Amgen (AMGN) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues:
Product sales	$3,736	$3,784	$10,608	$11,013
Other revenues	76	91	225	239
Total revenues	3,812	3,875	10,833	11,252
Operating expenses:
Cost of sales (excludes amortization of certain acquired intangible assets presented below)	545	677	1,553	1,738
Research and development	647	729	1,973	2,232
Selling, general and administrative	932	900	2,640	2,678
Amortization of certain acquired intangible assets	74	74	221	221
Other charges	9	12	63	306
Total operating expenses	2,207	2,392	6,450	7,175
Operating income	1,605	1,483	4,383	4,077
Interest expense, net	139	133	436	419
Interest and other income, net	74	62	182	264
Income before income taxes	1,540	1,412	4,129	3,922
Provision for income taxes	154	291	455	795
Net income	$1,386	$1,121	$3,674	$3,127
Earnings per share:
Basic	1.36	1.06	3.6	2.91
Diluted	1.36	1.05	3.58	2.9
Shares used in calculation of earnings per share:
Basic	1,016	1,058	1,020	1,075
Diluted	1,022	1,064	1,025	1,079

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Current assets:
Cash and cash equivalents	$3,577	$1,774
Marketable securities	10,436	7,778
Trade receivables, net	2,331	2,073
Inventories	2,155	2,075
Other current assets	1,475	1,521
Total current assets	19,974	15,221
Property, plant and equipment, net	5,743	5,879
Intangible assets, net	2,674	2,988
Goodwill	11,335	11,339
Other assets	1,214	1,000
Total assets	40,940	36,427
Current liabilities:
Accounts payable	613	504
Accrued liabilities	3,290	3,382
Current portion of other long-term debt	1,000	1,000
Total current liabilities	4,903	4,886
Convertible notes	4,447	4,257
Other long-term debt	6,089	4,095
Other non-current liabilities	2,643	2,304
Commitments and contingencies	-	-
Stockholders' equity:
Common stock and additional paid-in capital; $0.0001 par value; 2,750 shares authorized; outstanding - 1,016 shares in 2009 and 1,047 shares in 2008	26,853	26,441
Accumulated deficit	(4,042)	(5,673)
Accumulated other comprehensive income	47	117
Total stockholders' equity	22,858	20,885
Total liabilities and stockholders' equity	$40,940	$36,427

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions	Sep. 30, 2009	Dec. 31, 2008
Common stock and additional paid-in capital, par value	0.0001	0.0001
Common stock and additional paid-in capital, shares authorized	2,750	2,750
Common stock and additional paid-in capital, outstanding	1,016	1,047

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net income	$3,674	$3,127
Depreciation and amortization	792	799
Stock-based compensation expense	209	195
Other items, net	146	69
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables, net	(258)	16
Inventories	(60)	(22)
Other current assets	(33)	(29)
Accounts payable	43	136
Accrued income taxes	33	88
Other accrued liabilities	(66)	(125)
Deferred revenue	33	337
Net cash provided by operating activities	4,513	4,591
Cash flows from investing activities:
Purchases of property, plant and equipment	(386)	(494)
Cash paid for acquisitions, net of cash acquired	0	(50)
Purchases of marketable securities	(10,889)	(7,794)
Proceeds from sales of marketable securities	7,026	5,002
Proceeds from maturities of marketable securities	1,340	625
Other	46	93
Net cash used in investing activities	(2,863)	(2,618)
Cash flows from financing activities:
Repurchases of common stock	(1,997)	(1,568)
Repayment of debt	0	(1,000)
Net proceeds from issuance of debt	1,980	992
Net proceeds from issuance of common stock in connection with the Company's equity award programs	146	114
Other	24	(13)
Net cash provided by (used in) financing activities	153	(1,475)
Increase in cash and cash equivalents	1,803	498
Cash and cash equivalents at beginning of period	1,774	2,024
Cash and cash equivalents at end of period	$3,577	$2,522

