Amgen (AMGN) 10-K 1 Mar 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Product sales	$14,351	$14,687	$14,311
Other revenues	291	316	460
Total revenues	14,642	15,003	14,771
Operating expenses:
Cost of sales (excludes amortization of certain acquired intangible assets presented below)	2,091	2,296	2,548
Research and development	2,864	3,030	3,266
Selling, general and administrative	3,820	3,789	3,361
Amortization of certain acquired intangible assets	294	294	298
Write-off of acquired in-process research and development	0	0	590
Other charges	67	380	728
Total operating expenses	9,136	9,789	10,791
Operating income	5,506	5,214	3,980
Interest expense, net	578	551	496
Interest and other income, net	276	352	309
Income before income taxes	5,204	5,015	3,793
Provision for income taxes	599	963	715
Net income	$4,605	$4,052	$3,078
Earnings per share:
Basic	4.53	3.79	2.76
Diluted	4.51	3.77	2.74
Shares used in calculation of earnings per share:
Basic	1,016	1,070	1,117
Diluted	1,021	1,075	1,123

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$2,884	$1,774
Marketable securities	10,558	7,778
Trade receivables, net	2,109	2,073
Inventories	2,220	2,075
Other current assets	1,161	1,521
Total current assets	18,932	15,221
Property, plant and equipment, net	5,738	5,879
Intangible assets, net	2,567	2,988
Goodwill	11,335	11,339
Other assets	1,057	1,000
Total assets	39,629	36,427
Current liabilities:
Accounts payable	574	504
Accrued liabilities	3,299	3,382
Current portion of other long-term debt	0	1,000
Total current liabilities	3,873	4,886
Convertible notes	4,512	4,257
Other long-term debt	6,089	4,095
Other non-current liabilities	2,488	2,304
Stockholders' equity:
Common stock and additional paid-in capital; $0.0001 par value; 2,750 shares authorized; outstanding - 995 shares in 2009 and 1,047 shares in 2008	26,944	26,441
Accumulated deficit	(4,322)	(5,673)
Accumulated other comprehensive income	45	117
Total stockholders' equity	22,667	20,885
Total liabilities and stockholders' equity	$39,629	$36,427

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions	Dec. 31, 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	995	1,047

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions		Common stock and additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income	Total
Beginning Balance at Dec. 31, 2006		$25,215	($5,386)	$12	$19,841
Beginning Balance (in shares) at Dec. 31, 2006	1,166
Comprehensive income:
Net income			3,078		3,078
Other comprehensive income (loss), net of tax				41	41
Issuance of common stock in connection with the Company's equity award programs (in shares)	8
Issuance of common stock in connection with the Company's equity award programs		333			333
Stock-based compensation		316			316
Tax impact related to employee stock options		26			26
Repurchases of common stock (in shares)	(87)
Repurchases of common stock			(5,123)		(5,123)
Ending Balance (in shares) at Dec. 31, 2007	1,087
Ending Balance at Dec. 31, 2007		25,890	(7,431)	53	18,512
Comprehensive income:
Net income			4,052		4,052
Other comprehensive income (loss), net of tax				64	64
Issuance of common stock in connection with the Company's equity award programs (in shares)	5
Issuance of common stock in connection with the Company's equity award programs		198			198
Stock-based compensation		267			267
Tax impact related to employee stock options		86			86
Repurchases of common stock (in shares)	(45)
Repurchases of common stock			(2,294)		(2,294)
Ending Balance (in shares) at Dec. 31, 2008	1,047				1,047
Ending Balance at Dec. 31, 2008		26,441	(5,673)	117	20,885
Comprehensive income:
Net income			4,605		4,605
Other comprehensive income (loss), net of tax				(72)	(72)
Issuance of common stock in connection with the Company's equity award programs (in shares)	7
Issuance of common stock in connection with the Company's equity award programs		190			190
Stock-based compensation		324			324
Tax impact related to employee stock options		(11)			(11)
Repurchases of common stock (in shares)	(59)
Repurchases of common stock			(3,254)		(3,254)
Ending Balance (in shares) at Dec. 31, 2009	995				995
Ending Balance at Dec. 31, 2009		$26,944	($4,322)	$45	$22,667

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income	$4,605	$4,052	$3,078
Depreciation and amortization	1,049	1,073	1,202
Write-off of acquired in-process research and development	0	0	590
Stock-based compensation expense	284	262	263
Deferred income taxes	47	(137)	56
Property, plant and equipment impairments	21	59	404
Dividend received from equity investee	110	8	76
Other items, net	111	244	173
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables, net	(36)	65	38
Inventories	(134)	(59)	(109)
Other current assets	(3)	15	(119)
Accounts payable	71	95	(181)
Accrued income taxes	(142)	14	(810)
Other accrued liabilities	320	(30)	688
Deferred revenue	33	327	52
Net cash provided by operating activities	6,336	5,988	5,401
Cash flows from investing activities:
Purchases of property, plant and equipment	(530)	(672)	(1,267)
Cash paid for acquisitions, net of cash acquired	0	(56)	(697)
Purchases of marketable securities	(12,418)	(10,345)	(5,579)
Proceeds from sales of marketable securities	8,252	6,762	5,073
Proceeds from maturities of marketable securities	1,443	1,018	454
Other	51	128	24
Net cash used in investing activities	(3,202)	(3,165)	(1,992)
Cash flows from financing activities:
Repurchases of common stock	(3,208)	(2,268)	(5,100)
Repayment of debt	(1,000)	(2,000)	(1,840)
Net proceeds from issuance of debt	1,980	991	3,982
Net proceeds from issuance of common stock in connection with the Company's equity award programs	171	155	277
Other	33	49	13
Net cash used in financing activities	(2,024)	(3,073)	(2,668)
Increase (decrease) in cash and cash equivalents	1,110	(250)	741
Cash and cash equivalents at beginning of period	1,774	2,024	1,283
Cash and cash equivalents at end of period	$2,884	$1,774	$2,024

