Amgen 2012 Annual Report Download - page 85

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Market price sensitive financial instruments
As of December 31, 2012 and 2011, we were also exposed to price risk on equity securities included in our portfolio of
investments, which were acquired primarily for the promotion of business and strategic objectives. These investments are generally
in small capitalization stocks in the biotechnology industry sector. Price risk relative to our equity investment portfolio as of
December 31, 2012 and 2011, was not material.
Counterparty credit risks
Our financial instruments, including derivatives, are subject to counterparty credit risk which we consider as part of the
overall fair value measurement. Our financial risk management policy limits derivative transactions by requiring transactions to
be with institutions with investment grade credit ratings and requires placing exposure limits on the amount with any individual
counterparty. In addition, we have an investment policy that limits investments to certain types of debt and money market instruments
issued by institutions primarily with investment grade credit ratings and places restriction on maturities and concentrations by
asset class and issuer.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this item is incorporated herein by reference to the financial statements and schedule listed in
Item 15(a)1 and (a)2 of Part IV and included in this Annual Report on Form 10-K.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES
None.
Item 9A. CONTROLS AND PROCEDURES
We maintain “disclosure controls and procedures,” as such term is defined under Exchange Act Rule 13a-15(e), that are
designed to ensure that information required to be disclosed in Amgen’s Exchange Act reports is recorded, processed, summarized
and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and
communicated to Amgen’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, Amgen’s
management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives and in reaching a reasonable level of assurance Amgen’s management
necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. We
have carried out an evaluation under the supervision and with the participation of our management, including Amgen’s Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Amgen’s disclosure controls
and procedures. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures were effective as of December 31, 2012.
Management determined that, as of December 31, 2012, there were no changes in our internal control over financial reporting
that occurred during the fiscal quarter then ended that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. The Company’s internal control
over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United
States. However, all internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems
determined to be effective can provide only reasonable assurance with respect to financial statement preparation and reporting.
Management assessed the effectiveness of the Company’ s internal control over financial reporting as of December 31, 2012.
In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control-Integrated Framework. Based on our assessment, management believes that the Company
maintained effective internal control over financial reporting as of December 31, 2012, based on the COSO criteria.
The effectiveness of the Company’s internal control over financial reporting has been audited by Ernst & Young LLP, an
independent registered public accounting firm, as stated in their attestation report appearing below, which expresses an unqualified
opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2012.