1. Summary of significant accou

1. Summary of significant accounting policies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. Summary of significant accounting policies	1. Summary of significant accounting policies Business Amgen Inc. is a global biotechnology company that discovers, develops, manufactures and markets human therapeutics based on advances in cellular and molecular biology. Basis of presentation The financial information for the three and nine months ended September30, 2009 and 2008 is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen Inc., including its subsidiaries (referred to as Amgen, the Company, we, our or us), considers necessary for a fair presentation of the 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 December31, 2008. Financial Accounting Standards Board (FASB) Accounting Standards Codification During the three months ended September30, 2009, the FASB Accounting Standards Codification (ASC or Codification) became the authoritative source of accounting principles generally accepted in the United States (GAAP) recognized by the FASB. All existing FASB accounting standards and guidance were superseded by the ASC. Instead of issuing new accounting standards in the form of statements, FASB staff positions and Emerging Issues Task Force abstracts, the FASB now issues Accounting Standards Updates that update the Codification. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws continue to be additional sources of authoritative GAAP for SEC registrants. Change in method of accounting for convertible debt instruments Effective January1, 2009, we adopted a new accounting standard that changed the method of accounting for convertible debt that may be partially or wholly settled in cash. As required by this new standard, we retrospectively applied this change in accounting to all prior periods for which we had applicable outstanding convertible debt. Under this method of accounting, the debt and equity components of our convertible notes are bifurcated and accounted for separately. The equity components of our convertible notes, including our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, are included in Common stock and additional paid-in capital in the Condensed Consolidated Balance Sheets, with a corresponding reduction in the carrying values of these convertible notes as of the date of issuance or modification, as applicable. The reduced carrying values of our convertible notes are being accreted back to their principal amounts through the recognition of non-cash interest expense. This results in recognizing interest expense on these borrowings at effective rates approximating what we would have incurred had we issued nonconvertible debt with otherwise similar terms. See Note 2, Change in method of accounting for convertible debt instruments and Note 9, Financing arrangements. Principles of consolidatio

2. Change in method of accounti

2. Change in method of accounting for convertible debt instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. Change in method of accounting for convertible debt instruments	2. Change in method of accounting for convertible debt instruments As discussed in Note 1, Summary of significant accounting policies - Change in method of accounting for convertible debt instruments, effective January1, 2009, we adopted a new accounting standard which changed the method of accounting for certain types of convertible debt and, as required by this standard, we retrospectively applied this change in accounting to all prior periods for which we had applicable outstanding convertible debt. The following tables illustrate the impact of adopting this accounting standard on the Condensed Consolidated Statements of Income (in millions, except per share information): ThreemonthsendedSeptember30,2009 Excludingthe effect of the accounting standard Effectofthe accounting standard Includingthe effect of the accounting standard Operating income $ 1,605 $ - $ 1,605 Interest expense, net 76 63 139 Interest and other income, net 74 - 74 Income before income taxes 1,603 (63) 1,540 Provision for income taxes 178 (24) 154 Net income $ 1,425 $ (39) $ 1,386 Earnings per share: Basic $ 1.40 $ (0.04) $ 1.36 Diluted $ 1.39 $ (0.03) $ 1.36 Three months ended September30, 2008 As originally reported Effect of the accounting standard Revised Operating income $ 1,483 $ - $ 1,483 Interest expense, net 74 59 133 Interest and other income, net 62 - 62 Income before income taxes 1,471 (59) 1,412 Provision for income taxes 313 (22) 291 Net income $ 1,158 $ (37) $ 1,121 Earnings per share: Basic $ 1.09 $ (0.03) $ 1.06 Diluted $ 1.09 $ (0.04) $ 1.05 NinemonthsendedSeptember30,2009 Excludingthe effect of the accounting standard Effectofthe accounting standard Includingthe effect of the accounting standard Operating income $ 4,383 $ - $ 4,383 Interest expense, net 250 186 436 Interest and other income, net 182 - 182 Income before income taxes 4,315 (186) 4,129 Provision for income taxes 525 (70) 455 Net income $ 3,790 $ (116) $ 3,674 Earnings per share: Basic $ 3.72 $ (0.12) $ 3.60 Diluted $ 3.70 $ (0.12) $ 3.58 Nine months ended September30, 2008 As originally reported Effect of the accounting standard Revised Operating income $ 4,077 $ - $ 4,077 Interest expense, net 245 174 419 Interest and other income, net 264 - 264 Income before income taxes 4,096 (174) 3,922 Provision for income taxes 861 (66) 795 Net income $ 3,235 $ (108) $ 3,127

3. Income taxes

3. Income taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. Income taxes	3. Income taxes The effective tax rates for the three and nine months ended September30, 2009 and September30, 2008 are different from the federal statutory tax rate primarily as a result of indefinitely invested earnings of our foreign operations. We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be invested indefinitely outside the United States. In addition, the effective tax rates for the three and nine months ended September30, 2009 were further reduced by favorable resolution of certain matters with tax authorities for prior periods. 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 audited by the tax authorities in those jurisdictions. Significant disputes can arise with these tax authorities involving issues of the timing and amount of deductions, the use of tax credits and allocations of income among various tax jurisdictions because of differing interpretations of tax laws and regulations. We are no longer subject to U.S. federal income tax examinations for years ending on or before December31, 2004 or to California state income tax examinations for years ending on or before December31, 2003. As of September30, 2009, we have settled the examinations of our U.S. income tax returns with the Internal Revenue Service for certain matters for the years ended December31, 2005 and 2006 and have remeasured our unrecognized tax benefits (UTBs) accordingly. As of September30, 2009, we have also settled the examinations of our California state income tax returns for certain matters for the years ended December31, 2004 and 2005 and have remeasured our UTBs accordingly. During the three and nine months ended September30, 2009, the gross amount of our UTBs increased approximately $80 million and $225 million, respectively, as a result of tax positions taken during the current year. During the three and nine months ended September30, 2009, the gross amount of our UTBs increased approximately $37 million as a result of tax positions taken during prior periods. During the three and nine months ended September30, 2009, the gross amount of our UTBs decreased approximately $140 million and $310 million, respectively, primarily as a result of resolving certain tax matters related to prior periods. The majority of our UTBs as of September30, 2009, if recognized, would affect our effective tax rate.

4. Earnings per share

4. Earnings per share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. Earnings per share	4. Earnings per share Basic earnings per share (EPS) is based upon the weighted-average number of common shares outstanding. Diluted EPS is based upon the weighted-average number of common shares and dilutive potential common shares outstanding. Potential common shares outstanding principally include stock options, restricted stock (including restricted stock units) and other equity awards under our employee compensation plans and potential issuance of stock upon the assumed conversion of our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, as discussed below, and upon the assumed exercise of our warrants using the treasury stock method (collectively dilutive securities). The convertible note hedges purchased in connection with the issuance of our 2011 Convertible Notes and 2013 Convertible Notes are excluded from the calculation of diluted EPS as their impact is always anti-dilutive. Upon conversion of our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, the principal amount or accreted value would be settled in cash and the excess of conversion value over the principal amount or accreted value may be settled in cash and/or shares of common stock. Therefore, only the shares of common stock potentially issuable with respect to the excess of the notes conversion value over their principal amount or accreted value, if any, are considered as dilutive potential common shares for purposes of calculating diluted EPS. For the three and nine months ended September30, 2009 and 2008, the conversion values for our convertible notes were less than the related principal amounts or accreted value and, accordingly, no shares were assumed to be issued for purposes of computing diluted EPS. For further information regarding our convertible notes, see Note 9, Financing arrangements. The following table sets forth the computation for basic and diluted EPS (in millions, except per share information): Threemonthsended September30, Ninemonthsended September30, 2009 2008 2009 2008 Income (Numerator): Net income for basic and diluted EPS $ 1,386 $ 1,121 $ 3,674 $ 3,127 Shares (Denominator): Weighted-average shares for basic EPS 1,016 1,058 1,020 1,075 Effect of dilutive securities 6 6 5 4 Weighted-average shares for diluted EPS 1,022 1,064 1,025 1,079 Basic EPS $ 1.36 $ 1.06 $ 3.60 $ 2.91 Diluted EPS $ 1.36 $ 1.05 $ 3.58 $ 2.90 For the three and nine months ended September30, 2009, there were employee stock options, calculated on a weighted average basis, to purchase 31million and 43million shares, respectively, with exercise prices greater than the average market prices of our common stock for these periods that are not included in the computation of diluted EPS as their impact would have been anti-dilutive. For the three and nine months ended September30, 2008, there were employee stock options, calculate

