Amgen 2010 Annual Report Download - page 96

As of December 31, 2010, we have a commercial paper program that allows us to issue up to $2.3 billion of
unsecured commercial paper to fund our working capital needs. At December 31, 2010, no amounts were
outstanding under our commercial paper program.
As of December 31, 2010, we have a $2.3 billion syndicated, unsecured, revolving credit facility that matures
in November 2012 and is available for general corporate purposes or as a liquidity backstop to our commercial paper
program. Annual commitment fees for this facility are 0.05% based on our current credit rating. As of December 31,
2010, no amounts were outstanding under this facility.
We have filed a shelf registration statement with the SEC, which allows us to issue an unspecified amount of
debt securities; common stock; preferred stock; warrants to purchase debt securities, common stock, preferred stock
or depository shares; rights to purchase common stock or preferred stock; securities purchase contracts; securities
purchase units and depository shares. Under this registration statement, all of the securities available for issuance
may be offered from time to time with terms to be determined at the time of issuance. This shelf registration expires
in April 2011.
As of December 31, 2010, we have $400 million remaining under a shelf registration statement that was
established in 1997. In connection with this shelf registration, we established a $400 million medium-term note
program under which medium-term debt securities may be offered from time to time with terms to be determined at
the time of issuance. As of December 31, 2010, no securities were outstanding under this medium-term note
program.
Certain of our financing arrangements contain non-financial covenants and we were in compliance with all
applicable covenants as of December 31, 2010. None of our financing arrangements contain any financial
covenants.
Cash flows
The following table summarizes our cash flow activity for the years ended December 31, 2010, 2009 and 2008
(in millions):
2010 2009 2008
Net cash provided by operating activities ............................ $5,787 $ 6,336 $ 5,988
Net cash used in investing activities ................................ (4,152) (3,202) (3,165)
Net cash used in financing activities ................................ (1,232) (2,024) (3,073)
Operating
Cash provided by operating activities has been and is expected to continue to be our primary recurring source
of funds. Cash provided by operating activities during 2010 decreased due primarily to the timing and amount of
payments to taxing authorities. Cash provided by operating activities during 2009 increased due primarily to higher
net income of $553 million and a higher dividend payment from KA of $102 million, offset partially by the prior-
year receipt of $300 million for an upfront milestone payment related to our licensing agreement with Takeda, and
the negative impact of the timing and amounts of receipts from customers and payments to vendors and others.
Investing
Net purchases of marketable securities were $3.5 billion for 2010 compared to net purchases of $2.7 billion
and $2.6 billion for 2009 and 2008, respectively.
Capital expenditures totaled $580 million, $530 million and $672 million in 2010, 2009 and 2008, respec-
tively. Capital expenditures in 2010 and 2009 were associated primarily with manufacturing capacity expansions in
Puerto Rico and other site developments. Capital expenditures in 2008 were associated primarily with manufac-
turing capacity expansions in Puerto Rico, Fremont and other site developments and with investment in our global
ERP system and other information systems’ projects. We currently estimate 2011 spending on capital projects and
equipment to be approximately $600 million.
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