2017 Q4 Form 10-K Financial Statement

#000031815418000004 Filed on February 13, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2016 Q4 2016 Q3
Revenue $5.569B $5.663B $5.811B
YoY Change -1.66% 6.27% 1.54%
Cost Of Revenue $1.059B $1.067B $1.027B
YoY Change -0.75% -0.37% -0.68%
Gross Profit $4.510B $4.596B $4.489B
YoY Change -1.87% 7.94% 0.16%
Gross Profit Margin 80.98% 81.16% 77.25%
Selling, General & Admin $1.427B $1.323B $1.244B
YoY Change 7.86% -6.57% 0.0%
% of Gross Profit 31.64% 28.79% 27.71%
Research & Development $1.043B $1.078B $990.0M
YoY Change -3.25% -1.37% -11.53%
% of Gross Profit 23.13% 23.46% 22.05%
Depreciation & Amortization $449.0M $559.0M $503.0M
YoY Change -19.68% 3.14% -3.82%
% of Gross Profit 9.96% 12.16% 11.21%
Operating Expenses $2.498B $2.524B $2.234B
YoY Change -1.03% 0.32% -5.46%
Operating Profit $2.012B $2.072B $2.527B
YoY Change -2.9% 18.94% 8.04%
Interest Expense -$31.00M -$202.0M -$109.0M
YoY Change -84.65% 68.33% -25.85%
% of Operating Profit -1.54% -9.75% -4.31%
Other Income/Expense, Net $216.0M
YoY Change 60.0%
Pretax Income $2.214B $2.283B $2.418B
YoY Change -3.02% 19.34% 10.31%
Income Tax $378.0M $348.0M $401.0M
% Of Pretax Income 17.07% 15.24% 16.58%
Net Earnings -$4.264B $1.935B $2.017B
YoY Change -320.36% 7.5% 8.27%
Net Earnings / Revenue -76.57% 34.17% 34.71%
Basic Earnings Per Share -$5.89 $2.61 $2.70
Diluted Earnings Per Share -$5.89 $2.59 $2.68
COMMON SHARES
Basic Shares Outstanding 725.9M shares 743.9M shares 747.0M shares
Diluted Shares Outstanding 753.0M shares

Balance Sheet

Concept 2017 Q4 2016 Q4 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $41.68B $38.09B $37.98B
YoY Change 9.43% 21.36% 22.04%
Cash & Equivalents $3.800B $3.241B $3.485B
Short-Term Investments $37.88B $34.84B $34.50B
Other Short-Term Assets $1.727B $2.015B $1.997B
YoY Change -14.29% 18.32% -12.87%
Inventory $2.834B $2.745B $2.681B
Prepaid Expenses
Receivables $3.237B $3.165B $3.186B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $49.48B $46.01B $45.84B
YoY Change 7.53% 19.46% 18.02%
LONG-TERM ASSETS
Property, Plant & Equipment $4.989B $4.961B $4.912B
YoY Change 0.56% 1.1% -1.52%
Goodwill $14.76B $14.76B $14.80B
YoY Change 0.0% 0.07% 0.87%
Intangibles $8.609B $10.28B $10.69B
YoY Change -16.25% -11.7% -7.95%
Long-Term Investments
YoY Change
Other Assets $2.119B $1.625B $1.902B
YoY Change 30.4% 1.63% 8.69%
Total Long-Term Assets $30.48B $31.62B $32.31B
YoY Change -3.6% -4.0% -2.18%
TOTAL ASSETS
Total Short-Term Assets $49.48B $46.01B $45.84B
Total Long-Term Assets $30.48B $31.62B $32.31B
Total Assets $79.95B $77.63B $78.15B
YoY Change 3.0% 8.65% 8.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.352B $917.0M $825.0M
YoY Change 47.44% -4.97% -22.68%
Accrued Expenses $6.516B $5.884B $4.920B
YoY Change 10.74% 7.92% 1.49%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.152B $4.403B $4.797B
YoY Change -73.84% 95.95% 283.76%
Total Short-Term Liabilities $9.020B $11.20B $10.54B
YoY Change -19.49% 29.32% 47.13%
LONG-TERM LIABILITIES
Long-Term Debt $34.19B $30.19B $30.53B
YoY Change 13.24% 3.46% 0.05%
Other Long-Term Liabilities $1.238B $1.499B $3.897B
YoY Change -17.41% 14.6% 25.02%
Total Long-Term Liabilities $35.43B $31.69B $34.42B
YoY Change 11.79% 3.94% 2.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.020B $11.20B $10.54B
Total Long-Term Liabilities $35.43B $31.69B $34.42B
Total Liabilities $44.45B $42.90B $44.97B
YoY Change 3.62% 9.56% 10.23%
SHAREHOLDERS EQUITY
Retained Earnings -$5.072B -$438.0M $221.0M
YoY Change 1057.99% -79.0% -109.4%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $25.24B $29.88B $30.77B
YoY Change
Total Liabilities & Shareholders Equity $79.95B $77.63B $78.15B
YoY Change 3.0% 8.65% 8.74%

