Amgen 2011 Annual Report Download - page 149

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As a result of this transaction, we reduced the estimated useful lives of the remaining fixed assets to
coincide with the supply period. During the year ended December 31, 2011, we recorded incremental
depreciation of approximately $42 million in excess of what otherwise would have been recorded. In addition,
due to the assignment to BI of the obligations under certain of the facility’s operating leases, we recorded charges
of approximately $23 million during the year ended December 31, 2011, with respect to the lease period beyond
the end of the supply period. These amounts are recorded in Cost of sales (excludes amortization of certain
acquired intangible assets presented separately) in the Consolidated Statement of Income.
Other cost savings initiatives
As part of our continuing efforts to improve cost efficiencies in our operations, we recorded certain charges,
primarily severance-related, aggregating approximately $109 million during the year ended December 31, 2011,
which are included in Other operating expenses in the Consolidated Statement of Income.
Restructuring
On August 15, 2007, we announced a plan to restructure our worldwide operations in order to improve our
cost structure. This restructuring plan was primarily the result of regulatory and reimbursement developments
that began in 2007 involving erythropoiesis-stimulating agents (ESAs), including our marketed ESAs, Aranesp®
and EPOGEN®, and the resulting impact on our operations. As of December 31, 2009, we completed all of the
actions included in our restructuring plan and subsequently identified initiatives. During the year ended
December 31, 2009, we recorded charges associated with these actions aggregating $70 million, comprised
primarily of staff separation costs of $25 million, included principally in Other operating expenses in the
Consolidated Statement of Income, and integration-related costs of $32 million, which were included principally
in Selling, general and administrative expenses in the Consolidated Statement of Income.
9. Available-for-sale investments
The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of
available-for-sale investments by type of security were as follows (in millions):
Type of security as of December 31, 2011
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
U.S. Treasury securities ................................... $ 3,878 $ 68 $ — $ 3,946
Other government-related debt securities:
Obligations of U.S. government agencies and FDIC-guaranteed
bank debt .......................................... 1,548 23 — 1,571
Foreign and other ...................................... 441 9 — 450
Corporate debt securities:
Financial ............................................. 2,493 30 (15) 2,508
Industrial ............................................ 3,077 79 (10) 3,146
Other ................................................ 280 9 - 289
Mortgage- and asset-backed securities ....................... 1,789 6 (10) 1,785
Money market mutual funds ............................... 6,266 — — 6,266
Total debt security investments ......................... 19,772 224 (35) 19,961
Equity securities ......................................... 42 — — 42
Total available-for-sale investments ..................... $19,814 $224 $(35) $20,003
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