Amgen 2009 Annual Report Download - page 92

Financing arrangements
The following table reflects the carrying value of our long-term borrowings under our various financing ar-
rangements and the amounts reflect, where applicable, the adoption of the new accounting standard that changed
the method of accounting for our convertible debt (dollar amounts in millions):
December 31,
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
In November 2009, $1.0 billion aggregate principal amount of notes with a fixed interest rate of 4.00% (the
“2009 Notes”) became due and were repaid.
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. Debt issuance costs totaled approximately $13 million and
are being amortized over the lives of the notes.
In May 2008, we issued $500 million aggregate principal amount of notes due in 2018 (the “2018 Notes”)
and $500 million aggregate principal amount of notes due in 2038 (the “2038 Notes”) in a registered offering.
The 2018 Notes and 2038 Notes pay interest at fixed annual rates of 6.15% and 6.90%, respectively. The 2018
Notes and 2038 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 interest and a “make-whole” amount, as defined. In the event
of a change in control triggering event, as defined, we may be required to purchase for cash all or a portion of the
2018 Notes and 2038 Notes at a price equal to 101% of the principal amount of the notes plus accrued interest.
Debt issuance costs totaled approximately $6 million and are being amortized over the life of the notes. Upon the
receipt of the proceeds from the issuance of the 2018 Notes and 2038 Notes discussed above, in June 2008 we
exercised our right to call and repaid $1.0 billion of the 2008 Floating Rate Notes which were scheduled to ma-
ture in November 2008. In November 2008, the remaining $1.0 billion aggregate principal amount of the 2008
Floating Rate Notes became due and were repaid.
As of December 31, 2009, we had $7.6 billion of additional notes outstanding. The notes consisted of
(i) $2.3 billion of convertible notes that bear interest at a fixed rate of 0.125% and mature in February 2011
(“2011 Convertible Notes”), (ii) $2.1 billion of convertible notes that bear interest at a fixed rate of 0.375% and
mature in February 2013 (“2013 Convertible Notes”), (iii) $1.1 billion of notes that bear interest at a fixed rate of
80