Summary of significant accounti

Summary of significant accounting policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of significant accounting policies	1. Summary of significant accounting policies Business Amgen Inc. (including its subsidiaries, referred to as Amgen, the Company, we, our and us) is a global biotechnology medicines company that discovers, develops, manufactures and markets medicines for grievous illnesses. We concentrate on innovating novel medicines based on advances in cellular and molecular biology and we operate in one business segment, human therapeutics. Principles of consolidation The consolidated financial statements include the accounts of Amgen as well as its wholly owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of 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. Financial Accounting Standards Board Accounting Standards Codification Effective July1, 2009, the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC or Codification) became the authoritative source of GAAP. All existing FASB accounting standards and guidance were superseded by the ASC. Instead of issuing new accounting standards in the form of statements, 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 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 16, Finan

Change in method of accounting

Change in method of accounting for convertible debt instruments
	12 Months Ended Dec. 31, 2009 USD / shares
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 policiesChange 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, including our 2011 Convertible Notes, 2013 Convertible Notes and our 2032 Modified Convertible Notes, 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 our Consolidated Statements of Income (in millions, except per share information): Year ended December31, 2009 Excluding the effect of the accounting standard Effect of the accounting standard Including the effect of the accounting standard Operating income $ 5,506 $ $ 5,506 Interest expense, net 328 250 578 Interest and other income, net 276 276 Income before income taxes 5,454 (250 ) 5,204 Provision for income taxes 694 (95 ) 599 Net income $ 4,760 $ (155 ) $ 4,605 Earnings per share: Basic $ 4.69 $ (0.16 ) $ 4.53 Diluted $ 4.66 $ (0.15 ) $ 4.51 Year ended December31, 2008 As originally reported Effect of the accounting standard Revised Operating income $ 5,214 $ $ 5,214 Interest expense, net 316 235 551 Interest and other income, net 352 352 Income before income taxes 5,250 (235 ) 5,015 Provision for income taxes 1,054 (91 ) 963 Net income $ 4,196 $ (144 ) $ 4,052 Earnings per share: Basic $ 3.92 $ (0.13 ) $ 3.79 Diluted $ 3.90 $ (0.13 ) $ 3.77 Year ended December31, 2007 As originally reported Effect of the accounting standard Revised Operating income $ 3,980 $ $ 3,980 Interest expense, net 328 168 496 Interest and other income, net 309 309 Income before income taxes 3,961 (168 ) 3,793 Provision for income taxes 795 (80 ) 715 Net income $ 3,166 $ (88 ) $ 3,078 Earnings per share: Basic $ 2.83 $ (0.07 ) $ 2.76 Diluted $ 2.82 $ (0.08 ) $ 2.74 The following tables illustrate the impact of adopting this accounting standard on our Consolidated Balance Sheets (in millions): December31, 2009 Excluding the effect of the accounting standard Effect of the accounting standard Including the effect of the accounting standard Non-current assets: Other assets $ 1,069 $ (12 ) $ 1,057 Non-

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions	3. Acquisitions Domp Biotec, S.p.A On January4, 2008, we completed the acquisition of Domp Biotec, S.p.A (Domp), a privately held company that marketed certain of our products in Italy. This acquisition was accounted for as a business combination. The purchase price was approximately $168 million, which included the carrying value of our existing 49% ownership in Domp. The purchase price paid was allocated to the net assets acquired of approximately $63 million, principally comprised of marketing rights to marketed products, based on their estimated fair values at the acquisition date and the excess of the purchase price over the fair values of net assets acquired of approximately $105 million was assigned to goodwill. There was no material gain or loss related to the reacquisition of marketing rights previously granted to Domp as a result of this business combination. The results of Domps operations have been included in the consolidated financial statements commencing January4, 2008. Pro forma results of operations for the year ended December31, 2008 assuming the acquisition of Domp had taken place at the beginning of 2008 would not differ significantly from the actual reported results. Ilypsa, Inc. On July18, 2007, we completed the acquisition of Ilypsa, which was accounted for as a business combination. Ilypsa was a privately held company that specialized in the development of non-absorbed drugs for renal disorders. Pursuant to the merger agreement, we paid cash of approximately $400 million to acquire all of the outstanding shares of Ilypsa. The purchase price paid, including transaction costs, was allocated to acquired IPRD of $320 million and other net assets acquired of $42 million, based on their estimated fair values at the acquisition date. The excess of the purchase price over the fair values of assets and liabilities acquired of approximately $41 million was assigned to goodwill. The estimated fair value of the acquired IPRD was determined based upon discounted after-tax cash flows adjusted for the probabilities of successful development and commercialization. The amount allocated to acquired IPRD was immediately expensed in the Consolidated Statement of Income (see Note 1, Summary of significant accounting policies Acquired in-process research and development). The results of Ilypsas operations have been included in the consolidated financial statements commencing July18, 2007. Pro forma results of operations for the year ended December31, 2007 assuming the acquisition of Ilypsa had taken place at the beginning of 2007 would not differ significantly from the actual reported results. Alantos Pharmaceuticals Holding, Inc. On July16, 2007, we completed the acquisition of Alantos, which was accounted for as a business combination. Alantos was a privately held company that specialized in the development of drugs for the treatment of diabetes and inflammatory diseases. Pursuant to the merger agreement, we paid cash of approximately $300 million to acquire all of the outstanding shares of Alantos. The purchase price paid, including transaction costs, was allocated to acquired IPRD of $270 million and other net asse

