Amgen 2010 Annual Report Download - page 145

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Type of security as of December 31, 2009
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
U.S. Treasury securities ................................ $ 1,929 $ 12 $ (6) $ 1,935
Obligations of U.S. government agencies and FDIC
guaranteed bank debt ................................ 3,731 62 (1) 3,792
Corporate debt securities ............................... 4,193 96 (4) 4,285
Mortgage and asset backed securities ...................... 489 4 (2) 491
Money market mutual funds ............................ 2,784 — — 2,784
Other short-term interest bearing securities .................. 55 — — 55
Total debt securities ................................. 13,181 174 (13) 13,342
Equity securities ..................................... 63 — (8) 55
$13,244 $174 $(21) $13,397
Contractual maturity 2010 2009
Maturing in one year or less ............................................. $ 4,118 $ 3,444
Maturing after one year through three years .................................. 6,736 6,369
Maturing after three years through five years ................................. 5,812 3,207
Maturing after five years ................................................ 611 322
Total debt securities .................................................. 17,277 13,342
Equity securities ...................................................... 48 55
$17,325 $13,397
Classification in the Consolidated Balance Sheets 2010 2009
Cash and cash equivalents ............................................... $ 3,287 $ 2,884
Marketable securities ................................................... 14,135 10,558
Other assets — noncurrent ............................................... 48 55
17,470 13,497
Less cash ........................................................... (145) (100)
$17,325 $13,397
For the years ended December 31, 2010, 2009 and 2008, realized gains totaled $115 million, $104 million and
$124 million, respectively, and realized losses totaled $25 million, $62 million and $49 million, respectively. The
cost of securities sold is based on the specific identification method.
The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while
maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy
limits debt security investments to certain types of debt and money market instruments issued by institutions with
primarily investment grade credit ratings and places restrictions on maturities and concentration by type and issuer.
We review our available-for-sale investments for other-than-temporary declines in fair value below our cost
basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset
may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent to
which the fair value has been below our cost basis and adverse conditions related specifically to the security
including any changes to the credit rating of the security by a rating agency. As of December 31, 2010 and 2009, we
believe the cost bases for our available-for-sale investments were recoverable in all material respects.
F-23
AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)