total revenues ............................. 14,771 14,268 12,430 10,550 8,356
Operating expenses(1)(2):
Cost of sales (excludes amortization of acquired intangible
assets presented below) .......................... 2,548 2,095 2,082 1,731 1,341
Research and development(3) ........................ 3,266 3,366 2,314 2,028 1,655
Selling, general and administrative ................... 3,361 3,366 2,790 2,556 1,957
Amortization of acquired intangible assets(4) ............ 298 370 347 333 336
Write-off of acquired in-process research and
development(5) ................................. 590 1,231 — 554 —
Other items (primarily certain restructuring costs in
2007) ......................................... 728 — 49 — (24)
Net income ........................................ 3,166 2,950 3,674 2,363 2,259
Diluted earnings per share ............................ 2.82 2.48 2.93 1.81 1.69
Cash dividends declared per share ......................—————
At December 31,
Consolidated Balance Sheet Data: 2007 2006 2005 2004 2003
(In millions)
Total assets(2) ..................................... $34,639 $33,788 $29,297 $29,221 $26,113
Total debt(6)(7)(8) ................................... 11,177 9,012 3,957 3,937 3,080
Stockholders’ equity(7)(9) ............................. 17,869 18,964 20,451 19,705 19,389
In addition to the following notes, see “Item 7. Management’s Discussion and Analysis of Financial Con-
dition and Results of Operations” and the consolidated financial statements and accompanying notes and
previously filed Form 10-K’s for further information regarding our consolidated results of operations and finan-
cial position for periods reported therein and for known factors that will impact comparability of future results.
(1) In 2007, we incurred restructuring charges of $739 million ($576 million, net of tax) primarily related to
staff separation costs, asset impairment charges, accelerated depreciation and loss accruals for leases for
certain R&D facilities that will not be used in our business.
(2) In July 2007, we acquired all of the outstanding shares of Ilypsa for a net purchase price of approximately
$400 million. Also in July 2007, we acquired all of the outstanding shares of Alantos for a net purchase
price of approximately $300 million. In October 2006, we acquired all of the outstanding stock of Avidia,
Inc. (“Avidia”) for a net purchase price of approximately $275 million. In April 2006, we acquired all of the
outstanding common stock of Abgenix for a purchase price of approximately $2.2 billion. In August 2004,
we acquired all of the outstanding common stock of Tularik Inc. (“Tularik”) for a purchase price of approx-
imately $1.5 billion. Included in operating expenses are acquisition charges of $37 million, $41 million, $12
million, $53 million and $70 million, in 2007, 2006, 2005, 2004 and 2003, respectively. Acquisition charg-
es, net of tax, for the three-years ended December 31, 2007 were $22 million, $26 million and $7 million,
respectively. Acquisition charges consist, where applicable, of the incremental compensation provided to
certain employees under short-term retention plans, including non-cash compensation expense associated
with stock options assumed in connection with the acquisition, non-cash expense related to valuing the in-
ventory acquired at fair value and external, incremental consulting and systems integration costs directly
associated with integrating the acquisition.
(3) Included in R&D expenses for 2007 and 2006 is the non-cash amortization of acquired R&D technology
rights of $71 million ($44 million, net of tax) and $48 million ($30 million, net of tax), respectively.
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