Employee stock-based payments

Employee stock-based payments
	12 Months Ended Dec. 31, 2009 USD / shares
Employee stock-based payments	4. Employee stock-based payments On May6, 2009, our stockholders approved the Amgen Inc. 2009 Equity Incentive Plan (the 2009 Plan) for non-employee members of our Board of Directors, the employees and consultants of Amgen, its subsidiaries and affiliates. The 2009 Plan replaced our existing equity plans (the Prior Plans). After May6, 2009, no further awards may be made under these Prior Plans. The 2009 Plan authorizes the issuance of 100million shares of our common stock. Under the terms of the 2009 Plan, the pool of available shares that may be used for all types of awards, including those issued under our Prior Plans after December31, 2008 and before May6, 2009, will be reduced by one share for each stock option granted and by 1.9 shares for other types of awards granted, including restricted stock or performance units. If any shares subject to an award granted under our Prior Plans after December31, 2008 or any awards granted under the 2009 Plan expire, or are forfeited, terminated or cancelled without the issuance of shares, the shares subject to such awards will be added back to the pool of available shares under the 2009 Plan on the same basis that they were removed. As of December31, 2009, the 2009 Plan provides for future grants and/or issuances of up to approximately 85million shares of our common stock. Our stock-based instruments, more fully described below, principally include stock options, restricted stock units and performance units. Stock-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose. The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income for the years ended December31, 2009, 2008 and 2007 (in millions): 2009 2008 2007 Stock options $ 115 $ 103 $ 181 Restricted stock units 134 105 76 Performance units 35 54 6 Total stock-based compensation expense, pre-tax 284 262 263 Tax benefit from stock-based compensation expense (97 ) (89 ) (81 ) Total stock-based compensation expense, net of tax $ 187 $ 173 $ 182 Employee stock option and restricted stock unit grants Our equity-based compensation plan provides for grants of stock options to employees. The option exercise price is set at the closing price of our common stock on the date of grant and the related number of shares granted is fixed at that point in time. This plan also provide for grants of restricted stock units. Grants of these equity instruments generally vest over a four year period. In addition, stock option awards expire seven years from the date of grant. Eligible employees generally receive a grant of stock options and/or restricted stock units annually with the number of shares and type of instrument generally determined by the employees salary grade and performance level. In addition, certain management and professional level employees typically receive stock options and/or restricted stock unit gra

Income taxes

Income taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income taxes	5. Income taxes The provision for income taxes includes the following (in millions): Years ended December31, 2009 2008 2007 Current provision: Federal $ 325 $ 866 $ 467 State 85 82 40 Foreign 155 152 176 Total current provision 565 1,100 683 Deferred provision (benefit): Federal 92 (86 ) 61 State (59 ) (43 ) (30 ) Foreign 1 (8 ) 1 Total deferred provision (benefit) 34 (137 ) 32 Total provision $ 599 $ 963 $ 715 Deferred income taxes reflect the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards and the tax effects of net operating loss carryforwards. Significant components of our deferred tax assets and liabilities are as follows (in millions): December31, 2009 2008 Deferred tax assets: Intercompany inventory related items $ 351 $ 359 Expense accruals 519 576 Acquired net operating loss and credit carryforwards 178 243 Expenses capitalized for tax 177 175 Stock-based compensation 229 220 Deferred revenue 128 153 Other 108 111 Total deferred tax assets 1,690 1,837 Valuation allowance (92 ) (106 ) Net deferred tax assets 1,598 1,731 Deferred tax liabilities: Acquired intangibles (882 ) (1,025 ) Fixed assets (201 ) (184 ) Other (138 ) (154 ) Total deferred tax liabilities (1,221 ) (1,363 ) Total deferred taxes $ 377 $ 368 At December31, 2009 and 2008, we had net current deferred tax assets of $634 million and $859 million, respectively, primarily composed of temporary differences related to inventory and accrued liabilities. In addition, at December31, 2009 and December31, 2008 we had net non-current deferred tax liabilities of $257 million and $491 million, respectively, primarily composed of temporary differences related to acquired intangibles and fixed assets partially offset by stock-based compensation and deferred revenue. The valuation allowance for deferred tax assets decreased by $14 million in 2009. The decrease was primarily due to the utilization and expiration of certain acquired net operating loss carryforwards. Valuation allowances are provided when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies. At December31, 2009, we had net operating loss carryforwards of $487 million available to reduce future taxable income in various s

