2014 Q3 Form 10-K Financial Statement

#000031815415000005 Filed on February 19, 2015

View on sec.gov

Income Statement

Concept 2014 Q3 2014 Q1 2013 Q4
Revenue $5.031B $4.521B $4.799B
YoY Change 5.96% 6.68% 10.65%
Cost Of Revenue $1.068B $1.090B $1.029B
YoY Change 35.53% 46.51% 21.34%
Gross Profit $3.780B $3.266B $3.770B
YoY Change -2.05% -4.14% 10.4%
Gross Profit Margin 75.13% 72.24% 78.56%
Selling, General & Admin $1.213B $1.023B $1.306B
YoY Change -2.88% -11.66% -4.67%
% of Gross Profit 32.09% 31.32% 34.64%
Research & Development $1.018B $1.027B $1.249B
YoY Change 2.93% 16.97% 33.16%
% of Gross Profit 26.93% 31.45% 33.13%
Depreciation & Amortization $543.0M $518.0M $444.0M
YoY Change 88.54% 87.0% 62.64%
% of Gross Profit 14.37% 15.86% 11.78%
Operating Expenses $2.231B $2.050B $2.580B
YoY Change -0.31% 0.69% 3.99%
Operating Profit $1.466B $1.364B $1.190B
YoY Change -13.15% -5.41% 27.41%
Interest Expense -$129.0M -$160.0M -$173.0M
YoY Change -30.27% 61.62% 4.85%
% of Operating Profit -8.8% -11.73% -14.54%
Other Income/Expense, Net $140.0M $99.00M
YoY Change 94.44% -39.63%
Pretax Income $1.337B $1.204B $1.014B
YoY Change -11.04% -10.35% 9.86%
Income Tax $93.00M $131.0M -$7.000M
% Of Pretax Income 6.96% 10.88% -0.69%
Net Earnings $1.244B $1.073B $1.021B
YoY Change -9.06% -25.17% 29.57%
Net Earnings / Revenue 24.73% 23.73% 21.28%
Basic Earnings Per Share $1.63 $1.42 $1.35
Diluted Earnings Per Share $1.61 $1.40 $1.33
COMMON SHARES
Basic Shares Outstanding 761.0M shares 757.0M shares 754.1M shares
Diluted Shares Outstanding 771.0M shares 768.0M shares

Balance Sheet

Concept 2014 Q3 2014 Q1 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.08B $19.80B $19.40B
YoY Change 24.46% -6.91% -19.37%
Cash & Equivalents $3.677B $3.687B $3.805B
Short-Term Investments $24.40B $16.12B $15.60B
Other Short-Term Assets $2.733B $3.020B $2.250B
YoY Change 33.38% 39.88% 19.3%
Inventory $2.885B $2.966B $3.019B
Prepaid Expenses
Receivables $2.355B $2.514B $2.697B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $36.05B $28.30B $27.37B
YoY Change 17.52% -1.37% -12.31%
LONG-TERM ASSETS
Property, Plant & Equipment $5.267B $5.365B $5.349B
YoY Change -0.3% 1.3% 0.43%
Goodwill $14.82B $14.83B $14.97B
YoY Change 17.84% 17.68% 18.21%
Intangibles $13.10B $13.57B $13.26B
YoY Change 255.78% 248.11% 234.22%
Long-Term Investments $0.00 $3.414B $3.412B
YoY Change -100.0%
Other Assets $1.545B $1.525B $1.767B
YoY Change 6.55% 32.84% 55.96%
Total Long-Term Assets $34.73B $38.70B $38.76B
YoY Change 31.55% 68.67% 67.86%
TOTAL ASSETS
Total Short-Term Assets $36.05B $28.30B $27.37B
Total Long-Term Assets $34.73B $38.70B $38.76B
Total Assets $70.78B $67.00B $66.13B
YoY Change 24.01% 29.75% 21.78%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $955.0M $949.0M $787.0M
YoY Change 6.7% 0.96% -13.04%
Accrued Expenses $5.096B $4.749B $4.655B
YoY Change 29.44% 13.21% -2.84%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.500B $2.505B $2.505B
YoY Change 22627.27% 35685.71% 0.4%
Total Short-Term Liabilities $8.551B $8.203B $7.947B
YoY Change 76.56% 59.53% -2.98%
LONG-TERM LIABILITIES
Long-Term Debt $30.48B $29.52B $29.62B
YoY Change 12.15% 23.59% 23.25%
Other Long-Term Liabilities $6.419B $6.541B $2.961B
YoY Change 93.11% 109.51% -1.73%
Total Long-Term Liabilities $36.90B $6.541B $32.58B
YoY Change 1010.08% 109.51% 981.45%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.551B $8.203B $7.947B
Total Long-Term Liabilities $36.90B $6.541B $32.58B
Total Liabilities $45.45B $14.74B $40.53B
YoY Change 456.51% 78.41% 261.75%
SHAREHOLDERS EQUITY
Retained Earnings -$4.698B -$7.023B -$7.634B
YoY Change -40.08% -30.54% -26.76%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $25.33B $22.74B $22.10B
YoY Change
Total Liabilities & Shareholders Equity $70.78B $67.00B $66.13B
YoY Change 24.01% 29.75% 21.78%

