Amgen 2007 Annual Report Download - page 78
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(4) Primarily represents the non-cash amortization of acquired product technology rights, primarily ENBREL,
related to the Immunex acquisition. Amortization charges, net of tax, for the three years ended
December 31, 2007 were $185 million, $200 million and $215 million, respectively.
(5) As part of the accounting for the acquisitions of Alantos and Ilypsa in 2007, Avidia and Abgenix in 2006
and Tularik in 2004, we recorded charges to write-off acquired in-process R&D (“IPR&D”) of $270 million
and $320 million in 2007, respectively, $130 million and $1.1 billion in 2006, respectively, and $554 mil-
lion in 2004. These charges represent the estimated fair values of the IPR&D that, as of the respective
acquisition dates, had not reached technological feasibility and had no alternative future use.
(6) In May 2007, we issued $2.0 billion aggregate principal amount of floating rate notes due in 2008, $1.1 bil-
lion aggregate principal amount of notes due in 2017 and $900 million aggregate principal amount of notes
due in 2037 in a private placement. A total of $3.2 billion of the net proceeds raised from the issuance of
these notes were used to repurchase shares of our common stock under a block trade entered into in May
2007.
(7) In February 2006, we issued $2.5 billion principal amount of convertible notes due in 2011 and $2.5 billion
principal amount of convertible notes due in 2013 in a private placement. In connection with the issuance of
these notes, a total of $3.0 billion of our common stock was repurchased under our stock repurchase pro-
gram. Also, concurrent with the issuance of these notes, we purchased convertible note hedges in private
transactions. The cost of the convertible note hedges, which aggregated approximately $1.5 billion, was re-
corded as a reduction of equity. Also, concurrent with the issuance of these notes, we sold warrants to
acquire shares of our common stock. Proceeds received from the issuance of the warrants totaled approx-
imately $774 million.
(8) On March 2, 2007, as a result of holders of substantially all of our outstanding 2032 Modified Convertible
Notes exercising their March 1, 2007 put option, we repurchased $2.3 billion aggregate principal amount, or
the majority of the then outstanding convertible notes at their then-accreted value for $1.7 billion in cash.
(9) Throughout the five-years ended December 31, 2007 in the table above, we have had share repurchase
programs authorized by the Board of Directors through which we have repurchased $5.1 billion,
$5.0 billion, $4.4 billion, $4.1 billion and $1.8 billion of Amgen common stock in 2007, 2006, 2005, 2004
and 2003, respectively.
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