Earnings per share

Earnings per share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings per share	6. Earnings per share Basic earnings per share (EPS) is based upon the weighted-average number of our common shares outstanding. Diluted EPS is based upon the weighted-average number of our common shares and dilutive potential common shares outstanding. Potential common shares outstanding principally include stock options, 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. For further information regarding our convertible notes and warrants, see Note 16, Financing arrangements. 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 the conversion value, as defined, over the principal amount or accreted value may be settled in cash and/or shares of our common stock. Therefore, only the shares of our 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 years ended December31, 2009, 2008 and 2007, 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 16, Financing arrangements. The following table sets forth the computation for basic and diluted EPS (in millions, except per share information): Years ended December31, 2009 2008 2007 Income (Numerator): Net income for basic and diluted EPS $ 4,605 $ 4,052 $ 3,078 Shares (Denominator): Weighted-average shares for basic EPS 1,016 1,070 1,117 Effect of dilutive securities 5 5 6 Weighted-average shares for diluted EPS 1,021 1,075 1,123 Basic EPS $ 4.53 $ 3.79 $ 2.76 Diluted EPS $ 4.51 $ 3.77 $ 2.74 For the years ended December31, 2009, 2008 and 2007, there were employee stock options, calculated on a weighted average basis, to purchase 42million, 45million and 48million shares of our common stock, 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. In addition, shares of our common stock, which may be issued upon conversion of our convertible debt or upon exercise

Collaborative arrangements

Collaborative arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Collaborative arrangements	. 7. Collaborative arrangements From time to time, we enter into collaborative arrangements for the RD, manufacture and/or commercialization of products and product candidates. These collaborations generally provide for non-refundable, upfront license fees, RD and commercial performance milestone payments, cost sharing, royalty payments and/or profit sharing. Our collaboration agreements with third parties are performed on a best efforts basis with no guarantee of either technological or commercial success. Each collaboration is unique in nature and our significant arrangements are discussed below except for our arrangements with KA, which are discussed in Note 8, Related party transactions. Pfizer Inc. (formerly Wyeth) Amgen and Pfizer are in a collaboration agreement to co-promote ENBREL in the United States and Canada. The rights to market ENBREL outside of the United States and Canada are reserved to Pfizer. Under the agreement, a management committee comprised of equal representation from Amgen and Pfizer is responsible for overseeing the marketing and sales of ENBREL, including strategic planning, the approval of an annual marketing plan and product pricing. Pfizer and Amgen share in the agreed upon selling and marketing expenses approved by the joint management committee. In addition, we pay Pfizer a percentage of the annual gross profits on our ENBREL sales in the United States and Canada attributable to all approved indications for ENBREL on a scale that increases as gross profits increase, however, we maintain a majority share of ENBREL profits. We have determined that we are the principal participant in the collaboration with Pfizer to market ENBREL in the United States and Canada. Accordingly, we record our product sales of ENBREL to third parties net of estimated returns, rebates and other deductions. For the years ended December31, 2009, 2008 and 2007, ENBREL sales aggregated $3.5 billion, $3.6 billion and $3.2 billion, respectively. During the years ended December31, 2009, 2008 and 2007, the Pfizer profit share expense was $1,163 million, $1,195 million and $984 million, respectively, and is included in Selling, general and administrative expense in the Consolidated Statements of Income. The Pfizer profit share expense for 2007 excludes recoveries of certain expenses recorded as part of our restructuring, as discussed in Note 9, Restructuring. In addition, cost recoveries from Pfizer for their share of the selling and marketing co-promotion expense were $75 million, $77 million and $74 million for the years ended December31, 2009, 2008 and 2007, respectively, and are included in Selling, general and administrative expense in the Consolidated Statements of Income. GlaxoSmithKline plc In July 2009, we entered into a collaboration agreement with GlaxoSmithKline plc (GSK) for the commercialization of our late-stage product candidate, denosumab, in Europe, Australia, New Zealand and Mexico (the Primary Territories) for osteoporosis indications. We will commercialize denosumab for all indications in the United States and Canada and for oncology indications in the Primary Territories. We have determined that w

Related party transactions

Related party transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related party transactions	8. 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 expense in the Consolidated Statements of Income. For the years ended December31, 2009, 2008 and 2007, our share of KAs profits were $72 million, $72 million and $51 million, respectively. At December31, 2009 and 2008, the carrying value of our equity method investment in KA, net of dividends received, was $318 million and $356 million, respectively, and is included in non-current Other assets in the Consolidated Balance Sheets. The amount of dividends received were $110 million and $8 million for the years ended December31, 2009 and 2008, respectively. 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), recombinant human erythropoietin and romiplostim are pursuant to exclusive licenses from KA, which we currently market under the brand names Aranesp, Neulasta, NEUPOGEN, EPOGEN and Nplate, 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 years ended December31, 2009, 2008 and 2007, KA earned royalties from us of $327 million, $321 million and $336 million, respectively. These amounts are included in Cost of sales (excludes amortization of certain acquired intangible assets) in the Consolidated Statements of Income. At December31, 2009 and 2008, we owed KA $104 million and $89 million, respectively, which are included in Accrued liabilities in the Consolidated Balance Sheets. 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 years ended December31, 2009, 2008 and 2007, we earned revenues from KA of $102 million, $124 million and $180 million, respectively, for certain RD activities performed on KAs behalf. These amounts are included in Other revenues in the Consolidated Statements of Income. In addition, included in Other revenues in the Consolidated Statements of Income for the year ended December31, 2007 is $45 million received from KA with respect to achieving certain regulatory filing milestones. During the years ended December31, 2009, 2008 and 2007, we recorded cost recoveries from KA of $96 million, $82 million and $82 million, respectively, related to certain third-party costs. These amounts are included in Research and development expense in the Consolidated Statements of Income.

