Amgen 2009 Annual Report Download - page 137

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The total fair value of shares of restricted stock units that vested during the year ended December 31, 2009
was $139 million.
As of December 31, 2009, there was $470 million of total unrecognized compensation cost related to non-
vested awards of both stock options and restricted stock units, which is expected to be recognized over a
weighted-average period of 1.7 years.
Performance award program
Certain management-level employees also receive annual grants of performance units, which give the recipi-
ent the right to receive common stock that is contingent upon achievement of specified pre-established
performance goals over the performance period, which is generally three years. The performance goals for the
units granted in 2009, 2008 and 2007 are based upon one or more of the following, as defined in the program:
(i) Amgen’s standalone financial performance, (ii) Amgen’s annual stockholder return and (iii) Amgen’s annual
stockholder return compared to a comparator group of companies. Depending on the outcome of these perform-
ance goals, a recipient may ultimately earn a number of units greater or less than the number of units granted.
The number of shares of Amgen’s common stock payable to the recipient for performance units granted in 2009,
2008 and 2007 will equal the number of performance units earned. In general, participants vest in their perform-
ance unit awards at the end of the performance period. The performance award program provides for accelerated
or continued vesting in certain circumstances as defined in the plan, including upon death, disability, a change in
control, or retirement of employees who meet certain service and/or age requirements.
The performance units granted in 2009, 2008 and 2007 include total stockholder return performance goals,
which are considered market conditions. The performance units granted in 2009 and 2007 also included perform-
ance goals based on the Company’s standalone financial performance, which are considered performance
conditions. The expense recognized for the awards granted in 2009 and 2007 was based on the grant date fair
value of a unit multiplied by the estimated number of units to be earned with respect to the performance con-
ditions, net of estimated forfeitures. The expense recognized for the awards granted in 2008 is based on the grant
date fair value of a unit multiplied by the number of units granted, net of estimated forfeitures. The impact of the
Company’s stockholder returns for the awards granted in 2009, 2008 and 2007 is reflected in the grant date fair
values of the units.
Information regarding our performance units is as follows (in millions):
Year granted
Plan year
end date
Units
granted
As of December 31,
2009
Number of shares of
common stock
issued, net of tax Date issued
Units
outstanding
Number
of units
earned
2004 ...................... 12/31/2006 1.3 — 1.7 1.0 May 2007
2005 ...................... 12/31/2007 1.1 — 1.7 1.0 May 2008
2006 ...................... 12/31/2008 1.1 — 0.6 0.4 May 2009
2007 ...................... 12/31/2009 1.3 1.1(1) 1.1(2) N/A(3) N/A(3)
2008 ...................... 12/31/2010 0.9 0.9(1) N/A(3) N/A(3) N/A(3)
2009 ...................... 12/31/2011 1.0 0.9(1) N/A(3) N/A(3) N/A(3)
(1) The performance period for the performance units which were granted in 2007 is complete and these units
are no longer subject to any performance goals. The performance units which were granted in 2009 and
2008 continue to be subject to performance goals with respect to the Company’s total stockholder return.
(2) Shares of common stock related to the units earned for the 2007 plan year are anticipated to be issued in
2010.
(3) N/A = Not applicable
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