Amgen 2007 Annual Report Download - page 149

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
On October 22, 2004, the President of the United States signed the American Jobs Creation Act of 2004,
which provided a temporary incentive to repatriate undistributed foreign earnings. One provision of the American
Jobs Creation Act reduced the effective tax rate by providing an 85% dividends-received deduction for certain
dividends from controlled foreign corporations. In the fourth quarter of 2005, we repatriated $500 million of for-
eign earnings, which was the maximum amount of foreign earnings qualifying for the reduced tax rate. The tax
expense incurred on the repatriation was approximately $43 million.
One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state
jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely audited by the tax authorities
in those jurisdictions. Significant disputes may arise with these tax authorities involving issues of the timing and
amount of deductions, the use of credits, and allocations of income among various tax jurisdictions because of
differing interpretations of tax laws and regulations. We are no longer subject to U.S. federal income tax
examinations for tax years ending on or before December 31, 2004 or to California state income tax examina-
tions for tax years ending on or before December 31, 2003.
Income taxes paid during the years ended December 31, 2007, 2006 and 2005, totaled $895 million, $987
million and $840 million, respectively.
6. Financing arrangements
The following table reflects the carrying value of our long-term borrowings under our various financing ar-
rangements as of December 31, 2007 and 2006 (in millions):
2007 2006
0.125% convertible notes due 2011 (2011 Convertible Notes) ............... $ 2,500 $2,500
0.375% convertible notes due 2013 (2013 Convertible Notes) ............... 2,500 2,500
Floating rate notes due 2008 (2008 Floating Rate Notes) .................... 2,000 —
5.85% notes due 2017 (2017 Notes) .................................... 1,099 —
4.85% notes due 2014 (2014 Notes) .................................... 1,000 1,000
4.00% notes due 2009 (2009 Notes) .................................... 999 999
6.375% notes due 2037 (2037 Notes) ................................... 899 —
Zero coupon 30 year modified convertible notes due in 2032 (2032 Modified
Convertible Notes) ............................................... 80 1,778
Other ............................................................ 100 235
Total borrowings ................................................. 11,177 9,012
Less current portion ................................................. 2,000 1,798
Total non-current debt ............................................. $ 9,177 $7,214
2008 Floating Rate Notes, 2017 Notes and 2037 Notes
In May 2007, we issued $2.0 billion aggregate principal amount of floating rate notes due in November
2008 (the “2008 Floating Rate Notes”), $1.1 billion aggregate principal amount of notes due in 2017 (the “2017
Notes”) and $900 million aggregate principal amount of notes due in 2037 (the “2037 Notes”) in a private
placement. The 2008 Floating Rate Notes bear interest at a rate per annum equal to LIBOR plus 0.08%, which is
reset quarterly. We may redeem the 2008 Floating Rate Notes, in whole or from time to time in part, at a re-
demption price equal to 100% of the principal amount being redeemed plus accrued interest. The 2017 Notes and
2037 Notes pay interest at fixed rates of 5.85% and 6.375%, respectively. The 2017 Notes and 2037 Notes may
be redeemed, in whole or from time to time in part, at 100% of the principal amount of the notes being redeemed
plus accrued interest, if any, and a “make-whole” amount, as defined. In the event of a change in control trigger-
ing event, as defined, we may be required to purchase for cash all or a portion of the 2008 Floating Rate Notes,
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