Restructuring

Restructuring
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring	9. 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 December31, 2009, we have completed all of the actions and incurred all related costs included in our restructuring plan and subsequently identified initiatives. Through December31, 2009, we incurred $957 million of costs related to the above-noted actions. The charges included $213 million of separation costs associated with approximately 3,100 staff members, $476 million of asset impairments, $148 million of accelerated depreciation and $120 million of other net charges, which include $165 million of loss accruals for leases, $41 million for implementation costs associated with certain cost saving initiatives, $19 million of other charges and $10 million loss on the disposal of certain less significant marketed products, offset by $115 million of cost recoveries from Pfizer. The following tables summarize the charges (credits) related to the above-noted actions by type of activity (in millions): Year ended December31, 2009 Separation costs Asset impairments Accelerated depreciation Other Total Cost of sales (excludes amortization of certain acquired intangible assets) $ $ 1 $ $ $ 1 RD (3 ) 8 1 6 SGA (2 ) 31 29 Other charges 30 4 34 $ 25 $ 9 $ $ 36 $ 70 Year ended December31, 2008 Cost of sales (excludes amortization of certain acquired intangible assets) $ $ 6 $ $ $ 6 RD 3 3 SGA 17 20 37 Other charges 7 36 49 92 Interest and other income, net 10 10 $ 10 $ 59 $ $ 79 $ 148 Year ended December31, 2007 Cost of sales (excludes amortization of certain acquired intangible assets) $ (1 ) $ 4 $ 147 $

Other charges

Other charges
	12 Months Ended Dec. 31, 2009 USD / shares
Other charges	10. Other charges For the years ended December31, 2009, 2008 and 2007, we recorded loss accruals for settlements of certain legal proceedings aggregating $33 million, $288 million and $34 million, respectively. The loss accruals for 2008 principally related to the settlement of the Ortho Biotech Products L.P. antitrust suit. These amounts are included in Other charges in the Consolidated Statements of Income. For the years ended December31, 2009, 2008 and 2007, we recorded charges associated with restructuring and/or cost savings initiatives totaling $34 million, $92 million and $694 million, respectively. Such expenses are included in Other charges in the Consolidated Statements of Income. (See Note 9, Restructuring for further discussion.)

Available-for-sale securities

Available-for-sale securities
	12 Months Ended Dec. 31, 2009 USD / shares
Available-for-sale securities	11. Available-for-sale securities The fair values of available-for-sale investments by type of security, contractual maturity and classification in the Consolidated Balance Sheets are as follows (in millions): December31, 2009 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Type of security: U.S. Treasury securities $ 1,929 $ 12 $ (6 ) $ 1,935 Obligations of U.S. government agencies and FDIC guaranteed bank debt 3,731 62 (1 ) 3,792 Corporate debt securities 4,193 96 (4 ) 4,285 Mortgage and asset backed securities 489 4 (2 ) 491 Money market mutual funds 2,784 2,784 Other short-term interest bearing securities 55 55 Total debt securities 13,181 174 (13 ) 13,342 Equity securities 63 (8 ) 55 $ 13,244 $ 174 $ (21 ) $ 13,397 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 Money market mutual funds 1,565 1,565 Other short-term interest bearing securities 561 561 Total debt securities 9,358 170 (83 ) 9,445 Equity securities 65 (8 ) 57 $ 9,423 $ 170 $ (91 ) $ 9,502 December31, Contractual maturity 2009 2008 In one year or less $ 3,444 $ 3,179 After one year through three years 6,369 3,724 After three years through five years 3,207 2,199 After five years 322 343 Total debt securities 13,342 9,445 Equity securities 55 57 $ 13,397 $ 9,502 December31, Classification in the Consolidated Balance Sheets 2009 2008 Cash and cash equivalents $ 2,884 $ 1,774 Marketable securities 10,558 7,778 Other assets noncurrent 55 30 13,497 9,582 Less cash (100 ) (80 ) $ 13,397 $ 9,502 For the years ended December31, 2009, 2008 and 2007, realized gains totaled $104 million, $124 million and $17 million, respectively, and realized losses totaled $62 million, $49 million and $20 million, respectively. The cost of securities sold is based on the specific identification method. The primary objectives of our investment portfolio are liquidity and safety of principal. Inve

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories	12. Inventories Inventories consisted of the following (in millions): December31, 2009 2008 Raw materials $ 97 $ 112 Work in process 1,683 1,519 Finished goods 440 444 $ 2,220 $ 2,075 As of December31, 2009, we had $258 million of Prolia inventory capitalized in preparation for its anticipated product launch. We are currently in discussions with regulatory authorities in the United States, European Union and various other countries regarding the approval of Prolia. The amount capitalized for Proliainventory is included in work in process. During 2008, we wrote-off $84 million of inventory resulting from a strategic decision to change manufacturing processes. This charge is included in Cost of sales (excludes amortization of certain acquired intangible assets) in our Consolidated Statement of Income.

