View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Feb. 11, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	AMGEN INC
Entity Central Index Key	0000318154
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 50,355,022,164
Entity Common Stock, Shares Outstanding		932,452,902

Document and Entity Information (Parenthetical)	Jun. 30, 2010 shares
Document and Entity Information [Abstract]
Common stock held by directors and officers and any stockholders whose ownership exceeds five percent of the shares outstanding	1,085,011

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues:
Product sales	$ 14,660	$ 14,351	$ 14,687
Other revenues	393	291	316
Total revenues	15,053	14,642	15,003
Operating expenses:
Cost of sales (excludes amortization of certain acquired intangible assets presented below)	2,220	2,091	2,296
Research and development	2,894	2,864	3,030
Selling, general and administrative	3,983	3,820	3,789
Amortization of certain acquired intangible assets	294	294	294
Other charges	117	67	380
Total operating expenses	9,508	9,136	9,789
Operating income	5,545	5,506	5,214
Interest expense, net	604	578	551
Interest and other income, net	376	276	352
Income before income taxes	5,317	5,204	5,015
Provision for income taxes	690	599	963
Net income	$ 4,627	$ 4,605	$ 4,052
Earnings per share:
Basic	$ 4.82	$ 4.53	$ 3.79
Diluted	$ 4.79	$ 4.51	$ 3.77
Shares used in calculation of earnings per share:
Basic	960	1,016	1,070
Diluted	965	1,021	1,075

Consolidated Balance Sheets - USD ($) $ in Millions	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 3,287	$ 2,884
Marketable securities	14,135	10,558
Trade receivables, net	2,335	2,109
Inventories	2,022	2,220
Other current assets	1,350	1,161
Total current assets	23,129	18,932
Property, plant and equipment, net	5,522	5,738
Intangible assets, net	2,230	2,567
Goodwill	11,334	11,335
Other assets	1,271	1,057
Total assets	43,486	39,629
Current liabilities:
Accounts payable	716	574
Accrued liabilities	3,366	3,299
Current portion of convertible notes	2,488	0
Total current liabilities	6,570	3,873
Convertible notes	2,296	4,512
Other long-term debt	8,578	6,089
Other non-current liabilities	$ 2,098	$ 2,488
Contingencies and commitments
Stockholders' equity:
Common stock and additional paid-in capital; $0.0001 par value; 2,750 shares authorized; outstanding - 932 shares in 2010 and 995 shares in 2009	$ 27,299	$ 26,944
Accumulated deficit	(3,508)	(4,322)
Accumulated other comprehensive income	153	45
Total stockholders' equity	23,944	22,667
Total liabilities and stockholders' equity	$ 43,486	$ 39,629

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions	Dec. 31, 2010	Dec. 31, 2009
Stockholders' equity:
Common stock and additional paid-in capital, par value	$ 0.0001	$ 0.0001
Common stock and additional paid-in capital, shares authorized	2,750	2,750
Common stock and additional paid-in capital, shares outstanding	932	995

Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2010	Mar. 31, 2010	Dec. 31, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning Balance		$ 22,667		$ 20,885	$ 22,667	$ 20,885	$ 18,512
Beginning Balance, Shares		995			995
Comprehensive income:
Net income	$ 1,022	$ 1,167	$ 931	$ 1,019	$ 4,627	4,605	4,052
Other comprehensive income (loss), net of tax					108	(72)	64
Comprehensive income					4,735	4,533	4,116
Issuance of common stock in connection with the Company's equity award programs					69	190	198
Stock-based compensation					357	324	267
Tax impact related to employee stock options					(71)	(11)	86
Repurchases of common stock					(3,800)	(3,254)	(2,294)
Other					(13)
Ending Balance	$ 23,944		$ 22,667		$ 23,944	$ 22,667	$ 20,885
Ending Balance, Shares	932		995		932	995
Number of shares of common stock
Statement [Line Items]
Beginning Balance, Shares		995		1,047	995	1,047	1,087
Comprehensive income:
Issuance of common stock in connection with the Company's equity award programs, Shares					4	7	5
Repurchases of common stock, Shares					(67)	(59)	(45)
Ending Balance, Shares	932		995		932	995	1,047
Common stock and additional paid-in capital
Statement [Line Items]
Beginning Balance		$ 26,944		$ 26,441	$ 26,944	$ 26,441	$ 25,890
Comprehensive income:
Issuance of common stock in connection with the Company's equity award programs					69	190	198
Stock-based compensation					357	324	267
Tax impact related to employee stock options					(71)	(11)	86
Ending Balance	$ 27,299		$ 26,944		27,299	26,944	26,441
Accumulated deficit
Statement [Line Items]
Beginning Balance		(4,322)		(5,673)	(4,322)	(5,673)	(7,431)
Comprehensive income:
Net income					4,627	4,605	4,052
Repurchases of common stock					(3,800)	(3,254)	(2,294)
Other					(13)
Ending Balance	(3,508)		(4,322)		(3,508)	(4,322)	(5,673)
Accumulated other comprehensive income
Statement [Line Items]
Beginning Balance		$ 45		$ 117	45	117	53
Comprehensive income:
Other comprehensive income (loss), net of tax					108	(72)	64
Ending Balance	$ 153		$ 45		$ 153	$ 45	$ 117

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 4,627	$ 4,605	$ 4,052
Depreciation and amortization	1,017	1,049	1,073
Stock-based compensation expense	353	284	262
Deferred income taxes	(167)	47	(137)
Property, plant and equipment impairments	118	21	59
Dividend received from equity investee	0	110	8
Other items, net	140	111	244
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables, net	(210)	(36)	65
Inventories	153	(134)	(59)
Other current assets	36	(3)	15
Accounts payable	142	71	95
Accrued income taxes	(656)	(142)	14
Other accrued liabilities	152	320	(30)
Deferred revenue	82	33	327
Net cash provided by operating activities	5,787	6,336	5,988
Cash flows from investing activities:
Purchases of property, plant and equipment	(580)	(530)	(672)
Cash paid for acquisitions, net of cash acquired	0	0	(56)
Purchases of marketable securities	(14,602)	(12,418)	(10,345)
Proceeds from sales of marketable securities	10,485	8,252	6,762
Proceeds from maturities of marketable securities	642	1,443	1,018
Other	(97)	51	128
Net cash used in investing activities	(4,152)	(3,202)	(3,165)
Cash flows from financing activities:
Repurchases of common stock	(3,786)	(3,208)	(2,268)
Repayment of debt	0	(1,000)	(2,000)
Net proceeds from issuance of debt	2,471	1,980	991
Net proceeds from issuance of common stock in connection with the Company's equity award programs	80	171	155
Other	3	33	49
Net cash used in financing activities	(1,232)	(2,024)	(3,073)
Increase (decrease) in cash and cash equivalents	403	1,110	(250)
Cash and cash equivalents at beginning of period	2,884	1,774	2,024
Cash and cash equivalents at end of period	$ 3,287	$ 2,884	$ 1,774

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2010

Summary of significant accounting policies [Abstract]

Summary of significant accounting policies


1.	Summary of significant accounting policies

Business

Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology medicines company that discovers, develops, manufactures and markets medicines for grievous illnesses. We concentrate on innovating novel medicines based on advances in cellular and molecular biology and we operate in one business segment — human therapeutics.

Principles of consolidation

The consolidated financial statements include the accounts of Amgen as well as its wholly owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates.

Product sales

Product sales primarily consist of sales of Aranesp^® (darbepoetin alfa), EPOGEN^® (Epoetin alfa), Neulasta^® (pegfilgrastim), NEUPOGEN^® (Filgrastim) and Enbrel^® (etanercept). Sales of our products are recognized when shipped and title and risk of loss have passed. Product sales are recorded net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively “sales deductions”) and returns. Taxes collected from customers and remitted to government authorities related to the sales of the Company’s products, primarily in Europe, are excluded from revenues.

We have the exclusive right to sell Epoetin alfa for dialysis, certain diagnostics and all non-human, non-research uses in the United States. We sell Epoetin alfa under the brand name EPOGEN^®. We granted to Ortho Pharmaceutical Corporation (which has assigned its rights under the product license agreement to Centocor Ortho Biotech Products, L.P.), a subsidiary of Johnson & Johnson (“J&J”), a license relating to Epoetin alfa for sales in the United States for all human uses except dialysis and diagnostics. This license agreement, which is perpetual, may be terminated for various reasons, including upon mutual agreement of the parties, or default. The parties are required to compensate each other for Epoetin alfa sales that either party makes into the other party’s exclusive market, sometimes referred to as “spillover.” Accordingly, we do not recognize product sales we make into the exclusive market of J&J and do recognize the product sales made by J&J into our exclusive market. Sales in our exclusive market are derived from our sales to our customers, as adjusted for spillover. We are employing an arbitrated audit methodology to measure each party’s spillover based on estimates of and subsequent adjustments thereto of third-party data on shipments to end users and their usage.

Other revenues

Other revenues primarily consist of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded in accordance with contract terms when third-party results are reliably measurable and collectability is reasonably assured. Royalty estimates are made in advance of amounts collected using historical and forecasted trends. Pursuant to the license agreement with J&J, noted above, we earn a 10% royalty on net sales, as defined, of Epoetin alfa by J&J in the United States. For the years ended December 31, 2010, 2009 and 2008, we recognized royalty income from J&J of $111 million, $128 million and $126 million, respectively. Corporate partner revenues are comprised of amounts earned from Kirin-Amgen, Inc. (“KA”) for certain research and development (“R&D”) activities and are generally earned as the R&D activities are performed and the amounts become due. Corporate partner revenues also include license fees and milestone payments earned from KA and from collaborations with third parties. Revenue from non-refundable, upfront license fees where we have continuing involvement is recognized ratably over the estimated period of ongoing involvement. Revenue associated with at risk performance milestones is recognized based upon the achievement of the milestone, as defined in the respective agreements. See Note 6, Collaborative arrangements and Note 7, Related party transactions.

Research and development costs

R&D costs are expensed as incurred and include primarily salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs and amortization of acquired technology used in R&D with alternative future uses. R&D expenses include costs incurred under R&D arrangements with our corporate partners, such as activities performed on behalf of KA, and costs and cost recoveries associated with collaborative R&D and in-licensing arrangements, including upfront fees and milestones paid to collaboration partners in connection with technologies which have not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs for arrangements with our corporate partners is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 6, Collaborative arrangements and Note 7, Related party transactions.

Selling, general and administrative costs

Selling, general and administrative (“SG&A”) expenses are comprised primarily of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses and other general and administrative costs. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaboration arrangements. Net payment or reimbursement of SG&A costs for collaborations is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 6, Collaborative arrangements.

Advertising costs are expensed as incurred. For the years ended December 31, 2010, 2009 and 2008, advertising costs were $98 million, $95 million and $81 million, respectively.

Stock-based compensation

We have stock-based compensation plans under which various types of equity-based awards are granted, including stock options, restricted stock units and performance units. The estimated fair values of stock option and restricted stock unit awards which are subject only to service conditions with graded vesting are generally recognized as compensation expense on a straight-line basis over the service period. The estimated fair values of performance unit awards are generally recognized as compensation expense on a straight-line basis over the period from the grant date to the end of the performance period based on the probable outcomes of the award’s performance conditions. See Note 3, Stock-based compensation.

Income taxes

We provide for income taxes based on pretax income, applicable tax rates and tax planning opportunities available in the various jurisdictions in which we operate.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. See Note 4, Income taxes.

Collaborative arrangements

Certain arrangements we have entered into regarding the R&D, manufacture and/or commercialization of products and product candidates are considered collaborative arrangements. A collaborative arrangement is defined as a contractual arrangement that involves a joint operating activity. These arrangements involve two or more parties who are both (i) active participants in the activity and (ii) exposed to significant risks and rewards dependent on the commercial success of the activity. For collaborative arrangements where it is determined that we are the principal participant, revenue generated and costs incurred with third parties are recorded on a gross basis in our consolidated financial statements. See Note 6, Collaborative arrangements.

Cash equivalents

We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from date of purchase.

Available-for-sale investments

We consider our investment portfolio available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income. See Note 10, Available-for-sale securities and Note 17, Fair value measurement.

Inventories

Inventories are stated at the lower of cost or market. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner which approximates the first-in, first-out method. The Company capitalizes inventories produced in preparation for product launches when the related product candidates are considered to have a high probability of regulatory approval and the related costs are expected to be recoverable through the commercialization of the product. See Note 11, Inventories.

Derivatives

We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 17, Fair value measurement and Note 18, Derivative instruments.

Property, plant and equipment, net

Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Depreciation of buildings, equipment, furniture and fixtures is provided over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Useful lives by asset category are as follows:


Asset Category	Years
Buildings and improvements		10-40
Manufacturing equipment		5-12
Laboratory equipment		8-12
Furniture, fixtures and other assets		3-15

See Note 12, Property, plant and equipment.

Intangible assets and goodwill

Finite-lived intangible assets are recorded at cost, net of accumulated amortization and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 13, Intangible assets.

The estimated fair values of in-process R&D projects acquired in a business combination which have not reached technological feasibility and were acquired on and after January 1, 2009 are capitalized and accounted for as indefinite-lived intangible assets subject to impairment testing until completion or abandonment of the project. Capitalized in-process R&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written-off immediately. The estimated fair values of in-process R&D projects acquired in a business combination prior to January 1, 2009, which had not reached technological feasibility at the date of acquisition and which did not have an alternative future use, were immediately expensed as required by accounting principles then in effect.

Goodwill principally relates to our 2002 acquisition of Immunex Corporation (“Immunex”). We perform an impairment test annually and whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable.

Convertible debt

The debt and equity components of convertible debt instruments that may be partially or wholly cash settled (“cash settleable convertible notes”), including our 2011 Convertible Notes and 2013 Convertible Notes, are bifurcated and accounted for separately. The debt component of cash settleable convertible notes, which excludes the associated equity conversion option, is recorded at fair value as of the issuance date. The difference between the amount allocated to the debt component and the proceeds received upon issuance of the debt is allocated to the equity component and recorded in “Common stock and additional paid-in capital” in the Consolidated Balance Sheets. The reduced or discounted carrying value of cash settleable convertible notes resulting from bifurcation is subsequently accreted back to its principal amount through the recognition of non-cash interest expense. This results in recognizing interest expense on the borrowing at an effective rate approximating what would have been incurred had nonconvertible debt with otherwise similar terms been issued. See Note 15, Financing arrangements.

Recent accounting pronouncements

In January 2010, we adopted a newly issued accounting standard which requires additional disclosure about the amounts of and reasons for significant transfers between levels of the fair value hierarchy discussed in Note 17, Fair value measurement. This standard also clarifies existing disclosure requirements related to the level of disaggregation of fair value measurements for each class of assets and liabilities and disclosures about inputs and valuation techniques used to measure fair value for both recurring and nonrecurring Level 2 and Level 3 measurements. In addition, effective for interim and annual periods beginning after December 15, 2010, this standard requires additional disclosure and requires an entity to present disaggregated information about activity for Level 3 fair value measurements on a gross as opposed to a net basis. As this accounting standard only requires enhanced disclosure, its adoption did not impact our consolidated financial position, results of operations or cash flows.

In January 2011, we adopted a newly issued accounting standard which addresses the accounting for the annual fee due from the pharmaceutical manufacturing industry beginning January 1, 2011, mandated by the Patient Protection and Affordable Care Act (the “PPACA”) and the companion Health Care and Education Reconciliation Act, which made certain changes and adjustments to PPACA. We refer to these two laws collectively as the “new healthcare reform law”. The new healthcare reform law obligates a pharmaceutical manufacturer, upon the first gross receipt during a calendar year from prescription drug sales under any specified government program, to pay an annual fee to the U.S. government. The new accounting standard requires the liability for the annual fee to be estimated and recorded in full upon the first qualifying sale with a corresponding deferred cost established that is to be amortized and recognized as an operating expense over the calendar year that it is payable using a straight-line method of allocation unless another method better allocates the fee. We have elected to amortize this fee on a straight-line basis and it will be recorded in SG&A expense.