5. Related party transactions

5. Related party transactions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. Related party transactions	5.Related party transactions We own a 50% interest in KA, a corporation formed in 1984 with Kirin Holdings Company, Limited (Kirin) for the development and commercialization of certain products based on advanced biotechnology. We account for our interest in KA under the equity method and include our share of KAs profits or losses in Selling, general and administrative in the Condensed Consolidated Statements of Income. During the three and nine months ended September30, 2009, our share of KAs profits was $13 million and $49 million, respectively. During the three and nine months ended September30, 2008, our share of KAs profits was $22 million and $53 million, respectively. As of September30, 2009 and December31, 2008, the carrying value of our equity method investment in KA, net of dividends received, was $405 million and $356 million, respectively, and is included in non-current Other assets in the Condensed Consolidated Balance Sheets. KAs revenues consist of royalty income related to its licensed technology rights. All of our rights to manufacture and market certain products, including darbepoetin alfa, pegfilgrastim, granulocyte colony-stimulating factor (G-CSF) and recombinant human erythropoietin, are pursuant to exclusive licenses from KA, which we currently market under the brand names Aranesp, Neulasta, NEUPOGEN and EPOGEN, respectively. KA receives royalty income from us, as well as from Kirin, JJ and F. Hoffmann-La Roche Ltd. (Roche) under separate product license agreements for certain geographic areas outside of the United States. During the three and nine months ended September30, 2009, KA earned royalties from us of $85 million and $237 million, respectively. During the three and nine months ended September30, 2008, KA earned royalties from us of $85 million and $243 million, respectively. These amounts are included in Cost of sales (excludes amortization of certain acquired intangible assets) in the Condensed Consolidated Statements of Income. As of September30, 2009, KA owed us $4 million, which was included in Other current assets in the Condensed Consolidated Balance Sheet. At December31, 2008, we owed KA $82 million, which was included in Accrued liabilities in the Condensed Consolidated Balance Sheet. KAs expenses primarily consist of costs related to RD activities conducted on its behalf by Amgen and Kirin. KA pays Amgen and Kirin for such services at negotiated rates. During the three and nine months ended September30, 2009, we earned revenues from KA of $27 million and $81 million, respectively, for certain RD activities performed on KAs behalf. During the three and nine months ended September30, 2008, we earned revenues from KA of $41 million and $100 million, respectively, for certain RD activities performed on KAs behalf. These amounts are included in Other revenues in the Condensed Consolidated Statements of Income.

6. Restructuring

6. Restructuring
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. Restructuring	6.Restructuring On August15, 2007, we announced a plan to restructure our worldwide operations in order to improve our cost structure. This restructuring plan was primarily the result of regulatory and reimbursement developments that began in 2007 involving erythropoiesis-stimulating agent (ESA) products, including our marketed ESA products Aranesp and EPOGEN, and the resulting impact on our operations. Key components of our restructuring plan initially included: (i)worldwide staff reductions, (ii)rationalization of our worldwide network of manufacturing facilities and, to a lesser degree, changes to certain RD capital projects and (iii)abandoning leases primarily for certain RD facilities that will not be used in our operations. Subsequently, we identified certain additional initiatives designed to further assist in improving our cost structure, including outsourcing certain non-core business functions, most notably certain of our information systems infrastructure services, as well as abandoning leases for certain additional facilities that will no longer be used in our operations. As of September30, 2009, we have substantially completed all of the actions and incurred all related costs included in our restructuring plan and subsequently identified initiatives. Through September30, 2009, we have incurred $952 million of costs related to the above-noted actions. The charges included $214 million of separation costs, $476 million of asset impairments, $148 million of accelerated depreciation and $114 million of other net charges, which primarily include $165 million of loss accruals for leases, $10 million loss on the disposal of certain less significant marketed products, $35 million for implementation costs associated with certain cost saving initiatives and $19 million of other charges, offset by $115 million of cost recoveries from Pfizer Inc. (Pfizer) (formerly Wyeth). The following tables summarize the charges (credits) related to the above-noted actions by type of activity (in millions): Separation costs Asset impairments Other Total Three months ended September30, 2009 RD $ - $ 3 $ - $ 3 SGA - - 6 6 Other charges (3) - 4 1 $ (3) $ 3 $ 10 $ 10 Three months ended September30, 2008 Other charges $ - $ 1 $ 7 $ 8 Interest and other income, net - - 9 9 $ - $ 1 $ 16 $ 17 Nine months ended September30, 2009 Cost of sales (excludes amortization of certain acquired intangible assets) $ - $ 1 $ - $ 1 RD (3) 8 1 6 SGA (2) - 25 23 Other charges 31 - 4 35 $ 26 $ 9 $ 30 $ 65 Nine months ended September30, 2008 Cost of sales (excludes amortization of certain acquired intangible assets) $ - $ 1 $ - $ 1 RD 3 - -

