Amgen 2013 Annual Report Download - page 57

(2) Long-term debt obligations include future interest payments under our Master Repurchase Agreement and Term Loan at LIBOR-based variable rates of
interest. We used an interest rate forward curve at December 31, 2013, in computing interest payments on these debt obligations. See Note 14, Financing
arrangements, to the Consolidated Financial Statements for further discussion of these debt obligations.
(3) Long-term debt obligations include contractual interest payments and principal repayment of our debt obligations. In order to hedge our exposure to
foreign currency exchange rate risk associated with certain of our pound sterling and euro denominated long-term debt issued in 2012 and 2011, we
entered into cross-currency swap contracts that effectively convert interest payments and principal repayment on this debt from pounds sterling/euros to
U.S. dollars. For purposes of this table, we used the contracted exchange rates in the cross-currency swap contracts to compute the net amounts of future
interest payments and principal repayments on this debt. See Note 17, Derivative instruments, to the Consolidated Financial Statements for further
discussion of our cross-currency swap contracts.
(4) Interest payments and the repayment of principal on our 4.375% 2018 euro Notes were translated into U.S. dollars at the foreign currency exchange rate
in effect at December 31, 2013. See Note 14, Financing arrangements, to the Consolidated Financial Statements for further discussion of our long-term
debt obligations.
(5) Purchase obligations relate primarily to (i) our long-term supply agreements with third-party manufacturers, which are based on firm commitments for
the purchase of production capacity; (ii) R&D commitments (including those related to clinical trials) for new and existing products; (iii) capital
expenditures; and (iv) open purchase orders for the acquisition of goods and services in the ordinary course of business. Our obligation to pay certain of
these amounts may be reduced based on certain future events.
(6) Liabilities for UTBs (net of foreign tax credits and federal tax benefit of state taxes) and related accrued interest and penalties totaling approximately $1.3
billion at December 31, 2013, are not included in the table above because, due to their nature, there is a high degree of uncertainty regarding the timing of
future cash outflows and other events that extinguish these liabilities.
In addition to amounts in the table above, we are contractually obligated to pay additional amounts, which in the aggregate are significant, upon the
achievement of various development, regulatory and commercial milestones for agreements we have entered into with third parties, including contingent
consideration incurred or assumed in the acquisitions of BioVex and Onyx. These payments are contingent upon the occurrence of various future events,
substantially all of which have a high degree of uncertainty of occurring. These contingent payments have not been included in the table above, and, except
with respect to the fair value of the contingent consideration obligations, are not recorded on our Consolidated Balance Sheets. As of December 31, 2013, the
maximum amount that may be payable in the future for agreements we have entered into with third parties is approximately $3.3 billion, including $875
million of contingent consideration payments in connection with the acquisitions of BioVex and Onyx. See Note 2, Business combinations, to the
Consolidated Financial Statements.
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