Cashflow Statement

Concept 2017 Q4 2016 Q4 2016 Q3
OPERATING ACTIVITIES
Net Income -$4.264B $1.935B $2.017B
YoY Change -320.36% 7.5% 8.27%
Depreciation, Depletion And Amortization $449.0M $559.0M $503.0M
YoY Change -19.68% 3.14% -3.82%
Cash From Operating Activities $3.012B $3.100B $2.662B
YoY Change -2.84% 49.54% -24.27%
INVESTING ACTIVITIES
Capital Expenditures -$153.0M -$326.0M -$68.00M
YoY Change -53.07% 59.02% -50.72%
Acquisitions
YoY Change
Other Investing Activities $75.00M -$896.0M -$2.321B
YoY Change -108.37% 3100.0% 24.45%
Cash From Investing Activities -$78.00M -$1.222B -$2.389B
YoY Change -93.62% 424.46% 19.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.134B -2.122B 582.0M
YoY Change 0.57% 130.15% -127.97%
NET CHANGE
Cash From Operating Activities 3.012B 3.100B 2.662B
Cash From Investing Activities -78.00M -1.222B -2.389B
Cash From Financing Activities -2.134B -2.122B 582.0M
Net Change In Cash 800.0M -244.0M 855.0M
YoY Change -427.87% -126.58% -250.26%
FREE CASH FLOW
Cash From Operating Activities $3.012B $3.100B $2.662B
Capital Expenditures -$153.0M -$326.0M -$68.00M
Free Cash Flow $3.165B $3.426B $2.730B
YoY Change -7.62% 50.4% -25.27%

Facts In Submission

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StockRepurchasedDuringPeriodValue
796000000 USD
CY2017 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
3126000000 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
25778000000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
28083000000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
29875000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
25241000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1772000000 USD
CY2015Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2114000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2543000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2953000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
32000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
7000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
5000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
48000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
7000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
28000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
276000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
332000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
17000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
125000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
56000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
413000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
425000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
447000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
9000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
18000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
1000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
5000000 USD
CY2014Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
50000000 USD
CY2015Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
55000000 USD
CY2016Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
51000000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
51000000 USD
CY2015 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
18000000 USD
CY2016 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
11000000 USD
CY2017 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
4000000 USD
CY2015 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2016 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2017 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
0 USD
CY2015 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
13000000 USD
CY2016 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
15000000 USD
CY2017 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
4000000 USD
CY2015 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
8000000 shares
CY2016 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
6000000 shares
CY2017 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
4000000 shares
CY2015 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
766000000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
754000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
735000000 shares
CY2015 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
758000000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
748000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
731000000 shares
CY2017 amgn Schedule Of U.S.Repatriation Tax Commitments
ScheduleOfU.S.RepatriationTaxCommitments
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Under the 2017 Tax Act, we will elect to pay the repatriation tax primarily related to our prior indefinitely invested earnings of our foreign operations in </font><font style="font-family:inherit;font-size:10pt;">eight</font><font style="font-family:inherit;font-size:10pt;"> annual installments beginning in April 2018. See Note 5, Income taxes. As of December 31, 2017, we expect to pay </font><font style="font-family:inherit;font-size:10pt;">$7.3 billion</font><font style="font-family:inherit;font-size:10pt;"> in repatriation taxes during the following years (in millions):</font></div><div style="line-height:120%;padding-bottom:8px;text-align:center;text-indent:0px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:86%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Amount</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2018</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">585</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2019</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">585</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2020</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">585</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2021</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">585</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2022</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">585</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Thereafter</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,391</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:28px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total U.S. repatriation tax commitments</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">7,316</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div></div>
CY2017 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>
CY2017 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, sales deductions) 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;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;"></font></div></div>
CY2017 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 U.S. generally accepted accounting principles (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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