Amgen 2010 Annual Report Download - page 134

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common stock. 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.
The following summarizes select information regarding our stock options during the year ended December 31,
2010:
Options
(in millions)
Weighted-
average
exercise price
Weighted-
average
remaining
contractual
life (years)
Aggregate
intrinsic
value
(in millions)
Balance unexercised at December 31, 2009 .......... 50.8 $59.50
Granted .................................. 6.7 $58.32
Exercised ................................. (1.3) $46.13
Forfeited/expired............................ (9.4) $64.72
Balance unexercised at December 31, 2010 .......... 46.8 $58.66 3.6 $110
Vested or expected to vest at December 31, 2010 ..... 46.0 $58.71 3.5 $109
Exercisable at December 31, 2010 . ............... 31.7 $61.05 2.1 $ 58
The total intrinsic value of options exercised during the three years ended December 31, 2010, 2009 and 2008
was $15 million, $57 million and $68 million, respectively.
Restricted stock unit grants
The fair value of a restricted stock unit is equal to the closing price of our common stock on the grant date. The
weighted-average grant date fair values of restricted stock units granted in 2010, 2009 and 2008 were $58.19,
$51.24 and $42.63, respectively. The following summarizes select information regarding our restricted stock units
during the year ended December 31, 2010:
Units
(in millions)
Weighted-average
grant date
fair value
Balance nonvested at December 31, 2009 ............................. 8.8 $50.00
Granted .................................................... 4.1 $58.19
Vested ..................................................... (3.2) $52.50
Forfeited ................................................... (0.4) $51.96
Balance nonvested at December 31, 2010 ............................. 9.3 $52.67
The total fair values of shares of restricted stock units that vested during the year ended December 31, 2010,
2009 and 2008 was $184 million, $139 million and $77 million, respectively.
As of December 31, 2010, there was approximately $499 million of unrecognized compensation costs related
to nonvested stock option and restricted stock unit awards, which is expected to be recognized over a weighted-
average period of 1.7 years.
Performance award program
Certain management-level employees also receive annual grants of performance units, which give the
recipient the right to receive common stock that is contingent upon achievement of specified pre-established
performance goals over the performance period, which is generally three years. The performance goals for the units
granted in 2010, 2009 and 2008, which are accounted for as equity awards, are based upon one or more of the
F-12
AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)