Amgen 2010 Annual Report Download - page 173

Download and view the complete annual report

Please find page 173 of the 2010 Amgen annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

to OncoVEX
GM-CSF
. Upon its acquisition, BioVex will become a wholly owned subsidiary of Amgen. This
acquisition will provide us with an opportunity to expand our development efforts to bring novel therapeutics to
market. BioVex will be included in our consolidated financial statements commencing on the acquisition date. The
contingent consideration obligations regarding OncoVEX
GM-CSF
regulatory and sales milestones will be recorded
at their fair values on the acquisition date and will be subsequently remeasured to their fair values through earnings
each reporting period until the contingencies are resolved. The acquisition, which is subject to customary closing
conditions, is expected to close during the three months ended March 31, 2011.
22. Quarterly financial data (unaudited)
(In millions, except per share data) December 31
(1)
September 30
(2)
June 30 March 31
2010 Quarters ended
Product sales........................... $3,760 $3,759 $3,613 $3,528
Gross profit from product sales ............. 3,188 3,172 3,060 3,020
Net income ............................ 1,022 1,236 1,202 1,167
Earnings per share:
Basic .............................. $ 1.09 $ 1.29 $ 1.25 $ 1.19
Diluted ............................. $ 1.08 $ 1.28 $ 1.25 $ 1.18
(In millions, except per share data) December 31 September 30(3) June 30(4) March 31(5)
2009 Quarters ended
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
(1) We recorded $113 million of income tax benefit as the result of resolving certain transfer pricing issues with
tax authorities for prior periods and a $118 million ($74 million, net of tax) asset impairment charge associated
with a strategic decision to optimize our network of manufacturing facilities and improve cost efficiencies.
(2) We recorded $38 million of income tax benefit as the result of resolving certain transfer pricing issues with tax
authorities for prior periods.
(3) 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.
(4) We recorded $115 million of income tax benefit as the result of resolving certain transfer pricing issues with
the IRS for prior periods.
(5) We recorded $25 million of income tax benefit, net resulting from adjustments to previously established
deferred taxes, primarily related to prior acquisitions and stock option expense, due to changes in California
tax law effective for future periods.
See Notes 4 and 8 for further discussion of the items described above.
F-51
AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)