amgn-202203310000318154false2022Q112/3100003181542022-01-012022-03-310000318154us-gaap:CommonStockMemberexch:XNGS2022-01-012022-03-310000318154amgn:A2.00SeniorNotesDue2026Memberexch:XNGS2022-01-012022-03-3100003181542022-04-22xbrli:shares0000318154us-gaap:ProductMember2022-01-012022-03-31iso4217:USD0000318154us-gaap:ProductMember2021-01-012021-03-310000318154us-gaap:ProductAndServiceOtherMember2022-01-012022-03-310000318154us-gaap:ProductAndServiceOtherMember2021-01-012021-03-3100003181542021-01-012021-03-31iso4217:USDxbrli:shares00003181542022-03-3100003181542021-12-310000318154us-gaap:CommonStockMember2021-12-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-12-310000318154us-gaap:RetainedEarningsMember2021-12-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000318154us-gaap:RetainedEarningsMember2022-01-012022-03-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000318154us-gaap:CommonStockMember2022-01-012022-03-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-01-012022-03-310000318154us-gaap:CommonStockMember2022-03-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-03-310000318154us-gaap:RetainedEarningsMember2022-03-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000318154us-gaap:CommonStockMember2020-12-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310000318154us-gaap:RetainedEarningsMember2020-12-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100003181542020-12-310000318154us-gaap:RetainedEarningsMember2021-01-012021-03-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000318154us-gaap:CommonStockMember2021-01-012021-03-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-01-012021-03-310000318154us-gaap:CommonStockMember2021-03-310000318154us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-03-310000318154us-gaap:RetainedEarningsMember2021-03-310000318154us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100003181542021-03-31amgn:segment0000318154amgn:TeneobioMember2022-01-012022-03-310000318154amgn:TeneobioMember2022-03-310000318154amgn:TeneobioMemberus-gaap:InProcessResearchAndDevelopmentMember2022-03-310000318154amgn:RDTechnologyrightsMemberamgn:TeneobioMember2022-03-310000318154us-gaap:LicensingAgreementsMemberamgn:TeneobioMember2022-03-310000318154amgn:TeneobioMemberus-gaap:InProcessResearchAndDevelopmentMemberamgn:AMG340Member2022-03-310000318154amgn:RDTechnologyrightsMemberamgn:TeneobioMember2022-01-012022-03-310000318154us-gaap:LicensingAgreementsMemberamgn:TeneobioMember2022-01-012022-03-310000318154amgn:EnbrelMembercountry:US2022-01-012022-03-310000318154amgn:EnbrelMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:EnbrelMember2022-01-012022-03-310000318154amgn:EnbrelMembercountry:US2021-01-012021-03-310000318154amgn:EnbrelMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:EnbrelMember2021-01-012021-03-310000318154country:USamgn:ProliaMember2022-01-012022-03-310000318154amgn:ProliaMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:ProliaMember2022-01-012022-03-310000318154country:USamgn:ProliaMember2021-01-012021-03-310000318154amgn:ProliaMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:ProliaMember2021-01-012021-03-310000318154amgn:XgevaMembercountry:US2022-01-012022-03-310000318154amgn:XgevaMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:XgevaMember2022-01-012022-03-310000318154amgn:XgevaMembercountry:US2021-01-012021-03-310000318154amgn:XgevaMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:XgevaMember2021-01-012021-03-310000318154amgn:OtezlaMembercountry:US2022-01-012022-03-310000318154amgn:OtezlaMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:OtezlaMember2022-01-012022-03-310000318154amgn:OtezlaMembercountry:US2021-01-012021-03-310000318154amgn:OtezlaMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:OtezlaMember2021-01-012021-03-310000318154amgn:AranespMembercountry:US2022-01-012022-03-310000318154amgn:AranespMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:AranespMember2022-01-012022-03-310000318154amgn:AranespMembercountry:US2021-01-012021-03-310000318154amgn:AranespMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:AranespMember2021-01-012021-03-310000318154amgn:NeulastaMembercountry:US2022-01-012022-03-310000318154amgn:NeulastaMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:NeulastaMember2022-01-012022-03-310000318154amgn:NeulastaMembercountry:US2021-01-012021-03-310000318154amgn:NeulastaMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:NeulastaMember2021-01-012021-03-310000318154amgn:RepathaevolocumabMembercountry:US2022-01-012022-03-310000318154amgn:RepathaevolocumabMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:RepathaevolocumabMember2022-01-012022-03-310000318154amgn:RepathaevolocumabMembercountry:US2021-01-012021-03-310000318154amgn:RepathaevolocumabMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:RepathaevolocumabMember2021-01-012021-03-310000318154amgn:KyprolisMembercountry:US2022-01-012022-03-310000318154amgn:KyprolisMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:KyprolisMember2022-01-012022-03-310000318154amgn:KyprolisMembercountry:US2021-01-012021-03-310000318154amgn:KyprolisMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:KyprolisMember2021-01-012021-03-310000318154amgn:NplateMembercountry:US2022-01-012022-03-310000318154amgn:NplateMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:NplateMember2022-01-012022-03-310000318154amgn:NplateMembercountry:US2021-01-012021-03-310000318154amgn:NplateMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:NplateMember2021-01-012021-03-310000318154amgn:OtherProductsMembercountry:US2022-01-012022-03-310000318154amgn:OtherProductsMemberus-gaap:NonUsMember2022-01-012022-03-310000318154amgn:OtherProductsMember2022-01-012022-03-310000318154amgn:OtherProductsMembercountry:US2021-01-012021-03-310000318154amgn:OtherProductsMemberus-gaap:NonUsMember2021-01-012021-03-310000318154amgn:OtherProductsMember2021-01-012021-03-310000318154us-gaap:ProductMembercountry:US2022-01-012022-03-310000318154us-gaap:ProductMemberus-gaap:NonUsMember2022-01-012022-03-310000318154us-gaap:ProductMembercountry:US2021-01-012021-03-310000318154us-gaap:ProductMemberus-gaap:NonUsMember2021-01-012021-03-31xbrli:pure0000318154us-gaap:DomesticCountryMember2021-05-310000318154us-gaap:SubsequentEventMemberus-gaap:DomesticCountryMember2022-04-280000318154us-gaap:USTreasurySecuritiesMember2022-03-310000318154us-gaap:USTreasuryBillSecuritiesMember2022-03-310000318154us-gaap:MoneyMarketFundsMember2022-03-310000318154amgn:OtherShortTermInterestBearingSecuritiesMember2022-03-310000318154us-gaap:USTreasurySecuritiesMember2021-12-310000318154us-gaap:USTreasuryBillSecuritiesMember2021-12-310000318154us-gaap:MoneyMarketFundsMember2021-12-310000318154amgn:OtherShortTermInterestBearingSecuritiesMember2021-12-310000318154amgn:AvailableForSalesInvestmentsMember2022-03-310000318154amgn:AvailableForSalesInvestmentsMember2021-12-310000318154us-gaap:FairValueInputsLevel1Member2022-03-310000318154us-gaap:FairValueInputsLevel1Member2021-12-310000318154amgn:BeiGeneMember2021-12-310000318154amgn:BeiGeneMember2022-03-310000318154amgn:BeiGeneMember2022-01-012022-03-310000318154amgn:BeiGeneMember2021-01-012021-03-310000318154amgn:NeumoraTherapeuticsIncMember2021-09-300000318154amgn:NeumoraTherapeuticsIncMember2021-09-302021-09-300000318154amgn:NeumoraTherapeuticsIncMember2022-03-310000318154amgn:NeumoraTherapeuticsIncMember2021-12-310000318154amgn:NeumoraTherapeuticsIncMember2022-01-012022-03-310000318154us-gaap:FairValueMeasuredAtNetAssetValuePerShareMembersrt:PartnershipInterestMember2022-03-310000318154us-gaap:FairValueMeasuredAtNetAssetValuePerShareMembersrt:PartnershipInterestMember2021-12-310000318154us-gaap:FairValueMeasuredAtNetAssetValuePerShareMembersrt:PartnershipInterestMember2022-01-012022-03-310000318154us-gaap:FairValueMeasuredAtNetAssetValuePerShareMembersrt:PartnershipInterestMember2021-01-012021-03-310000318154us-gaap:DevelopedTechnologyRightsMember2022-03-310000318154us-gaap:DevelopedTechnologyRightsMember2021-12-310000318154us-gaap:LicensingAgreementsMember2022-03-310000318154us-gaap:LicensingAgreementsMember2021-12-310000318154us-gaap:MarketingRelatedIntangibleAssetsMember2022-03-310000318154us-gaap:MarketingRelatedIntangibleAssetsMember2021-12-310000318154amgn:AcquiredResearchAndDevelopmentTechnologyRightsMember2022-03-310000318154amgn:AcquiredResearchAndDevelopmentTechnologyRightsMember2021-12-310000318154us-gaap:InProcessResearchAndDevelopmentMember2022-03-310000318154us-gaap:InProcessResearchAndDevelopmentMember2021-12-310000318154amgn:ZeroPointFortyOnePercentSwissFrancBondsDueTwoThousandTwentyThreeMemberus-gaap:NotesPayableToBanksMember2022-03-31iso4217:CHF0000318154amgn:ZeroPointFortyOnePercentSwissFrancBondsDueTwoThousandTwentyThreeMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:TwoPointTwoFivePercentNotesDueTwoZeroTwoThreeMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:TwoPointTwoFivePercentNotesDueTwoZeroTwoThreeMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:ThreePointSixTwoFivePercentNotesDue2024Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:ThreePointSixTwoFivePercentNotesDue2024Member2021-12-310000318154amgn:OnePointNineZeroPercentNotesDueTwoZeroTwoFiveMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:OnePointNineZeroPercentNotesDueTwoZeroTwoFiveMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:ThreePointOneTwoFivePercentNotesDueTwoZeroTwoFiveMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:ThreePointOneTwoFivePercentNotesDueTwoZeroTwoFiveMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPercentEuroNotesDueTwoThousandTwentySixMember2022-03-31iso4217:EUR0000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPercentEuroNotesDueTwoThousandTwentySixMember2021-12-310000318154amgn:TwoPointSixZeroNotesDueTwoZeroTwoSixMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:TwoPointSixZeroNotesDueTwoZeroTwoSixMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:FivePointFiveZeroPercentPoundSterlingNotesDue2026Memberus-gaap:NotesPayableToBanksMember2022-03-31iso4217:GBP0000318154amgn:FivePointFiveZeroPercentPoundSterlingNotesDue2026Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:TwoPointTwoZeroPercentNotesDueTwoZeroTwoSevenMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:TwoPointTwoZeroPercentNotesDueTwoZeroTwoSevenMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:ThreePointTwoZeroNotesDue2027Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:ThreePointTwoZeroNotesDue2027Member2021-12-310000318154amgn:OnePointSixFivePercent2028NotesMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:OnePointSixFivePercent2028NotesMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:A3002029NotesMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:A3002029NotesMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:FourPercentPoundSterlingNotesDue2029Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FourPercentPoundSterlingNotesDue2029Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointFourFivePercentNotesDue2030Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointFourFivePercentNotesDue2030Member2021-12-310000318154amgn:TwoPointThreeZeroPercentNotesDue2031Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:TwoPointThreeZeroPercentNotesDue2031Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointZeroPercent2032NotesMemberMember2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointZeroPercent2032NotesMemberMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:A3352032NotesMember2022-03-310000318154amgn:SixPointThreeSevenFivePercentNotesDue2037Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:SixPointThreeSevenFivePercentNotesDue2037Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:SixPointNineZeroPercentNotesDue2038Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:SixPointNineZeroPercentNotesDue2038Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:SixPointFourZeroPercentNotesDue2039Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:SixPointFourZeroPercentNotesDue2039Member2021-12-310000318154amgn:ThreePointOneFivePercentNotesDue2040Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:ThreePointOneFivePercentNotesDue2040Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:FivePointSevenFivePercentNotesDue2040Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FivePointSevenFivePercentNotesDue2040Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:A2802041NotesMember2022-03-310000318154amgn:TwoPointEightZeroPercent2041NotesMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:TwoPointEightZeroPercent2041NotesMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:FourPointNineFivePercentNotesDue2041Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:FourPointNineFivePercentNotesDue2041Member2021-12-310000318154amgn:FivePointOneFivePercentNotesDue2041Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FivePointOneFivePercentNotesDue2041Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:FivePointSixFivePercentNotesDue2042Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:FivePointSixFivePercentNotesDue2042Member2021-12-310000318154amgn:FivePointThreeSevenFivePercentNotesDue2043Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FivePointThreeSevenFivePercentNotesDue2043Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:FourPointFourZeroPercentNotesDueTwoZeroFourFiveMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FourPointFourZeroPercentNotesDueTwoZeroFourFiveMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:FourPointFiveSixThreePercentNotesDueTwoZeroFourEightMember2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:FourPointFiveSixThreePercentNotesDueTwoZeroFourEightMember2021-12-310000318154amgn:ThreePointThreeSevenFivePercentNotesDue2050Memberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:ThreePointThreeSevenFivePercentNotesDue2050Memberus-gaap:NotesPayableToBanksMember2021-12-310000318154amgn:FourPointSixSixThreePercentNotesDueTwoZeroFiveOneMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:FourPointSixSixThreePercentNotesDueTwoZeroFiveOneMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:A300NotesDue20523002052NotesMember2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:A300NotesDue20523002052NotesMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:A4202052NotesMember2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:A4202052NotesMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointSevenSevenPercentNotesDueTwoZeroFiveThreeMember2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:TwoPointSevenSevenPercentNotesDueTwoZeroFiveThreeMember2021-12-310000318154amgn:A4402062NotesMemberus-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:A4402062NotesMemberus-gaap:NotesPayableToBanksMember2021-12-310000318154us-gaap:NotesPayableToBanksMemberamgn:OtherNotesDue2097Member2022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:OtherNotesDue2097Member2021-12-310000318154us-gaap:NotesPayableToBanksMember2022-03-310000318154amgn:A3002029NotesMemberus-gaap:NotesPayableToBanksMember2022-01-012022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:A3352032NotesMember2022-01-012022-03-310000318154us-gaap:NotesPayableToBanksMemberamgn:A4202052NotesMember2022-01-012022-03-310000318154amgn:A4402062NotesMemberus-gaap:NotesPayableToBanksMember2022-01-012022-03-310000318154srt:MinimumMemberus-gaap:DebtSecuritiesPayableMember2022-01-012022-03-310000318154srt:MaximumMemberus-gaap:DebtSecuritiesPayableMember2022-01-012022-03-3100003181542020-01-012020-03-310000318154amgn:AcceleratedStockRepurchaseAgreementMember2022-02-24amgn:financial_institution0000318154amgn:AcceleratedStockRepurchaseAgreementMember2022-02-252022-02-250000318154us-gaap:RetainedEarningsMemberamgn:AcceleratedStockRepurchaseAgreementMember2022-02-252022-02-250000318154amgn:AcceleratedStockRepurchaseAgreementMemberus-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-02-252022-02-250000318154srt:ScenarioForecastMember2022-06-012022-06-3000003181542022-03-012022-03-3100003181542021-12-012021-12-310000318154us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000318154us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000318154amgn:AccumulatedOtherAdjustmentAttributabletoParentMember2021-12-310000318154us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310000318154us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000318154amgn:AccumulatedOtherAdjustmentAttributabletoParentMember2022-01