Amgen 2009 Annual Report Download - page 136

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
common stock. We estimated the expected life of stock options using the “simplified” method during the year
ended December 31, 2007. Under this method, the expected life was equal to the arithmetic average of the vest-
ing term and the original contractual term of the option. Commencing in 2008, we use historical data to estimate
the expected life of the options. The risk-free interest rates for periods within the expected life of the option are
based on the U.S. Treasury yield curve in effect during the period the options were granted.
Stock option information with respect to our stock-based compensation plans during the three years ended
December 31, 2009 is as follows:
Options
(in millions)
Weighted-
average
exercise
price
Weighted-
average
remaining
contractual
life (years)
Aggregate
intrinsic
value
(in millions)
Balance unexercised at December 31, 2006 ................. 68.2 $60.11
Granted ........................................... 7.6 $62.89
Exercised .......................................... (4.2) $42.92
Forfeited/expired ................................... (9.5) $65.99
Balance unexercised at December 31, 2007 ................. 62.1 $60.70
Granted ........................................... 6.9 $43.60
Exercised .......................................... (3.8) $37.82
Forfeited/expired ................................... (14.4) $63.39
Balance unexercised at December 31, 2008 ................. 50.8 $59.31
Granted ........................................... 6.6 $50.65
Exercised .......................................... (3.9) $39.96
Forfeited/expired ................................... (2.7) $61.94
Balance unexercised at December 31, 2009 ................. 50.8 $59.50 3.1 $150
Vested or expected to vest at December 31, 2009 ............ 50.1 $59.64 3.1 $145
Exercisable at December 31, 2009 ........................ 35.4 $62.20 2.2 $ 53
The total intrinsic value of options exercised during the year ended December 31, 2009 was $57 million.
The fair value of a restricted stock unit is equal to the closing price of Amgen common stock on the grant
dates. Information regarding our restricted stock units during the three years ended December 31, 2009 is as fol-
lows:
Nonvested units
Units
(in millions)
Weighted-average
grant date fair
value
Nonvested at December 31, 2006 ....................................... 4.1 $65.77
Granted .......................................................... 3.6 $60.59
Vested ........................................................... (1.2) $64.74
Forfeited ......................................................... (0.9) $64.85
Nonvested at December 31, 2007 ....................................... 5.6 $62.94
Granted .......................................................... 5.2 $42.63
Vested ........................................................... (1.7) $62.94
Forfeited ......................................................... (0.6) $55.58
Nonvested at December 31, 2008 ....................................... 8.5 $50.73
Granted .......................................................... 3.6 $51.24
Vested ........................................................... (2.8) $53.94
Forfeited ......................................................... (0.5) $49.14
Nonvested at December 31, 2009 ....................................... 8.8 $50.00
F-16