Amgen 2012 Annual Report Download - page 126

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F-27
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:
U.S. 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
Residential mortgage-backed securities 518 3 (3) 518
Other mortgage- and asset-backed securities 1,271 3 (7) 1,267
Money market mutual funds 6,266 — — 6,266
Total interest-bearing securities 19,772 224 (35) 19,961
Equity securities 42 — — 42
Total available-for-sale investments $ 19,814 $ 224 $ (35) $ 20,003
The fair values of available-for-sale investments by classification in the Consolidated Balance Sheets were as follows as of
December 31, 2012 and 2011 (in millions):
Classification in the Consolidated Balance Sheets 2012 2011
Cash and cash equivalents $ 2,887 $ 6,266
Marketable securities 20,804 13,695
Other assets — noncurrent 54 42
Total available-for-sale investments $ 23,745 $ 20,003
Cash and cash equivalents in the table above excludes cash of $370 million and $680 million as of December 31, 2012 and
2011, respectively.
The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and
asset-backed securities that do not have a single maturity date, were as follows as of December 31, 2012 and 2011 (in millions):
Contractual maturity 2012 2011
Maturing in one year or less $ 7,175 $ 6,791
Maturing after one year through three years 5,014 5,855
Maturing after three years through five years 6,286 5,379
Maturing after five years through ten years 1,620 151
Mortgage- and asset-backed securities 3,596 1,785
Total interest-bearing securities $ 23,691 $ 19,961
For the years ended December 31, 2012, 2011 and 2010, realized gains totaled $186 million, $191 million and $115 million,
respectively, and realized losses totaled $54 million, $37 million and $25 million, respectively. The cost of securities sold is based
on the specific identification method.
The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining
safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security
investments to certain types of debt and money market instruments issued by institutions with primarily investment grade credit
ratings and places restrictions on maturities and concentration by asset class and issuer.