-012022-03-310000318154us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310000318154us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000318154amgn:AccumulatedOtherAdjustmentAttributabletoParentMember2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberamgn:CrossCurrencySwapContractsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberamgn:CrossCurrencySwapContractsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-03-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryBillSecuritiesMember2022-03-310000318154us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryBillSecuritiesMember2022-03-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryBillSecuritiesMember2022-03-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2022-03-310000318154us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2022-03-310000318154us-gaap:FairValueInputsLevel1Memberamgn:OtherShortTermInterestBearingSecuritiesMember2022-03-310000318154amgn:OtherShortTermInterestBearingSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:FairValueInputsLevel3Memberamgn:OtherShortTermInterestBearingSecuritiesMember2022-03-310000318154us-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:FairValueInputsLevel3Member2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-03-310000318154us-gaap:ForeignExchangeContractMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel1Member2022-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel3Member2022-03-310000318154amgn:CrossCurrencySwapContractsMember2022-03-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2022-03-310000318154us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2022-03-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2022-03-310000318154us-gaap:InterestRateSwapMember2022-03-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryBillSecuritiesMember2021-12-310000318154us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryBillSecuritiesMember2021-12-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryBillSecuritiesMember2021-12-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-12-310000318154us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-12-310000318154us-gaap:FairValueInputsLevel1Memberamgn:OtherShortTermInterestBearingSecuritiesMember2021-12-310000318154amgn:OtherShortTermInterestBearingSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:FairValueInputsLevel3Memberamgn:OtherShortTermInterestBearingSecuritiesMember2021-12-310000318154us-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:FairValueInputsLevel3Member2021-12-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2021-12-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2021-12-310000318154us-gaap:ForeignExchangeContractMember2021-12-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel1Member2021-12-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000318154amgn:CrossCurrencySwapContractsMember2021-12-310000318154us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2021-12-310000318154us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2021-12-310000318154us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2021-12-310000318154us-gaap:InterestRateSwapMember2021-12-310000318154amgn:TeneobioIncMember2021-12-310000318154amgn:TeneobioIncMember2022-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2022-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2021-12-310000318154amgn:CrossCurrencySwapContractsMemberamgn:ZeroPointFortyOnePercentSwissFrancBondsDueTwoThousandTwentyThreeMemberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:ZeroPointFortyOnePercentSwissFrancBondsDueTwoThousandTwentyThreeMembercurrency:CHFus-gaap:CashFlowHedgingMember2022-03-310000318154currency:USDamgn:CrossCurrencySwapContractsMemberamgn:ZeroPointFortyOnePercentSwissFrancBondsDueTwoThousandTwentyThreeMemberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:TwoPercentEuroNotesDueTwoThousandTwentySixMemberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMembercurrency:EURamgn:TwoPercentEuroNotesDueTwoThousandTwentySixMemberus-gaap:CashFlowHedgingMember2022-03-310000318154currency:USDamgn:CrossCurrencySwapContractsMemberamgn:TwoPercentEuroNotesDueTwoThousandTwentySixMemberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:FivePointFiveZeroPercentPoundSterlingNotesDue2026Memberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:FivePointFiveZeroPercentPoundSterlingNotesDue2026Membercurrency:GBPus-gaap:CashFlowHedgingMember2022-03-310000318154currency:USDamgn:CrossCurrencySwapContractsMemberamgn:FivePointFiveZeroPercentPoundSterlingNotesDue2026Memberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:FourPercentPoundSterlingNotesDue2029Memberus-gaap:CashFlowHedgingMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberamgn:FourPercentPoundSterlingNotesDue2029Membercurrency:GBPus-gaap:CashFlowHedgingMember2022-03-310000318154currency:USDamgn:CrossCurrencySwapContractsMemberamgn:FourPercentPoundSterlingNotesDue2029Memberus-gaap:CashFlowHedgingMember2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000318154us-gaap:CashFlowHedgingMember2022-01-012022-03-310000318154us-gaap:CashFlowHedgingMember2021-01-012021-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-12-310000318154amgn:LongTermDebtCurrentMaturitiesMember2022-03-310000318154amgn:LongTermDebtCurrentMaturitiesMember2021-12-310000318154us-gaap:LongTermDebtMember2022-03-310000318154us-gaap:LongTermDebtMember2021-12-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMember2022-01-012022-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberamgn:CrossCurrencySwapContractsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000318154us-gaap:InterestRateSwapMember2022-01-012022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMember2021-01-012021-03-310000318154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberamgn:CrossCurrencySwapContractsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000318154us-gaap:InterestRateSwapMember2021-01-012021-03-310000318154us-gaap:NondesignatedMemberus-gaap:ForwardContractsMember2022-03-310000318154us-gaap:NondesignatedMemberus-gaap:ForwardContractsMember2021-12-310000318154amgn:OtherCurrentNoncurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2022-03-310000318154amgn:OtherCurrentNoncurrentAssetsMemberamgn:CrossCurrencySwapContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2022-03-310000318154amgn:OtherCurrentNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2022-03-310000318154us-gaap:DesignatedAsHedgingInstrumentMember2022-03-310000318154amgn:OtherCurrentNoncurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000318154us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2021-12-310000318154amgn:OtherCurrentNoncurrentAssetsMemberamgn:CrossCurrencySwapContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000318154amgn:CrossCurrencySwapContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2021-12-310000318154amgn:OtherCurrentNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-12-310000318154us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberamgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember2021-12-310000318154us-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000318154amgn:SensiparAntitrustClassActionsMember2022-03-112022-03-11amgn:claim
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| | | | | |
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2022
or
| | | | | |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 001-37702
Amgen Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
Delaware | | 95-3540776 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
| |
One Amgen Center Drive | | 91320-1799 |
Thousand Oaks | |
California | |
(Address of principal executive offices) | | (Zip Code) |
(805) 447-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, $0.0001 par value | AMGN | The Nasdaq Stock Market LLC |
2.00% Senior Notes due 2026 | AMGN26 | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | |
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ |
Smaller reporting company | ☐ | Emerging growth company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
As of April 22, 2022, the registrant had 534,199,933 shares of common stock, $0.0001 par value, outstanding.