Property, plant and equipment

Property, plant and equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property, plant and equipment	13. Property, plant and equipment Property, plant and equipment consisted of the following (in millions): December31, 2009 2008 Land $ 450 $ 456 Buildings and improvements 3,293 3,205 Manufacturing equipment 1,462 1,431 Laboratory equipment 892 923 Furniture, fixtures and other assets 3,369 3,154 Construction in progress 910 826 10,376 9,995 Less accumulated depreciation and amortization (4,638 ) (4,116 ) $ 5,738 $ 5,879 During the years ended December31, 2009, 2008 and 2007, we recognized depreciation and amortization charges associated with our property, plant and equipment of $624 million, $648 million and $786 million, respectively.

Intangible assets

Intangible assets
	12 Months Ended Dec. 31, 2009 USD / shares
Intangible assets	14. Intangible assets Amortization of intangible assets other than goodwill is provided over their estimated useful lives ranging from 5 to 15 years on a straight-line basis (weighted average remaining amortization period of 7 years at December31, 2009). Intangible assets other than goodwill consisted of the following (in millions): Intangible assets subject to amortization Weighted average amortization period December31, 2009 2008 Acquired product technology rights: Developed product technology 15years $ 2,872 $ 2,872 Core technology 15 years 1,348 1,348 Trade name 15 years 190 190 Acquired RD technology rights 5 years 350 350 Other intangible assets 10 years 541 537 5,301 5,297 Less accumulated amortization (2,734 ) (2,309 ) $ 2,567 $ 2,988 Acquired product technology rights relate to the identifiable intangible assets acquired in connection with the 2002 Immunex acquisition and the amortization is included in Amortization of certain acquired intangible assets in the Consolidated Statements of Income. Intangible assets also include acquired RD technology rights consisting of technology used in RD with alternative future uses and the amortization is included in Research and development expense in the Consolidated Statements of Income. Acquired RD technology rights principally include certain technology acquired in the Abgenix, Inc. (Abgenix) acquisition in 2006. The amortization of other intangible assets is principally included in Cost of sales and Selling, general and administrative expense in the Consolidated Statements of Income. During the years ended December31, 2009, 2008 and 2007, we recognized amortization charges associated with our intangible assets of $425 million, $425 million and $416 million, respectively. The total estimated amortization for each of the next five years for our intangible assets is $418 million, $366 million, $338 million, $338 million and $321 million in 2010, 2011, 2012, 2013 and 2014, respectively.

Accrued liabilities

Accrued liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued liabilities	15. Accrued liabilities Accrued liabilities consisted of the following (in millions): December31, 2009 2008 Sales deductions $ 970 $ 876 Employee compensation and benefits 751 799 Clinical development costs 361 429 Sales returns reserve 211 233 Other 1,006 1,045 $ 3,299 $ 3,382

Financing arrangements

Financing arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Financing arrangements	16. Financing arrangements The following table reflects the carrying value of our long-term borrowings under our various financing arrangements (dollar amounts in millions): December31, 2009 2008 0.125% convertible notes due 2011 (2011 Convertible Notes) $ 2,342 $ 2,206 0.375% convertible notes due 2013 (2013 Convertible Notes) 2,088 1,970 5.85% notes due 2017 (2017 Notes) 1,099 1,099 4.00% notes due 2009 (2009 Notes) 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 8.125% notes due 2097 (Other) 100 100 Total borrowings 10,601 9,352 Less current portion 1,000 Total non-current debt $ 10,601 $ 8,352 2011 and 2013 Convertible Notes In February 2006, we issued $2.5 billion principal amount of convertible notes due in February 2011 (the 2011 Convertible Notes) and $2.5 billion principal amount of convertible notes due in February 2013 (the 2013 Convertible Notes). The 2011 Convertible Notes and the 2013 Convertible Notes were issued at par and pay interest at a rate of 0.125% and 0.375%, respectively. The 2011 Convertible Notes and 2013 Convertible Notes may be converted into shares of our common stock based on an initial conversion rate of 12.5247 shares and 12.5814 shares, respectively, per $1,000 principal amount of notes (which represents an initial conversion price of approximately $79.84 and $79.48 per share, respectively). These conversion rates will be adjusted if we make specified types of distributions or enter into certain other transactions with respect to our common stock. The 2011 Convertible Notes and 2013 Convertible Notes may only be converted: (i)during any calendar quarter if the closing price of our common stock exceeds 130% of the respective conversion price per share during a defined period at the end of the previous quarter, (ii)if we make specified distributions to holders of our common stock or specified corporate transactions occur or (iii)one month prior to the respective maturity date. Upon conversion, a holder would receive the conversion value equal to the conversion rate multiplied by the volume weighted average price of our common stock during a specified period following the conversion date. The conversion value will be paid in: (i)cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and (ii)to the extent the conversion value exceeds the principal amount of the note, shares of our common stock, cash or a combination of common stock and cash, at our option (the excess conversion value). As of December31, 2009, these notes were not convertible. In addition, upon a change in control, as defined, the holders may require u

