Amgen 2007 Annual Report Download - page 92

would require the proposed method to be retrospectively applied. The FASB expects to begin deliberations on the
proposed FSP in February 2008. The FSP, if issued as proposed, would become effective for calendar year end
companies like us in the first quarter of 2008. Under this proposed method of accounting, the debt and equity
components of our convertible debt securities would be bifurcated and accounted for separately in a manner that
would result in recognizing interest on these securities at effective rates more comparable to what we would have
incurred had we issued nonconvertible debt with otherwise similar terms. The equity component of our con-
vertible debt securities would be included in the paid-in-capital section of stockholders’ equity on our
Consolidated Balance Sheet and, accordingly, the initial carrying values of these debt securities would be re-
duced. Our net income for financial reporting purposes would be reduced by recognizing the accretion of the
reduced carrying values of our convertible debt securities to their face amounts as additional non-cash interest
expense. Therefore, if the proposed method of accounting for cash settled convertible debt securities is adopted
by the FASB as described above, it would have an adverse impact on our past and future reported financial re-
sults. As the final guidance has not been issued, we cannot predict its ultimate outcome. We also cannot predict
any other changes in GAAP that may be made affecting accounting for convertible debt securities, some of
which could have an adverse impact on our past or future reported financial results. For additional discussion on
this issue, see “Item 1A. Risk Factors — The accounting method for our convertible debt securities may be sub-
ject to change.”
Financial Condition, Liquidity and Capital Resources
The following table summarizes selected financial data (in millions):
December 31,
2007 2006
Cash, cash equivalents and marketable securities ................................... $ 7,151 $ 6,277
Total assets ................................................................ 34,639 33,788
Current debt ................................................................ 2,000 1,798
Non-current debt ............................................................ 9,177 7,214
Stockholders’ equity ......................................................... 17,869 18,964
We believe that existing funds, cash generated from operations and existing sources of and access to financ-
ing are adequate to satisfy our working capital, capital expenditure and debt service requirements for the
foreseeable future, as well as to support our stock repurchase programs and other business initiatives, including
acquisitions and licensing activities.
Cash, cash equivalents and marketable securities
Of the total cash, cash equivalents and marketable securities at December 31, 2007, approximately $6.2 bil-
lion was generated from operations in foreign tax jurisdictions and is intended for use in our foreign operations.
If these funds are repatriated for use in our U.S. operations, we would be required to pay additional U.S. and state
income taxes at the applicable marginal tax rates.
The primary objectives for our investment portfolio are liquidity and safety of principal. Investments are
made with the objective of achieving the highest rate of return, consistent with these two objectives. Our invest-
ment policy limits investments to certain types of instruments issued by institutions primarily with investment
grade credit ratings and places restrictions on maturities and concentration by type and issuer.
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