AMGEN INC.
INDEX
| | | | | | | | |
| | Page No. |
| | |
| |
Item 1. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
| |
Item 1. | | |
Item 1A. | | |
Item 2. | | |
Item 6. | | |
| |
| |
Defined Terms and Products
Defined terms
We use several terms in this Form 10-Q—including but not limited to those that are finance, regulation and disease-state related as well as names of other companies, which are given below.
| | | | | | | | | |
Term | Description | | | | |
| | | | | |
ANDA | Abbreviated New Drug Application | | | | |
AOCI | accumulated other comprehensive income (loss) | | | | |
ASR | accelerated share repurchase | | | | |
BeiGene | BeiGene, Ltd. | | | | |
BiTE® | bispecific T-cell engager | | | | |
COVID-19 | coronavirus disease 2019 | | | | |
EPS | earnings per share | | | | |
ESA | erythropoiesis-stimulating agent | | | | |
EU | European Union | | | | |
FASB | Financial Accounting Standards Board | | | | |
FDA | U.S. Food and Drug Administration | | | | |
Fitch | Fitch Ratings, Inc. | | | | |
GAAP | U.S. generally accepted accounting principles | | | | |
HGRAC | Human Genetic Resources Administration of China | | | | |
IPR&D | in-process research and development | | | | |
IRS | Internal Revenue Service | | | | |
LIBOR | London Interbank Offered Rate | | | | |
mCRPC | metastatic castration-resistant prostate cancer | | | | |
MD&A | management’s discussion and analysis | | | | |
Moody’s | Moody’s Investors Service, Inc. | | | | |
Neumora | Neumora Therapeutics, Inc. | | | | |
NSCLC | non-small cell lung cancer | | | | |
OECD | Organization for Economic Co-operation and Development | | | | |
ORR | objective response rate | | | | |
PFS | progression-free survival | | | | |
PTAB | Patent Trial and Appeal Board | | | | |
R&D | research and development | | | | |
RAR | Revenue Agent Report | | | | |
ROW | rest of world | | | | |
S&P | Standard & Poor’s Financial Services LLC | | | | |
SEC | U.S. Securities and Exchange Commission | | | | |
SOFR | Secured Overnight Financing Rate | | | | |
SG&A | selling, general and administrative | | | | |
Teneobio | Teneobio, Inc. | | | | |
U.S. Treasury | U.S. Department of Treasury | | | | |
UTB | unrecognized tax benefit | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Products
The brand names of our products, our delivery devices and certain of our product candidates and their associated generic names are given below.
| | | | | | | | |
Term | | Description |
Aimovig | | Aimovig® (erenumab-aooe) |
AMGEVITA | | AMGEVITA™ (adalimumab) |
Aranesp | | Aranesp® (darbepoetin alfa) |
BLINCYTO | | BLINCYTO® (blinatumomab) |
ENBREL | | Enbrel® (etanercept) |
EPOGEN | | EPOGEN® (epoetin alfa) |
EVENITY | | EVENITY® (romosozumab-aqqg) |
KANJINTI | | KANJINTI® (trastuzumab-anns) |
KYPROLIS | | KYPROLIS® (carfilzomib) |
LUMAKRAS/LUMYKRAS | | LUMAKRAS® / LUMYKRAS™ (sotorasib) |
MVASI | | MVASI® (bevacizumab-awwb) |
Neulasta | | Neulasta® (pegfilgrastim) |
NEUPOGEN | | NEUPOGEN® (filgrastim) |
Nplate | | Nplate® (romiplostim) |
Onpro | | Onpro® |
Otezla | | Otezla® (apremilast) |
Parsabiv | | Parsabiv® (etelcalcetide) |
Prolia | | Prolia® (denosumab) |
Repatha | | Repatha® (evolocumab) |
Sensipar/Mimpara | | Sensipar®/Mimpara™ (cinacalcet) |
TEZSPIRE | | TEZSPIRE™ (tezepelumab-ekko) |
Vectibix | | Vectibix® (panitumumab) |
XGEVA | | XGEVA® (denosumab) |
PART I — FINANCIAL INFORMATION
| | | | | |
Item 1. | FINANCIAL STATEMENTS |
AMGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per-share data)
(Unaudited)
| | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
| 2022 | | 2021 | | | | |
Revenues: | | | | | | | |
Product sales | $ | 5,731 | | | $ | 5,592 | | | | | |
Other revenues | 507 | | | 309 | | | | | |
Total revenues | 6,238 | | | 5,901 | | | | | |
| | | | | | | |
Operating expenses: | | | | | | | |
Cost of sales | 1,561 | | | 1,490 | | | | | |
Research and development | 959 | | | 967 | | | | | |
| | | | | | | |
Selling, general and administrative | 1,228 | | | 1,254 | | | | | |
Other | (10) | | | 61 | | | | | |
Total operating expenses | 3,738 | | | 3,772 | | | | | |
| | | | | | | |
Operating income | 2,500 | | | 2,129 | | | | | |
| | | | | | | |
Other income (expense): | | | | | | | |
Interest expense, net | (295) | | | (285) | | | | | |
Other (expense) income, net | (530) | | | 13 | | | | | |
| | | | | | | |
Income before income taxes | 1,675 | | | 1,857 | | | | | |
| | | | | | | |
Provision for income taxes | 199 | | | 211 | | | | | |
| | | | | | | |
Net income | $ | 1,476 | | | $ | 1,646 | | | | | |
| | | | | | | |
Earnings per share: | | | | | | | |
Basic | $ | 2.69 | | | $ | 2.85 | | | | | |
Diluted | $ | 2.68 | | | $ | 2.83 | | | | | |
| | | | | | | |
Shares used in calculation of earnings per share: | | | | | | | |
Basic | 548 | | | 577 | | | | | |
Diluted | 551 | | | 581 | | | | | |
See accompanying notes.
AMGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
| | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
| 2022 | | 2021 | | | | |
Net income | $ | 1,476 | | | $ | 1,646 | | | | | |
Other comprehensive income, net of reclassification adjustments and taxes: | | | | | | | |
Foreign currency translation | (51) | | | (39) | | | | | |
Cash flow hedges | 84 | | | 190 | | | | | |
| | | | | | | |
Other | — | | | 1 | | | | | |
Other comprehensive income, net of reclassification adjustments and taxes | 33 | | | 152 | | | | | |
Comprehensive income | $ | 1,509 | | | $ | 1,798 | | | | | |
See accompanying notes.
AMGEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per-share data)
| | | | | | | | | | | |
| March 31, 2022 | | December 31, 2021 |
| (Unaudited) | | |
ASSETS |
Current assets: | | | |
Cash and cash equivalents | $ | 6,528 | | | $ | 7,989 | |
Marketable securities | 16 | | | 48 | |
Trade receivables, net | 5,077 | | | 4,895 | |
Inventories | 4,411 | | | 4,086 | |
Other current assets | 2,488 | | | 2,367 | |
Total current assets | 18,520 | | | 19,385 | |
| | | |
Property, plant and equipment, net | 5,142 | | | 5,184 | |
Intangible assets, net | 14,567 | | | 15,182 | |
Goodwill | 14,897 | | | 14,890 | |
Other noncurrent assets | 6,070 | | | 6,524 | |
Total assets | $ | 59,196 | | | $ | 61,165 | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: | | | |
Accounts payable | $ | 1,403 | | | $ | 1,366 | |
Accrued liabilities | 10,639 | | | 10,731 | |
Current portion of long-term debt | 844 | | | 87 | |
Total current liabilities | 12,886 | | | 12,184 | |
| | | |
Long-term debt | 36,010 | | | 33,222 | |
Long-term tax liabilities | 6,652 | | | 6,594 | |
Other noncurrent liabilities | 2,732 | | | 2,465 | |
| | | |
Contingencies and commitments | | | |
| | | |
Stockholders’ equity: | | | |
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding—534.2 shares in 2022 and 558.3 shares in 2021 | 31,247 | | | 32,096 | |
Accumulated deficit | (29,568) | | | (24,600) | |
Accumulated other comprehensive loss | (763) | | | (796) | |
Total stockholders’ equity | 916 | | | 6,700 | |
Total liabilities and stockholders’ equity | $ | 59,196 | | | $ | 61,165 | |
See accompanying notes.
AMGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions, except per-share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Number of shares of common stock | | Common stock and additional paid-in capital | | Accumulated deficit | | Accumulated other comprehensive loss | | Total |
Balance as of December 31, 2021 | 558.3 | | | $ | 32,096 | | | $ | (24,600) | | | $ | (796) | | | $ | 6,700 | |
| | | | | | | | | |
Net income | — | | | — | | | 1,476 | | | — | | | 1,476 | |
Other comprehensive income, net of taxes | — | | | — | | | — | | | 33 | | | 33 | |
Dividends declared on common stock ($1.94 per share) | — | | | — | | | (1,034) | | | — | | | (1,034) | |
Issuance of common stock in connection with the Company’s equity award programs | 0.5 | | | 18 | | | — | | | — | | | 18 | |
Stock-based compensation expense | — | | | 78 | | | — | | | — | | | 78 | |
Tax impact related to employee stock-based compensation expense | — | | | (45) | | | — | | | — | | | (45) | |
Repurchases of common stock (Note 10) | (24.6) | | | (900) | | | (5,410) | | | — | | | (6,310) | |
Balance as of March 31, 2022 | 534.2 | | | $ | 31,247 | | | $ | (29,568) | | | $ | (763) | | | $ | 916 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Number of shares of common stock | | Common stock and additional paid-in capital | | Accumulated deficit | | Accumulated other comprehensive loss | | Total |
Balance as of December 31, 2020 | 578.3 | | | $ | 31,802 | | | $ | (21,408) | | | $ | (985) | | | $ | 9,409 | |
| | | | | | | | | |
Net income | — | | | — | | | 1,646 | | | — | | | 1,646 | |
Other comprehensive income, net of taxes | — | | | — | | | — | | | 152 | | | 152 | |
Dividends declared on common stock ($1.76 per share) | — | | | — | | | (1,012) | | | — | | | (1,012) | |
Issuance of common stock in connection with the Company’s equity award programs | 0.7 | | | 6 | | | — | | | — | | | 6 | |
Stock-based compensation expense | — | | | 57 | | | — | | | — | | | 57 | |
Tax impact related to employee stock-based compensation expense | — | | | (59) | | | — | | | — | | | (59) | |
Repurchases of common stock | (3.7) | | | — | | | (865) | | | — | | | (865) | |
Balance as of March 31, 2021 | 575.3 | | | $ | 31,806 | | | $ | (21,639) | | | $ | (833) | | | $ | 9,334 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
See accompanying notes.
AMGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| | | | | | | | | | | |
| Three months ended March 31, |
| 2022 | | 2021 |
Cash flows from operating activities: | | | |
Net income | $ | 1,476 | | | $ | 1,646 | |
Depreciation, amortization and other | 841 | | | 841 | |
Deferred income taxes | (251) | | | (91) | |
| | | |
Adjustments for equity method investments | 305 | | | (85) | |
Other items, net | 240 | | | 164 | |
Changes in operating assets and liabilities, net of acquisitions: | | | |
Trade receivables, net | (195) | | | 91 | |
Inventories | (230) | | | (126) | |
Other assets | (43) | | | (146) | |
Accounts payable | 42 | | | (29) | |
Accrued income taxes, net | 318 | | | 52 | |
Long-term tax liabilities | 57 | | | 69 | |
Other liabilities | (396) | | | (282) | |
Net cash provided by operating activities | 2,164 | | | 2,104 | |
Cash flows from investing activities: | | | |
| | | |
Purchases of marketable securities | — | | | (7,597) | |
Proceeds from sales of marketable securities | — | | | 3,999 | |
Proceeds from maturities of marketable securities | 32 | | | 3,524 | |
| | | |
Purchases of property, plant and equipment | (190) | | | (166) | |
| | | |
Other | 47 | | | (79) | |
Net cash used in investing activities | (111) | | | (319) | |
Cash flows from financing activities: | | | |
Net proceeds from issuance of debt | 3,952 | | | — | |
| | | |
| | | |
Repurchases of common stock (Note 10) | (6,360) | | | (871) | |
Dividends paid | (1,080) | | | (1,016) | |
| | | |
Other | (26) | | | (52) | |
Net cash used in financing activities | (3,514) | | | (1,939) | |
Decrease in cash and cash equivalents | (1,461) | | | (154) | |
Cash and cash equivalents at beginning of period | 7,989 | | | 6,266 | |
Cash and cash equivalents at end of period | $ | 6,528 | | | $ | 6,112 | |
See accompanying notes.
AMGEN INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
(Unaudited)
1. Summary of significant accounting policies
Business
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics.
Basis of presentation
The financial information for the three months ended March 31, 2022 and 2021, is unaudited but includes all adjustments (consisting of only normal, recurring adjustments unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year.
The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2021.
Principles of consolidation
The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. In determining whether we are the primary beneficiary of a variable interest entity, we consider whether we have both the power to direct activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of or the right to receive benefits from the entity that could potentially be significant to that entity. We do not have any significant interests in any variable interest entities of which we are the primary beneficiary. All material intercompany transactions and balances have been eliminated in consolidation.
Use of estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates.
