Amgen 2009 Annual Report Download - page 101

movement in foreign exchange rates compared with the U.S. dollar relative to exchange rates at December 31, 2008,
would have resulted in a reduction in fair value of approximately $550 million on this date and, in the ensuing year,
a reduction in income and cash flows of approximately $260 million.
Also at December 31, 2009 and 2008, we had open forward contracts with notional amounts totaling $414
million and $472 million, respectively, that hedged fluctuations of certain assets and liabilities denominated in
foreign currencies but were not designated as hedges for accounting purposes. These contracts had no material
net unrealized gains or losses at December 31, 2009 and 2008. With regard to forward contracts that were open at
December 31, 2009 and 2008 a hypothetical 20% adverse movement in foreign exchange rates compared with
the U.S. dollar relative to exchange rates at December 31, 2009 and 2008 would not have had a material impact
on fair value on these dates or would not result in a material effect on the related income or cash flows in the re-
spective ensuing year.
The analysis above does not consider the impact that hypothetical changes in foreign currency exchange
rates would have on anticipated transactions or on assets and liabilities that these foreign currency sensitive
instruments were designed to offset.
Market price sensitive instruments
As of December 31, 2009 and 2008, we were also exposed to price risk on equity securities included in our
portfolio of investments, which were acquired primarily for the promotion of business and strategic objectives.
These investments are generally in small capitalization stocks in the biotechnology industry sector. Price risk
relative to our equity investment portfolio at December 31, 2009 and 2008 was not material.
Counterparty credit risks
Our financial instruments, including derivatives, are subject to counterparty credit risk which we consider as
part of the overall fair value measurement. We attempt to mitigate this risk through credit monitoring procedures.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this item is incorporated herein by reference to the financial statements and
schedule listed in Item 15(a)1 and (a)2 of Part IV and included in this Form 10-K Annual Report.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES
None.
Item 9A. CONTROLS AND PROCEDURES
We maintain “disclosure controls and procedures,” as such term is defined under Exchange Act
Rule 13a-15(e), that are designed to ensure that information required to be disclosed in Amgen’s Exchange Act
reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms, and that such information is accumulated and communicated to Amgen’s management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required dis-
closures. In designing and evaluating the disclosure controls and procedures, Amgen’s management recognized
that any controls and procedures, no matter how well designed and operated, can provide only reasonable assur-
ance of achieving the desired control objectives and in reaching a reasonable level of assurance Amgen’s
management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures. We have carried out an evaluation under the supervision and with the participation of
our management, including Amgen’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of
the design and operation of Amgen’s disclosure controls and procedures. Based upon their evaluation and subject
to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls
and procedures were effective as of December 31, 2009.
Management determined that, as of December 31, 2009, there were no changes in our internal control over
financial reporting that occurred during the fiscal quarter then ended that have materially affected, or are reason-
ably likely to materially affect, our internal control over financial reporting.
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