Acquisitions

12 Months Ended

Dec. 31, 2010

Acquisitions [Abstract]

Acquisitions


2.	Acquisitions

Dompé Biotec, S.p.A

On January 4, 2008, we completed the acquisition of Dompé Biotec, S.p.A (“Dompé”), a privately held company that marketed certain of our products in Italy. This acquisition was accounted for as a business combination. The purchase price was approximately $168 million, which included the carrying value of our existing 49% ownership in Dompé. The purchase price paid was allocated to the net assets acquired of approximately $63 million, principally comprised of marketing rights to marketed products, based on their estimated fair values at the acquisition date and the excess of the purchase price over the fair values of net assets acquired of approximately $105 million was assigned to goodwill. There was no material gain or loss related to the reacquisition of marketing rights previously granted to Dompé as a result of this business combination. The results of Dompé’s operations have been included in the consolidated financial statements commencing January 4, 2008. Pro forma results of operations for the year ended December 31, 2008 assuming the acquisition of Dompé had taken place at the beginning of 2008 would not differ significantly from the actual reported results.

Stock-based compensation

12 Months Ended

Dec. 31, 2010

Stock-based compensation [Abstract]

Stock-based compensation


3.	Stock-based compensation

Our 2009 Equity Incentive Plan (the “2009 Plan”) provides for the grant of equity-based awards, including stock options, restricted stock units and performance units, to employees and consultants of Amgen, its subsidiaries and non-employee members of our Board of Directors. The 2009 Plan, which was approved by our stockholders on May 6, 2009, replaced our existing equity plans (the “Prior Plans”) and no further awards may be made under these Prior Plans. The 2009 Plan authorizes the issuance of 100 million shares of our common stock. Under the terms of the 2009 Plan, the pool of available shares that may be used for all types of awards, including those issued under our Prior Plans after December 31, 2008 and before May 6, 2009 (the stub period) is reduced by one share for each stock option granted and by 1.9 shares for other types of awards granted, including restricted stock units and performance units. If any shares subject to an award granted under our Prior Plans during the stub period or any awards granted under the 2009 Plan expire, or are forfeited, terminated or cancelled without the issuance of shares, the shares subject to such awards are added back to the pool of available shares under the 2009 Plan on the same basis that they were removed. As of December 31, 2010, the 2009 Plan provides for future grants and/or issuances of up to approximately 70 million shares of our common stock. Stock-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose.

The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income for the years ended December 31, 2010, 2009 and 2008 (in millions):


	2010			2009			2008

Stock options	$	124		$	115		$	103
Restricted stock units		182			134			105
Performance units		47			35			54

Total stock-based compensation expense, pre-tax		353			284			262
Tax benefit from stock-based compensation expense		(120	)		(97	)		(89	)

Total stock-based compensation expense, net of tax	$	233		$	187		$	173

Employee stock option and restricted stock unit grants

Eligible employees generally receive a grant of stock options and/or restricted stock units annually with the size and type of award generally determined by the employee’s salary grade and performance level. In addition, certain management and professional level employees typically receive stock options and/or restricted stock unit grants upon commencement of employment. Our stock option and restricted stock unit grants provide for accelerated or continued vesting in certain circumstances as defined in the plans, including upon death, disability, a change in control, or retirement of employees who meet certain service and/or age requirements. Grants of stock options and restricted stock units generally vest over a four year period.

Stock option grants

The exercise price for stock options granted under our 2009 Plan and Prior Plans is set at the closing price of our common stock on the date of grant and the related number of shares granted is fixed at that point in time. Awards granted to employees on and after April 26, 2010 expire 10 years from the date of grant; options granted to employees prior to that date expire seven years from the date of grant.

We use the Black-Scholes option valuation model to estimate the grant date fair value of our employee stock options. The weighted-average assumptions used in the Black-Scholes option valuation model and the resulting weighted-average estimated grant date fair values of our employee stock options were as follows for the years ended December 31, 2010, 2009 and 2008:


	2010		2009		2008

Closing price of our common stock on grant date	$	58.32	$	50.65	$	43.60
Fair value of stock options granted	$	20.97	$	18.35	$	14.50
Expected volatility		28.0%		39.6%		31.6%
Expected life (in years)		6.6		4.6		4.6
Risk-free interest rate		3.2%		2.1%		2.9%
Expected dividend yield		0%		0%		0%

The expected volatility reflects the consideration of the implied volatility in publicly traded instruments associated with Amgen’s common stock during the period the options were granted. We believe implied volatility in these instruments is more indicative of expected future volatility than the historical volatility in the price of our common stock. We use historical data to estimate the expected life of the options. The risk-free interest rates for periods within the expected life of the option are based on the U.S. Treasury yield curve in effect during the period the options were granted.

The following summarizes select information regarding our stock options during the year ended December 31, 2010:


						Weighted-
						average		Aggregate
				Weighted-		remaining		intrinsic
	Options			average		contractual		value
	(in millions)			exercise price		life (years)		(in millions)

Balance unexercised at December 31, 2009		50.8		$	59.50
Granted		6.7		$	58.32
Exercised		(1.3	)	$	46.13
Forfeited/expired		(9.4	)	$	64.72

Balance unexercised at December 31, 2010		46.8		$	58.66		3.6	$	110

Vested or expected to vest at December 31, 2010		46.0		$	58.71		3.5	$	109

Exercisable at December 31, 2010		31.7		$	61.05		2.1	$	58

The total intrinsic value of options exercised during the three years ended December 31, 2010, 2009 and 2008 was $15 million, $57 million and $68 million, respectively.

Restricted stock unit grants

The fair value of a restricted stock unit is equal to the closing price of our common stock on the grant date. The weighted-average grant date fair values of restricted stock units granted in 2010, 2009 and 2008 were $58.19, $51.24 and $42.63, respectively. The following summarizes select information regarding our restricted stock units during the year ended December 31, 2010:


				Weighted-average
	Units			grant date
	(in millions)			fair value

Balance nonvested at December 31, 2009		8.8		$	50.00
Granted		4.1		$	58.19
Vested		(3.2	)	$	52.50
Forfeited		(0.4	)	$	51.96

Balance nonvested at December 31, 2010		9.3		$	52.67

The total fair values of shares of restricted stock units that vested during the year ended December 31, 2010, 2009 and 2008 was $184 million, $139 million and $77 million, respectively.

As of December 31, 2010, there was approximately $499 million of unrecognized compensation costs related to nonvested stock option and restricted stock unit awards, 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 recipient 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 2010, 2009 and 2008, which are accounted for as equity awards, 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 performance goals, a recipient may ultimately earn a number of units greater or less than the number of units granted. Shares of our common stock are issued on a one-for-one basis for each performance unit earned. In general, participants vest in their performance 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 2010, 2009 and 2008 include stockholder return performance goals, which are considered market conditions and are reflected in the grant date fair value of the units. The performance units granted in 2010 and 2009 also included performance goals based on the Company’s standalone financial performance, which are considered performance conditions. The expense recognized for the awards granted in 2010 and 2009 was based on the grant date fair value of a unit multiplied by the number of units to be earned with respect to the performance conditions, 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.

We used a Monte Carlo simulation model to estimate the grant date fair value of performance units granted in 2010 and 2009. We used a lattice model to estimate the grant date fair value of performance units granted in 2008. The assumptions used in these models and the resulting grant date fair values of our performance units were as follows for the years ended December 31, 2010, 2009 and 2008:


	2010		2009		2008

Closing price of our common stock on grant date	$	56.90	$	47.63	$	44.62
Fair value of unit	$	62.06	$	48.22	$	36.91
Volatility		34.7%		34.3%		32.4%
Risk-free interest rate		1.3%		1.2%		2.0%
Expected dividend yield		0%		0%		0%

The valuation models also use terms based on the length of the performance period and compound annual growth rate goals for total stockholder return based on the terms of the award. For the years ended December 31, 2010 and 2009, the Monte Carlo simulation model also assumed correlations of returns of the stock prices of our common stock and the common stocks of a comparator group of companies and stock price volatilities of the comparator group of companies.

As of December 31, 2010 and 2009, a total of 2.7 million and 2.9 million performance units were outstanding with weighted-average grant date fair values of $49.49 and $53.46 per unit, respectively. During the year ended December 31, 2010, 1.0 million performance units with a grant date fair value of $62.06 were granted, 0.6 million performance units with a grant date fair value of $36.91 vested and 0.1 million performance units with a weighted-average grant date fair value of $47.97 were forfeited.

The total fair values of performance units that vested during 2010 and 2009 were $34 million and $29 million, respectively, based upon the number of performance units earned multiplied by the closing stock price of our common stock on the last day of the performance period. Performance unit awards granted for performance periods that ended prior to 2009 were accounted for as liability awards and were paid in the year after the performance period ended. Performance unit liability awards paid in 2009 and 2008 aggregated $30 million and $70 million, respectively.

As of December 31, 2010, there was approximately $48 million of unrecognized compensation cost related to the 2010 and 2009 performance unit grants that is expected to be recognized over a weighted-average period of approximately 1 year.

Income taxes

12 Months Ended

Dec. 31, 2010

Income taxes [Abstract]

Income taxes


4.	Income taxes

The provision for income taxes for the years ended December 31, 2010, 2009 and 2008 includes the following (in millions):


	2010				2009				2008

Current provision:
Federal	$	636			$	325			$	866
State		52				85				82
Foreign		153				155				152

Total current provision		841				565				1,100

Deferred (benefit) provision:
Federal		(196	)			92				(86	)
State		43				(59	)			(43	)
Foreign		2		1				(8	)

Total deferred (benefit) provision		(151	)			34				(137	)

Total provision	$	690			$	599			$	963

Deferred income taxes reflect the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards and the tax effects of net operating loss carryforwards.

Significant components of our deferred tax assets and liabilities as of December 31, 2010 and 2009 are as follows (in millions):


	2010			2009

Deferred tax assets:
Intercompany inventory related items	$	306		$	351
Expense accruals		626			519
Acquired net operating loss and credit carryforwards		147			178
Expenses capitalized for tax		188			177
Stock-based compensation		269			229
Deferred revenue		117			128
Other		72			108

Total deferred tax assets		1,725			1,690
Valuation allowance		(80	)		(92	)

Net deferred tax assets		1,645			1,598

Deferred tax liabilities:
Acquired intangibles		(739	)		(882	)
Fixed assets		(181	)		(201	)
Unremitted foreign earnings		(118	)		(13	)
Other		(142	)		(125	)

Total deferred tax liabilities		(1,180	)		(1,221	)

Total deferred taxes, net	$	465		$	377

The valuation allowance for deferred tax assets decreased by $12 million in 2010, due primarily to the utilization and expiration of certain acquired net operating loss carryforwards. Valuation allowances are provided when we believe our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies.

At December 31, 2010, we had net operating loss carryforwards of $303 million available to reduce future taxable income in various state taxing jurisdictions. We have provided a valuation allowance against $44 million of the state operating loss carryforwards. The state operating loss carryforwards expire between 2010 and 2018.

At December 31, 2010, we had $110 million of tax credit carryforwards available to reduce future state income taxes which have no expiration date, and $80 million of state tax credit carryforwards for which a full valuation allowance has been provided.

The reconciliation of the total gross amounts of UTBs (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to UTBs) for the years ended December 31, 2010, 2009 and 2008 is as follows (in millions):


	2010			2009			2008

Balance at beginning of year	$	1,140		$	1,113		$	922
Additions based on tax positions related to the current year		305			302			382
Reductions for tax positions of prior years		(110	)		(215	)		—
Settlements		(415	)		(60	)		(191	)

Balance at end of year	$	920		$	1,140		$	1,113

Substantially all of the UTBs as of December 31, 2010, if recognized, would affect our effective tax rate.

During the year ended December 31, 2010, we settled our examination with the Internal Revenue Service (“IRS”) related to certain transfer pricing tax positions for the years ended December 31, 2007 and 2008. In addition, we also settled issues under appeal with the IRS for the years ended December 31, 2005 and 2006 primarily related to the impact of transfer pricing adjustments on the repatriation of funds. During the year ended December 31, 2010, the IRS also agreed to Competent Authority relief for certain transfer pricing tax positions for the years ended December 31, 2002 through December 31, 2006. As a result of these developments, we remeasured our UTBs accordingly.

During the year ended December 31, 2009, we settled the examination of our U.S. income tax returns with the IRS for certain matters, primarily related to transfer pricing tax positions, for the years ended December 31, 2005 and 2006. Also during the year ended December 31, 2009, we settled the examination of our California state income tax returns for certain matters for the years ended December 31, 2004 and 2005. As a result of these developments, we remeasured our UTBs accordingly.

During the year ended December 31, 2008, we reached an agreement with the IRS as to the amount of certain transfer pricing adjustments for the years ended December 31, 2005 and 2006 which were covered by the closing agreement entered into in 2007.

As of December 31, 2010, we believe it is reasonably possible that our gross liabilities for UTBs may decrease by $200 million within the succeeding twelve months due to potential tax settlements.

Interest and penalties related to UTBs are included in our provision for income taxes. During 2010, 2009, and 2008, we accrued approximately $41 million, $57 million, and $71 million, respectively, of interest and penalties through the income tax provision in the Consolidated Statements of Income. At December 31, 2010 and 2009, accrued interest and penalties associated with UTBs totaled approximately $90 million and $125 million, respectively.

The reconciliation between the federal statutory rate and our effective tax rate for the years ended December 31, 2010, 2009 and 2008 is as follows:


	2010				2009				2008

Federal statutory rate applied to income before income taxes		35.0		%		35.0		%		35.0		%
Foreign earnings, including earnings invested indefinitely		(19.1	)	%		(19.6	)	%		(16.7	)	%
State taxes		1.6		%		1.1		%		1.4		%
Audit settlements		(3.1	)	%		(4.2	)	%		0.0		%
Credits, primarily research and experimentation		(0.9	)	%		(0.8	)	%		(1.1	)	%
Other, net		(0.5	)	%		0.0		%		0.6		%

Effective tax rate		13.0		%		11.5		%		19.2		%

We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be invested indefinitely outside of the United States. At December 31, 2010, these earnings amounted to approximately $17.2 billion. If these earnings were repatriated to the United States, we would be required to accrue and pay approximately $6.1 billion of additional income taxes based on the current tax rates in effect. For the years ended December 31, 2010, 2009 and 2008, our total foreign income before income taxes was approximately $3.1 billion, $3.1 billion and $2.6 billion, respectively. These earnings include income from manufacturing operations in Puerto Rico under tax incentive grants that expire in 2020.

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 tax 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, 2006 or to California state income tax examinations for tax years ending on or before December 31, 2003.

Income taxes paid during the years ended December 31, 2010, 2009 and 2008, totaled $1,344 million, $497 million and $673 million, respectively.

Earnings per share

12 Months Ended

Dec. 31, 2010

Earnings per share [Abstract]

Earnings per share


5.	Earnings per share

The computation of basic earnings per share (“EPS”) is based upon the weighted-average number of our common shares outstanding. The computation of diluted EPS is based upon the weighted-average number of our common shares and dilutive potential common shares outstanding. Potential common shares outstanding, determined using the treasury stock method, principally include: shares that may be issued under our stock option, restricted stock and performance unit awards; our 2011 Convertible Notes and 2013 Convertible Notes, as discussed below; and our outstanding warrants (collectively “dilutive securities”). The convertible note hedges purchased in connection with the issuance of our 2011 Convertible Notes and 2013 Convertible Notes are excluded from the calculation of diluted EPS as their impact is always anti-dilutive. For further information regarding our convertible notes and warrants, see Note 15, Financing arrangements.

Upon conversion of our 2011 Convertible Notes and 2013 Convertible Notes, the principal amount would be settled in cash and the excess of the conversion value, as defined, over the principal amount may be settled in cash and/or shares of our common stock. Therefore, only the shares of our common stock potentially issuable with respect to the excess of the notes’ conversion value over their principal amount, if any, are considered as dilutive potential common shares for purposes of calculating diluted EPS. For the years ended December 31, 2010, 2009 and 2008, the conversion values for our convertible notes were less than the related principal amounts and, accordingly, no shares were assumed to be issued for purposes of computing diluted EPS. For further information regarding our convertible notes, see Note 15, Financing arrangements.

