Amgen 2009 Annual Report Download - page 146

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
saving initiatives, $19 million of other charges and $10 million loss on the disposal of certain less significant
marketed products, offset by $115 million of cost recoveries from Pfizer.
The following tables summarize the charges (credits) related to the above-noted actions by type of activity
(in millions):
Year ended December 31, 2009
Separation
costs
Asset
impairments
Accelerated
depreciation Other Total
Cost of sales (excludes amortization of certain acquired
intangible assets) ............................... $ — $ 1 $ — $ — $ 1
R&D .......................................... (3) 8 — 1 6
SG&A ......................................... (2) — — 31 29
Other charges ................................... 30 — — 4 34
$ 25 $ 9 $ — $ 36 $ 70
Year ended December 31, 2008
Cost of sales (excludes amortization of certain acquired
intangible assets) ............................... $ — $ 6 $ — $ — $ 6
R&D .......................................... 3 — — — 3
SG&A ......................................... — 17 — 20 37
Other charges ................................... 7 36 — 49 92
Interest and other income, net ...................... — — — 10 10
$ 10 $ 59 $ — $ 79 $ 148
Year ended December 31, 2007
Cost of sales (excludes amortization of certain acquired
intangible assets) ............................... $ (1) $ 4 $147 $ — $ 150
R&D .......................................... (19) 38 — — 19
SG&A ......................................... (11) — 1 (114) (124)
Other charges ................................... 209 366 — 119 694
$178 $408 $148 $ 5 $ 739
During the years ended December 31, 2009, 2008 and 2007, we recorded staff separation costs of $30 mil-
lion, $10 million and $209 million, respectively, principally consisting of severance. Partially offsetting these
amounts in “Cost of sales (excluding amortization of certain acquired intangible assets),” “Research and
development” expense and “Selling, general and administrative” expense for the years ended December 31, 2009
and 2007 are the reversal of previously accrued expenses for bonuses and stock-based compensation awards
totaling $5 million and $31 million, respectively, which were forfeited as a result of the employees’ termination.
We also recorded asset impairment charges of $9 million, $59 million and $408 million during the years
ended December 31, 2009, 2008 and 2007, respectively. These charges principally represent the write-off of the
total cost of the related assets as they were abandoned with no alternative future uses or residual value. The
charges for 2008 included impairments primarily for certain manufacturing-related assets. The charges in 2007
were primarily incurred in connection with our decisions to make changes to certain manufacturing and, to a
lesser degree, certain R&D capital projects and to close certain production operations. In particular, these deci-
sions in 2007 included the subsequent indefinite postponement of our planned Ireland manufacturing operations,
certain revisions to our planned manufacturing expansion in Puerto Rico and the closure of a clinical manufactur-
ing facility in Thousand Oaks, California.
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