Amgen 2012 Annual Report Download - page 125

F-26
As a result of the transaction with BI, an impairment analysis was performed on this facility which determined that a
manufacturing line that had not yet been completed was impaired, and we wrote off its entire carrying value, which aggregated
$118 million, during the year ended December 31, 2010. This amount is included in Other operating expenses in the Consolidated
Statement of Income.
Due to the lack of sufficient initial investment by BI in the acquisition of this facility and our ongoing involvement with
these operations, the transaction did not meet the accounting requirements to be treated as a sale involving real estate. As a result,
the related assets continued to be carried on our Consolidated Balance Sheets with reduced estimated useful lives of the remaining
fixed assets to coincide with the supply period. During each of the years ended December 31, 2012 and 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) in the Consolidated Statements
of Income.
Other cost savings initiatives
As part of our continuing efforts to improve cost efficiencies in our operations, we recorded certain charges aggregating
approximately $175 million and $109 million during the years ended December 31, 2012 and 2011, respectively, which are included
in Other operating expenses in the Consolidated Statements of Income. The 2012 expenses are primarily severance-related and
charges related to exiting leased facilities, and the 2011 expenses are primarily severance-related.
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, 2012 Amortized cost
Gross
unrealized
gains
Gross
unrealized
losses Estimated fair value
U.S. Treasury securities $ 4,443 $ 15 $ — $ 4,458
Other government-related debt securities:
U.S. 1,018 12 — 1,030
Foreign and other 1,549 60 (1) 1,608
Corporate debt securities:
Financial 3,266 96 (1) 3,361
Industrial 4,283 100 (3) 4,380
Other 441 11 — 452
Residential mortgage-backed securities 1,828 9 (8) 1,829
Other mortgage- and asset-backed securities 1,769 7 (9) 1,767
Money market mutual funds 2,620 — — 2,620
Other short-term interest-bearing securities 2,186 — — 2,186
Total interest-bearing securities 23,403 310 (22) 23,691
Equity securities 52 2 — 54
Total available-for-sale investments $ 23,455 $ 312 $ (22) $ 23,745