The following table sets forth the computation for basic and diluted EPS for the years ended December 31, 2010, 2009 and 2008 (in millions, except per share data):


	2010		2009		2008

Income (Numerator):
Net income for basic and diluted EPS	$	4,627	$	4,605	$	4,052

Shares (Denominator):
Weighted-average shares for basic EPS		960		1,016		1,070
Effect of dilutive securities		5		5		5

Weighted-average shares for diluted EPS		965		1,021		1,075

Basic EPS	$	4.82	$	4.53	$	3.79
Diluted EPS	$	4.79	$	4.51	$	3.77

For the years ended December 31, 2010, 2009 and 2008, there were employee stock options, calculated on a weighted average basis, to purchase 43 million, 42 million and 45 million shares of our common stock, respectively, with exercise prices greater than the average market prices of our common stock for these periods that are not included in the computation of diluted EPS as their impact would have been anti-dilutive. In addition, shares of our common stock which may be issued upon exercise of our warrants are not included in the computation of diluted EPS for any of the periods presented above as their impact would have been anti-dilutive.

Collaborative arrangements

12 Months Ended

Dec. 31, 2010

Collaborative arrangements [Abstract]

Collaborative arrangements


6.	Collaborative arrangements

From time to time, we enter into collaborative arrangements for the R&D, manufacture and/or commercialization of products and product candidates. These collaborations generally provide for non-refundable upfront license fees, R&D and commercial performance milestone payments, cost sharing, royalty payments and/or profit sharing. Our collaboration agreements with third parties are performed on a “best efforts” basis with no guarantee of either technological or commercial success. Each collaboration is unique in nature and our significant arrangements are discussed below except for our arrangements with KA, which are discussed in Note 7, Related party transactions.

Pfizer Inc.

Amgen and Pfizer are in a collaboration agreement to co-promote ENBREL in the United States and Canada. The rights to market ENBREL outside of the United States and Canada are reserved to Pfizer. Under the agreement, a management committee comprised of equal representation from Amgen and Pfizer is responsible for overseeing the marketing and sales of ENBREL, including strategic planning, the approval of an annual marketing plan and product pricing. Amgen and Pfizer share in the agreed upon selling and marketing expenses approved by the joint management committee. We currently pay Pfizer a percentage of the annual gross profits on our ENBREL sales in the United States and Canada attributable to all approved indications for ENBREL on a scale that increases as gross profits increase; however, we maintain a majority share of ENBREL profits. After expiration of the collaboration agreement in the fourth quarter of 2013, we are required to pay Pfizer a percentage of net ENBREL sales in the United States and Canada for three years. The annual amount of such payments is anticipated to be significantly less than the current ENBREL profit share.

We have determined that we are the principal participant in the collaboration with Pfizer to market ENBREL in the United States and Canada. Accordingly, we record our product sales of ENBREL to third parties net of estimated returns, rebates and other deductions. For the years ended December 31, 2010, 2009 and 2008, ENBREL sales aggregated $3.5 billion, $3.5 billion and $3.6 billion, respectively.

During the years ended December 31, 2010, 2009 and 2008, the ENBREL profit share expense was $1,184 million, $1,163 million and $1,195 million, respectively, and is included in “Selling, general and administrative” expense in the Consolidated Statements of Income. In addition, cost recoveries from Pfizer for their share of the selling and marketing expense were $87 million, $75 million and $77 million for the years ended December 31, 2010, 2009 and 2008, respectively, and are included in “Selling, general and administrative” expense in the Consolidated Statements of Income.

Glaxo Group Limited

In July 2009, we entered into a collaboration agreement with Glaxo Group Limited (“Glaxo”) a wholly owned subsidiary of GlaxoSmithKline plc for the commercialization of denosumab for osteoporosis indications in Europe, Australia, New Zealand and Mexico (the “Primary Territories”). We retained the rights to commercialize denosumab for all indications in the United States and Canada and for oncology indications in the Primary Territories.

Under a related agreement, Glaxo will commercialize denosumab for all indications in countries, excluding Japan, where we do not currently have a commercial presence, including China, Brazil, India, Taiwan and South Korea (the “Expansion Territories”). In the Expansion Territories, Glaxo will be responsible for all development and commercialization costs and will purchase denosumab from us to meet demand. We will record product sales to Glaxo in the Expansion Territories. We have the option of expanding our role in the future in the commercialization of denosumab in the Primary Territories and certain of the Expansion Territories.

In the Primary Territories, we share equally in the commercialization profits and losses related to the collaboration after accounting for expenses, including an amount payable to us in recognition of our discovery and development of denosumab. Glaxo will also be responsible for bearing a portion of the cost of certain specified development activities in the Primary Territories.

The collaboration agreement with Glaxo for the Primary Territories will expire in 2022 and the related agreement for the Expansion Territories will expire in 2024 unless either agreement is terminated earlier in accordance with its terms.

We have determined that we are the principal participant in the Primary Territories. Accordingly, we will record related product sales to third parties net of estimated returns, rebates and other deductions. During the year ended December 31, 2010, product sales in the Primary Territories for osteoporosis indications were not material.

During the years ended December 31, 2010 and 2009, cost recoveries from Glaxo were $46 million and $29 million, respectively, and are included in “Selling, general and administrative” expense in the Consolidated Statements of Income. In addition, during 2010, we received payments aggregating $75 million for the achievement of certain commercial milestones. The 2010 payments were recognized as revenue upon the achievement of the related milestones and are included in “Other revenue” in our Consolidated Statement of Income. Under these agreements, we also received an initial payment of $45 million during the year ended December 31, 2009 which is being amortized and recognized as revenue over our estimated period of continuing involvement of approximately 13 years in “Other revenue” in our Consolidated Statements of Income.

Takeda Pharmaceutical Company Limited

In February 2008, we entered into a collaboration agreement with Takeda Pharmaceutical Company Limited (“Takeda”), which provides Takeda the exclusive rights to develop and commercialize for the Japanese market up to 12 clinical stage molecules from our pipeline across a range of therapeutic areas, including oncology and inflammation, (collectively the “products”). The products include Vectibix^® which received regulatory approval in Japan in 2010 for unresectable, advanced or recurrent colorectal cancer with wild-type KRAS, AMG 386, which is in a phase 3 trial in the United States for recurrent ovarian cancer, and ganitumab (AMG 479) which is expected to enter into a phase 3 trial in the United States for first-line metastatic pancreatic cancer in 2011. Under this agreement, Amgen received an upfront payment of $200 million in 2008 and may receive up to $307 million of additional amounts upon the achievement of various success-based development and regulatory approval milestones. In addition, Takeda is obligated to pay Amgen up to an additional $120 million of future worldwide development costs for these products through 2012 and a reduced amount of such costs, thereafter. Takeda will be solely responsible for all development and commercialization costs of these products in Japan and will pay us royalties on future sales of these products in Japan. Amgen has the right to participate in the promotion of the products in Japan.

In February 2008, we also entered into a collaboration agreement with Takeda for the worldwide development and commercialization of our product candidate, motesanib, in the oncology area. Under this agreement, the parties will share responsibility for the development of motesanib outside Japan and Takeda shall be responsible for development in Japan. Amgen shall be responsible for commercialization of motesanib in North America and Takeda shall be responsible for commercialization outside of North America. Each party has the right to participate in the commercialization of motesanib in the other party’s territory. Under this agreement, Amgen received an upfront payment of $100 million in 2008 and may receive up to $175 million of additional amounts upon the achievement of various success-based regulatory approval and sales milestones. In addition, Takeda is obligated to pay 60% of future worldwide development costs (excluding Japan, for which Takeda shall bear all such costs), and the parties will share equally all other costs and profits resulting from the commercialization of motesanib outside Japan. If approved for sale, Amgen will receive royalties on future sales of motesanib in Japan.

The collaboration agreements will continue in effect unless terminated earlier in accordance with their terms.

During the years ended December 31, 2010, 2009 and 2008, cost recoveries from Takeda were $91 million, $112 million and $120 million, respectively, and are included in “Research and development” expense in the Consolidated Statements of Income. In addition, during 2010, we received payments aggregating $55 million for the achievement of certain regulatory milestones. The 2010 payments were recognized as revenue upon the achievement of the related milestones and are included in “Other revenue” in our Consolidated Statement of Income. The upfront payments, aggregating $300 million, are being amortized over our estimated period of continuing involvement of approximately 20 years and are recognized as revenue in “Other revenues” in our Consolidated Statements of Income. In 2010, royalties received on sales of Vectibix^® in Japan were not material.

Daiichi Sankyo Company, Limited

In July 2007, we entered into a collaboration and license agreement with Daiichi Sankyo Company, Limited (“Daiichi Sankyo”), which provides Daiichi Sankyo the exclusive rights to develop and commercialize denosumab in Japan in postmenopausal osteoporosis, oncology and certain other indications. As part of the agreement, Amgen received exclusive worldwide rights to certain Daiichi Sankyo intellectual property to the extent applicable to denosumab. Under the terms of the agreement, Daiichi Sankyo assumed all related development and commercialization costs in Japan and agreed to reimburse Amgen for certain worldwide development costs related to denosumab. As of December 31, 2009, Daiichi Sankyo had substantially satisfied its obligations to reimburse Amgen for these costs. If approved for sale, Amgen will receive royalties on future sales of denosumab recorded by Daiichi Sankyo in Japan. Pursuant to the terms of the agreement we paid Daiichi Sankyo milestone payments aggregating $60 million, in 2010, as a result of various regulatory approvals of denosumab. The milestone payments were capitalized and are being amortized over 11 years and the amortization expense is included in “Cost of sales (excludes amortization of certain acquired intangible assets)” expense in the Consolidated Statements of Income.

The collaboration and license agreement will expire in 2027 unless terminated earlier in accordance with its terms.

During the years ended December 31, 2010, 2009 and 2008, cost recoveries from Daiichi Sankyo were $3 million, $64 million and $60 million, respectively. The cost recoveries are included in “Research and development” expense in the Consolidated Statements of Income.

Other

We have various other collaborations in addition to those discussed above including our collaborations with Array BioPharma Inc. (“Array”), Kyowa Hakko Kirin Co. Ltd. (‘‘KHK”) and Cytokinetics, Inc. (“Cytokinetics”), discussed below.

We entered into our collaboration agreement with Array in December 2009, which granted us exclusive worldwide rights to Array’s small-molecule glucokinase activator program, including ARRY-403 (AMG 151), which at the time of the agreement was and currently is being tested in a phase 1 clinical trial in patients with Type 2 diabetes. In connection with entering the agreement, we paid Array $60 million which we expensed when paid and included in “Research and development” expense in the Consolidated Statement of Income.

We entered into our collaboration agreement with KHK in March 2008, which granted us an exclusive license to develop and commercialize KHK’s humanized monoclonal antibody KW-0761 (AMG 761) worldwide, except in Japan, Korea, China and Taiwan. KW-0761 (AMG 761) is being studied in inflammation and oncology settings and at the time the agreement was entered into was and currently is in a phase 1 clinical trial for both settings. In connection with entering the agreement, we paid KHK $100 million. In 2010, KHK paid us $20 million to reacquire our rights for KW-0761 (AMG 761) in the oncology setting. Both amounts were recognized when paid and included in “Research and development” expense in the Consolidated Statement of Income.

We entered into a collaboration agreement with Cytokinetics in December 2006, to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. In addition, Amgen obtained an option to participate in future development and commercialization of Cytokinetics’ lead drug candidate arising from this program, Omecamtiv mecarbil (AMG 423), which at the time the agreement was entered into was in a phase 1 clinical trial and currently is in a phase 2 clinical trial. The collaboration is worldwide, excluding Japan. In connection with entering into the agreement, we paid Cytokinetics $42 million. In 2009, we exercised our option under the agreement and paid Cytokinetics an additional $50 million to assume responsibility for development and commercialization of the lead drug candidate and related compounds, subject to certain participation rights of Cytokinetics. Both payments were expensed when paid and included in “Research and development” expense in the Consolidated Statements of Income.

Pursuant to the terms of these agreements, we may also be required to pay additional amounts upon the achievement of various development, regulatory and commercial milestones which in the aggregate are significant. In addition, if any products related to these collaborations are approved for sale, we would be required to pay royalties on future sales. The payment of these amounts, however, is contingent upon the occurrence of various future events, which have a high degree of uncertainty of occurring.

Related party transactions

12 Months Ended

Dec. 31, 2010

Related party transactions


7.	Related party transactions

We own a 50% interest in KA, a corporation formed in 1984 with Kirin Holdings Company, Limited (“Kirin”) for the development and commercialization of certain products based on advanced biotechnology. We account for our interest in KA under the equity method and include our share of KA’s profits or losses in “Selling, general and administrative” expense in the Consolidated Statements of Income. For the years ended December 31, 2010, 2009 and 2008, our share of KA’s profits was $71 million, $72 million and $72 million, respectively. At December 31, 2010 and 2009, the carrying value of our equity method investment in KA, net of dividends received, was $377 million and $306 million, respectively, and is included in non-current “Other assets” in the Consolidated Balance Sheets. The amount of dividends received was $110 million and $8 million for the years ended December 31, 2009 and 2008, respectively. We did not receive any dividend payments in 2010. KA’s revenues consist of royalty income related to its licensed technology rights. All of our rights to manufacture and market certain products including darbepoetin alfa, recombinant human erythropoietin, pegfilgrastim, granulocyte colony-stimulating factor, and romiplostim are pursuant to exclusive licenses from KA, which we currently market under the brand names Aranesp^®, EPOGEN^®, Neulasta^®, NEUPOGEN^® and Nplate^®, respectively. KA receives royalty income from us, as well as from Kirin, J&J and F. Hoffmann-La Roche Ltd. (“Roche”) under separate product license agreements for certain geographic areas outside of the United States. During the years ended December 31, 2010, 2009 and 2008, KA earned royalties from us of $322 million, $327 million and $321 million, respectively. These amounts are included in “Cost of sales (excludes amortization of certain acquired intangible assets)” in the Consolidated Statements of Income. As of December 31, 2010 and 2009, we owed KA $62 million and $104 million, respectively, which are included in “Accrued liabilities” in the Consolidated Balance Sheets.

KA’s expenses consist primarily of costs related to R&D activities conducted on its behalf by Amgen and Kirin. KA pays Amgen and Kirin for such services at negotiated rates. During the years ended December 31, 2010, 2009 and 2008, we earned revenues from KA of $96 million, $102 million and $124 million, respectively, for certain R&D activities performed on KA’s behalf. These amounts are included in “Other revenues” in the Consolidated Statements of Income. During the years ended December 31, 2010, 2009 and 2008, we recorded cost recoveries from KA of $88 million, $96 million and $82 million, respectively, related to certain third-party costs. These amounts are included in “Research and development” expense in the Consolidated Statements of Income.

Cost savings initiatives and restructuring

12 Months Ended

Dec. 31, 2010

Cost savings initiatives and restructuring [Abstract]

Cost savings initiatives and restructuring


8.	Cost savings initiatives and restructuring

As part of continuing efforts to optimize our network of manufacturing facilities and improve costs efficiencies, on January 18, 2011, we entered into an agreement whereby Boehringer Ingelheim (“BI”) will acquire all our rights in and substantially all assets at our manufacturing operations located in Fremont, California. The transaction was approved by Amgen’s Board of Directors in December 2010 and is anticipated to close in March 2011. Upon the closing of this transaction, BI will assume our obligations under the facilities’ operating lease agreements and will enter into an agreement to manufacture certain quantities of our marketed product, Vectibix^®, for us at this facility through December 31, 2012 (the “supply agreement”).

Due to the lack of sufficient initial investment by BI in the acquisition of this facility and our ongoing involvement with these operations, the transaction does not meet the accounting requirements to be treated as a sale involving real estate. As a result, the related assets will continue to be carried on our Consolidated Balance Sheet and will be depreciated over the period of the supply agreement.

We considered this transaction with BI to be a potential indicator of impairment and, accordingly, we performed an impairment analysis of the carrying values of the related assets as of December 31, 2010. Based on this analysis, we determined that no future economic benefit would be received from a manufacturing line at the facility that had not yet been completed. As a result, we wrote off its entire carrying value, which aggregated $118 million. This impairment charge is included in “Other charges” in our Consolidated Statement of Income for the year ended December 31, 2010. The carrying values of the remaining assets, aggregating approximately $133 million, were determined to be fully recoverable.

