Amgen 2009 Annual Report Download - page 176

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Certain geographical information with respect to revenues and long-lived assets are as follows (in millions):
Years ended December 31,
2009 2008 2007
Revenues:
United States .................................................... $11,421 $11,772 $11,887
International countries ............................................. 3,221 3,231 2,884
Total revenues ................................................. $14,642 $15,003 $14,771
December 31,
2009 2008
Long-lived assets:
United States .................................................... $ 3,525 $ 3,836
Puerto Rico ...................................................... 1,920 1,740
International countries ............................................. 293 303
Total long-lived assets ........................................... $ 5,738 $ 5,879
Major customers
In the United States, we sell primarily to wholesale distributors of pharmaceutical products. We utilize these
wholesale distributors as the principal means of distributing our products to healthcare providers, such as physi-
cians or their clinics, dialysis centers, hospitals and pharmacies. In early 2008, ENBREL’s distribution model
was converted from primarily being drop shipped directly to pharmacies to a wholesale distribution model sim-
ilar to our other products. In Europe, Aranesp®, Neulasta®and NEUPOGEN®are principally sold to healthcare
providers and/or wholesalers depending upon the distribution practice in each country. We monitor the financial
condition of our larger customers and limit our credit exposure by setting credit limits, requiring letters of credit
and obtaining credit insurance, as we deem appropriate. We had product sales to three large wholesaler custom-
ers each accounting for more than 10% of total revenues for the years ended December 31, 2009, 2008 and 2007.
On a combined basis, these distributors accounted for 71% and 88% of worldwide gross revenues and U.S. gross
product sales, respectively, for 2009, as noted in the following table (dollar amounts in millions):
Years ended December 31,
2009 2008 2007
AmerisourceBergen Corporation:
Gross product sales ................................................... $7,179 $7,099 $6,124
% of total gross revenues .............................................. 37% 37% 31%
% of U.S. gross product sales ........................................... 46% 46% 39%
McKesson Corporation:
Gross product sales ................................................... $3,694 $3,594 $2,398
% of total gross revenues .............................................. 19% 19% 12%
% of U.S. gross product sales ........................................... 24% 23% 15%
Cardinal Health, Inc.:
Gross product sales ................................................... $2,841 $2,823 $2,715
% of total gross revenues .............................................. 15% 15% 14%
% of U.S. gross product sales ........................................... 18% 18% 17%
At December 31, 2009 and 2008, amounts due from these three large wholesalers each exceeded 10% of
gross trade receivables, and accounted for 53% and 58%, respectively, of net trade receivables on a combined
basis. At December 31, 2009 and 2008, 45% and 40%, respectively, of trade receivables, net were due from cus-
tomers located outside the United States, primarily in Europe. Our total allowance for doubtful accounts as of
December 31, 2009 and 2008 was not material.
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