Amgen 2010 Annual Report Download - page 153

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Accumulated other comprehensive income
The components of Accumulated Other Comprehensive Income (“AOCI”) are as follows for the years ended
December 31, 2010, 2009 and 2008 (in millions):
Foreign
currency
translation
Cash flow
hedges
Available-for-sale
securities Other AOCI
Balance as of December 31, 2007 ................. $59 $ (45) $ 39 $ — $ 53
Other comprehensive income:
Foreign currency translation adjustments .......... (43) — — — (43)
Unrealized gains............................ — 155 92 — 247
Reclassification adjustments to income ........... — — (75) — (75)
Other . . .................................. — — — (11) (11)
Income taxes .............................. 9 (60) (7) 4 (54)
Balance as of December 31, 2008 ................. 25 50 49 (7) 117
Other comprehensive income:
Foreign currency translation adjustments .......... 25 — — — 25
Unrealized (losses)/gains...................... — (213) 116 (12) (109)
Reclassification adjustments to income ........... — 8 (42) — (34)
Other . . .................................. — — — 5 5
Income taxes .............................. (10) 73 (28) 6 41
Balance as of December 31, 2009 ................. 40 (82) 95 (8) 45
Other comprehensive income:
Foreign currency translation adjustments .......... (29) — — — (29)
Unrealized gains............................ — 186 155 1 342
Reclassification adjustments to income ........... — (46) (90) — (136)
Income taxes .............................. 11 (55) (25) — (69)
Balance as of December 31, 2010 ................. $22 $ 3 $135 $ (7) $ 153
Other
In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par
value. At December 31, 2010 and 2009, no shares of preferred stock were issued or outstanding.
17. Fair value measurement
We use various valuation approaches in determining the fair value of our financial assets and liabilities within a
hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring
that observable inputs be used when available. Observable inputs are inputs that market participants would use in
pricing the asset or liability based on market data obtained from sources independent of the Company.
Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market
participants would use in pricing the asset or liability and are developed based on the best information
available in the circumstances. The fair value hierarchy is broken down into three levels based on the source
of inputs as follows:
Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities
that the Company has the ability to access
Level 2 — Valuations for which all significant inputs are observable, either directly or indirectly, other
than level 1 inputs
F-31
AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)