Amgen 2011 Annual Report Download - page 140

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The payout simulation models also assumed correlations of returns of the stock prices of our common stock
and the common stocks of the comparator groups of companies and stock price volatilities of the comparator
groups of companies.
As of December 31, 2011 and 2010, a total of 4.1 million and 2.7 million performance units were
outstanding with weighted-average grant date fair values of $51.92 and $49.49 per unit, respectively. During the
year ended December 31, 2011, 2.5 million performance units with a weighted average grant date fair value of
$49.50 were granted, 0.4 million performance units with a grant date fair value of $48.22 vested and 0.2 million
performance units with a weighted-average grant date fair value of $52.70 were forfeited.
The total fair values of performance units that vested during 2011, 2010 and 2009 were $25 million, $34
million and $29 million, respectively, based upon the number of performance units earned multiplied by the
closing stock price of our common stock on the last day of the performance period. Performance unit awards
granted for performance periods that ended prior to 2009 were accounted for as liability awards and were paid in
the year after the performance period ended. Performance unit liability awards paid in 2009 aggregated $30
million.
As of December 31, 2011, there was approximately $90 million of unrecognized compensation cost related
to the 2011 and 2010 performance unit grants that is expected to be recognized over a weighted-average period
of approximately 1.1 years.
4. Income taxes
The provision for income taxes includes the following for the years ended December 31, 2011, 2010 and
2009 (in millions):
2011 2010 2009
Current provision:
Federal ............................................................... $618 $636 $325
State ................................................................. 58 52 85
Foreign ............................................................... 148 153 155
Total current provision ................................................. 824 841 565
Deferred (benefit) provision:
Federal ............................................................... (340) (196) 92
State ................................................................. (16) 43 (59)
Foreign ............................................................... (1) 2 1
Total deferred (benefit) provision ........................................ (357) (151) 34
Total provision ..................................................... $467 $690 $599
Deferred income taxes reflect the temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards
and the tax effects of net operating loss carryforwards.
F-16