Stockholders' equity

Stockholders' equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' equity	17. Stockholders equity Stock repurchase program A summary of the activity under our stock repurchase program is as follows (in millions): 2009 2008 2007 Shares Dollars Shares Dollars Shares Dollars First quarter 37.5 $ 1,997 $ 8.8 $ 537 Second quarter 32.7 1,549 (1) 73.9 (2) 4,463 Third quarter 19 (1) 2.5 (2) Fourth quarter 21.7 1,211 12.6 700 1.8 100 Total 59.2 $ 3,208 45.3 $ 2,268 87.0 $ 5,100 (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 ASR entered into in May 2008. (2) The total number of shares repurchased during the three months ended June30, 2007 excludes 2.5million shares received in July 2007 in connection with the final settlement of an ASR entered into in May 2007. In both July 2007 and December 2009, the Board of Directors authorized us to repurchase up to $5.0 billion of common stock of which a total of $6.0 billion remains available for stock repurchases as of December31, 2009. 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. Accumulated other comprehensive income The components of accumulated other comprehensive income (OCI) are as follows (in millions): Foreign currency translation Cashflow hedges Available-for-sale securities Other Accumulatedother comprehensive income Balance as of January1, 2007 $ 45 $ (25 ) $ (8 ) $ $ 12 Other comprehensive income: Foreign currency translation adjustments 30 30 Unrealized (losses)/gains (32 ) 73 41 Reclassification adjustments to income 3 3 Income taxes (16 ) 12 (29 ) (33 ) Balance as of December31, 2007 59 (45 ) 39 53 Other comprehensive income: Foreign currency translation adjustments (43 ) (43 ) Unrealized gains 155 92 247 Reclassification adjustments to income (75 ) (75 ) Other (11 ) (11 ) Income taxes 9 (60 ) (7 ) 4 (54 ) Balance as of December31, 2008 25 50 49 (7 ) 117 Other comprehensive loss: Foreign currency translation adjustments 25 25 Unrealized (losses)/gains (213

Fair value measurement

Fair value measurement
	12 Months Ended Dec. 31, 2009 USD / shares
Fair value measurement	18. 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 for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs Level 3 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 mutual funds and equity securities are valued using quoted market prices in active markets 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 methodologies based on market observable inputs, principally, quoted prices of transactions of similar securities in active markets, quoted prices of recent transactions of identical or similar assets in markets that are not active, benchmark yields and issuer credit spreads. 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 methodologies based on market observable inputs, including interest rate and volatility curves, credit spreads and foreign currency spot prices. 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 fair

Derivative instruments

Derivative instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative instruments	19. Derivative instruments The Company is exposed to certain risks related to its business operations. The primary risks that we manage by using derivative instruments 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 Consolidated Balance Sheets (see Note 18, 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 quarterly 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 with, at any given point in time, a higher percentage of nearer term projected product sales being hedged than successive periods. As of December31, 2009, we had open foreign currency forward and option contracts, primarily Euro-based, with notional amounts of $3.4 billion and $376 million, respectively. In connection with the anticipated issuance of long-term fixed-rate 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 have been designated as cash flow hedges, and accordingly, the effective portion of the unrealized gains and losses on these contracts are reported in Accumulated other comprehensive income in the Consolidated

Contingencies and commitments

Contingencies and commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies and commitments	20. Contingencies and commitments 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. Certain of our legal proceedings and other matters are discussed below: Roche Matters Amgen Inc. v. F. Hoffmann-La Roche Ltd., et al. On November8, 2005, Amgen filed a lawsuit in the Massachusetts District Court against F. Hoffmann-La Roche Ltd., Roche Diagnostics GmbH and Hoffmann-La Roche, Inc. (collectively, Roche Defendants) seeking a declaration by the court that the importation, use, sale or offer to sell pegylated erythropoietin (alternatively referred to as peg-EPO or MIRCERA) infringes Amgens EPO patents. Amgen alleged infringement of six of its U.S. Patents that claim erythropoietin products, pharmaceutical compositions and processes for making erythropoietin, specifically U.S. Patent No.5,547,933 (the 933 Patent), U.S. Patent No.5,621,080 (the 080 Patent), U.S. Patent No.5,955,422 (the 422 Patent), U.S. Patent No.5,756,349 (the 349 Patent), U.S. Patent No.5,618,698 (the 698 Patent) and U.S. Patent No.5,441,868 (the 868 Patent). Amgen sought a permanent injunction preventing the Roche Defendants from making, importing, using, offering for sale or selling recombinant human erythropoietin, including pegylated EPO, in the United States. The Roche Defendants amended answer asserted that all six of the patents-in-suit were not infringed, were invalid and were unenforceable due to inequitable conduct and counterclaimed asserting violations of federal and state antitrust laws. On June5, 2007, the Massachusetts District Court entered an order dismissing the 080 Patent from the case. The Massachusetts District Court conducted a jury trial on infringement and validity, a bench trial on other issues of validity and enforceability, and heard pre- and post-trial motions. On October17, 2008, the Massachusetts District Court entered judgment that claim 1 of the 422 Patent, claims 3, 7, 8, 9, 11, 12 and 14 of the 933 Patent, claims 1 and 2 of the 868 Patent, claims 6 through 9 of the 698 Patent and claim 7 of the 349 Patent are valid and enforceable, and that claim 1 of the 422 Patent, claims 3, 7 and 8 of the 933 Patent, claims 1 and 2 of the 868 Patent, and claims 6 through 9 of the 698 Patent are infringed and permanently enjoined Roche from infringing the 422 Patent, the 933 Patent, the 868 Patent and the 698 Patent for the remaining life of these patents. The Roche Defendants filed an appeal with the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit Court) and Amgen filed a cross-appeal. On September15, 2009, the Federal Circuit Court affirmed the Massachusetts District Courts judgment with respect to infringement of the 933, 422, 698 and 868 Patents and vacated the holding of non-infringement of the 349 Patent. The Federal Circuit Court also affirmed the validity of Amgens patents except for a