On August 15, 2007, we announced a plan to restructure our worldwide operations in order to improve our cost structure. This restructuring plan was primarily the result of regulatory and reimbursement developments that began in 2007 involving erythropoiesis-stimulating agent (“ESA”) products, including our marketed ESA products Aranesp^® and EPOGEN^®, and the resulting impact on our operations. Key components of our restructuring plan initially included: (i) worldwide staff reductions, (ii) rationalization of our worldwide network of manufacturing facilities and, to a lesser degree, changes to certain R&D capital projects and (iii) abandoning leases primarily for certain R&D facilities that will not be used in our operations. Subsequently, we identified certain additional initiatives designed to further assist in improving our cost structure, including outsourcing certain non-core business functions, most notably certain of our information systems’ infrastructure services, as well as abandoning leases for certain additional facilities that will no longer be used in our operations. As of December 31, 2009, we completed all of the actions included in our restructuring plan and subsequently identified initiatives. During the year ended December 31, 2009, we recorded charges associated with these actions aggregating $70 million, primarily comprised of staff separation costs of $25 million, principally included in “Other charges” in the Consolidated Statement of Income, and integration related costs of $32 million, which were principally included in “Selling, general and administrative” expenses in the Consolidated Statement of Income. During the year ended December 31, 2008, we recorded charges associated with these actions aggregating $148 million, primarily comprised of loss accruals for certain leases that will not be used in our business of $59 million, asset impairment charges of $59 million and staff separation costs of $10 million, all of which were primarily included in “Other charges” in the Consolidated Statement of Income. The asset impairment charges principally represent the write-off of the total cost of the manufacturing-related assets as they were abandoned with no alternative future uses or residual value.

Other charges

12 Months Ended

Dec. 31, 2010

Other charges [Abstract]

Other charges


9.	Other charges

For the years ended December 31, 2010, 2009 and 2008, we recorded charges associated with cost savings initiatives and/or restructuring totaling $118 million, $34 million and $92 million, respectively. Such expenses are included in “Other charges” in the Consolidated Statements of Income. (See Note 8, Cost savings initiatives and restructuring for further discussion.)

For the years ended December 31, 2009 and 2008, we recorded loss accruals for settlements of certain legal proceedings aggregating $33 million and $288 million, respectively. The loss accruals for 2008 principally related to the settlement of the Ortho Biotech Products L.P. antitrust suit. These amounts are included in “Other charges” in the Consolidated Statements of Income.

Available-for-sale investments

12 Months Ended

Dec. 31, 2010

Available-for-sale investments [Abstract]

Available-for-sale investments


10.	Available-for-sale investments

The fair values of available-for-sale investments by type of security, contractual maturity and classification in the Consolidated Balance Sheets were as follows as of December 31, 2010 and 2009 (in millions):


			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
Type of security as of December 31, 2010	cost		gains		losses			fair value

U.S. Treasury securities	$	5,044	$	50	$	(14	)	$	5,080
Other government related debt securities:
Obligations of U.S. government agencies and FDIC guaranteed bank debt		2,158		51		(1	)		2,208
Foreign and other		837		16		(1	)		852
Corporate debt securities:
Financial		2,252		53		(9	)		2,296
Industrial		2,441		71		(5	)		2,507
Other		307		10		(1	)		316
Mortgage and asset backed securities		841		5		(5	)		841
Money market mutual funds		3,030		—		—			3,030
Other short-term interest bearing securities		147		—		—			147

Total debt securities		17,057		256		(36	)		17,277
Equity securities		50		—		(2	)		48

	$	17,107	$	256	$	(38	)	$	17,325


			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
Type of security as of December 31, 2009	cost		gains		losses			fair value

U.S. Treasury securities	$	1,929	$	12	$	(6	)	$	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt		3,731		62		(1	)		3,792
Corporate debt securities		4,193		96		(4	)		4,285
Mortgage and asset backed securities		489		4		(2	)		491
Money market mutual funds		2,784		—		—			2,784
Other short-term interest bearing securities		55		—		—			55

Total debt securities		13,181		174		(13	)		13,342
Equity securities		63		—		(8	)		55

	$	13,244	$	174	$	(21	)	$	13,397


Contractual maturity	2010		2009

Maturing in one year or less	$	4,118	$	3,444
Maturing after one year through three years		6,736		6,369
Maturing after three years through five years		5,812		3,207
Maturing after five years		611		322

Total debt securities		17,277		13,342
Equity securities		48		55

	$	17,325	$	13,397


Classification in the Consolidated Balance Sheets	2010			2009

Cash and cash equivalents	$	3,287		$	2,884
Marketable securities		14,135			10,558
Other assets — noncurrent		48			55

		17,470			13,497
Less cash		(145	)		(100	)

	$	17,325		$	13,397

For the years ended December 31, 2010, 2009 and 2008, realized gains totaled $115 million, $104 million and $124 million, respectively, and realized losses totaled $25 million, $62 million and $49 million, respectively. The cost of securities sold is based on the specific identification method.

The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits debt security investments to certain types of debt and money market instruments issued by institutions with primarily investment grade credit ratings and places restrictions on maturities and concentration by type and issuer.

We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent to which the fair value has been below our cost basis and adverse conditions related specifically to the security including any changes to the credit rating of the security by a rating agency. As of December 31, 2010 and 2009, we believe the cost bases for our available-for-sale investments were recoverable in all material respects.

Inventories

12 Months Ended

Dec. 31, 2010

Inventories [Abstract]

Inventories


11.	Inventories

Inventories consisted of the following as of December 31, 2010 and 2009 (in millions):


	2010		2009

Raw materials	$	128	$	97
Work in process		1,382		1,683
Finished goods		512		440

	$	2,022	$	2,220

As of December 31, 2009, work in process included $258 million of denosumab inventory capitalized in preparation for its anticipated product launch upon regulatory approval. During 2010, we received various approvals for denosumab from regulatory authorities in the United States, the European Union and various other countries and commenced selling the product in certain geographic markets.

During 2008, we wrote-off $84 million of inventory resulting from a strategic decision to change manufacturing processes. This charge is included in “Cost of sales (excludes amortization of certain acquired intangible assets)” in our Consolidated Statement of Income.

Property, plant and equipment

12 Months Ended

Dec. 31, 2010

Property, Plant and Equipment [Abstract]

Property, plant and equipment


12.	Property, plant and equipment

Property, plant and equipment consisted of the following as of December 31, 2010 and 2009 (in millions):


	2010			2009

Land	$	361		$	450
Buildings and improvements		3,392			3,293
Manufacturing equipment		1,802			1,462
Laboratory equipment		955			892
Furniture, fixtures and other assets		3,547			3,369
Construction in progress		631			910

		10,688			10,376
Less accumulated depreciation and amortization		(5,166	)		(4,638	)

	$	5,522		$	5,738

During the years ended December 31, 2010, 2009 and 2008, we recognized depreciation and amortization charges associated with our property, plant and equipment of $594 million, $624 million and $648 million, respectively.

Intangible assets

12 Months Ended

Dec. 31, 2010

Intangible Assets [Abstract]

Intangible assets


13.	Intangible assets

Amortization of finite-lived intangible assets is provided over their estimated useful lives ranging from 5 to 15 years on a straight-line basis (weighted average remaining amortization period of 6 years at December 31, 2010). Finite-lived intangible assets consisted of the following as of December 31, 2010 and 2009 (in millions):


	Weighted
	average
	amortization
Intangible assets subject to amortization	period		2010			2009

Acquired product technology rights:
Developed product technology		15 years	$	2,872		$	2,872
Core technology		15 years		1,348			1,348
Trade name		15 years		190			190
Acquired R&D technology rights		5 years		350			350
Other intangible assets		10 years		627			541

				5,387			5,301
Less accumulated amortization				(3,157	)		(2,734	)

			$	2,230		$	2,567

Acquired product technology rights relate to the identifiable intangible assets acquired in connection with the 2002 Immunex acquisition and the amortization is included in “Amortization of certain acquired intangible assets” in the Consolidated Statements of Income. Intangible assets also include acquired R&D technology rights consisting of technology used in R&D with alternative future uses and the amortization is included in “Research and development” expense in the Consolidated Statements of Income. The amortization of other intangible assets is included principally in “Cost of sales (excludes amortization of certain acquired intangible assets)” and “Selling, general and administrative” expense in the Consolidated Statements of Income. During the years ended December 31, 2010, 2009 and 2008, we recognized amortization charges associated with our intangible assets of $423 million, $425 million and $425 million, respectively. The total estimated amortization for each of the next five years for our intangible assets is $353 million, $331 million, $331 million, $316 million and $309 million in 2011, 2012, 2013, 2014 and 2015, respectively.

Accrued liabilities

12 Months Ended

Dec. 31, 2010

Accrued Liabilities [Abstract]

Accrued liabilities


14.	Accrued liabilities

Accrued liabilities consisted of the following as of December 31, 2010 and 2009 (in millions):


	2010		2009

Sales deductions	$	1,144	$	970
Employee compensation and benefits		764		751
Clinical development costs		230		361
Sales returns reserve		339		211
Other		889		1,006

	$	3,366	$	3,299

Financing arrangements

12 Months Ended

Dec. 31, 2010

Financing arrangements [Abstract]

Financing arrangements


15.	Financing arrangements

The following table reflects the carrying values and the fixed contractual coupon rates of our borrowings under our various financing arrangements as of December 31, 2010 and 2009 (dollar amounts in millions):


	2010			2009

0.125% convertible notes due 2011 (2011 Convertible Notes)	$	2,488		$	2,342
0.375% convertible notes due 2013 (2013 Convertible Notes)		2,213			2,088
5.85% notes due 2017 (2017 Notes)		1,099			1,099
4.85% notes due 2014 (2014 Notes)		1,000			1,000
5.70% notes due 2019 (2019 Notes)		998			998
6.40% notes due 2039 (2039 Notes)		996			995
6.375% notes due 2037 (2037 Notes)		899			899
3.45% notes due October 2020 (October 2020 Notes)		897			—
5.75% notes due 2040 (2040 Notes)		696			—
4.95% notes due 2041 (2041 Notes)		595			—
6.15% notes due 2018 (2018 Notes)		499			499
6.90% notes due 2038 (2038 Notes)		499			499
4.50% notes due March 2020 (March 2020 Notes)		300			—
Other notes		183			182

Total borrowings		13,362			10,601
Less current portion		(2,488	)		—

Total non-current debt	$	10,874		$	10,601

Debt issuances

We issued debt securities in various offerings during the three years ended December 31, 2010, including: in 2010, $300 million principal amount of March 2020 Notes, $700 million principal amount of 2040 Notes, $900 million principal amount of October 2020 Notes and $600 million principal amount of 2041 Notes; in 2009, $1.0 billion principal amount of 2019 Notes and $1.0 billion principal amount of 2039 Notes; and in 2008, $500 million principal amount of 2018 Notes and $500 million principal amount of 2038 Notes. Debt issuance costs incurred in connection with these debt offerings totaled $17 million, $13 million and $6 million for debt issued in 2010, 2009 and 2008, respectively, and are being amortized over the respective lives of the notes and the related charge is included in “Interest expense, net” in the Consolidated Statements of Income.

All of these debt securities as well as the 2017 Notes and the 2037 Notes may be redeemed at any time at our option, in whole or in part, at the principal amount of the notes being redeemed plus accrued interest and a “make-whole” amount, as defined. In the event of a change in control triggering event, as defined, we may be required to purchase for cash all or a portion of these debt issuances at a price equal to 101% of the principal amount of the notes plus accrued interest.

Debt repayments

We repaid $1.0 billion aggregate principal amount of notes with a fixed interest rate of 4.00% in 2009 and $2.0 billion aggregate principal amount of floating London Interbank Offered Rate (“LIBOR”) based notes in 2008. No debt was due or repaid in 2010.

2011 and 2013 Convertible Notes

In 2006, we issued $2.5 billion principal amount of convertible notes (the “2011 Convertible Notes”) at par that became due and were repaid in February, 2011. While outstanding, the 2011 Convertible Notes were convertible into shares of our common stock at a conversion rate of 12.5247 shares per $1,000 principal amount of notes, which represents a conversion price of approximately $79.84 per share.

Concurrent with the issuance of the 2011 Convertible Notes, we issued $2.5 billion principal amount of convertible notes due in February 2013 (the “2013 Convertible Notes”) at par. The 2013 Convertible Notes may be converted into shares of our common stock based on an initial conversion rate of 12.5814 shares per $1,000 principal amount of notes, which represents a conversion price of approximately $79.48 per share. This conversion rate will be adjusted if we make specified types of distributions or enter into certain other transactions with respect to our common stock. The 2013 Convertible Notes may only be converted: (i) during any calendar quarter if the closing price of our common stock exceeds 130% of the conversion price per share during a defined period at the end of the previous quarter, (ii) if we make specified distributions to holders of our common stock or specified corporate transactions occur or (iii) one month prior to the maturity date. Upon conversion, a holder would receive the conversion value equal to the conversion rate multiplied by the volume weighted average price of our common stock during a specified period following the conversion date. The conversion value will be paid in: (i) cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and (ii) cash, shares of our common stock, or a combination of cash and shares of our common stock, at our option, to the extent the conversion value exceeds the principal amount of the note (the “excess conversion value”). In addition, upon a change in control, as defined, the holders may require us to purchase for cash all or a portion of their notes for the principal amount of the notes plus accrued interest. The 2011 Convertible Notes had similar conversion terms. As of December 31, 2010, the 2011 Convertible Notes and the 2013 Convertible Notes were not convertible.

Concurrent with the issuance of the 2013 Convertible Notes, we purchased a convertible note hedge. The convertible note hedge allows us to receive shares of our common stock and/or cash from the counterparty to the transaction equal to the amounts of common stock and/or cash related to the excess conversion value that we would issue and/or pay to the holders of the 2013 Convertible Notes upon conversion. This convertible note hedge will terminate at the earlier of the maturity of the 2013 Convertible Notes or the first day none of these notes remain outstanding due to conversion or otherwise. We also purchased convertible note hedges with similar terms in connection with the issuance of the 2011 Convertible Notes which terminated when these notes were repaid.

Also concurrent with the issuance of the 2011 Convertible Notes and 2013 Convertible Notes, we sold warrants to acquire shares of our common stock at an exercise price of $107.90 per share. Pursuant to these transactions, warrants for approximately 31.3 million shares of our common stock may be settled in May 2011 and warrants for approximately 31.5 million shares of our common stock may be settled in May 2013 (the “settlement dates”). If the average price of our common stock during a defined period ending on or about the respective settlement dates exceeds the exercise price of the warrants, the warrants will be net settled, at our option, in cash or shares of our common stock.

Because the convertible note hedges and warrants can be settled at our option in cash or shares of our common stock, and these contracts meet all of the applicable criteria for equity classification under the applicable accounting standards, the cost of the convertible note hedges and net proceeds from the sale of the warrants are classified in “Stockholders’ equity” in the Consolidated Balance Sheets. In addition, because both of these contracts are classified in “Stockholders’ equity” and are indexed to our common stock, they are not accounted for as derivatives.

As required for cash settleable convertible notes, the debt and equity components of the 2011 Convertible Notes and 2013 Convertible Notes were bifurcated and accounted for separately. While the notes are outstanding, their discounted carrying values resulting from the bifurcation are accreted back to their principal amounts over periods that end on the scheduled maturity dates, resulting in the recognition of non-cash interest expense. After giving effect to this bifurcation, the effective interest rates on these borrowings are 6.24% for the 2011 Convertible Notes and 6.35% for the 2013 Convertible Notes. For the years ended December 31, 2010, 2009 and 2008, total interest expense for the 2011 Convertible Notes was $149 million, $140 million and $132 million, respectively, including non-cash interest expense of $146 million, $136 million and $128 million, respectively. For the years ended December 31, 2010, 2009 and 2008, total interest expense for the 2013 Convertible Notes was $134 million, $127 million and $120 million, respectively, including non-cash interest expense of $125 million, $118 million and $110 million, respectively. The difference between the total interest expense and non-cash interest expense for the 2011 Convertible Notes and the 2013 Convertible Notes in each year is the interest expense related to the contractual coupon rates.

The principal balances, unamortized discounts and net carrying amounts of the liability components and the equity components of our 2011 Convertible Notes and our 2013 Convertible Notes were as follows as of December 31, 2010 and 2009 (in millions):


	Liability component						Equity component
					Net carrying		Net carrying
December 31, 2010	Principal balance		Unamortized discount		amount		amount

2011 Convertible Notes	$	2,500	$	12	$	2,488	$	643
2013 Convertible Notes		2,500		287		2,213		829


December 31, 2009
2011 Convertible Notes	$	2,500	$	158	$	2,342	$	643
2013 Convertible Notes		2,500		412		2,088		829

Other

Other notes include zero coupon convertible notes due in 2032 with a carrying value of $83 million and $82 million at December 31, 2010 and 2009, respectively, and notes due in 2097 with a carrying value of $100 million.