Cashflow Statement

Concept 2014 Q3 2014 Q1 2013 Q4
OPERATING ACTIVITIES
Net Income $1.244B $1.073B $1.021B
YoY Change -9.06% -25.17% 29.57%
Depreciation, Depletion And Amortization $543.0M $518.0M $444.0M
YoY Change 88.54% 87.0% 62.64%
Cash From Operating Activities $2.741B $1.142B $1.835B
YoY Change 51.69% 8.87% 125.99%
INVESTING ACTIVITIES
Capital Expenditures -$320.0M $172.0M -$201.0M
YoY Change 82.86% 8.86% 0.5%
Acquisitions $104.0M
YoY Change
Other Investing Activities -$2.583B $44.00M -$9.917B
YoY Change 32.87% 633.33% 441.62%
Cash From Investing Activities -$2.903B -$765.0M -$10.12B
YoY Change 37.0% -142.29% 398.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net $125.0M
YoY Change -95.0%
Cash From Financing Activities -513.0M -$495.0M 3.807B
YoY Change -118.41% -86.19% -382.63%
NET CHANGE
Cash From Operating Activities 2.741B $1.142B 1.835B
Cash From Investing Activities -2.903B -$765.0M -10.12B
Cash From Financing Activities -513.0M -$495.0M 3.807B
Net Change In Cash -675.0M -$118.0M -4.476B
YoY Change -127.27% -83.77% 74.43%
FREE CASH FLOW
Cash From Operating Activities $2.741B $1.142B $1.835B
Capital Expenditures -$320.0M $172.0M -$201.0M
Free Cash Flow $3.061B $970.0M $2.036B
YoY Change 54.44% 8.87% 101.19%

