Amgen 2009 Annual Report Download - page 95

million. In June 2008, upon receipt of the proceeds from the issuance of these notes, we exercised our right to
call and repaid $1.0 billion of floating rate notes scheduled to mature in November 2008 and in November 2008,
we repaid the remaining $1.0 billion of floating rate notes that matured.
In May 2007, we issued $2.0 billion aggregate principal amount of 2008 Floating Rate Notes, $1.1 billion
aggregate principal amount of 5.85% notes due in 2017 and $900 million aggregate principal amount of 6.375%
notes due in 2037, resulting in net proceeds of $4.0 billion. A total of $3.2 billion of the net proceeds raised from
the issuance of these notes were used to repurchase shares of our common stock under an ASR entered into in
May 2007.
On March 2, 2007, as a result of holders of substantially all of our outstanding 2032 Modified Convertible
Notes exercising their March 1, 2007 put option, we repurchased $2.3 billion aggregate principal amount or the
majority of the then outstanding convertible notes at their then-accreted value for $1.7 billion in cash. In addition
$135 million of other debt securities matured and were repaid in 2007.
We receive cash from the exercise of employee stock options. Employee stock option exercises provided
$171 million, $155 million and $277 million of cash during the years ended December 31, 2009, 2008 and 2007,
respectively. Proceeds from the exercise of employee stock options will vary from period to period based upon,
among other factors, fluctuations in the market value of our stock relative to the exercise price of such options.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that are material or reasonably likely to be material to
our consolidated financial position or consolidated results of operations.
Contractual Obligations
Contractual obligations represent future cash commitments and liabilities under agreements with third par-
ties, and exclude contingent liabilities for which we cannot reasonably predict future payment. Additionally, the
expected timing of payment of the obligations presented below is estimated based on current information. Timing
of payments and actual amounts paid may be different depending on the timing of receipt of goods or services or
changes to agreed-upon terms or amounts for some obligations.
The following table represents our contractual obligations as of December 31, 2009, aggregated by type (in
millions):
Contractual obligations
Payments due by period
Total
Less than
1 year
2-3
years
4-5
years
More than
5 years
Long-term debt obligations(1) .......................... $17,736 $ 323 $3,276 $4,225 $ 9,912
Operating lease obligations ............................ 1,017 136 231 184 466
Purchase obligations(2) ............................... 3,715 939 793 278 1,705
Total contractual obligations ...................... $22,468 $1,398 $4,300 $4,687 $12,083
(1) The long-term debt obligation amounts include future interest payments. Future interest payments are in-
cluded on the 2011 Convertible Notes at a fixed rate of 0.125%, the 2013 Convertible Notes at a fixed rate
of 0.375%, the 2017 Notes at a fixed rate of 5.85%, the 2014 Notes at a fixed rate of 4.85%, the 2019 Notes
at a fixed rate of 5.70%, the 2039 Notes at a fixed rate of 6.40%, the 2037 Notes at a fixed rate of 6.375%,
the 2018 Notes at a fixed rate of 6.15%, the 2038 Notes at a fixed rate of 6.90% and the other notes at a
fixed rate of 8.125%. To achieve a desired mix of fixed and floating interest rate debt, we enter into interest
rate swap agreements. These interest rate swap agreements effectively convert a fixed rate interest coupon to
a LIBOR-based floating rate coupon over the life of the respective note. We used an interest rate forward
curve at December 31, 2009 to compute the net amounts to be included in the table above for future interest
payments on our variable rate interest rate swaps.
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