Amgen 2009 Annual Report Download - page 156

Download and view the complete annual report

Please find page 156 of the 2009 Amgen annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 180

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Contractual maturities of long-term debt obligations
The aggregate contractual maturities of all long-term debt obligations due subsequent to December 31, 2009
are as follows (in millions):
Maturity date Amount
2010 .............................................................................. $ —
2011(1) ............................................................................. 2,500
2012(2) ............................................................................. 84
2013(1) ............................................................................. 2,500
2014 .............................................................................. 1,000
Thereafter .......................................................................... 5,100
Total ............................................................................ $11,184
(1) This amount represents the principal amount due under the note after full accretion of the debt discount.
(2) This amount represents the 2032 Modified Convertible Notes’ accreted value on March 1, 2012, the next
date on which holders may put the debt to us for repayment.
Interest costs
Interest costs are expensed as incurred, except to the extent such interest is related to construction in prog-
ress, in which case interest is capitalized. Interest expense, net for the years ended December 31, 2009, 2008 and
2007 was $578 million, $551 million and $496 million, respectively. Interest costs capitalized for the years ended
December 31, 2009, 2008 and 2007 were $32 million, $22 million and $28 million, respectively. Interest paid,
net of interest rate swaps, during the years ended December 31, 2009, 2008 and 2007, totaled $293 million, $303
million and $258 million, respectively. Included in interest expense, net for the years ended December 31, 2009,
2008 and 2007, is the impact of non-cash interest expense of $250 million, $235 million and $168 million, re-
spectively, resulting from the adoption of the new accounting standard that changed the method of accounting for
our convertible debt. (See above and Note 2, “Change in method of accounting for convertible debt
instruments.”)
17. Stockholders’ equity
Stock repurchase program
A summary of the activity under our stock repurchase program is as follows (in millions):
2009 2008 2007
Shares Dollars Shares Dollars Shares Dollars
First quarter ...................................... 37.5 $1,997 — $ — 8.8 $ 537
Second quarter .................................... — — 32.7 1,549(1) 73.9(2) 4,463
Third quarter ...................................... — — — 19
(1) 2.5(2) —
Fourth quarter ..................................... 21.7 1,211 12.6 700 1.8 100
Total .......................................... 59.2 $3,208 45.3 $2,268 87.0 $5,100
(1) The total cost of shares repurchased during the three months ended June 30, 2008 excludes approximately
$19 million paid in July 2008 in connection with the final settlement of an ASR entered into in May 2008.
(2) The total number of shares repurchased during the three months ended June 30, 2007 excludes 2.5 million
shares received in July 2007 in connection with the final settlement of an ASR entered into in May 2007.
F-36