Amgen 2013 Annual Report Download - page 39

Cost savings initiatives may result in the carrying value of certain existing manufacturing facilities or other assets becoming impaired or other
related charges being incurred.
Our business continues to face many challenges. In response to these challenges, we have worked and continue to work to improve cost efficiencies and
to reduce discretionary expenditures. As part of those efforts, we undertake cost savings initiatives to evaluate our processes and procedures in order to identify
opportunities for achieving greater efficiencies in how we conduct our business. In particular, we evaluate our manufacturing operations to identify
opportunities to increase production yields and/or success rates as well as capacity utilization. Depending on the timing and outcomes of these cost savings
initiatives, the carrying value of certain manufacturing or other assets may not be fully recoverable and could result in the recognition of impairment and/or
other related charges. The recognition of such charges, if any, could have a material adverse effect on our results of operations.
There can be no assurance that we will continue to declare cash dividends.
Our Board of Directors has declared quarterly dividends on our common stock since it adopted a dividend policy in 2011. Whether we continue and the
amount and timing of such dividends are subject to capital availability and periodic determinations by our Board of Directors that cash dividends are in the
best interest of our stockholders and are in compliance with all respective laws and agreements of the Company applicable to the declaration and payment of
cash dividends. Future dividends, including their timing and amount, may be affected by, among other factors: our views on potential future capital
requirements for strategic transactions, including acquisitions; debt service requirements; our credit rating; changes to applicable tax laws or corporate laws;
and changes to our business model. Our dividend payments may change from time to time, and we cannot provide assurance that we will continue to declare
dividends in any particular amounts or at all. The reduction in or elimination of our dividend payments could have a negative effect on our stock price.
The illegal distribution and sale by third parties of counterfeit versions of our products or of stolen or diverted products could have a negative
impact on our reputation and business.
Third parties may illegally distribute and sell counterfeit versions of our products, which do not meet the exacting standards of our Company's
development, manufacturing and distribution processes. Counterfeit medicines pose a significant risk to patient health and safety because of the conditions
under which they are manufactured and the lack of regulation of their contents. Counterfeit products are frequently unsafe or ineffective and can be potentially
life-threatening. Our reputation and business could suffer harm as a result of counterfeit drugs sold under our brand name. In addition, products stolen from
inventory, at warehouses, plants or while in transit or unlawfully diverted, which are not properly stored and which are sold through unauthorized channels,
could adversely impact patient safety, our reputation and our business. Public loss of confidence in the integrity of biologics and/or pharmaceutical products
as a result of counterfeiting or theft could have a material adverse effect on our product sales, business and results of operations.
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None.
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