Segment information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment information

Segment information

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. Enterprise-wide disclosures about product sales; revenues and long-lived assets by geographic area; and revenues from major customers are presented below.

Revenues

Revenues were as follows for the years ended December 31, 2012, 2011 and 2010 (in millions):

	2012		2011		2010
Product sales:
Neulasta®	$	4,092	$	3,952	$	3,558
NEUPOGEN®	1,260		1,260		1,286
ENBREL	4,236		3,701		3,534
Aranesp®	2,040		2,303		2,486
EPOGEN®	1,941		2,040		2,524
Sensipar®/Mimpara®	950		808		714
Vectibix®	359		322		288
Nplate®	368		297		229
XGEVA®	748		351		8
Prolia®	472		203		33
Other	173		58		—
Total product sales	16,639		15,295		14,660
Other revenues	626		287		393
Total revenues	$	17,265	$	15,582	$	15,053

Geographic information

Outside the United States, we sell products principally in Europe and Canada. The geographic classification of product sales was based on the location of the customer. The geographic classification of all other revenues was based on the domicile of the entity from which the revenues were earned.

Certain geographic information with respect to revenues and long-lived assets (consisting of property, plant and equipment) was as follows (in millions):

	Years ended December 31,
	2012		2011		2010
Revenues:
United States	$	13,415	$	11,985	$	11,636
ROW	3,850		3,597		3,417
Total revenues	$	17,265	$	15,582	$	15,053

	December 31,
	2012		2011
Long-lived assets:
United States	$	2,906	$	3,144
Puerto Rico	1,908		1,993
ROW	512		283
Total long-lived assets	$	5,326	$	5,420

Major customers

In the United States, we sell primarily to pharmaceutical wholesale distributors. We utilize those wholesale distributors as the principal means of distributing our products to healthcare providers. In Europe, we sell principally to healthcare providers and/or pharmaceutical wholesale distributors depending on the distribution practice in each country. We monitor the financial condition of our larger customers, and we limit our credit exposure by setting credit limits and, for certain customers, by requiring letters of credit.

We had product sales to three customers each accounting for more than 10% of total revenues for the years ended December 31, 2012, 2011 and 2010. For 2012, on a combined basis, these customers accounted for 76% and 94% of worldwide gross revenues and U.S. gross product sales, respectively, as noted in the following table. Certain information with respect to these customers for the years ended December 31, 2012, 2011 and 2010, was as follows (dollar amounts in millions):

	2012			2011			2010
AmerisourceBergen Corporation:
Gross product sales	$	7,556		$	7,574		$	7,678
% of total gross revenues	34		%	36		%	38		%
% of U.S. gross product sales	43		%	45		%	47		%
McKesson Corporation:
Gross product sales	$	5,898		$	4,591		$	3,913
% of total gross revenues	27		%	22		%	19		%
% of U.S. gross product sales	32		%	27		%	24		%
Cardinal Health, Inc.:
Gross product sales	$	3,245		$	3,021		$	2,813
% of total gross revenues	15		%	14		%	14		%
% of U.S. gross product sales	19		%	18		%	17		%

At December 31, 2012 and 2011, amounts due from these three customers each exceeded 10% of gross trade receivables and accounted for 61% and 60%, respectively, of net trade receivables on a combined basis. At December 31, 2012 and 2011, 36% and 39%, respectively, of trade receivables, net were due from customers located outside the United States, primarily in Europe. Our total allowance for doubtful accounts as of December 31, 2012 and 2011, was not material.