Amgen 2009 Annual Report Download - page 94

$300 million for an upfront milestone payment related to our licensing agreement with Takeda; and the negative
impact of the timing and amounts of receipts from customers and payments to vendors and others. Cash provided
by operating activities increased in 2008 primarily as a result of improvement in operating income.
Investing
Net purchases of marketable securities were $2.7 billion for the year ended December 31, 2009 compared to
net purchases of $2.6 billion for the year ended December 31, 2008 and net purchases of $52 million for the year
ended December 31, 2007.
Capital expenditures totaled $530 million in 2009, $672 million in 2008 and $1.3 billion in 2007. Capital
expenditures in 2009 were primarily associated with manufacturing capacity expansions in Puerto Rico and other
site developments. Capital expenditures in 2008 were primarily associated with manufacturing capacity ex-
pansions in Puerto Rico, Fremont and other site developments and investment in our global ERP system and
other information systems’ projects. Capital expenditures in 2007 were primarily associated with manufacturing
capacity and site expansions in Puerto Rico and other locations and investment in our global ERP system. We
currently estimate 2010 spending on capital projects and equipment to be approximately $600 million.
On January 4, 2008, we completed our acquisition of Dompé and pursuant to the merger agreement, we paid
$56 million in cash, net of cash acquired and transaction costs of $2 million.
On July 18, 2007, we completed our acquisition of Ilypsa and pursuant to the merger agreement, we paid
$398 million in cash, net of cash acquired and transaction costs of $2 million. On July 16, 2007, we completed
our acquisition of Alantos and pursuant to the merger agreement, we paid $299 million in cash, net of cash ac-
quired and transaction costs of $1 million.
Financing
In December 2009, the Board of Directors authorized us to repurchase up to an additional $5.0 billion of
common stock adding to the $5.0 billion previously authorized in July 2007. As of December 31, 2009, we had
$6.0 billion 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. A summary of our repurchase activity under our
stock repurchase programs 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 June 30, 2008 excludes approximately
$19 million paid in July 2008 in connection with the final settlement of an ASR program entered into in
May 2008.
(2) The total number of shares repurchased during the three months ended June 30, 2007 excludes 2.5 million
shares received in July 2007 in connection with the final settlement of an ASR entered into in May 2007.
As discussed above, in January 2009, we issued $1.0 billion aggregate principal amount of notes due in
2019 and $1.0 billion aggregate principal amount of notes due in 2039 resulting in net proceeds received of $2.0
billion. In November 2009, we repaid $1.0 billion of 4.00% notes that matured.
As discussed above, in May 2008, we issued $500 million aggregate principal amount of notes due in 2018
and $500 million aggregate principal amount of notes due in 2038 resulting in net proceeds received of $991
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