Amgen 2009 Annual Report Download - page 177

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
22. Quarterly financial data (unaudited)
2009 Quarters ended
December 31 September 30(1) June 30(2) March 31(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
December 31(4) September 30(5) June 30(6) March 31
(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 de-
ferred 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.
F-57