7. Available-for-sale securitie

7. Available-for-sale securities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. Available-for-sale securities	7.Available-for-sale securities We consider our investment portfolio and marketable equity investments available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income. For the three months ended September30, 2009 and 2008, realized gains related to these investments were $22 million and $18 million, respectively, and realized losses related to these investments were $8 million and $26 million, respectively. For the nine months ended September30, 2009 and 2008, realized gains related to these investments were $90 million and $94 million, respectively, and realized losses related to these investments were $63 million and $62 million, respectively. The cost of securities sold is based on the specific identification method. The fair values of available-for-sale investments by type of security, contractual maturity and classification in the Condensed Consolidated Balance Sheets are as follows (in millions): September30, 2009 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Type of security: U.S. Treasury securities $ 1,590 $ 16 $ (1) $ 1,605 Obligations of U.S. government agencies and FDIC guaranteed bank debt 4,303 85 (1) 4,387 Corporate debt securities 3,976 96 (3) 4,069 Mortgage and asset backed securities 311 5 - 316 Other short-term interest bearing securities 3,530 - - 3,530 Total debt securities 13,710 202 (5) 13,907 Equity securities 71 10 - 81 $ 13,781 $ 212 $ (5) $ 13,988 December31, 2008 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Type of security: U.S. Treasury securities $ 1,896 $ 58 $ (2) $ 1,952 Obligations of U.S. government agencies and FDIC guaranteed bank debt 3,396 100 (3) 3,493 Corporate debt securities 1,432 10 (72) 1,370 Mortgage and asset backed securities 508 2 (6) 504 Other short-term interest bearing securities 2,126 - - 2,126 Total debt securities 9,358 170 (83) 9,445 Equity securities 65 - (8) 57 $ 9,423 $ 170 $ (91) $ 9,502 Contractual maturity September30, 2009 December31, 2008 Maturing in one year or less $ 4,140 $ 3,179 Maturing after one year through three years 5,895 3,724 Maturing after three years through five years 3,454 2,199 Maturing after five years 418 343 Total debt securities 13,907 9,445 Equity securities 81 57 $ 13,988 $ 9,502 Classification in the Condensed Consolidated Balance Sheets September 30, 2009 Dec

8. Inventories

8. Inventories
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. Inventories	. 8. Inventories Inventories consisted of the following (in millions): September30, 2009 December31, 2008 Raw materials $ 109 $ 112 Work in process 1,565 1,519 Finished goods 481 444 $ 2,155 $ 2,075

