Amgen 2012 Annual Report Download - page 132

F-33
Shelf registration statements and other facilities
As of December 31, 2012, we have a commercial paper program that allows us to issue up to $2.5 billion of unsecured
commercial paper to fund our working capital needs. At December 31, 2012 and 2011, we had no amounts outstanding under our
commercial paper program.
In December 2011, we entered into a $2.5 billion syndicated, unsecured, revolving credit agreement which is available for
general corporate purposes or as a liquidity backstop to our commercial paper program. The commitments under the revolving
credit agreement may be increased by up to $500 million with the agreement of the banks. Each bank which is a party to the
agreement has an initial commitment term of five years. This term may be extended for up to two additional one-year periods with
the agreement of the banks. Annual commitment fees for this agreement are 0.1% based on our current credit rating. Generally,
we would be charged interest at LIBOR plus 0.9% for any amounts borrowed under this facility. As of December 31, 2012 and
2011, no amounts were outstanding under this facility. In connection with the new revolving credit agreement we terminated our
prior $2.3 billion revolving credit agreement that was scheduled to expire in November 2012.
In March 2011, we filed a shelf registration statement with the U.S. Securities and Exchange Commission to replace an
existing shelf registration statement that was scheduled to expire in April 2011. This shelf registration statement allows us to issue
unspecified amounts 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 shelf 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 statement expires in March
2014.
In 1997, 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, 2012 and 2011, no securities were
outstanding under this medium-term note program.
Certain of our financing arrangements contain non-financial covenants. In addition, our revolving credit agreement includes
a financial covenant with respect to the level of our borrowings in relation to our equity, as defined. We were in compliance with
all applicable covenants under these arrangements as of December 31, 2012.
Contractual maturities of long-term debt obligations
The aggregate contractual maturities of all long-term debt obligations due subsequent to December 31, 2012, are as follows
(in millions):
Maturity date Amount
2013(1) $ 2,507
2014 2,002
2015 —
2016 1,750
2017 2,350
Thereafter 18,017
Total $ 26,626
(1) This amount includes the$2.5 billion principal amount for our 0.375% 2013 Convertible Notes after full accretion of the
debt discount.
Interest costs
Interest costs are expensed as incurred, except to the extent such interest is related to construction in progress, in which case
interest is capitalized. Interest expenses, net, for the years ended December 31, 2012, 2011 and 2010, were $1.1 billion, $610
million and $604 million, respectively. Interest costs capitalized for the years ended December 31, 2012, 2011 and 2010, were $26
million, $22 million and $33 million, respectively. Interest paid, net of interest rate swaps, during the years ended December 31,
2012, 2011 and 2010, totaled $406 million, $446 million and $323 million, respectively. Interest paid in 2012 is net of the $397
million received upon settlement of the interest rate swaps. See Note 17, Derivative instruments.