Amgen 2002 Annual Report Download - page 66

Page 64
AMGEN 2002 ANNUAL REPORT
The aggregate stated maturities of all long-term oblig-
ations and commercial paper due subsequent to December
31, 2002, are as follows (in millions):
Maturity date Amount
2003 $ 123.0
2004 —
2005
(1)
2,917.8
2006 —
2007 100.0
After 2007 100.0
$3,240.8
(1)
Holders of the Convertible Notes may require the Company to purchase all or a
portion of the notes on specific dates as early as March 1, 2005 at the original issuance
price plus accrued original issue discount (“accreted value”) through the purchase
date. The amount above represents the accreted value on March 1, 2005. The
accreted value based on the 30-year contractual maturity is $3,950.0 million. In
the event the Company is required to repurchase the notes, it may choose to pay
the purchase price in cash and/or shares of common stock.
Note 9. 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 geographic area, and
revenues from major customers are presented below.
Revenues
Revenues consisted of the following (in millions):
Years ended December 31, 2002 2001 2000
Product sales:
EPOGEN
®
$2,260.6 $2,108.5 $1,962.9
NEUPOGEN
®
1,379.6 1,346.4 1,223.7
Neulasta
™
463.5 ——
Aranesp
®
415.6 41.5 —
ENBREL
®
362.1 ——
Other 109.8 14.6 15.6
Total product sales 4,991.2 3,511.0 3,202.2
Other revenues 531.8 504.7 427.2
Total revenues $5,523.0 $4,015.7 $3,629.4
Geographic information
Outside the United States, the Company principally sells:
1) NEUPOGEN
®
in Europe, Canada, and Australia,
2) Aranesp
®
in most countries in Europe, Australia, and
New Zealand commencing with the June 2001 launch,
and 3) ENBREL
®
in Canada commencing July 16, 2002.
Information regarding revenues and long-lived assets (con-
sisting of property, plant, and equipment) attributable 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 customer. The geo-
graphic 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, 2002 2001 2000
Revenues:
United States $5,025.9 $3,688.5 $3,343.0
Foreign countries 497.1 327.2 286.4
Total revenues $5,523.0 $4,015.7 $3,629.4
December 31, 2002 2001 2000
Long-lived assets:
United States $2,473.8 $1,754.5 $1,596.9
Foreign countries 339.7 191.6 184.6
Total long-lived assets $2,813.5 $1,946.1 $1,781.5
Major customers
The Company’s customers primarily consist of wholesale
distributors of pharmaceutical products. With the excep-
tion of ENBREL
®
, the Company utilizes these wholesale
distributors as the principal means of distributing the
Company’s products to clinics, hospitals, and pharmacies.
With respect to ENBREL
®
, the Company primarily drop-
ships wholesaler orders directly to pharmacies for end-users.
The Company monitors the financial condition of its larger
distributors and limits its credit exposure by setting
appropriate credit limits and requiring collateral from
certain customers.
For the years ended December 31, 2002 and 2001,
sales to three large wholesalers each accounted for more
than 10% of total revenues. Sales to these three wholesalers
were $2,084.4 million, $988.6 million, and $843.9 million,
respectively, for the year ended December 31, 2002. Sales
to these three wholesalers were $1,470.1 million, $535.8
million, and $459.8 million, respectively, for the year ended
December 31, 2001. For the year ended December 31,
2000, sales to two large wholesalers each accounted for
more than 10% of total revenues. Sales to these wholesalers