Property, plant and equipment, net
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $8.9 billion and $8.8 billion as of March 31, 2022 and December 31, 2021, respectively.
Recent accounting pronouncements
In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens caused by the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity is permitted to change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022. In January 2021, the FASB issued a new accounting standard that expanded the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We do not expect the two standards to have a material impact on our condensed consolidated financial statements.
In November 2021, the FASB issued a new accounting standard around the recognition and measurement of contract assets and contract liabilities from revenue contracts with customers acquired in a business combination. The new standard clarifies that contract assets and contract liabilities acquired in a business combination from an acquiree should initially be recognized by applying revenue recognition principles and not at fair value. The standard is effective for interim and annual periods beginning on January 1, 2023, and early adoption is permitted. The impact of this standard will depend on the facts and circumstances of future transactions.
2. Acquisitions
Teneobio, Inc.
On October 19, 2021, we acquired all of the outstanding stock of Teneobio, a privately held, clinical-stage biotechnology company developing a new class of biologics called human heavy-chain antibodies, which are single-chain antibodies composed of the human heavy-chain domain. The transaction, which was accounted for as a business combination, includes Teneobio’s proprietary bispecific and multispecific antibody technologies, which complement Amgen’s existing antibody capabilities and BiTE® platform and will enable significant acceleration and efficiency in the discovery and development of new molecules to treat diseases across Amgen’s core therapeutic areas. Upon its acquisition, Teneobio became a wholly owned subsidiary of Amgen, and its operations have been included in our condensed consolidated financial statements commencing on the acquisition date.
Measurement period adjustments for the three months ended March 31, 2022, included changes to the purchase price allocation and total consideration, resulting in a net increase of $22 million to goodwill. The measurement period adjustments resulted primarily from valuation inputs pertaining to certain acquired assets based on facts and circumstances that existed as of the acquisition date and did not result from events subsequent to the acquisition date. These adjustments did not have a significant impact on Amgen’s results of operations for the three months ended March 31, 2022, and would not have had a significant impact on prior-period results if these adjustments had been made as of the acquisition date. The following table summarizes the total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed, inclusive of measurement period adjustments (in millions):
| | | | | | | | |
| | Amounts |
Cash purchase price | | $ | 993 | |
Contingent consideration | | 299 | |
Total consideration | | $ | 1,292 | |
| | |
Cash and cash equivalents | | $ | 100 | |
IPR&D | | 991 | |
Finite-lived intangible asset – R&D technology rights | | 115 | |
Finite-lived intangible assets – licensing rights | | 41 | |
Goodwill | | 273 | |
Other assets, net | | 16 | |
Deferred tax liability | | (244) | |
Total assets acquired, net | | $ | 1,292 | |
The consideration for this transaction comprised (i) an upfront cash payment of $993 million, which included a working-capital adjustment, and (ii) future contingent milestone payments to Teneobio’s former equity holders of up to $1.6 billion in cash, based on the achievement of various development and regulatory milestones with regard to the leading asset (AMG 340, formerly TNB-585) and to various development milestones for other drug candidates. The estimated fair values of the contingent consideration obligations aggregated $299 million as of the acquisition date and were determined using a probability-weighted expected return methodology. The assumptions in this method include the probability of achieving the milestones and the expected payment dates, with such amounts discounted to present value based on our pre-tax cost of debt. See Note 11, Fair value measurement, for information regarding the estimated fair value of these obligations as of March 31, 2022.
The estimated fair values of acquired IPR&D assets totaled $991 million, of which $784 million relates to AMG 340, that is in a phase 1 clinical trial for the treatment of mCRPC, and the balance relates to four separate preclinical oncology programs. The R&D technology rights of $115 million relate to Teneobio’s proprietary bispecific and multispecific antibody technologies and will be amortized over 10 years using the straight-line method. Teneobio has also licensed its technology and certain identified targets to various third parties, representing contractual agreements valued at $41 million. The estimated fair values for these intangible assets were determined using a multi-period excess earnings income approach that discounts expected future cash flows to present value by applying a discount rate that represents the estimated rate that market participants would use to value the intangible assets. The projected cash flows were based on certain assumptions attributable to the respective intangible asset, including estimates of future revenues and expenses, the time and resources needed to complete development and the probabilities of obtaining marketing approval from the FDA and other regulatory agencies.
A deferred tax liability of $244 million was recognized on the temporary differences related to the book bases and tax bases of the acquired identifiable assets and assumed liabilities, primarily driven by the intangible assets acquired.
The excess of the acquisition date consideration over the fair values assigned to the assets acquired and the liabilities assumed of $273 million was recorded as goodwill, which is not deductible for tax purposes. The goodwill value represents expected synergies from both AMG 340 and the technologies acquired.
Our accounting for this acquisition is preliminary and will be finalized upon completion of our analysis to determine the acquisition date fair values of certain assets acquired, liabilities assumed and tax-related items as we obtain additional information during the measurement period of up to one year from the acquisition date.
3. Revenues
We operate in one business segment: human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Revenues by product and by geographic area, based on customers’ locations, are presented below. The majority of ROW revenues relates to products sold in Europe.
Revenues were as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended March 31, |
| | 2022 | | 2021 |
| | U.S. | | ROW | | Total | | U.S. | | ROW | | Total |
Enbrel | | $ | 843 | | | $ | 19 | | | $ | 862 | | | $ | 894 | | | $ | 30 | | | $ | 924 | |
Prolia | | 582 | | | 270 | | | 852 | | | 501 | | | 257 | | | 758 | |
XGEVA | | 368 | | | 134 | | | 502 | | | 334 | | | 134 | | | 468 | |
Otezla | | 350 | | | 101 | | | 451 | | | 366 | | | 110 | | | 476 | |
Aranesp | | 137 | | | 221 | | | 358 | | | 125 | | | 230 | | | 355 | |
Neulasta | | 304 | | | 44 | | | 348 | | | 421 | | | 61 | | | 482 | |
Repatha | | 165 | | | 164 | | | 329 | | | 139 | | | 147 | | | 286 | |
KYPROLIS | | 196 | | | 91 | | | 287 | | | 159 | | | 92 | | | 251 | |
Nplate | | 156 | | | 110 | | | 266 | | | 112 | | | 115 | | | 227 | |
Other products | | 936 | | | 540 | | | 1,476 | | | 852 | | | 513 | | | 1,365 | |
Total product sales(1) | | $ | 4,037 | | | $ | 1,694 | | | 5,731 | | | $ | 3,903 | | | $ | 1,689 | | | 5,592 | |
Other revenues | | | | | | 507 | | | | | | | 309 | |
Total revenues | | | | | | $ | 6,238 | | | | | | | $ | 5,901 | |
| | | | | | | | | | | | |
| | |
| | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
____________
(1) Hedging gains and losses, which are included in product sales, were not material for the three months ended March 31, 2022 and 2021.
4. Income taxes
The effective tax rates for the three months ended March 31, 2022 and 2021, were 11.9% and 11.4%, respectively.
