Amgen 2009 Annual Report Download - page 150

Download and view the complete annual report

Please find page 150 of the 2009 Amgen annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 180

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2008, we wrote-off $84 million of inventory resulting from a strategic decision to change manu-
facturing processes. This charge is included in “Cost of sales (excludes amortization of certain acquired
intangible assets)” in our Consolidated Statement of Income.
13. Property, plant and equipment
Property, plant and equipment consisted of the following (in millions):
December 31,
2009 2008
Land ...................................................................... $ 450 $ 456
Buildings and improvements ................................................... 3,293 3,205
Manufacturing equipment ..................................................... 1,462 1,431
Laboratory equipment ........................................................ 892 923
Furniture, fixtures and other assets .............................................. 3,369 3,154
Construction in progress ...................................................... 910 826
10,376 9,995
Less accumulated depreciation and amortization ................................... (4,638) (4,116)
$ 5,738 $ 5,879
During the years ended December 31, 2009, 2008 and 2007, we recognized depreciation and amortization
charges associated with our property, plant and equipment of $624 million, $648 million and $786 million, re-
spectively.
14. Intangible assets
Amortization of intangible assets other than goodwill is provided over their estimated useful lives ranging
from 5 to 15 years on a straight-line basis (weighted average remaining amortization period of 7 years at De-
cember 31, 2009). Intangible assets other than goodwill consisted of the following (in millions):
Intangible assets subject to amortization
Weighted
average
amortization
period
December 31,
2009 2008
Acquired product technology rights:
Developed product technology ..................................... 15years $ 2,872 $ 2,872
Core technology ................................................ 15years 1,348 1,348
Trade name .................................................... 15years 190 190
Acquired R&D technology rights ..................................... 5years 350 350
Other intangible assets ............................................. 10years 541 537
5,301 5,297
Less accumulated amortization ....................................... (2,734) (2,309)
$ 2,567 $ 2,988
Acquired product technology rights relate to the identifiable intangible assets acquired in connection with
the 2002 Immunex acquisition and the amortization is included in “Amortization of certain acquired intangible
assets” in the Consolidated Statements of Income. Intangible assets also include acquired R&D technology rights
consisting of technology used in R&D with alternative future uses and the amortization is included in “Research
and development” expense in the Consolidated Statements of Income. Acquired R&D technology rights princi-
pally include certain technology acquired in the Abgenix, Inc. (“Abgenix”) acquisition in 2006. The amortization
of other intangible assets is principally included in “Cost of sales” and “Selling, general and administrative” ex-
pense in the Consolidated Statements of Income. During the years ended December 31, 2009, 2008 and 2007, we
F-30