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Page 48
AMGEN 2002 ANNUAL REPORT
December 31, 2002 2001
Contractual maturity:
Maturing in one year or less $2,180.8 $1,480.1
Maturing after one year through
three years 2,133.6 785.2
Maturing after three years 220.3 302.7
Total debt securities 4,534.7 2,568.0
Equity securities 126.8 175.9
$4,661.5 $2,743.9
Classification in balance sheets:
Cash and cash equivalents $1,851.7 $ 689.1
Marketable securities 2,812.2 1,973.1
Other assets — noncurrent 166.8 215.9
4,830.7 2,878.1
Less cash (169.2) (134.2)
$4,661.5 $2,743.9
The primary objectives for the Company’s fixed income
investment portfolio are liquidity and safety of principal.
Investments are made to achieve the highest rate of return
to the Company, consistent with these two objectives.
The Company’s investment policy limits investments to
certain types of instruments issued by institutions with
investment grade credit ratings and places restrictions on
maturities and concentration by type and issuer.
Inventories
Inventories are stated at the lower of cost or market. Cost
is determined in a manner which approximates the first-in,
first-out (FIFO) method. Inventories consist of raw mate-
rials, work in process, and finished goods for currently mar-
keted products. Inventories are shown net of applicable
reserves and allowances. Inventories consisted of the
following (in millions):
December 31, 2002 2001
Raw materials $ 76.9 $ 21.9
Work in process 360.0 266.7
Finished goods 108.0 67.0
$544.9 $355.6
In the fourth quarter of 2001, the Company recorded
a charge of $39.5 million, included in cost of sales, to write-
off certain inventory deemed not recoverable.
Depreciation
Depreciation of buildings and equipment is provided over
their estimated useful lives on a straight-line basis. Leasehold
improvements are amortized on a straight-line basis over
the shorter of their estimated useful lives or lease terms.
Useful lives by asset category are as follows:
Asset Category Years
Buildings and improvements 10-40
Manufacturing equipment 5-12
Laboratory equipment 5-12
Furniture and office equipment 3-12
Property, plant, and equipment
Property, plant, and equipment consisted of the following
(in millions):
December 31, 2002 2001
Land $ 200.4 $ 125.5
Buildings and improvements 1,443.2 1,129.3
Manufacturing equipment 545.4 356.5
Laboratory equipment 477.3 394.3
Furniture and office equipment 1,102.2 894.8
Construction in progress 471.9 209.5
4,240.4 3,109.9
Less accumulated depreciation
and amortization (1,426.9) (1,163.8)
$ 2,813.5 $ 1,946.1
The Company reviews its long-lived assets for im-
pairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not
be recoverable.
Intangible assets and goodwill
Intangible assets are recorded at cost, less accumulated
amortization. Amortization of intangible assets is provided
over their estimated useful lives ranging from 7 to 15 years
on a straight-line basis. Goodwill is recorded net of accu-
mulated amortization through December 31, 2001. In