9. Financing arrangements

9. Financing arrangements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. Financing arrangements	9.Financing arrangements The following table reflects the carrying value of our long-term borrowings under our various financing arrangements (dollar amounts in millions): September30, 2009 December31, 2008 0.125% convertible notes due 2011 (2011 Convertible Notes) $ 2,307 $ 2,206 0.375% convertible notes due 2013 (2013 Convertible Notes) 2,058 1,970 5.85% notes due 2017 (2017 Notes) 1,099 1,099 4.00% notes due 2009 (2009 Notes) 1,000 1,000 4.85% notes due 2014 (2014 Notes) 1,000 1,000 5.70% notes due 2019 (2019 Notes) 998 - 6.40% notes due 2039 (2039 Notes) 995 - 6.375% notes due 2037 (2037 Notes) 899 899 6.15% notes due 2018 (2018 Notes) 499 499 6.90% notes due 2038 (2038 Notes) 499 498 Zero-coupon modified convertible notes due in 2032 (2032 Modified Convertible Notes) 82 81 Other 100 100 Total borrowings 11,536 9,352 Less current portion 1,000 1,000 Total non-current debt $ 10,536 $ 8,352 2019 Notes and 2039 Notes In January 2009, we issued $1.0 billion aggregate principal amount of notes due in 2019 (the 2019 Notes) and $1.0 billion aggregate principal amount of notes due in 2039 (the 2039 Notes) in a registered offering. The 2019 Notes and the 2039 Notes pay interest at fixed annual rates of 5.70% and 6.40%, respectively. The 2019 Notes and the 2039 Notes may be redeemed at any time at our option, in whole or in part, at 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest, if any, and a make-whole amount, as defined. Upon the occurrence of a change in control triggering event, as defined, we may be required to purchase for cash all or a portion of the 2019 Notes and the 2039 Notes at a price equal to 101% of the principal amount of the notes plus accrued interest. The total debt discount on issuance and debt issuance costs were $7 million and $13 million, respectively, and are being amortized over the lives of the notes. Convertible notes Effective January1, 2009, we adopted a new accounting standard that changed the method of accounting for certain types of convertible debt and, as required by this new standard, we retrospectively applied this change in accounting to all prior periods for which we had applicable outstanding convertible debt (see Note 2, Change in method of accounting for convertible debt instruments). Under this method of accounting, the debt and equity components of our convertible notes are bifurcated and accounted for separately. The equity components of our convertible notes, including our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, are included in Common stock and additional paid-in capital in the Condensed Consolidated Balance Sheets, with a corresponding reduction in the carrying values of these convertible notes as of the date of issuance or modification, as applicable. The reduced carrying values of our convertible notes are being accreted back to their principal amounts thr

10. Stockholders' equity

10. Stockholders' equity
	1/1/2009 - 9/30/2009 USD / shares
Notes to Financial Statements [Abstract]
10. Stockholders' equity	10.Stockholders equity Stock repurchase programs A summary of activity under our stock repurchase programs is as follows (in millions): 2009 2008 Shares Dollars Shares Dollars First quarter 37.5 $ 1,997 - $ - Second quarter - - 32.7 1,549 (1) Third quarter - - - 19 (1) Total 37.5 $ 1,997 32.7 $ 1,568 (1) The total cost of shares repurchased during the three months ended June30, 2008 excludes approximately $19 million paid in July 2008 in connection with the final settlement of an accelerated share repurchase program entered into in May 2008. As of September30, 2009, $2.2 billion remained available for stock repurchases as authorized by our Board of Directors. The manner of purchases, the amount we spend and the number of shares repurchased will vary based on a variety of factors, including the stock price, blackout periods in which we are restricted from repurchasing shares, and our credit rating and may include private block purchases as well as market transactions.

11. Fair value measurement

11. Fair value measurement
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. Fair value measurement	11.Fair value measurement We use various valuation approaches in determining the fair value of our financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Companys assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level1 Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access Level2 Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly Level3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. U.S. Treasury securities, money market funds (included within Other short-term interest bearing securities) and equity securities are valued using quoted market prices with no valuation adjustment. Accordingly, these securities are categorized in Level 1. Obligations of U.S. government agencies and FDIC guaranteed bank debt, corporate debt securities, mortgage and asset backed securities and other short-term interest bearing securities are valued using quoted market prices of recent transactions or are benchmarked to transactions of very similar securities. Accordingly, these securities are categorized in Level 2. Our derivative assets and liabilities include interest rate swaps and foreign currency forward and option contracts. The fair values of these derivatives are determined using models based on market observable inputs, including interest rate curves and both forward and spot prices for foreign currencies. All of these derivative contracts are categorized in Level 2. The following fair value hierarchy tables present information about each major category of the Companys financial assets and liabilities measured at fai

