Amgen 2009 Annual Report Download - page 149

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31,
Contractual maturity 2009 2008
In one year or less ............................................................ $ 3,444 $3,179
After one year through three years ............................................... 6,369 3,724
After three years through five years .............................................. 3,207 2,199
After five years .............................................................. 322 343
Total debt securities ........................................................ 13,342 9,445
Equity securities ............................................................. 55 57
$13,397 $9,502
December 31,
Classification in the Consolidated Balance Sheets 2009 2008
Cash and cash equivalents ...................................................... $ 2,884 $1,774
Marketable securities ......................................................... 10,558 7,778
Other assets — noncurrent ..................................................... 55 30
13,497 9,582
Less cash ................................................................... (100) (80)
$13,397 $9,502
For the years ended December 31, 2009, 2008 and 2007, realized gains totaled $104 million, $124 million
and $17 million, respectively, and realized losses totaled $62 million, $49 million and $20 million, respectively.
The cost of securities sold is based on the specific identification method.
The primary objectives of our investment portfolio are liquidity and safety of principal. Investments are
made with the objective of achieving the highest rate of return consistent with these two objectives. Our invest-
ment policy limits investments to certain types of debt and money market instruments issued by institutions
primarily with investment grade credit ratings and places restrictions on maturities and concentration by type and
issuer.
We review our available-for-sale securities for other-than-temporary declines in fair value below their cost
basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset
may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent
to which the fair value has been less than our cost basis and adverse conditions specifically related to the security
including any changes to the rating of the security by a rating agency. As of December 31, 2009 and 2008, we
believe that the cost bases for our available-for-sale securities were recoverable in all material respects.
12. Inventories
Inventories consisted of the following (in millions):
December 31,
2009 2008
Raw materials ................................................................ $ 97 $ 112
Work in process ............................................................... 1,683 1,519
Finished goods ................................................................ 440 444
$2,220 $2,075
As of December 31, 2009, we had $258 million of Prolia™inventory capitalized in preparation for its antici-
pated product launch. We are currently in discussions with regulatory authorities in the United States, European
Union and various other countries regarding the approval of Prolia™. The amount capitalized for Pro-
lia™inventory is included in work in process.
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