Amgen 2001 Annual Report Download - page 48

and 2000, the fair values of derivative instruments were
not material.
Note 10: Segment information
The company operates in one business segment –
human therapeutics. Therefore, results of operations are
reported on a consolidated basis for purposes of segment
reporting. Enterprise-wide disclosures about revenues
by product, revenues and long-lived assets by geo-
graphic area, and revenues from major customers are
presented below.
Revenues
Revenues consisted of the following (in millions):
Years ended December 31, 2001 2000 1999
EPOGEN®/Aranesp™$2,150.0 $1,962.9 $1,759.1
NEUPOGEN®1,346.4 1,223.7 1,256.6
Other product sales 14.6 15.6 27.1
Total product sales 3,511.0 3,202.2 3,042.8
Other revenues 504.7 427.2 297.3
Total revenues $4,015.7 $3,629.4 $3,340.1
Geographic information
Outside the U.S., the Company sells NEUPOGEN®
in the European Union (“EU”), Canada, and Australia.
Outside the U.S., the Company sells Aranesp™in most
countries in the EU, Australia, and New Zealand.
Information regarding revenues and long-lived assets
(consisting of property, plant, and equipment) attribut-
able to the United States and to all foreign countries
collectively is stated below. The geographic classification
of product sales was based upon the location of the cus-
tomer. The geographic classification of all other revenues
was based upon the domicile of the entity from which
the revenues were earned. Information is as follows
(in millions):
Years ended December 31, 2001 2000 1999
Revenues:
U.S. and possessions $3,688.5 $3,343.0 $3,024.5
Foreign countries 327.2 286.4 315.6
Total revenues $4,015.7 $3,629.4 $3,340.1
December 31, 2001 2000 1999
Long-lived assets:
U.S. and possessions $1,861.0 $1,706.5 $1,475.7
Foreign countries 85.1 75.0 77.9
Total long-lived assets $1,946.1 $1,781.5 $1,553.6
Note 8: Balance sheet accounts
Property, plant, and equipment consisted of the follow-
ing (in millions):
December 31, 2001 2000
Land $ 207.7 $ 120.0
Buildings and building improvements 980.1 901.7
Manufacturing equipment 356.5 287.6
Laboratory equipment 394.3 338.1
Furniture and office equipment 894.8 672.6
Leasehold improvements 67.0 53.7
Construction in progress 209.5 345.5
3,109.9 2,719.2
Less accumulated depreciation
and amortization (1,163.8) (937.7)
$ 1,946.1 $1,781.5
Accrued liabilities consisted of the following
(in millions):
December 31, 2001 2000
Employee compensation and benefits $147.2 $151.9
Sales incentives, royalties, and allowances 124.7 107.6
Obligations from terminating
collaboration agreements
(see Note 4, “Other items, net”) 100.7 —
Due to affiliated companies and
corporate partners 97.6 92.8
Income taxes 92.6 116.7
Clinical development costs 56.0 50.5
Other 147.5 99.7
$766.3 $619.2
Note 9: Fair values of financial instruments
The carrying amounts of cash, cash equivalents, mar-
ketable securities, and marketable equity investments
approximated their fair values. Fair values of cash
equivalents, marketable securities, and marketable
equity investments are based on quoted market prices.
The carrying amount of commercial paper approxi-
mated its fair value as of December 31, 2001 and 2000.
The fair values of long-term debt at December 31, 2001
and 2000 totaled approximately $244.9 million and
$222.0 million, respectively. The fair values of commer-
cial paper and long-term debt were estimated based on
quoted market rates for instruments with similar terms
and remaining maturities.
The carrying amounts of derivative instruments
approximated their fair values. At December 31, 2001
AMGEN 2001 ANNUAL REPORT
46