Amgen 2011 Annual Report Download - page 77

that we will be able to effectively mitigate all operational risks. If we fail to effectively mitigate all operational
risks, our product supply may be negatively impacted, which could have a material and adverse effect on our
product sales, business and results of operations.
Cost savings initiatives may result in the carrying value of certain existing manufacturing facilities or other
assets becoming impaired or other related charges being incurred.
Our business continues to face many challenges. In response to these challenges, we have worked and continue
to work to improve cost efficiencies and to reduce discretionary expenditures. As part of those efforts, we undertake
cost savings initiatives to evaluate our processes and procedures in order to identify opportunities for achieving
greater efficiencies in how we conduct our business. In particular, we evaluate our manufacturing operations to
identify opportunities to increase production yields and/or success rates as well as capacity utilization. Depending
on the timing and outcomes of these cost savings initiatives, the carrying value of certain manufacturing or other
assets may not be fully recoverable and could result in the recognition of impairment and/or other related charges.
The recognition of such charges, if any, could have a material adverse effect on our results of operations.
The adoption of new tax legislation or exposure to additional tax liabilities could affect our profitability.
We are subject to income and other taxes in the United States and other jurisdictions in which we do business.
Our provision for income taxes and results of operations in the future could be adversely affected by changes to our
operating structure, changes in the mix of earnings in countries with differing tax rates, changes in the valuation of
deferred tax assets and liabilities, and changes in applicable tax laws, regulations or administrative interpretations
thereof. For example, there are several proposals under consideration in the United States to reform tax law,
including proposals that may reduce or eliminate the deferral of U.S. income tax on our unrepatriated foreign
earnings. While it is uncertain how the U.S. Congress may address U.S. tax policy matters in the future, reform of
U.S. taxation, including taxation of international income, continues to be a topic of discussion for the U.S. Congress
and the Administration. A significant change to the U.S. tax system, such as a change to the taxation of international
income, could have a material and adverse effect on our business and results of operations.
There can be no assurance that we will continue to declare cash dividends or repurchase stock.
On April 20, 2011, our Board of Directors adopted a dividend policy pursuant to which the Company would
pay quarterly dividends on our common stock, and increased the total authorization for repurchases of our
common stock to approximately $7.2 billion. On October 13, 2011, our Board of Directors increased the total
authorization for repurchases of our common stock by approximately $6.1 billion to $10 billion, and in
December 2011 we repurchased approximately $5 billion of our common stock in a modified Dutch auction
tender offer, leaving approximately $5 billion remaining for future repurchases under our Board authorization.
Whether we continue and the amount and timing of such dividends and/or stock repurchases are subject to capital
availability and periodic determinations by our Board of Directors that cash dividends and/or stock repurchases
are in the best interest of our stockholders and are in compliance with all respective laws and agreements of the
Company applicable to the declaration and payment of cash dividends and the repurchase of stock. Future
dividends and stock repurchases, including their timing and amount, may be affected by, among other factors:
our views on potential future capital requirements for strategic transactions, including acquisitions; debt service
requirements; our credit rating; changes to applicable tax laws or corporate laws; and changes to our business
model. In addition, the amount we spend and the number of shares we are able to repurchase under our stock
repurchase program may further be affected by a number of other factors, including the stock price and blackout
periods in which we are restricted from repurchasing shares. Our dividend payments and/or stock repurchases
may change from time to time, and we cannot provide assurance that we will continue to declare dividends and/
or repurchase stock in any particular amounts or at all. A reduction in or elimination of our dividend payments
and/or stock repurchases could have a negative effect on our stock price.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
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