Amgen 2002 Annual Report Download - page 62

Page 60
AMGEN 2002 ANNUAL REPORT
Information regarding the income tax effects for
items of other comprehensive income/(loss) is as follows
(in millions):
Before-tax Tax benefit/ After-tax
amount (expense) amount
For the year ended
December 31, 2000:
Unrealized gains on
available-for-sale securities $193.0 $(75.8) $117.2
Less: Reclassification
adjustments for gains
realized in net income 30.0 (11.8) 18.2
Net unrealized gains on
available-for-sale securities 163.0 (64.0) 99.0
Foreign currency translation
adjustments (21.6) — (21.6)
Other comprehensive income $141.4 $(64.0) $ 77.4
For the year ended
December 31, 2001:
Unrealized losses on
available-for-sale securities $ (18.4) $ 7.0 $ (11.4)
Less: Reclassification
adjustments for losses
realized in net income (8.0) 3.3 (4.7)
Net unrealized losses on
available-for-sale securities (10.4) 3.7 (6.7)
Foreign currency translation
adjustments 0.4 — 0.4
Other comprehensive loss $ (10.0) $ 3.7 $ (6.3)
For the year ended
December 31, 2002:
Unrealized losses on
available-for-sale securities $ (23.7) $ 9.1 $ (14.6)
Less: Reclassification
adjustments for gains
realized in net income 4.2 (1.5) 2.7
Net unrealized losses on
available-for-sale securities (27.9) 10.6 (17.3)
Foreign currency translation
adjustments 28.2 — 28.2
Other comprehensive income $ 0.3 $ 10.6 $ 10.9
Other
In addition to common stock, the Company’s authorized cap-
ital includes 5.0 million shares of preferred stock, $0.0001
par value, of which 0.7 million shares have been reserved
and designated Series A Preferred Stock. At December 31,
2002 and 2001, no shares of preferred stock were issued
or outstanding.
At December 31, 2002, the Company had reserved
190.3 million shares of its common stock which may be
issued through its employee stock option and stock purchase
plans. The number of shares available for issuance at
December 31, 2002 includes available shares from stock
option plans assumed from Immunex.
Note 7. Employee stock option, stock
purchase, and defined contribution plans
Employee stock option plans
The Company’s employee stock option plans provide for
option grants designated as either nonqualified or incentive
stock options. Option grants to employees generally vest
over a three to five year period and expire seven years from
the date of grant. Most employees are eligible to receive a
grant of stock options annually with the number of shares
generally determined by the employee’s salary grade and per-
formance level. In addition, certain management and pro-
fessional level employees typically receive a stock option
grant upon commencement of employment.
As a result of the acquisition, the Company assumed
stock options to purchase Immunex common stock out-
standing at July 15, 2002. Outstanding options at July
15, 2002 were converted into 22.4 million options to pur-
chase Amgen common stock based on the terms specified
in the merger agreement. Approximately 18.9 million of
the total options assumed were exercisable at July 15, 2002.
In 2001, most employees received an additional stock option
grant, totaling 5.2 million shares, in which all shares vest
upon the earlier of: (i) five years from the date of grant or
(ii) the date on which the closing price of Amgen stock
equals or exceeds $100.00 per share.