Segment information

Segment information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment information	21. 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 consisted of the following (in millions): Years ended December31, 2009 2008 2007 Product sales: Aranesp U.S. $ 1,251 $ 1,651 $ 2,154 Aranesp International 1,401 1,486 1,460 EPOGEN U.S. 2,569 2,456 2,489 Neulasta U.S. 2,527 2,505 2,351 NEUPOGEN U.S. 901 896 861 Neulasta International 828 813 649 NEUPOGEN International 387 445 416 ENBREL U.S. 3,283 3,389 3,052 ENBREL Canada 210 209 178 Sensipar U.S. 429 412 333 Sensipar International 222 185 130 Other U.S. 175 151 203 Other International 168 89 35 Total product sales 14,351 14,687 14,311 Other revenues 291 316 460 Total revenues $ 14,642 $ 15,003 $ 14,771 Geographic information Outside the United States, we principally sell Aranesp, Neulasta and NEUPOGEN in Europe and ENBREL in Canada only. Information regarding revenues and long-lived assets (consisting of property, plant and equipment) attributable to the United States and to all international countries collectively is stated below. The geographic classification of product sales was based upon the location of the customer. The geographic classification of all other revenues was based upon the domicile of the entity from which the revenues were earned. Certain geographical information with respect to revenues and long-lived assets are as follows (in millions): Years ended December31, 2009 2008 2007 Revenues: United States $ 11,421 $ 11,772 $ 11,887 International countries 3,221 3,231 2,884 Total revenues $ 14,642 $ 15,003 $ 14,771 December31, 2009 2008 Long-lived assets: United States $ 3,525 $ 3,836 Puerto Rico 1,920 1,740 International countries 293 303 Total long-lived assets $ 5,738 $ 5,879 Major customers In the United States, we sell primarily to wholesale distributors of pharmaceutical products. We utilize these wholesale distributors as the principal means of distributing our products to healthcare providers, such as physicians or their clinics, dialysis centers, hospitals and pharmacies. In early 2008, ENBRELs distribution model was converted from primarily being drop shipped directly to pharmacies to a wholesale distribution model similar to our other products. In Europe, Aranesp

Quarterly financial data

Quarterly financial data (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly financial data (unaudited)	22. Quarterly financial data (unaudited) 2009 Quarters ended December31 September30(1) June30(2) March31(3) (In millions, except per share data) Product sales $ 3,743 $ 3,736 $ 3,634 $ 3,238 Gross profit from product sales 3,205 3,191 3,103 2,761 Net income 931 1,386 1,269 1,019 Earnings per share: Basic $ 0.93 $ 1.36 $ 1.25 $ 0.99 Diluted $ 0.92 $ 1.36 $ 1.25 $ 0.98 2008 Quarters ended December31(4) September30(5) June30(6) March31 (In millions, except per share data) Product sales $ 3,674 $ 3,784 $ 3,692 $ 3,537 Gross profit from product sales 3,116 3,107 3,177 2,991 Net income 925 1,121 906 1,100 Earnings per share: Basic $ 0.88 $ 1.06 $ 0.84 $ 1.01 Diluted $ 0.87 $ 1.05 $ 0.84 $ 1.01 (1) We recorded $100 million of income tax benefit, net due to the favorable resolution of certain prior years matters with tax authorities, net of a $28 million tax provision associated with certain prior period transfer pricing matters. (2) We recorded $115 million of income tax benefit as the result of resolving certain transfer pricing issues with the IRS for prior periods. (3) We recorded $25 million of income tax benefit, net resulting from adjustments to previously established deferred taxes, primarily related to prior acquisitions and stock option expense, due to changes in California tax law effective for future periods. (4) We recorded charges of $97 million ($68 million, net of tax) primarily for asset impairments, loss accruals for leases for certain facilities that will not be used in our business, staff separation costs and certain cost saving initiatives associated with our restructuring plan. (5) We recorded a charge of $84 million ($64 million, net of tax) related to the write-off of inventory resulting from a strategic decision to change manufacturing processes. (6) We recorded a charge of $263 million ($200 million, net of tax) for loss accruals for settlements of certain commercial legal proceedings. See Notes 5, 9, 10 and 12 for further discussion of the items described above.

VALUATION ACCOUNTS

VALUATION ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
VALUATION ACCOUNTS	SCHEDULE II AMGEN INC. VALUATION ACCOUNTS Years ended December31, 2009, 2008 and 2007 (In millions) Allowance for doubtful accounts Balanceat beginning of period Additions chargedto costs and expenses Other additions Deductions Balance at end ofperiod Year ended December31, 2009 $ 38 $ (6 ) $ $ $ 32 Year ended December31, 2008 $ 39 $ 1 $ $ 2 $ 38 Year ended December31, 2007 $ 38 $ $ 3 $ 2 $ 39

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Trading Symbol	AMGN
Entity Registrant Name	AMGEN INC
Entity Central Index Key	0000318154
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		979,301,627
Entity Public Float			$53,667,437,634