Amgen 2011 Annual Report Download - page 165
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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
respectively. The interest rate swap contracts as of December 31, 2011 and 2010, were for our 4.85% 2014
Notes, 5.85% 2017 Notes, 6.15% 2018 Notes and 5.70% 2019 Notes, and, as of December 31, 2009, for our
4.85% 2014 Notes and 6.15% 2018 Notes. For derivative instruments that are designated and qualify as fair value
hedges, the unrealized gain or loss on the derivative resulting from the change in fair value during the period as
well as the offsetting unrealized loss or gain of the hedged item resulting from the change in fair value during the
period attributable to the hedged risk is recognized in current earnings. For the years ended December 31, 2011
and 2010, we included unrealized losses on the hedged debt of $182 million and $105 million, respectively, in
the same line item, Interest expense, net, in the Consolidated Statements of Income, as the offsetting unrealized
gains of $182 million and $105 million, respectively, on the related interest rate swap contracts. For the year
ended December 31, 2009, we included the unrealized gain on the hedged debt of $116 million in the same line
item, Interest expense, net, in the Consolidated Statement of Income, as the offsetting unrealized loss of $116
million on the related interest rate swap contracts.
Derivatives not designated as hedges
We enter into foreign currency forward contracts that are not designated as hedging transactions to reduce
our exposure to foreign currency fluctuations of certain assets and liabilities denominated in foreign currencies.
These exposures are hedged on a month-to-month basis. As of December 31, 2011, 2010 and 2009, the total
notional amounts of these foreign currency forward contracts, primarily euro-based, were $389 million, $670
million and $414 million, respectively.
The location in the Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings
for the derivative instruments not designated as hedging instruments was as follows (in millions):
Years ended December 31,
Derivatives not designated as hedging instruments Statements of Income location 2011 2010 2009
Foreign currency contracts .............. Interest and other income, net $(1) $32 $(24)
F-41