Interest rate swaps

To achieve a desired mix of fixed and floating interest rate debt, we enter into interest rate swap agreements that effectively convert a fixed rate interest coupon for certain of our debt issuances to a floating LIBOR-based coupon over the life of the respective note. These interest rate swap agreements qualify and are designated as fair value hedges. The effective interest rates on these notes as of December 31, 2010 and 2009 after giving effect to the related interest rate swap agreements and the notional amounts of these interest rate swap agreements were as follows as of December 31, 2010 and 2009 (dollar amounts in millions):


		Notional amount
	Effective interest rate	2010		2009

2017 Notes	LIBOR + 2.5%	$	1,100	$	—
2014 Notes	LIBOR + 0.3%		1,000		1,000
2019 Notes	LIBOR + 2.6%		1,000		—
2018 Notes	LIBOR + 1.8%		500		500

		$	3,600	$	1,500

Shelf registration statements and other facilities

As of December 31, 2010, we have a commercial paper program that allows us to issue up to $2.3 billion of unsecured commercial paper to fund our working capital needs. At December 31, 2010, no amounts were outstanding under our commercial paper program.

As of December 31, 2010, we have a $2.3 billion syndicated, unsecured, revolving credit facility which matures in November 2012 and is available for general corporate purposes or as a liquidity backstop to our commercial paper program. Annual commitment fees for this facility are 0.05% based on our current credit rating. As of December 31, 2010, no amounts were outstanding under this facility.

We have filed a shelf registration statement with the SEC, which allows us to issue an unspecified amount of debt securities; common stock; preferred stock; warrants to purchase debt securities, common stock, preferred stock or depository shares; rights to purchase common stock or preferred stock; securities purchase contracts; securities purchase units and depository shares. Under this registration statement, all of the securities available for issuance may be offered from time to time with terms to be determined at the time of issuance. This shelf registration expires in April 2011.

As of December 31, 2010, we have $400 million remaining under a shelf registration statement that was established in 1997. In connection with this shelf registration, we established a $400 million medium-term note program under which medium-term debt securities may be offered from time to time with terms to be determined at the time of issuance. As of December 31, 2010, no securities were outstanding under this medium-term note program.

Certain of our financing arrangements contain non-financial covenants and we were in compliance with all applicable covenants as of December 31, 2010. None of our financing arrangements contain any financial covenants.

Contractual maturities of long-term debt obligations

The aggregate contractual maturities of all long-term debt obligations due subsequent to December 31, 2010 are as follows (in millions):


Maturity date	Amount

2011⁽¹⁾	$	2,500
2012⁽²⁾		84
2013⁽³⁾		2,500
2014		1,000
2015		—
Thereafter		7,600

Total	$	13,684


⁽¹⁾		This amount represents the principal amount due for our 2011 Convertible Notes after full accretion of the debt discount.

⁽²⁾		This amount represents the accreted value of our zero coupon convertible notes due in 2032 as of March 1, 2012, the next date on which holders may put the debt to us for repayment.

⁽³⁾		This amount represents the principal amount due for our 2013 Convertible Notes after full accretion of the debt discount.

Interest costs

Interest costs are expensed as incurred, except to the extent such interest is related to construction in progress, in which case interest is capitalized. Interest expense, net for the years ended December 31, 2010, 2009 and 2008 was $604 million, $578 million and $551 million, respectively. Interest costs capitalized for the years ended December 31, 2010, 2009 and 2008 were $33 million, $32 million and $22 million, respectively. Interest paid, net of interest rate swaps, during the years ended December 31, 2010, 2009 and 2008, totaled $323 million, $293 million and $303 million, respectively.

Stockholders' equity

12 Months Ended

Dec. 31, 2010

Stockholders' equity [Abstract]

Stockholders' equity


16.	Stockholders’ equity

Stock repurchase program

The following table is a summary of activity under our stock repurchase program for the years ended December 31, 2010, 2009 and 2008 (in millions):


	2010				2009				2008
	Shares		Dollars		Shares		Dollars		Shares		Dollars

First quarter		29.1	$	1,684		37.5	$	1,997		—	$	—
Second quarter		10.3		616		—		—		32.7		1,549	⁽¹⁾
Third quarter		6.6		364		—		—		—		19	⁽¹⁾
Fourth quarter		20.5		1,136		21.7		1,211		12.6		700

Total		66.5	$	3,800		59.2	$	3,208		45.3	$	2,268


⁽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 accelerated share repurchase program entered into in May 2008.

In December 2009, the Board of Directors authorized us to repurchase up to an additional $5.0 billion of common stock of which a total of $2.2 billion remains available as of December 31, 2010. The manner of purchases, the amount we spend and the number of shares repurchased will vary based on a variety of factors, including the stock price, blackout periods in which we are restricted from repurchasing shares and the impact of repurchases on our credit rating, and may include private block purchases as well as market transactions.

Accumulated other comprehensive income

The components of Accumulated Other Comprehensive Income (“AOCI”) are as follows for the years ended December 31, 2010, 2009 and 2008 (in millions):


	Foreign
	currency			Cash flow			Available-for-sale
	translation			hedges			securities			Other			AOCI

Balance as of December 31, 2007	$	59		$	(45	)	$	39		$	—		$	53
Other comprehensive income:
Foreign currency translation adjustments		(43	)		—			—			—			(43	)
Unrealized gains		—			155			92			—			247
Reclassification adjustments to income		—			—			(75	)		—			(75	)
Other		—			—			—			(11	)		(11	)
Income taxes		9			(60	)		(7	)		4			(54	)

Balance as of December 31, 2008		25			50			49			(7	)		117
Other comprehensive income:
Foreign currency translation adjustments		25			—			—			—			25
Unrealized (losses)/gains		—			(213	)		116			(12	)		(109	)
Reclassification adjustments to income		—			8			(42	)		—			(34	)
Other		—			—			—			5			5
Income taxes		(10	)		73			(28	)		6			41

Balance as of December 31, 2009		40			(82	)		95			(8	)		45
Other comprehensive income:
Foreign currency translation adjustments		(29	)		—			—			—			(29	)
Unrealized gains		—			186			155			1			342
Reclassification adjustments to income		—			(46	)		(90	)		—			(136	)
Income taxes		11			(55	)		(25	)		—			(69	)

Balance as of December 31, 2010	$	22		$	3		$	135		$	(7	)	$	153

Other

In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par value. At December 31, 2010 and 2009, no shares of preferred stock were issued or outstanding.

Fair value measurement

12 Months Ended

Dec. 31, 2010

Fair value measurement [Abstract]

Fair value measurement


17.	Fair value measurement

We use various valuation approaches in determining the fair value of our financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:


Level 1 —	Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access

Level 2 —	Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs


Level 3 —	Valuations based on inputs that are unobservable and significant to the overall fair value measurement

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement.

The following fair value hierarchy tables present information about each major class/category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 and 2009 (in millions):


	Quoted prices in		Significant other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Fair value measurement at December 31, 2010 using:	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Available-for-sale investments:
U.S. Treasury securities	$	5,080	$	—	$	—	$	5,080
Other government related debt securities:
Obligations of U.S. government agencies and FDIC guaranteed bank debt		—		2,208		—		2,208
Foreign and other		—		852		—		852
Corporate debt securities:
Financial		—		2,296		—		2,296
Industrial		—		2,507		—		2,507
Other		—		316		—		316
Mortgage and asset backed securities		—		841		—		841
Money market mutual funds		3,030		—		—		3,030
Other short-term interest bearing securities		—		147		—		147
Equity securities		48		—		—		48
Derivatives:
Foreign currency contracts		—		154		—		154
Interest rate swap contracts		—		195		—		195

Total assets	$	8,158	$	9,516	$	—	$	17,674

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	103	$	—	$	103

Total liabilities	$	—	$	103	$	—	$	103


	Quoted prices in		Significant other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Fair value measurement at December 31, 2009 using:	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Available-for-sale investments:
U.S. Treasury securities	$	1,935	$	—	$	—	$	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt		—		3,792		—		3,792
Corporate debt securities		—		4,285		—		4,285
Mortgage and asset backed securities		—		491		—		491
Money market mutual funds		2,784		—		—		2,784
Other short-term interest bearing securities		—		55		—		55
Equity securities		55		—		—		55
Derivatives		—		153		—		153

Total assets	$	4,774	$	8,776	$	—	$	13,550

Liabilities:
Derivatives	$	—	$	152	$	—	$	152

Total liabilities	$	—	$	152	$	—	$	152

The fair value of our U.S. Treasury securities, money market mutual funds and equity securities are based on quoted market prices in active markets with no valuation adjustment.

Substantially all of our other government related and corporate debt securities are investment grade with maturity dates of five years or less. Our other government related debt securities portfolio is comprised of securities with a weighted average credit rating of “AAA” or equivalent by Standard and Poor’s (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”), and our corporate debt securities portfolio has a weighted average credit rating of “A” or equivalent by S&P, Moody’s or Fitch. We estimate the fair value of these securities taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades and broker/dealer quotes of the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs.

Our mortgage and asset backed securities portfolio is comprised entirely of senior tranches, with a credit rating of “AAA” or equivalent by S&P, Moody’s or Fitch. We estimate the fair value of these securities taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades and broker/dealer quotes of the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

We value our other short-term interest bearing securities at amortized cost which approximates fair value given their near term maturity dates.

Substantially all of our foreign currency forward and option derivatives contracts have maturities of three years or less and all are entered into with counterparties that have a minimum credit rating of “A-” or equivalent by S&P, Moody’s or Fitch. We estimate the fair value of these contracts taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include quoted foreign currency spot rates, forward points, LIBOR and swap curves and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts also include implied volatility measures. These inputs, where applicable, are at commonly quoted intervals. As of December 31, 2010 and December 31, 2009, we had open foreign currency forward contracts with notional amounts of $3.2 billion and $3.4 billion, respectively, and open foreign currency option contracts with notional amounts of $398 million and $376 million, respectively, that were primarily Euro-based and were designated as cash flow hedges. In addition, as of December 31, 2010 and December 31, 2009, we had $670 million and $414 million, respectively, of open foreign currency forward contracts to reduce exposure to fluctuations in value of certain assets and liabilities denominated in foreign currencies that were primarily Euro-based and that were not designated as hedges. (See Note 18, Derivative instruments.)

Our interest rate swap contracts are entered into with counterparties that have a minimum credit rating of “A-” or equivalent by S&P, Moody’s or Fitch. We estimate the fair value of these contracts using an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include LIBOR and swap curves and obligor credit default swap rates. We had interest rate swap agreements with an aggregate notional amount of $3.6 billion and $1.5 billion as of December 31, 2010 and December 31, 2009, respectively, that were designated as fair value hedges. (See Note 18, Derivative instruments.)

There have been no transfers of assets or liabilities between the fair value measurement levels and there were no material remeasurements to fair value during the year ended 2009 of assets and liabilities that are not measured at fair value on a recurring basis. See Note 8, Cost savings initiatives and restructuring for further discussion on an impairment that we recognized in 2010.

Summary of the fair value of other financial instruments

Short-term assets and liabilities

The estimated fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying values due to the short-term nature of these financial instruments.

Borrowings

We estimate the fair value of our convertible notes using an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly, including benchmark yields adjusted for our credit risk (Level 2). The fair values of our convertible notes exclude their equity components and represent only the liability components of these instruments as their equity components are included in “Common stock and additional paid-in capital” in the Consolidated Balance Sheets. We estimate the fair value of our other long-term notes taking into consideration indicative prices obtained from a third party financial institution that utilizes industry standard valuation models, including both income and market based approaches, for which all significant inputs are observable, either directly or indirectly. These inputs include reported trades and broker/dealer quotes of the same or similar securities, credit spreads, benchmark yields and other observable inputs (Level 2). The following tables present the carrying values and estimated fair values of our borrowings as of December 31, 2010 and 2009 (in millions):


	2010				2009
	Carrying value		Fair value		Carrying value		Fair value

2011 Convertible Notes	$	2,488	$	2,501	$	2,342	$	2,487
2013 Convertible Notes		2,213		2,479		2,088		2,374
2017 Notes		1,099		1,280		1,099		1,207
2014 Notes		1,000		1,101		1,000		1,075
2019 Notes		998		1,139		998		1,077
2039 Notes		996		1,149		995		1,102
2037 Notes		899		1,027		899		988
October 2020 Notes		897		857		—		—
2040 Notes		696		734		—		—
2041 Notes		595		564		—		—
2018 Notes		499		584		499		551
2038 Notes		499		607		499		582
March 2020 Notes		300		311		—		—
Other notes		183		214		182		206

Total	$	13,362	$	14,547	$	10,601	$	11,649

Derivative instruments

12 Months Ended

Dec. 31, 2010

Derivative instruments [Abstract]

Derivative instruments


18.	Derivative instruments

The Company is exposed to risks related to its business operations, certain of which are managed through derivative instruments. The risks that we manage by using derivative instruments are foreign exchange rate risk and interest rate risk. We use financial instruments including foreign currency forward, foreign currency option, forward interest rate and interest rate swap contracts, to reduce our risk to these exposures. We do not use derivatives for speculative trading purposes.

We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. (See Note 17, Fair value measurement.) The accounting for changes in the fair value of a derivative instrument depends on whether it has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings.

Cash flow hedges

We are exposed to possible changes in values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, associated primarily with our international product sales denominated in Euros. Increases or decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are partially offset by the corresponding increases and decreases in our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations on our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales primarily over a three-year time horizon with, at any given point in time, a higher percentage of nearer term projected product sales being hedged than successive periods. As of December 31, 2010 and 2009, we had open foreign currency forward contracts with notional amounts of $3.2 billion and $3.4 billion, respectively, and open foreign currency option contracts with notional amounts of $398 million and $376 million, respectively. These foreign currency forward and option contracts, primarily Euro-based, have been designated as cash flow hedges, and accordingly, the effective portion of the unrealized gains and losses on these contracts are reported in AOCI in the Consolidated Balance Sheets and reclassified to earnings in the same periods during which the hedged transactions affect earnings.

In connection with the anticipated issuance of long-term fixed-rate debt, we occasionally enter into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable Treasury rate between the time we enter into these contracts and the time the related debt is issued. Gains and losses on such contracts, which are designated as cash flow hedges, are recorded in Other Comprehensive Income (“OCI”) and amortized into earnings over the lives of the associated debt issuances.

The following table reflects the effective portion of the unrealized gain/(loss) recognized in OCI for our cash flow hedge contracts for the years ended December 31, 2010 and 2009 (in millions):


Derivatives in cash flow hedging relationships	2010			2009

Foreign currency contracts	$	191		$	(202	)
Forward interest rate contracts		(5	)		(11	)

Total	$	186		$	(213	)

The following table reflects the location in the Consolidated Statements of Income and the effective portion of the gain/(loss) reclassified from AOCI into earnings for our cash flow hedge contracts for the years ended December 31, 2010 and 2009 (in millions):


Derivatives in cash flow hedging relationships	Statements of Income location	2010			2009

Foreign currency contracts	Product sales	$	47		$	(7	)
Forward interest rate contracts	Interest expense, net		(1	)		(1	)

Total		$	46		$	(8	)

No portions of our cash flow hedge contracts are excluded from the assessment of hedge effectiveness and the ineffective portions of these hedging instruments were approximately $1 million of expense for the years ended December 31, 2010 and 2009. As of December 31, 2010, the amounts expected to be reclassified from AOCI into earnings over the next 12 months are approximately $8 million of losses on foreign currency forward and option contracts and approximately $1 million of losses on forward interest rate contracts.

