Amgen 2013 Annual Report Download - page 53

recognized in the Company's 2012 financial results and instead are reflected in the Company's 2013 financial results. The tax benefit of the retroactive
extension of the 2012 R&D tax credit that was recognized in 2013 was $70 million. Additionally, our rate was further reduced by the indefinitely reinvested
earnings of our foreign operations.
The increase in our effective tax rate for 2012 was due primarily to the unfavorable tax impact of changes in the jurisdictional mix of income and
expenses and the exclusion of the federal R&D tax credit in 2012, offset partially by the favorable resolution of certain state tax matters related to prior years.
The effective tax rates for 2013, 2012 and 2011 would have been approximately 9.2%, 18.7%, and 18.0%, respectively, without the impact of the tax
credits associated with the Puerto Rico excise tax.
As permitted under U.S. GAAP, we do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be
invested indefinitely outside the United States.
See Summary of Critical Accounting Policies — Income taxes and Note 4, Income taxes, to the Consolidated Financial Statements for further
discussion.
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Selected financial data was as follows as of December 31, 2013 and 2012 (in millions):


Cash, cash equivalents and marketable securities $ 19,401
$ 24,061
Restricted investments 3,412
—
Total cash, cash equivalents, marketable securities and restricted investments $ 22,813
$ 24,061
Total assets 66,125
54,298
Current portion of long-term debt 2,505
2,495
Long-term debt 29,623
24,034
Stockholders’ equity 22,096
19,060
The Company intends to continue to return capital to stockholders through the payment of cash dividends, reflecting our confidence in the future cash
flows of our business. Whether and when we declare dividends and the size of any dividend could be affected by a number of additional factors. (See Item 1A.
Risk Factors — There can be no assurance that we will continue to declare cash dividends). In April 2011, the Board of Directors approved a dividend policy
related to our common stock and subsequently declared quarterly cash dividends of $0.28 per share of common stock during the second half of 2011.
Subsequently, the Board of Directors declared a 29% increase in our quarterly cash dividends to $0.36 per share of common stock in 2012, and a 31%
increase in our quarterly cash dividends to $0.47 per share of common stock in 2013. In December 2013, the Board of Directors declared a 30% increase in
our quarterly cash dividend to $0.61 per share of common stock, payable in March 2014.
The Company has also returned capital to stockholders through its stock repurchase program. During 2011, 2012 and 2013, we spent $8.3 billion,
$4.6 billion and $832 million, respectively, to repurchase shares of our common stock. As of December 31, 2013, $1.6 billion remains available under the
Board of Directors-approved stock repurchase program; however, we do not expect to make significant repurchases of our common stock during 2014 and
2015.
In connection with the acquisition of Onyx in October 2013, we entered into a Repurchase Agreement and a Term Loan Credit Facility. See Note 2,
Business combinations to the Consolidated Financial Statements. Pursuant to the Repurchase Agreement, we sold 34,097 Class A preferred shares of one of
our wholly-owned subsidiaries, ATL Holdings Limited, on September 30, 2013. We are obligated to repurchase the Class A preferred shares from the
counterparties on or before September 28, 2018, for the aggregate sale price of $3.1 billion. Under the Repurchase Agreement, which is accounted for as long-
term debt, we are obligated to make payments to the counterparties based on the sale price of the outstanding preferred shares at a floating interest rate of
London Interbank Offered Rates (LIBOR) plus 1.1%. The Repurchase Agreement contains customary events of default, and we have the right to repurchase all
or a portion of the Class A preferred shares at any time prior to the required repurchase date.
On October 1, 2013, we borrowed $5.0 billion under a Term Loan Credit Facility which bears interest at a floating rate based on LIBOR plus additional
interest, initially 1%, which can vary based on the credit ratings assigned to our long-term debt by Standard & Poor's Financial Services LLC (S&P) and
Moody's Investor Service, Inc. (Moody's). A portion of the principal amount of this debt is to be repaid at the end of each quarter equal to 2.5% of the original
amount of the loan, or $125 million, with the balance due on October 1, 2018.
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