The increase in our effective tax rate for the three months ended March 31, 2022, was primarily due to current year net unfavorable items compared to last year, offset by changes in earnings mix. The effective tax rates differ from the federal statutory rate primarily as a result of foreign earnings from the Company’s operations conducted in Puerto Rico, a territory of the United States treated as a foreign jurisdiction for U.S. tax purposes, that are subject to a tax incentive grant through 2035. In addition, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2034. These foreign earnings are also subject to U.S. tax at a reduced rate of 10.5%.
The U.S. territory of Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturer in Puerto Rico. The rate of 4% is effective through December 31, 2027. We account for the excise tax as a manufacturing cost that is capitalized in inventory and expensed in cost of sales when the related products are sold. For U.S. income tax purposes, in 2022 the excise tax results in foreign tax credits that are generally recognized in our provision for income taxes when the excise tax is incurred.
One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely examined by tax authorities in those jurisdictions. Significant disputes can and have arisen with tax authorities involving issues regarding the timing and amount of deductions, the use of tax credits and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws, regulations and relevant facts. Tax authorities (including the IRS) are becoming more aggressive and are particularly focused on such matters.
In 2017, we received an RAR and a modified RAR from the IRS for the years 2010, 2011 and 2012 proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. We disagreed with the proposed adjustments and calculations and pursued resolution with the IRS appeals office but were unable to reach resolution. In July 2021, we filed a petition in the U.S. Tax Court to contest two duplicate Statutory Notices of Deficiency (Notices) for 2010, 2011 and 2012 that we received in May and July 2021, which seek to increase our U.S. taxable income for 2010-2012 by an amount that would result in additional federal tax of approximately $3.6 billion plus interest. Any additional tax that could be imposed for 2010-2012 would be reduced by up to approximately $900 million of repatriation tax previously accrued on our foreign earnings.
In 2020, we received an RAR and a modified RAR from the IRS for the years 2013, 2014 and 2015, also proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico similar to those proposed for the years 2010, 2011 and 2012. We disagreed with the proposed adjustments and calculations and pursued resolution with the IRS appeals office but were unable to reach resolution. In April 2022, we received a Notice that seeks to increase our U.S. taxable income for 2013-2015 by an amount that would result in additional federal tax of approximately $5.1 billion, plus interest. In addition, the Notice asserts penalties of approximately $2.0 billion. Any additional tax that could be imposed for 2013-2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued on our foreign earnings.
We firmly believe that the IRS positions set forth in the 2010-2012 and 2013-2015 Notices are without merit. We are contesting the 2010-2012 Notices through the judicial process, and we expect to file a Petition in the U.S. Tax Court to contest the 2013-2015 Notice through the judicial process. We will seek consolidation of the two periods into one case in Tax Court.
We are also currently under examination by the IRS for the years 2016, 2017 and 2018 and by a number of state and foreign tax jurisdictions.
Final resolution of these complex matters is not likely within the next 12 months. We believe our accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law, application of the tax law to our facts and judgments about potential actions by tax authorities; however, due to the complexity of the provision for income taxes and uncertain resolution of these matters, the ultimate outcome of any tax matters may result in payments substantially greater than amounts accrued and could have a material adverse impact on our condensed consolidated financial statements.
We are no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2009.
See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Income Taxes for further discussion and Part II, Item 1A, Risk Factors—The adoption and interpretation of new tax legislation or exposure to additional tax liabilities could affect our profitability.
During the three months ended March 31, 2022, the gross amounts of our UTBs increased $45 million, as a result of tax positions taken during the current year. Substantially all of the UTBs as of March 31, 2022, if recognized, would affect our effective tax rate.
5. Earnings per share
The computation of basic EPS is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.
The computations for basic and diluted EPS were as follows (in millions, except per-share data):
| | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
| 2022 | | 2021 | | | | |
Income (Numerator): | | | | | | | |
Net income for basic and diluted EPS | $ | 1,476 | | | $ | 1,646 | | | | | |
| | | | | | | |
Shares (Denominator): | | | | | | | |
Weighted-average shares for basic EPS | 548 | | | 577 | | | | | |
Effect of dilutive securities | 3 | | | 4 | | | | | |
Weighted-average shares for diluted EPS | 551 | | | 581 | | | | | |
| | | | | | | |
Basic EPS | $ | 2.69 | | | $ | 2.85 | | | | | |
Diluted EPS | $ | 2.68 | | | $ | 2.83 | | | | | |
For the three months ended March 31, 2022 and 2021, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant.
6. Investments
Available-for-sale investments
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Types of securities as of March 31, 2022 | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair values |
U.S. Treasury notes | | $ | 16 | | | $ | — | | | $ | — | | | $ | 16 | |
U.S. Treasury bills | | — | | | — | | | — | | | — | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Money market mutual funds | | 5,837 | | | — | | | — | | | 5,837 | |
Other short-term interest-bearing securities | | — | | | — | | | — | | | — | |
| | | | | | | | |
| | | | | | | | |
Total interest-bearing securities | | $ | 5,853 | | | $ | — | | | $ | — | | | $ | 5,853 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Types of securities as of December 31, 2021 | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair values |
U.S. Treasury notes | | $ | 47 | | | $ | — | | | $ | — | | | $ | 47 | |
U.S. Treasury bills | | 1,400 | | | — | | | — | | | 1,400 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Money market mutual funds | | 5,856 | | | — | | | — | | | 5,856 | |
Other short-term interest-bearing securities | | 1 | | | — | | | — | | | 1 | |
Total interest-bearing securities | | $ | 7,304 | | | $ | — | | | $ | — | | | $ | 7,304 | |
The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions):
| | | | | | | | | | | | | | |
Condensed Consolidated Balance Sheets locations | | March 31, 2022 | | December 31, 2021 |
Cash and cash equivalents | | $ | 5,837 | | | $ | 7,256 | |
Marketable securities | | 16 | | | 48 | |
Total interest-bearing securities | | $ | 5,853 | | | $ | 7,304 | |
Cash and cash equivalents in the above table excludes bank account cash of $691 million and $733 million as of March 31, 2022 and December 31, 2021, respectively.
The fair values of available-for-sale investments by contractual maturity were as follows (in millions):
| | | | | | | | | | | | | | |
Contractual maturities | | March 31, 2022 | | December 31, 2021 |
Maturing in one year or less | | $ | 5,853 | | | $ | 7,304 | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total available-for-sale investments | | $ | 5,853 | | | $ | 7,304 | |
For the three months ended March 31, 2022 and 2021, realized gains and losses on interest-bearing securities were not material. Realized gains and losses on interest-bearing securities are recorded in Other (expense) income, net, in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method.
The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.
Equity securities
We held investments in equity securities with readily determinable fair values (publicly traded securities) of $473 million and $611 million as of March 31, 2022 and December 31, 2021, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. For the three months ended March 31, 2022 and 2021, net unrealized losses on publicly traded securities were $170 million and $56 million, respectively. Realized gains and losses on sales of publicly traded securities for the three months ended March 31, 2022 and 2021, were not material.