Fair value hedges

To achieve a desired mix of fixed and floating interest rate debt, we have entered into interest rate swap agreements, which qualify and have been designated as fair value hedges. The terms of these interest rate swap agreements correspond to the related hedged debt instruments and effectively convert a fixed interest rate coupon to a floating LIBOR-based coupon over the lives of the respective notes. The rates on these swaps range from LIBOR plus 0.3% to LIBOR plus 2.6%. We had interest rate swap agreements with aggregate notional amounts of $3.6 billion and $1.5 billion as of December 31, 2010 and 2009, respectively. The interest rate swap agreements as of December 31, 2010 were for our notes due in 2014, 2017, 2018 and 2019 and, as of December 31, 2009 for our notes due in 2014 and 2018. For derivative instruments that are designated and qualify as a fair value hedge, the unrealized gain or loss on the derivative resulting from the change in fair value during the period as well as the offsetting unrealized loss or gain of the hedged item resulting from the change in fair value during the period attributable to the hedged risk are recognized in current earnings. For the year ended December 31, 2010, we included the unrealized loss on the hedged debt of $105 million in the same line item, “Interest expense, net” in the Consolidated Statement of Income, as the offsetting unrealized gain of $105 million on the related interest rate swap agreements. For the year ended December 31, 2009, we included the unrealized gain on the hedged debt of $116 million in the same line item, “Interest expense, net” in the Consolidated Statement of Income, as the offsetting unrealized loss of $116 million on the related interest rate swap agreements.

Derivatives not designated as hedges

We enter into foreign currency forward contracts to reduce our exposure to foreign currency fluctuations of certain assets and liabilities denominated in foreign currencies which are not designated as hedging transactions. These exposures are hedged on a month-to-month basis. As of December 31, 2010 and 2009, the total notional amounts of these foreign currency forward contracts, primarily Euro-based, were $670 million and $414 million, respectively.

The following table reflects the location in the Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for the derivative instruments not designated as hedging instruments for the years ended December 31, 2010 and 2009 (in millions):


Derivatives not designated as hedging instruments	Statements of Income location	2010		2009

Foreign currency contracts	Interest and other income, net	$	32	$	(24	)

The following tables reflect the fair values of both derivatives designated as hedging instruments and not designated as hedging instruments included in the Consolidated Balance Sheets as of December 31, 2010 and 2009 (in millions):


	Derivative assets			Derivative liabilities
December 31, 2010	Balance Sheet location	Fair value		Balance Sheet location	Fair value

Derivatives designated as hedging instruments:
Interest rate swap contracts	Other current assets/ Other non-current assets	$	195	Accrued liabilities/ Other non-current liabilities	$	—

Foreign currency contracts	Other current assets/ Other non-current assets		154	Accrued liabilities/ Other non-current liabilities		103

Total derivatives designated as hedging instruments			349			103

Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		—	Accrued liabilities		—

Total derivatives not designated as hedging instruments			—			—

Total derivatives		$	349		$	103


	Derivative assets			Derivative liabilities
December 31, 2009	Balance Sheet location	Fair value		Balance Sheet location	Fair value

Derivatives designated as hedging instruments:
Interest rate swap contracts	Other current assets/Other non-current assets	$	90	Accrued liabilities/ Other non-current liabilities	$	—
Foreign currency contracts	Other current assets/Other non- current assets		63	Accrued liabilities/ Other non-current liabilities		152

Total derivatives designated as hedging instruments			153			152

Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		—	Accrued liabilities		—

Total derivatives not designated as hedging instruments			—			—

Total derivatives		$	153		$	152

Our derivative contracts that were in a liability position as of December 31, 2010 contain certain credit risk related contingent provisions that are triggered if (i) we were to undergo a change in control and (ii) our or the surviving entity’s creditworthiness deteriorates, which is generally defined as having either a credit rating that is below investment grade or a materially weaker creditworthiness after the change in control. If these events were to occur, the counterparties would have the right, but not the obligation, to close the contracts under early termination provisions. In such circumstances, the counterparties could request immediate settlement of these contracts for amounts that approximate the then current fair values of the contracts.

The cash flow effects of our derivatives contracts are included within “Net cash provided by operating activities” in the Consolidated Statements of Cash Flows.

Contingencies and commitments

12 Months Ended

Dec. 31, 2010

Contingencies and commitments [Abstract]

Contingencies and commitments


19.	Contingencies and commitments

Contingencies

In the ordinary course of business, we are involved in various legal proceedings and other matters, including those discussed in this Note, which are complex in nature and have outcomes that are difficult to predict. We record accruals for such contingencies to the extent that we conclude that it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. While it is not possible to accurately predict or determine the eventual outcome of these items, one or more of these items currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Certain of our legal proceedings and other matters are discussed below:

Roche U.S. International Trade Commission Complaint

On April 11, 2006, Amgen filed a complaint with the U.S. International Trade Commission (“ITC”) in Washington D.C. requesting that the ITC institute an investigation of the importation of pegylated erythropoietin (alternatively referred to as peg-EPO or MIRCERA^®) into the United States as Amgen believes that importation of peg-EPO is unlawful because peg-EPO, and the method of its manufacture, are covered by Amgen’s EPO patents. Amgen asked the ITC to issue a permanent exclusion order that would prohibit importation of peg-EPO into the United States. The ITC instituted an investigation naming Roche Holding Ltd., F. Hoffmann-La Roche Ltd., Roche Diagnostics GmbH, and Hoffmann-La Roche Inc. (collectively, “Roche”) as respondents in the investigation. On July 7, 2006, the Administrative Law Judge (“ALJ”) at the ITC issued a summary determination that Roche’s importation and use of peg-EPO in the United States had been subject to a clinical trial exemption to patent infringement under 35 U.S.C. 271(e)(1). On August 31, 2006, the ITC adopted the ALJ’s summary determination terminating the investigation.

On October 11, 2006, Amgen filed a petition for review of the ITC’s decision with the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit Court”). On March 19, 2008, the Federal Circuit Court reversed the ITC’s dismissal of the investigation on jurisdictional grounds. In response to Roche’s request for rehearing, on April 30, 2009, the Federal Circuit Court vacated the ITC’s dismissal of the ITC investigation for non-infringement. The Federal Circuit Court remanded the case back to the ITC for further proceedings to determine if patent infringement had occurred and to provide a remedy, if appropriate.

Amgen had previously filed a separate lawsuit in November 2006 in the United States District Court for the District of Massachusetts (the “Massachusetts District Court”) against F. Hoffmann-La Roche Ltd., Roche Diagnostics GmbH and Hoffmann-La Roche Inc. (collectively, “Roche Defendants”) seeking a declaration by the Massachusetts District Court that the importation, use, sale or offer to sell peg-EPO infringes Amgen’s EPO patents, specifically U.S. Patent Nos. 5,547,933; 5,621,080; 5,955,422; 5,756,349; 5,618,698 and 5,441,868. After a jury trial and an appeal, on December 22, 2009, the Massachusetts District Court entered final judgment and a permanent injunction against the Roche Defendants prohibiting the Roche Defendants from infringing the five Amgen patents-in-suit. The judgment was accompanied by the Roche Defendants’ admission that the patents involved in the lawsuit are valid, enforceable and infringed by the Roche Defendant’s peg-EPO product, and by Amgen allowing Roche to begin selling peg-EPO in the United States in mid-2014 under terms of a limited license agreement. The settlement terms did not include any financial payments between the parties. Thereafter, in the ITC matter Amgen filed a motion for summary determination of violation with a request for entry of a limited exclusion order. The Roche respondents notified the ITC that they were not opposing Amgen’s motion. The ITC has not yet issued a decision on Amgen’s motion.

Teva Matters

Sensipar^® Abbreviated New Drug Application (“ANDA”) Litigation

On July 25, 2008, Amgen, NPS Pharmaceuticals (“NPS”) and Brigham and Women’s Hospital (“BWH”), filed a lawsuit against Teva Pharmaceuticals USA, Inc. (“Teva USA”), Teva Pharmaceutical Industries Ltd. (“Teva Ltd.”, and together with Teva USA, “Teva”) and Barr Laboratories, Inc. (“Barr”) in the U.S. District Court for the District of Delaware (the “Delaware District Court”) for infringement of four patents — U.S. Patent Nos. 6,001,068 (the “’068 Patent”); 6,031,003 (the “’003 Patent”); 6,313,146 (the “’146 Patent”) and 6,211,244 (the “’244 Patent”). The lawsuit is based on ANDAs filed by Teva and Barr which seek approval to market generic versions of Sensipar^® (cinacalcet hydrochloride). Amgen’s filing of the lawsuit stays any U.S. Food and Drug Administration (“FDA”) approval of the Teva or Barr ANDA until September 2011.

Trial in this action commenced on November 30, 2010 on Teva’s and Barr’s invalidity and inequitable conduct defenses. Prior to commencement of trial and based on agreement between the parties, the Delaware District Court entered an order that Teva and Barr infringe the ’068, ’003 and ’244 patents and dismissed all claims relating to the ’146 patent. The Delaware District Court issued its Memorandum Decision and Order on January 7, 2011 rejecting Teva’s and Barr’s defenses, finding the ’068, ’003 and ’244 patents valid, enforceable and infringed, and enjoining Teva and Barr from the commercial manufacture, use, import or sale of their generic version of cinacalcet hydrochloride until the last of the three patents expires. On February 4, 2011, Teva and Barr filed a notice of appeal of the Delaware District Court’s Memorandum Decision and Order.

Teva v. Amgen, the ’603 Patent Litigation

On May 20, 2009, Teva Ltd. filed a lawsuit against Amgen in the U.S. District Court for the Eastern District of Pennsylvania (the “Pennsylvania District Court”) alleging infringement of Teva’s U.S. Patent No. 7,449,603 by its manufacture, importation, use, sale and/or offer for sale of Sensipar^® (cinacalcet hydrochloride). Amgen filed an answer and counterclaims of noninfringement and patent invalidity. Pretrial discovery is ongoing.

Teva v. Amgen, the G-CSF Patent Litigation

On November 30, 2009, Teva USA filed a lawsuit in the Pennsylvania District Court requesting that Amgen’s U.S. Patent Nos. 5,580,755 and 5,582,823 (the “’755 patent” and the “’823 patent”, respectively) relating to human G-CSF and methods for its use, be declared invalid and/or not infringed by Teva USA’s G-CSF product, a filgrastim molecule. Also on November 30, 2009, Teva Ltd. announced that it had filed a biologics license application with the FDA seeking approval to market its G-CSF product in the United States. On January 15, 2010, Amgen filed an answer and brought counterclaims against Teva USA and Teva Ltd. seeking a declaration that Amgen’s patents are valid and will be infringed by Teva’s G-CSF product. On May 4, 2010, Teva withdrew its non-infringement affirmative defense and Teva USA withdrew its non-infringement counterclaim. On September 10, 2010, the Pennsylvania District Court issued its claim construction ruling. On September 24, 2010, Amgen moved for summary judgment of infringement of certain claims of the ’755 patent and the ’823 patent, and on September 29, 2010, Teva USA sought leave to amend its pleadings to re-allege non-infringement of the patents-in-suit. The Court denied both motions on November 19, 2010. Teva announced on September 30, 2010 that it received a complete response letter from the FDA for its G-CSF product Neutroval^tm, indicating that the FDA wanted further information but that Teva believed that no further pre-marketing clinical trials would be necessary. Discovery is ongoing and no trial date has yet been set.

Simonian v. Amgen Inc.

On March 9, 2010, Thomas A. Simonian filed a lawsuit in the U.S. District Court for the Northern District of Illinois alleging that Amgen violated a false marking statute by marking product packaging or product inserts of its NEUPOGEN^® product with U.S. Patent Nos. 4,810,643 and 4,999,291, now both expired. After a three month stay, plaintiff’s amendment of its complaint, and denial of Amgen’s motion to dismiss, Amgen filed an answer to the complaint on December 7, 2010 denying the allegation that Amgen violated the false marking statute. Pretrial proceedings are ongoing.

Average Wholesale Price (“AWP”) Litigation

Amgen and its wholly-owned subsidiary Immunex Inc. are named as defendants, either separately or together, in numerous civil actions broadly alleging that they, together with many other pharmaceutical manufacturers, reported prices for certain products in a manner that allegedly inflated reimbursement under Medicare and/or Medicaid programs and commercial insurance plans, including co-payments paid to providers who prescribe and administer the products. The complaints generally assert varying claims under the Medicare and Medicaid statutes, as well as state law claims for deceptive trade practices, common law fraud and various related state law claims. The complaints seek an undetermined amount of damages, as well as other relief, including declaratory and injunctive relief.

The AWP litigation was commenced against Amgen and Immunex on December 19, 2001 with the filing of Citizens for Consumer Justice, et al. v. Abbott Laboratories, Inc., et al. Additional cases have been filed since that time. Most of these actions, as discussed below, have been consolidated, or are in the process of being consolidated, in a federal Multi-District Litigation proceeding (the “MDL Proceeding”), captioned In Re: Pharmaceutical Industry Average Wholesale Price Litigation MDL No. 1456 and pending in the Massachusetts District Court.

The following cases have been consolidated into the MDL Proceeding, and include cases brought by consumer classes and certain state and local governmental entities:

Citizens for Consumer Justice, et al., v. Abbott Laboratories, Inc., et al.; Teamsters Health & Welfare Fund of Philadelphia, et al., v. Abbott Laboratories, Inc., et al.; Action Alliance of Senior Citizens of Greater Philadelphia v. Immunex Corporation; Constance Thompson, et al., v. Abbott Laboratories, Inc., et al.; Ronald Turner, et al., v. Abbott Laboratories, Inc., et al.; Congress of California Seniors v. Abbott Laboratories, Inc., et al.

In the MDL Proceeding, the Massachusetts District Court has set various deadlines relating to motions to dismiss the complaints, discovery, class certification, summary judgment and other pre-trial issues. For the private class action cases, the Massachusetts District Court has divided the defendant companies into a Track I group and a Track II group. Both Amgen and Immunex are in the Track II group. On March 2, 2006, plaintiffs filed a fourth amended master consolidated complaint, which did not include their motion for class certification as to the Track II group. On September 12, 2006, a hearing before the Massachusetts District Court was held on plaintiffs’ motion for class certification as to the Track II group defendants, which include Amgen and Immunex. On March 7, 2008, the Track II defendants reached a tentative class settlement of the MDL Proceeding, which was subsequently amended on April 3, 2008. The tentative Track II settlement relates to claims against numerous defendants, including Abbott Laboratories, Inc., Amgen Inc., Aventis Pharmaceuticals Inc., Hoechst Marion Roussel, Inc., Baxter Healthcare Corporation, Baxter International Inc., Bayer Corporation, Dey, Inc., Fujisawa Healthcare, Inc., Fujisawa USA, Inc., Immunex Corporation, Pharmacia Corporation, Pharmacia & Upjohn LLC (f/k/a Pharmacia & Upjohn, Inc.), Sicor, Inc., Gensia, Inc., Gensia Sicor Pharmaceuticals, Inc., Watson Pharmaceuticals, Inc. and ZLB Behring, L.L.C. Plaintiffs continue to file for extensions for the final approval hearing of the Track II settlement due to continued deficiencies in executing notices, and the final approval hearing is now expected to occur in the spring of 2011.

Certain AWP litigation cases are not a part of the MDL Proceeding. These cases are:

County of Erie v. Abbott Laboratories, Inc., et al. This case was filed against Amgen and Immunex, along with several other pharmaceutical manufacturers, on March 8, 2005 in the Supreme Court of New York, Erie County. On August 11, 2010, Amgen and Immunex reached a settlement with the County of Erie, and on November 19, 2010, the county discontinued proceedings against the companies with prejudice.

County of Schenectady v. Abbott Laboratories, Inc., et al. This case was filed against Amgen and Immunex, along with several other pharmaceutical manufacturers, on May 9, 2006 in the Supreme Court of New York, Schenectady County. On August 11, 2010, Amgen and Immunex reached a settlement with the County of Schenectady, and on November 19, 2010, the county discontinued proceedings against the companies with prejudice.

County of Oswego v. Abbott Laboratories, Inc., et al. This case was filed against Amgen and Immunex, along with several other pharmaceutical manufacturers, on May 9, 2006 in the Supreme Court of New York, Oswego County. On August 11, 2010, Amgen and Immunex reached a settlement with the County of Oswego, and on November 19, 2010, the county discontinued proceedings against the companies with prejudice.

State of Louisiana v. Abbott Laboratories, Inc., et al. The State of Louisiana filed a complaint against Amgen and several other pharmaceutical manufacturers, on November 3, 2010, in the Parish of East Baton Rouge, 19th Judicial District. Amgen was served the complaint on November 9, 2010. The complaint alleges that the manufacturers misrepresented product pricing information reported to the state by falsely inflating those prices.