Facts In Submission

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CY2013 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
5090000000 USD
CY2014 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
4199000000 USD
CY2014 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
186000000 USD
CY2014Q4 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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3800000000 USD
CY2014Q4 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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4000000000 USD
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CY2014 us-gaap Proceeds From Payments For Other Financing Activities
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55000000 USD
CY2012 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
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CY2013 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
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CY2014 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
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PropertyPlantAndEquipmentNet
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PropertyPlantAndEquipmentOther
4107000000 USD
CY2014Q4 us-gaap Property Plant And Equipment Other
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CY2012 us-gaap Repayments Of Long Term Debt
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123000000 USD
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3371000000 USD
CY2014 us-gaap Repayments Of Long Term Debt
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5605000000 USD
CY2014 us-gaap Repayments Of Notes Payable
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5600000000 USD
CY2012 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
3380000000 USD
CY2013 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
4083000000 USD
CY2014 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
4297000000 USD
CY2013Q4 us-gaap Restricted Investments Noncurrent
RestrictedInvestmentsNoncurrent
3412000000 USD
CY2014Q4 us-gaap Restricted Investments Noncurrent
RestrictedInvestmentsNoncurrent
0 USD
CY2014 us-gaap Restructuring Charges
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385000000 USD
CY2014 us-gaap Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
558000000 USD
CY2013Q4 us-gaap Restructuring Reserve
RestructuringReserve
0 USD
CY2014Q4 us-gaap Restructuring Reserve
RestructuringReserve
244000000 USD
CY2014 us-gaap Restructuring Reserve Accelerated Depreciation
RestructuringReserveAcceleratedDepreciation
55000000 USD
CY2013Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-7634000000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-4624000000 USD
CY2012 us-gaap Revenues
Revenues
17265000000 USD
CY2013 us-gaap Revenues
Revenues
18676000000 USD
CY2014 us-gaap Revenues
Revenues
20063000000 USD
CY2012 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
16639000000 USD
CY2013Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4151000000 USD
CY2013Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4595000000 USD
CY2013Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4647000000 USD
CY2013Q4 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4799000000 USD
CY2013 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
18192000000 USD
CY2014Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4356000000 USD
CY2014Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4949000000 USD
CY2014Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
4848000000 USD
CY2014Q4 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
5174000000 USD
CY2014 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
19327000000 USD
CY2012 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4814000000 USD
CY2013 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5184000000 USD
CY2012 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
4662000000 USD
CY2013 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
771000000 USD
CY2014 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4699000000 USD
CY2012 us-gaap Share Based Compensation
ShareBasedCompensation
362000000 USD
CY2013 us-gaap Share Based Compensation
ShareBasedCompensation
403000000 USD
CY2014 us-gaap Share Based Compensation
ShareBasedCompensation
408000000 USD
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Rights
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights
Stock options and RSUs granted on and after April 25, 2011, generally vest in approximately equal amounts on the second, third and fourth anniversaries of the grant date.
CY2014Q4 us-gaap Significant Change In Unrecognized Tax Benefits Is Reasonably Possible Amount Of Unrecorded Benefit
SignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleAmountOfUnrecordedBenefit
-70000000 USD
CY2012 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
1288000000 USD
CY2013 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
296000000 USD
CY2014 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
153000000 USD
CY2011Q4 us-gaap Stockholders Equity
StockholdersEquity
19029000000 USD
CY2012Q4 us-gaap Stockholders Equity
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19060000000 USD
CY2013Q4 us-gaap Stockholders Equity
StockholdersEquity
22096000000 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
25778000000 USD
CY2011Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
975000000 USD
CY2012Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1200000000 USD
CY2013Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1415000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1772000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
50000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
192000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
45000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
30000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
24000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
2000000 USD
CY2013Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
99000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
134000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
30000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
32000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
35000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
300000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
335000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
379000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
5000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
96000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
37000000 USD
CY2012 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2013 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2014 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
12000000 USD
CY2013 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
41000000 USD
CY2014 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
22000000 USD
CY2011Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
54000000 USD
CY2012Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
61000000 USD
CY2013Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
59000000 USD
CY2014Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
50000000 USD
CY2012 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
7000000 USD
CY2013 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
5000000 USD
CY2014 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
3000000 USD
CY2012 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2013 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2014 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2012 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
0 USD
CY2013 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
7000000 USD
CY2014 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
12000000 USD
CY2012 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
12000000 shares
CY2013 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
12000000 shares
CY2014 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
11000000 shares
CY2012 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
787000000 shares
CY2013 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
765000000 shares
CY2014 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
770000000 shares
CY2012 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
775000000 shares
CY2013 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
753000000 shares
CY2014 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
759000000 shares
CY2014 us-gaap Revenue Recognition Multiple Element Arrangements
RevenueRecognitionMultipleElementArrangements
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Multiple-deliverable revenue arrangements</font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From time to time, we enter into arrangements for the R&amp;D, manufacture and/or commercialization of products and product candidates. These arrangements may require us to deliver various rights, services and/or goods across the entire life cycle of a product or product candidate, including (i)&#160;intellectual property rights/licenses, (ii)&#160;R&amp;D services, (iii)&#160;manufacturing services and/or (iv)&#160;commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of non-refundable upfront license payments, R&amp;D and commercial performance milestone payments, cost sharing and/or royalty payments. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In arrangements involving the delivery of more than one element, each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting. For Amgen, this determination is generally based on whether the deliverable has &#8220;stand-alone value&#8221; to the customer. The arrangement&#8217;s consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i)&#160;vendor-specific objective evidence of fair value, (ii)&#160;third-party evidence of selling price and (iii)&#160;best estimate of selling price (BESP). The BESP reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Consideration associated with at-risk substantive performance milestones is recognized as revenue upon the achievement of the related milestone, as defined in the respective contracts.</font></div></div>
CY2014 us-gaap Revenue Recognition Sales Of Goods
RevenueRecognitionSalesOfGoods
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Product sales </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Sales of our products are recognized when shipped and title and risk of loss have passed. Product sales are recorded net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively &#8220;sales deductions&#8221;) and returns. Taxes collected from customers and remitted to government authorities related to the sales of the Company&#8217;s products, primarily in Europe, are excluded from revenues.</font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We recognized revenue from the sale of product to the U.S. federal government for stockpile in accordance with U.S. Securities and Exchange Commission (SEC) Interpretation,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile</font><font style="font-family:inherit;font-size:10pt;"> (SNS). We recognized </font><font style="font-family:inherit;font-size:10pt;">$155 million</font><font style="font-family:inherit;font-size:10pt;"> of revenue for NEUPOGEN</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> during the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2013</font><font style="font-family:inherit;font-size:10pt;">, for purchases by the federal government for the SNS. There were no purchases by the federal government for the SNS during the years ended December 31, 2014 and 2012. We are contracted to manage this inventory of product until the federal government requests shipment.</font></div></div>
CY2014 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of estimates</font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates.</font></div></div>

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