We held investments of $261 million and $262 million in equity securities without readily determinable fair values as of March 31, 2022 and December 31, 2021, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. For the three months ended March 31, 2022 and 2021, upward adjustments and downward adjustments on these securities were not material. Adjustments were based on observable price transactions.
Equity method investments
BeiGene, Ltd.
As of March 31, 2022 and December 31, 2021, we had an ownership interest of approximately 18.4% in BeiGene, which is included in Other noncurrent assets in the Condensed Consolidated Balance Sheets and accounted for under the equity method of accounting. We amortize the difference between the fair value of equity securities acquired and our proportionate share of the carrying value of the underlying net assets of BeiGene over the useful lives of the assets that gave rise to this basis difference. This amortization and our share of the results of operations of BeiGene are included in Other (expense) income, net, in the Condensed Consolidated Statements of Income one quarter in arrears.
During the three months ended March 31, 2022 and 2021, the carrying value of our equity investment was adjusted by our share of BeiGene’s net losses of $108 million and $97 million, respectively, and amortization of the basis difference of $47 million and $42 million, respectively. As of March 31, 2022 and December 31, 2021, the carrying values of our investment in BeiGene totaled $2.6 billion and $2.8 billion, respectively, and the fair values of the investment totaled $3.6 billion and $5.1 billion, respectively. As of March 31, 2022, we believe the carrying value of our equity investment in BeiGene is fully recoverable.
Neumora Therapeutics, Inc.
On September 30, 2021, we acquired approximately 25.9% ownership interest in Neumora, a privately held company, for $257 million, which is included in Other noncurrent assets in the Condensed Consolidated Balance Sheets, in exchange for a $100 million cash payment and $157 million in noncash consideration primarily related to future services. Although our equity investment provides us with the ability to exercise significant influence over Neumora, we have elected the fair value option to account for our equity investment. Under the fair value option, changes in the fair value of the investment are recognized through earnings each reporting period. We believe the fair value option best reflects the economics of the underlying transaction. As of March 31, 2022 and December 31, 2021, our ownership interest in Neumora was 25.8% and 25.9%, respectively, and the fair values of our investment were $170 million and $220 million, respectively. Accordingly, during the three months ended March 31, 2022, we recognized a loss of $50 million for the reduction in fair value of our investment in Other (expense) income, net, in the Condensed Consolidated Statements of Income. For information on determination of fair values, see Note 11, Fair value measurement.
Limited partnerships
We held limited partnership investments of $403 million and $573 million as of March 31, 2022 and December 31, 2021, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of March 31, 2022, unfunded additional commitments to be made for these investments during the next several years were $182 million. During the three months ended March 31, 2022 and 2021, we recognized net losses of $160 million and net gains of $208 million, respectively, in Other (expense) income, net in the Condensed Consolidated Statements of Income on these investments.
7. Inventories
Inventories consisted of the following (in millions):
| | | | | | | | | | | |
| March 31, 2022 | | December 31, 2021 |
Raw materials | $ | 750 | | | $ | 647 | |
Work in process | 2,582 | | | 2,367 | |
Finished goods | 1,079 | | | 1,072 | |
Total inventories | $ | 4,411 | | | $ | 4,086 | |
8. Goodwill and other intangible assets
Goodwill
The change in the carrying amount of goodwill was as follows (in millions):
| | | | | |
| Three months ended March 31, 2022 |
Beginning balance | $ | 14,890 | |
Goodwill resulting from acquisition of a business(1) | 22 | |
Currency translation adjustment | (15) | |
Ending balance | $ | 14,897 | |
____________
(1) Composed of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in the acquisition of Teneobio (see Note 2, Acquisitions).
Other intangible assets
Other intangible assets consisted of the following (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2022 | | December 31, 2021 |
| Gross carrying amounts | | Accumulated amortization | | Other intangible assets, net | | Gross carrying amounts | | Accumulated amortization | | Other intangible assets, net |
Finite-lived intangible assets: | | | | | | | | | | | |
Developed-product-technology rights | $ | 25,550 | | | $ | (13,316) | | | $ | 12,234 | | | $ | 25,561 | | | $ | (12,769) | | | $ | 12,792 | |
Licensing rights | 3,864 | | | (3,013) | | | 851 | | | 3,807 | | | (2,973) | | | 834 | |
Marketing-related rights | 1,350 | | | (1,129) | | | 221 | | | 1,354 | | | (1,112) | | | 242 | |
Research and development technology rights | 1,386 | | | (1,146) | | | 240 | | | 1,377 | | | (1,133) | | | 244 | |
Total finite-lived intangible assets | 32,150 | | | (18,604) | | | 13,546 | | | 32,099 | | | (17,987) | | | 14,112 | |
Indefinite-lived intangible assets: | | | | | | | | | | | |
In-process research and development | 1,021 | | | — | | | 1,021 | | | 1,070 | | | — | | | 1,070 | |
Total other intangible assets | $ | 33,171 | | | $ | (18,604) | | | $ | 14,567 | | | $ | 33,169 | | | $ | (17,987) | | | $ | 15,182 | |
Developed-product-technology rights consists of rights related to marketed products. Licensing rights primarily consists of contractual rights to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and upfront payments associated with royalty obligations for marketed products. Marketing-related rights primarily consists of rights related to the sale and distribution of marketed products. R&D technology rights pertains to technologies used in R&D that have alternative future uses.
IPR&D consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval.
During the three months ended March 31, 2022 and 2021, we recognized amortization associated with our finite-lived intangible assets of $637 million and $654 million, respectively. Amortization of intangible assets is primarily included in Cost of sales in the Condensed Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the remaining nine months ending December 31, 2022, and the years ending December 31, 2023, 2024, 2025, 2026 and 2027, are $1.9 billion, $2.5 billion, $2.5 billion, $2.4 billion, $1.7 billion and $1.8 billion, respectively.
9. Financing arrangements
Our borrowings consisted of the following (in millions):
| | | | | | | | | | | |
| March 31, 2022 | | December 31, 2021 |
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | $ | 759 | | | $ | 767 | |
2.25% notes due 2023 (2.25% 2023 Notes) | 750 | | | 750 | |
3.625% notes due 2024 (3.625% 2024 Notes) | 1,400 | | | 1,400 | |
1.90% notes due 2025 (1.90% 2025 Notes) | 500 | | | 500 | |
3.125% notes due 2025 (3.125% 2025 Notes) | 1,000 | | | 1,000 | |
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | 830 | | | 853 | |
2.60% notes due 2026 (2.60% 2026 Notes) | 1,250 | | | 1,250 | |
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) | 624 | | | 643 | |
2.20% notes due 2027 (2.20% 2027 Notes) | 1,750 | | | 1,750 | |
3.20% notes due 2027 (3.20% 2027 Notes) | 1,000 | | | 1,000 | |
1.65% notes due 2028 (1.65% 2028 Notes) | 1,250 | | | 1,250 | |
3.00% notes due 2029 (3.00% 2029 Notes) | 750 | | | — | |
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) | 920 | | | 947 | |
2.45% notes due 2030 (2.45% 2030 Notes) | |