Federal Securities Litigation — In re Amgen Inc. Securities Litigation

The six federal class action stockholder complaints filed against Amgen Inc., Kevin W. Sharer, Richard D. Nanula, Dennis M. Fenton, Roger M. Perlmutter, Brian M. McNamee, George J. Morrow, Edward V. Fritzky, Gilbert S. Omenn and Franklin P. Johnson, Jr., (the “Federal Defendants”) in the U.S. District Court for the Central District of California (the “California Central District Court”) on April 17, 2007 (Kairalla v. Amgen Inc., et al.), May 1, 2007 (Mendall v. Amgen Inc., et al., & Jaffe v. Amgen Inc., et al.), May 11, 2007 (Eldon v. Amgen Inc., et al.), May 21, 2007 (Rosenfield v. Amgen Inc., et al.) and June 18, 2007 (Public Employees’ Retirement Association of Colorado v. Amgen Inc., et al.) were consolidated by the California Central District Court into one action captioned In re Amgen Inc. Securities Litigation. The consolidated complaint was filed with the California Central District Court on October 2, 2007. The consolidated complaint alleges that Amgen and these officers and directors made false statements that resulted in: (i) deceiving the investing public regarding Amgen’s prospects and business; (ii) artificially inflating the prices of Amgen’s publicly traded securities and (iii) causing plaintiff and other members of the class to purchase Amgen publicly traded securities at inflated prices. The complaint also makes off-label marketing allegations that, throughout the class period, the Federal Defendants improperly marketed Aranesp^® and EPOGEN^® for off-label uses while aware that there were alleged safety signals with these products. The plaintiffs seek class certification, compensatory damages, legal fees and other relief deemed proper. The Federal Defendants filed a motion to dismiss on November 8, 2007. On February 4, 2008, the California Central District Court granted in part, and denied in part, the Federal Defendants’ motion to dismiss the consolidated amended complaint. Specifically, the California Central District Court granted the Federal Defendants’ motion to dismiss as to individual defendants Fritzky, Omenn, Johnson, Fenton and McNamee, but denied the Federal Defendants’ motion to dismiss as to individual defendants Sharer, Nanula, Perlmutter and Morrow.

A class certification hearing before the California Central District Court, was held on July 17, 2009 and on August 12, 2009, the California Central District Court granted plaintiffs’ motion for class certification. On August 28, 2009, Amgen filed a petition for permission to appeal with the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) under Rule 23(f), regarding the Order on Class Certification and the Ninth Circuit granted Amgen’s appeal on December 11, 2009. Amgen filed its brief on March 29, 2010 and plaintiff filed its brief on April 27, 2010. No date has been set for oral argument before the Ninth Circuit. On February 2, 2010, the lower court granted Amgen’s motion to stay the underlying action pending the outcome of the Ninth Circuit 23(f) appeal.

State Derivative Litigation

Larson v. Sharer, et al.

The three state stockholder derivative complaints filed against Amgen Inc., Kevin W. Sharer, George J. Morrow, Dennis M. Fenton, Brian M. McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C. Pelham, Frederick W. Gluck, Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank C. Herringer, Richard D. Nanula, Willard H. Dere, Edward V. Fritzky, Franklin P. Johnson, Jr. and Donald B. Rice as defendants (the “State Defendants”) on May 1, 2007 (Larson v. Sharer, et al., & Anderson v. Sharer, et al.), and August 13, 2007 (Weil v. Sharer, et al.) in the Superior Court of the State of California, Ventura County (the “Superior Court”) were consolidated by the Superior Court under one action captioned Larson v. Sharer, et al. The consolidated complaint was filed on July 5, 2007. The complaint alleges that the State Defendants breached their fiduciary duties, wasted corporate assets, were unjustly enriched and violated the California Corporations Code. Plaintiffs allege that the State Defendants failed to disclose and/or misrepresented results of Aranesp^® clinical studies, marketed both Aranesp^® and EPOGEN^® for off-label uses and that these actions or inactions caused stockholders to suffer damages. The complaints also allege insider trading by the State Defendants. The plaintiffs seek treble damages based on various causes of action, reformed corporate governance, equitable and/or injunctive relief, restitution, disgorgement of profits, benefits and other compensation, and legal costs.

An amended consolidated complaint was filed on March 13, 2008, adding Anthony Gringeri as a State Defendant and removing the causes of action for insider selling and misappropriation of information, violation of California Corporations Code Section 25402 and violation of California Corporations Code Section 25403. On July 14, 2008, the Superior Court dismissed without prejudice the consolidated state derivative class action. The judge also ordered a stay of any re-filing of an amended complaint until the federal court has determined whether any securities fraud occurred.

Birch v. Sharer, et al.

On January 23, 2009, a stockholder derivative lawsuit titled Birch v. Sharer, et al. was filed in the Superior Court of the State of California, Los Angeles County (the “Los Angeles Superior Court”) naming Amgen Inc., Kevin W. Sharer, David Baltimore, Frank J. Biondi, Jr., Jerry D. Choate, Vance D. Coffman, Frederick W. Gluck, Frank C. Herringer, Gilbert S. Omenn, Judith C. Pelham, J. Paul Reason, Leonard D. Schaeffer and Tom Zindrick as defendants. The complaint alleges derivative claims for breach of fiduciary duty based on a purported failure to implement adequate internal controls and to oversee the Company’s operations, which plaintiff claims resulted in numerous lawsuits and investigations over a number of years. Plaintiff seeks damages on behalf of Amgen, including costs and expenses, allegedly incurred, among other things, in connection with wrongful termination lawsuits and potential violations of the Health Insurance Portability and Accountability Act. On February 25, 2009, the case was reassigned to a judge in the Complex Department of the Los Angeles Superior Court. Amgen and the individual defendants filed motions to dismiss on June 23, 2009.

Oral argument on Amgen and the individual defendants’ motions to dismiss were heard on September 25, 2009 before the Los Angeles Superior Court and the court granted the motions to dismiss but allowed the plaintiff an opportunity to amend her complaint by October 21, 2009. Plaintiff filed a request for dismissal without prejudice with the court on October 23, 2009. On October 29, 2009, Amgen received from plaintiff a stockholder demand on the Board of Directors to take action to remedy breaches of fiduciary duties by the directors and certain executive officers of the Company. Ms. Birch alleged that the directors and certain executive officers violated their core fiduciary principles, causing Amgen to suffer damages. She demanded that the Board of Directors take action against each of the officers and directors to recover damages and to correct deficiencies in the Company’s internal controls that allowed the misconduct to occur. The Board of Directors completed its investigation and determined in its business judgment that it was not in the best interests of the Company to pursue the claims made in the demand against any of the individuals mentioned in the demand. Therefore, the Board voted to reject the demand and communicated this to Ms. Birch on May 19, 2010.

On February 8, 2010, plaintiff filed another stockholder demand lawsuit in the Los Angeles Superior Court against the same defendants in the original lawsuit but also added Board of Director members François de Carbonnel and Rebecca Henderson. The allegations in the new complaint are nearly identical to those in the previously filed complaint. The case filed on February 8, 2010 by plaintiff Birch was assigned to the Complex Division of the Los Angeles Superior Court. On June 30, 2010, Amgen filed its demurrer to plaintiff’s complaint with the Complex Division of the Los Angeles Superior Court. On September 29, 2010 the Complex Division of the Los Angeles Superior Court denied Amgen’s and the individual defendants’ demurrers finding that the plaintiff had adequately pled wrongful refusal. Amgen and the individual defendants filed answers on October 29, 2010. On December 9, 2010, the Complex Division of the Los Angeles Superior Court stayed the underlying action and Amgen and the individual defendants filed a motion for judgment on the pleadings/motion for summary judgment. The motion for the judgment on the pleadings was heard on January 31, 2011 and the Complex Division of the Los Angeles Superior Court dismissed the entire lawsuit with prejudice against both Amgen and the individual defendants without leave to amend.

Federal Derivative Litigation

On May 7, 2007, the stockholder derivative lawsuit of Durgin v. Sharer, et al., was filed in the California Central District Court and named Amgen Inc., Kevin W. Sharer, George J. Morrow, Dennis M. Fenton, Brian M. McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C. Pelham, Frederick W. Gluck, Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank C. Herringer, Richard D. Nanula, Edward V. Fritzky and Franklin P. Johnson, Jr. as defendants. The complaint alleges the same claims and requests the same relief as in the three state stockholder derivative complaints now consolidated as Larson v. Sharer, et al. The case has been stayed for all purposes until thirty days after a final ruling on the motion to dismiss by the California Central District Court in the In re Amgen Inc. Securities Litigation action.

On September 21, 2007, the stockholder derivative lawsuit of Rosenblum v. Sharer, et al., was filed in the California Central District Court. This lawsuit was brought by the stockholder who previously made a demand on the Amgen Board on May 14, 2007. The complaint alleges that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched. Plaintiffs allege that the defendants failed to disclose and/or misrepresented results of Aranesp^® clinical studies, marketed both Aranesp^® and EPOGEN^® for off-label uses and that these actions or inactions as well as the Amgen market strategy caused damage to the Company resulting in several inquiries, investigations and lawsuits that are costly to defend. The complaint also alleges insider trading by the defendants. The plaintiffs seek treble damages based on various causes of action, reformed corporate governance, equitable and/or injunctive relief, restitution, disgorgement of profits, benefits and other compensation, and legal costs. The case was stayed for all purposes until thirty days after a final ruling on the motion to dismiss by the California Central District Court in the In re Amgen Inc. Securities Litigation action.

Thereafter, on May 1, 2008, plaintiff in Rosenblum v. Sharer, et al., filed an amended complaint which removed Dennis Fenton as a defendant and also eliminated the claims for insider selling by defendants. On July 28, 2008, the California Central District Court heard Amgen and the defendants’ motion to dismiss and motion to stay. On July 30, 2008, the California Central District Court granted Amgen and the defendants’ motion to dismiss without prejudice and also granted a stay of the case pending resolution of the In re Amgen Inc. Securities Litigation action.

Stockholder Demand

On August 20, 2010, Amgen received a stockholder demand on the Board of Directors to take action to remedy alleged breaches of fiduciary duty and related violations by the Board and certain officers of the Company. The stockholder, Dr. Mark Victor, alleged that the directors and certain executive officers caused the Company to issue false or misleading statements regarding the safety of EPOGEN^® and Aranesp^® and promotional practices regarding these drugs. The Board of Directors undertook an investigation into the allegations made by the stockholder and on October 11, 2010, the Board of Directors notified Dr. Victor that it had rejected his demand.

ERISA Litigation

On August 20, 2007, the ERISA class action lawsuit of Harris v. Amgen Inc., et al., was filed in the California Central District Court and named Amgen Inc., Kevin W. Sharer, Frank J. Biondi, Jr., Jerry Choate, Frank C. Herringer, Gilbert S. Omenn, David Baltimore, Judith C. Pelham, Frederick W. Gluck, Leonard D. Schaeffer, Jacqueline Allred, Raul Cermeno, Jackie Crouse, Lori Johnston, Michael Kelly and Charles Bell as defendants. Plaintiffs claim that Amgen and the individual defendants breached their fiduciary duties by failing to inform current and former employees who participated in the Amgen Retirement and Savings Plan and the Retirement and Savings Plan for Amgen Manufacturing Limited of the alleged off-label promotion of both Aranesp^® and EPOGEN^® while a number of studies allegedly demonstrated safety concerns in patients using ESAs. On February 4, 2008, the California Central District Court dismissed the complaint with prejudice as to plaintiff Harris, who had filed claims against Amgen Inc. The claims alleged by the second plaintiff, Ramos, were also dismissed but the court granted the plaintiff leave to amend his complaint. On February 1, 2008, the plaintiffs appealed the decision by the California Central District Court to dismiss the claims of both plaintiffs Harris and Ramos to the Ninth Circuit, which remains pending before the Ninth Circuit. On May 19, 2008, plaintiff Ramos in the Harris v. Amgen Inc., et al., action filed another lawsuit captioned Ramos v. Amgen Inc., et al., in the California Central District Court. The lawsuit is another ERISA class action. The Ramos v. Amgen Inc., et al., matter names the same defendants in the Harris v. Amgen Inc., et al., matter plus four new defendants: Amgen Manufacturing Limited, Richard Nanula, Dennis Fenton and the Fiduciary Committee. Pursuant to the parties’ stipulation, the Ramos matter has been stayed pending the outcome of the Harris matter appeal. Oral argument before the Ninth Circuit on the plaintiffs’ appeal of the California Central District Court’s dismissal of the plaintiffs’ claims occurred on May 8, 2009. On July 14, 2009, the Ninth Circuit reversed the California Central District Court’s decision and remanded the case back to the district court. In the meantime, a third ERISA class action was filed by Don Hanks on June 2, 2009 in the California Central District Court alleging the same ERISA violations as in the Harris and Ramos lawsuits.

On October 13, 2009, the California Central District Court granted plaintiffs Harris’ and Ramos’ motion to be appointed interim co-lead counsel. Plaintiffs filed an amended complaint on November 11, 2009 and added two additional plaintiffs, Jorge Torres and Albert Cappa. Amgen filed a motion to dismiss the amended/consolidated complaint on December 16, 2009. Plaintiffs filed their opposition on January 19, 2010. The motion to dismiss was argued on February 11, 2010. On March 2, 2010, the California Central District Court dismissed the entire lawsuit without prejudice. Plaintiffs filed an amended complaint on March 23, 2010. Amgen then filed another motion to dismiss on April 20, 2010. On June 16, 2010, the California Central District Court entered an order dismissing the entire lawsuit with prejudice. On June 24, 2010, the plaintiffs filed a notice of appeal with the Ninth Circuit. Petitioner’s opening brief was served on December 20, 2010 and Amgen’s answering brief was filed on February 2, 2011. No date has been set for oral argument.

Third-Party Payers Litigation

On June 5, 2007, the United Food & Commercial Workers Central Pennsylvania and Regional Health & Welfare Fund v. Amgen Inc. (the “United Food Matter”), on June 7, 2007 the Vista Healthplan Inc. v. Amgen Inc. (the “Vista Healthplan Matter”), on June 14, 2007, the Painters District Council No. 30 Health & Welfare Fund v. Amgen. Inc. (the “Painters Matter”), on August 8, 2007, the Ironworkers v. Amgen Inc. (the “Ironworkers Matter”), on August 15, 2007, Watters (State of Michigan) v. Amgen Inc. (the “Watters Matter”), and on August 28, 2007, Sheet Metal v. Amgen Inc. (the “Sheet Metal Matter”), putative class action lawsuits, were filed by third-party payers against Amgen in the California Central District Court. In each action, the plaintiff alleges that Amgen marketed its anemia medicines, EPOGEN^® and Aranesp^®, for “off-label” uses, or uses that are not approved by the FDA, and claims that, as a result, the plaintiff paid for unwarranted prescriptions. Specifically, the complaints allege that Amgen promoted EPOGEN^® and Aranesp^® for: treating cancer patients who are not on chemotherapy; treating quality of life symptoms associated with anemia, such as fatigue; and reaching hemoglobin targets above the FDA-approved level. Each plaintiff asserts claims under California’s consumer protection statutes and for breach of implied warranty and unjust enrichment and plaintiffs seek to represent a nationwide class of individuals and entities.

On October 29, 2007, in the United Food Matter, the Vista Healthplan Matter and the Painters Matter, a motion to dismiss and a motion to transfer each of the three cases were heard before California Central District Court. On November 13, 2007, the United Food Matter was transferred to the U.S. District Court for the Middle District of Pennsylvania, the Vista Healthplan Matter was transferred to the U.S. District Court for the Southern District of Florida and the Painters Matter was transferred to the U.S. District Court for the Northern District of Illinois. On December 4, 2007, the Watters Matter was transferred to the U.S. District Court for the Eastern District of Michigan. On January 25, 2008, the Ironworkers Matter was transferred back to the U.S. District Court for the District of New Jersey (the “New Jersey District Court”). On February 4, 2008, the California Central District Court heard defendants’ motion to dismiss and motion to transfer the Sheet Metal Matter back to the U.S. District Court for the Middle District of Pennsylvania.

On January 10, 2008, plaintiffs in the United Food Matter brought a motion before the Judicial Panel on MDL seeking to have the five third-party payer lawsuits consolidated into one MDL case and assigned to the U.S. District Court for the Northern District of Illinois. Defendants filed an opposition to the MDL consolidation motion on February 3, 2008.