12. Derivative instruments

12. Derivative instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. Derivative instruments	12. Derivative instruments The Company is exposed to certain risks related to its business operations. The primary risks that we manage by using derivatives are foreign exchange rate risk and interest rate risk. We use financial instruments, including foreign currency forward, foreign currency option and interest rate swap contracts, to reduce our risk to these exposures. We do not use derivatives for speculative trading purposes and are not a party to any leveraged derivatives. We recognize all of our derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets (see Note 11, Fair value measurement). The accounting for changes in the fair value of a derivative instrument depends on whether it has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and periodically thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. We are exposed to possible changes in values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, primarily associated with our international product sales denominated in Euros. Increases or decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are partially offset by the corresponding increases and decreases in our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations on our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales over a three-year time horizon. As of September30, 2009, we had outstanding foreign currency forward and option contracts, primarily Euro-based, with notional amounts of $2.7 billion and $428 million, respectively. In connection with the issuance of long-term debt, we may enter into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable Treasury rate between the time we entered into these contracts and the time the related debt is issued. In connection with the issuance of our 2019 Notes and 2039 Notes in January 2009, we entered into forward interest rate contracts related to a portion of these borrowings. These foreign currency forward and option contracts and forward interest rate contracts are designated as cash flow hedges, and accordingly, the effective portion of gains and losses on these contracts are reported in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets and reclassified to earnings in the same periods during which the hedged transactions affect earnings. The following table reflects the effect

13. Commitments and contingenci

13. Commitments and contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. Commitments and contingencies	13. Commitments and contingencies In the ordinary course of business, we are involved in various legal proceedings and other matters that are complex in nature and have outcomes that are difficult to predict. We record accruals for such contingencies to the extent that we conclude that it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. See Note 10, Contingencies to our Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December31, 2008, Note 11, Contingencies to our Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended March31, 2009 and Note 13, Commitments and Contingencies to our Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended June30, 2009 for further discussion of certain of our legal proceedings and other matters. Certain recent developments concerning our legal proceedings and other matters are discussed below: Average Wholesale Price (AWP) Litigation Final approval hearing of the Track Two settlement before the U.S. District Court for the District of Massachusetts (the Massachusetts District Court) was scheduled for October21, 2009. However, plaintiffs filed for an extension of the final approval hearing due to continued deficiencies in executing notices and the Massachusetts District Court rescheduled the hearing for February2, 2010. Roche Matters Amgen Inc. v. F. Hoffmann-La Roche Ltd., et al. On September15, 2009, the Court of Appeals for the Federal Circuit (the Federal Circuit Court) affirmed the Massachusetts District Courts October2, 2008 judgment that the Roche Defendants peg-EPO product, Mircera, infringes four Amgen patents, specifically U.S. Patent No.5,547,933 (the 933 Patent), U.S. Patent No.5,955,422 (the 422 Patent), U.S. Patent No.5,618,698 (the 698 Patent) and U.S. Patent No.5,441,868 (the 868 Patent). Regarding the fifth patent-in-suit, U.S. Patent No.5,756,349 (the 349 Patent), the Federal Circuit Court reversed the holding of non-infringement by the District Court and remanded that issue for a new trial which would allow Amgen to prove that the Roche Defendants peg-EPO product infringes that patent as well. The Federal Circuit Court also affirmed the validity of Amgens patents except for a single issue of obviousness-type double patenting which only impacts Amgens later expiring patents (933, 422 and 349 Patents). The Federal Circuit Court remanded this validity issue to the Massachusetts District Court for further analysis. The Federal Circuit Court left undisturbed the permanent injunction that prohibits the Roche Defendants from selling its peg-EPO product, Mircera in the United States until expiry of the infringed patents. On October26, 2009, Amgen and the Roche Defendants each filed Combined Petitions For Rehearing And Rehearing En Banc with the Federal Circuit Court. Amgen requested that the Federal Circuit Court rehear its September15th determination and affirm the District Courts judgment that Amgen is entitled to the statutory safe harbor protection against validity challenges to the 933, 422

14. Other charges

14. Other charges
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. Other charges	14. Other charges In the three and nine months ended September30, 2009, we recorded loss accruals for settlements of certain commercial legal proceedings aggregating $8 million and $28 million, respectively. In the three and nine months ended September30, 2008, we recorded loss accruals for settlements of certain commercial legal proceedings aggregating $4 million and $267 million, respectively, principally related to the settlement of the Ortho Biotech antitrust suit. Such expenses are included in Other charges in the Condensed Consolidated Statements of Income.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Nov. 02, 2009
Entity [Text Block]
Trading Symbol	AMGN
Entity Registrant Name	AMGEN INC
Entity Central Index Key	0000318154
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,012,138,434