On January 11, 2008, the Vista Healthplan Matter was voluntarily dismissed. On April 8, 2008, the Judicial Panel on MDL granted plaintiffs’ motion in the United Food Matter to centralize the five third-party payer lawsuits into one MDL case for the purpose of consolidated pre-trial proceedings and the five cases were transferred back to the California Central District Court. On December 17, 2008, the Judicial Panel on MDL granted defendants’ motion to dismiss without prejudice and, on January 30, 2009, plaintiffs filed an Amended Consolidated Class Action Complaint, which is predicated on similar underlying allegations. Amgen filed its motion to dismiss the amended and consolidated MDL complaint on March 6, 2009. On June 17, 2009, the California Central District Court granted Amgen’s motion and dismissed the entire action with prejudice.

On July 17, 2009, plaintiffs filed a notice of appeal with the Ninth Circuit. On October 8, 2010, oral argument was heard before the Ninth Circuit and on October 21, 2010, the Ninth Circuit affirmed the California Central District Court’s decision dismissing the action with prejudice.

Qui Tam Actions

A U.S. government filing in the Massachusetts District Court concerning the partially unsealed complaint filed pursuant to the Qui Tam provisions of the Federal Civil False Claims Act and on behalf of 17 named states and the District of Columbia under their respective State False Claims Acts (the “Massachusetts Qui Tam Action”) became public on or about May 7, 2009. The filing states that the relator in the Massachusetts Qui Tam Action is a former Amgen employee. Further, the filing represents that, in addition to the Massachusetts Qui Tam Action, there are currently nine other actions under the False Claim Act (“Qui Tam Actions”) pending under seal against Amgen, including eight pending in the U.S. District Court for the Eastern District of New York and one pending in the U.S. District Court for the Western District of Washington. While the Massachusetts Qui Tam Action has been partially unsealed, the other nine Qui Tam Actions remain under seal and have not been provided to Amgen. In the filing made public on May 7, 2009, the U.S. government represents that these ten Qui Tam Actions allege that Amgen engaged in a wide variety of illegal marketing practices with respect to various Amgen products and that these are joint civil and criminal investigations being conducted by a wide variety and large number of federal and state agencies.

On September 1, 2009, the U.S. government filed a notice of non-intervention and 14 states and the District of Columbia filed notices of intervention. On October 30, 2009, 14 states and the District of Columbia filed an amended complaint in the Massachusetts District Court entitled The United States of America, States of California, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Michigan, Nevada, New Hampshire, New Mexico, New York, Tennessee and Texas and the Commonwealths of Massachusetts and Virginia and the District of Columbia, ex rel Kassie Westmoreland v. Amgen Inc., Integrated Nephrology Network, AmerisourceBergen Specialty Group, ASD Healthcare and AmerisourceBergen Corporation. The relator, Kassie Westmoreland, also filed a second amended complaint with the Massachusetts District Court on the same day. The complaints allege violations of the federal Anti-Kickback Statute and violations of state false claims act statutes with regard to Amgen’s marketing of overfill in vials of Aranesp^® and with regard to Amgen’s relationship with the Integrated Nephrology Network (“INN”), a group purchasing organization. The relator’s seconded amended complaint also alleges that Amgen retaliated against and wrongfully terminated Westmoreland.

On January 20, 2010, the states of Florida and Texas voluntarily dismissed their complaints against Amgen. On February 12, 2010, February 16, 2010 and February 18, 2010, respectively, the states of New Hampshire, Louisiana and Nevada voluntarily dismissed their complaints against Amgen. On February 23, 2010, the state of Delaware voluntarily dismissed its complaint against Amgen. Also, on February 23, 2010, the Massachusetts District Court granted Amgen’s motion to stay and sever the relator’s employment claims.

On April 23, 2010, the Massachusetts District Court dismissed all of the claims of the relator, on behalf of the federal government and the states of New Mexico and Georgia, and all of the claims of the remaining states, for failure to state valid legal grounds upon which relief could be granted. On May 26, 2010, the Massachusetts District Court granted leave for the relator to file a fourth amended complaint. On May 24, 2010, the states of New York, Massachusetts, Michigan, California, Illinois, and Indiana (the “States”) filed notices of intent to appeal the Massachusetts District Court’s judgment to the U.S. Court of Appeals for the First Circuit (the “First Circuit”). On June 11, 2010, the Massachusetts District Court held a scheduling conference related to the relator’s fourth amended complaint and ordered that a jury trial be set for the running trial list starting on July 5, 2011.

On September 20, 2010, the Massachusetts District Court entered a written ruling denying Amgen’s motions to dismiss the relator’s fourth amended complaint. On October 22, 2010, the states of New York, Massachusetts, Michigan, California, Illinois and Indiana, on behalf of the states of Georgia and New Mexico, and the relator filed opening briefs with the First Circuit. On January 10, 2011, Amgen and co-defendant INN filed response briefs with the First Circuit. Oral argument has been scheduled for April 6, 2011.

Warren General Hospital v. Amgen

On September 25, 2009, Warren General Hospital of Warren, Pennsylvania (on its behalf and all others similarly situated) filed a class action in the New Jersey District Court against Amgen alleging federal antitrust violations under Section 1 of the Sherman Act and Section 3 of the Clayton Act based on Amgen’s contracting practices. The complaint seeks damages including treble damages, attorneys’ fees and costs. Amgen filed a motion to dismiss the complaint on December 9, 2009. Following briefing by the parties, Amgen’s motion to dismiss was granted by the New Jersey District Court on June 7, 2010 and plaintiffs filed their notice of appeal to the motion to dismiss on June 14, 2010 with the U.S. Court of Appeals for the Third Circuit (the “Third Circuit”). Plaintiff filed their opening brief on August 23, 2010 and Amgen’s response brief was filed on September 22, 2010. Plaintiff filed its reply brief on October 6, 2010. Oral argument before the Third Circuit was held on January 25, 2011.

Other

On May 10, 2007, Amgen received a subpoena from the Attorney General of the State of New York seeking documents related to Amgen’s promotional activities, sales and marketing activities, medical education, clinical studies, pricing and contracting, license and distribution agreements and corporate communications. Amgen continues to fully cooperate in responding to the subpoena.

Beginning in October 2007, Amgen has received a number of subpoenas from the U.S. Attorney’s Office, Eastern District of New York, pursuant to the Health Insurance Portability and Accountability Act (18 U.S.C. 3486), for broad production of documents relating to its products and clinical trials. The government is allowed to use materials produced in response to a section 3486 administrative subpoena in both criminal and civil investigations. Amgen continues to cooperate with the government’s document requests. Additionally, numerous current and former Amgen employees have and continue to receive civil and grand jury subpoenas to provide testimony on a wide variety of subjects.

Beginning in November 2007, Amgen has received a number of subpoenas from the U.S. Attorney’s Office, Western District of Washington pursuant to the Health Insurance Portability and Accountability Act (18 U.S.C. 3486), for broad production of documents relating to its products and clinical trials. The government is allowed to use materials produced in response to a section 3486 administrative subpoena in both criminal and civil investigations. Amgen continues to cooperate with the government’s document requests. Also in 2010, a former Amgen employee was notified by the U.S. Attorney’s Office of the Western District of Washington that the former employee was a target of the investigation. Amgen continues to cooperate with the government’s document requests. Additionally, numerous current and former Amgen employees, including some executive vice presidents and other officers of the Company, have and continue to receive grand jury subpoenas to provide testimony on a wide variety of subjects.

On January 14, 2008, Amgen received a subpoena from the New Jersey Attorney General’s Office for production of documents relating to one of its products. Amgen has completed its response per the terms of the subpoena.

Commitments

We lease certain administrative, R&D, sales and marketing and manufacturing facilities and equipment under non-cancelable operating leases that expire through 2032. The following table summarizes the minimum future rental commitments under non-cancelable operating leases as of December 31, 2010 (in millions):


	2010

2011	$	140
2012		127
2013		119
2014		101
2015		88
Thereafter		434

Total minimum operating lease commitments	$	1,009

Included in the table above are future rental commitments for abandoned leases in the amount of $284 million. Rental expense on operating leases for the years ended December 31, 2010, 2009 and 2008 was $115 million, $114 million and $120 million, respectively.

In addition, we have minimum contractual purchase commitments with third party manufacturers through 2012 that total $121 million. Amounts purchased under these contractual purchase commitments for the years ended December 31, 2010, 2009 and 2008 were $68 million, $207 million and $196 million, respectively.

Segment information

12 Months Ended

Dec. 31, 2010

Segment information [Abstract]

Segment information


20.	Segment information

We operate in one business segment — human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Enterprise-wide disclosures about product sales, revenues and long-lived assets by geographic area, and revenues from major customers are presented below.

Revenues

Revenues for the years ended December 31, 2010, 2009 and 2008 consisted of the following (in millions):


	2010		2009		2008

Product sales:
Aranesp^® — U.S.	$	1,103	$	1,251	$	1,651
Aranesp^® — International		1,383		1,401		1,486
EPOGEN^® — U.S.		2,524		2,569		2,456
Neulasta^® — U.S.		2,654		2,527		2,505
NEUPOGEN^® — U.S.		932		901		896
Neulasta^® — International		904		828		813
NEUPOGEN^® — International		354		387		445
ENBREL — U.S.		3,304		3,283		3,389
ENBREL — Canada		230		210		209
Sensipar^® — U.S.		459		429		412
Mimpara^® — International		255		222		185
Vectibix^® — U.S.		115		97		108
Vectibix^® — International		173		136		45
Nplate^® — U.S.		129		78		13
Nplate^® — International		100		32		4
Prolia^® — U.S.		26		—		—
Prolia^® — International		7		—		—
XGEVA^tm — U.S.		8		—		—
Other — U.S.		—		—		30
Other — International		—		—		40

Total product sales		14,660		14,351		14,687
Other revenues		393		291		316

Total revenues	$	15,053	$	14,642	$	15,003

Geographic information

Outside the United States, we principally sell products in Europe and Canada. Information regarding revenues and long-lived assets (consisting of property, plant and equipment) attributable to the United States and to all international countries collectively is stated below. Information regarding long-lived assets for Puerto Rico is also stated below. The geographic classification of product sales was based upon the location of the customer. The geographic classification of all other revenues was based upon the domicile of the entity from which the revenues were earned.

Certain geographical information with respect to revenues and long-lived assets is as follows (in millions):


	Years ended December 31,
	2010		2009		2008

Revenues:
United States	$	11,636	$	11,421	$	11,772
International countries		3,417		3,221		3,231

Total revenues	$	15,053	$	14,642	$	15,003


	December 31,
	2010		2009

Long-lived assets:
United States	$	3,248	$	3,525
Puerto Rico		2,079		1,920
International countries		195		293

Total long-lived assets	$	5,522	$	5,738

Major customers

In the United States, we sell primarily to wholesale distributors of pharmaceutical products. We utilize these wholesale distributors as the principal means of distributing our products to healthcare providers, such as physicians or their clinics, dialysis centers, hospitals and pharmacies. In Europe, our products are sold principally to healthcare providers and/or wholesalers depending upon the distribution practice in each country. We monitor the financial condition of our larger customers and limit our credit exposure by setting credit limits, requiring letters of credit and obtaining credit insurance, as we deem appropriate. We had product sales to three large wholesaler customers each accounting for more than 10% of total revenues for the years ended December 31, 2010, 2009 and 2008. On a combined basis, these distributors accounted for 71% and 88% of worldwide gross revenues and U.S. gross product sales, respectively, for 2010, as noted in the table below. Certain information with respect to these distributors for the years ended December 31, 2010, 2009 and 2008 is as follows (dollar amounts in millions):


	2010		2009		2008

AmerisourceBergen Corporation:
Gross product sales	$	7,678	$	7,179	$	7,099
% of total gross revenues		38%		37%		37%
% of U.S. gross product sales		47%		46%		46%
McKesson Corporation:
Gross product sales	$	3,913	$	3,694	$	3,594
% of total gross revenues		19%		19%		19%
% of U.S. gross product sales		24%		24%		23%
Cardinal Health, Inc.:
Gross product sales	$	2,813	$	2,841	$	2,823
% of total gross revenues		14%		15%		15%
% of U.S. gross product sales		17%		18%		18%

At December 31, 2010 and 2009, amounts due from these three large wholesalers each exceeded 10% of gross trade receivables, and accounted for 54% and 53%, respectively, of net trade receivables on a combined basis. At December 31, 2010 and 2009, 44% and 45%, respectively, of trade receivables, net were due from customers located outside the United States, primarily in Europe. Our total allowance for doubtful accounts as of December 31, 2010 and 2009 was not material.

Subsequent events

12 Months Ended

Dec. 31, 2010

Subsequent events [Abstract]

Subsequent events


21.	Subsequent event

On January 24, 2011, we announced that we had entered into an agreement to acquire BioVex Group, Inc. (“BioVex”), a privately held biotechnology company developing treatments for cancer and the prevention of infectious disease, including OncoVEX^GM-CSF, a novel oncolytic vaccine in phase 3 clinical development for the treatment of melanoma and head and neck cancer. In connection with this acquisition, which will be accounted for as a business combination, we will make an upfront payment of $425 million and will be obligated to pay up to an additional $575 million contingent upon the achievement of certain regulatory and sales milestones with regard to OncoVEX^GM-CSF. Upon its acquisition, BioVex will become a wholly owned subsidiary of Amgen. This acquisition will provide us with an opportunity to expand our development efforts to bring novel therapeutics to market. BioVex will be included in our consolidated financial statements commencing on the acquisition date. The contingent consideration obligations regarding OncoVEX^GM-CSF regulatory and sales milestones will be recorded at their fair values on the acquisition date and will be subsequently remeasured to their fair values through earnings each reporting period until the contingencies are resolved. The acquisition, which is subject to customary closing conditions, is expected to close during the three months ended March 31, 2011.

Quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2010

Quarterly financial data (unaudited) [Abstract]

Quarterly financial data (unaudited)


22.	Quarterly financial data (unaudited)


	2010 Quarters ended
(In millions, except per share data)	December 31⁽¹⁾		September 30⁽²⁾		June 30		March 31

Product sales	$	3,760	$	3,759	$	3,613	$	3,528
Gross profit from product sales		3,188		3,172		3,060		3,020
Net income		1,022		1,236		1,202		1,167
Earnings per share:
Basic	$	1.09	$	1.29	$	1.25	$	1.19
Diluted	$	1.08	$	1.28	$	1.25	$	1.18


	2009 Quarters ended
(In millions, except per share data)	December 31		September 30⁽³⁾		June 30⁽⁴⁾		March 31⁽⁵⁾

Product sales	$	3,743	$	3,736	$	3,634	$	3,238
Gross profit from product sales		3,205		3,191		3,103		2,761
Net income		931		1,386		1,269		1,019
Earnings per share:
Basic	$	0.93	$	1.36	$	1.25	$	0.99
Diluted	$	0.92	$	1.36	$	1.25	$	0.98


⁽¹⁾		We recorded $113 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods and a $118 million ($74 million, net of tax) asset impairment charge associated with a strategic decision to optimize our network of manufacturing facilities and improve cost efficiencies.

⁽²⁾		We recorded $38 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods.

⁽³⁾		We recorded $100 million of income tax benefit, net due to the favorable resolution of certain prior years’ matters with tax authorities, net of a $28 million tax provision associated with certain prior period transfer pricing matters.

⁽⁴⁾		We recorded $115 million of income tax benefit as the result of resolving certain transfer pricing issues with the IRS for prior periods.

⁽⁵⁾		We recorded $25 million of income tax benefit, net resulting from adjustments to previously established deferred taxes, primarily related to prior acquisitions and stock option expense, due to changes in California tax law effective for future periods.

See Notes 4 and 8 for further discussion of the items described above.

Valuation Accounts

12 Months Ended

Dec. 31, 2010

Valuation Accounts [Abstract]

Valuation Accounts

VALUATION ACCOUNTS

Years ended December 31, 2010, 2009 and 2008

(In millions)


			Additions
	Balance at		charged to							Balance
	beginning		costs and			Other				at end
Allowance for doubtful accounts	of period		expenses			additions		Deductions		of period


Year ended December 31, 2010	$	32	$	10		$	—	$	—	$	42

Year ended December 31, 2009	$	38	$	(6	)	$	—	$	—	$	32

Year ended December 31, 2008	$	39	$	1		$	—	$	2	$	38

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2010

Summary of significant accounting policies (Policies) [Abstract]

Business

Business

Principles of consolidation

Principles of consolidation

Use of estimates

Use of estimates

Product sales

Product sales

Other revenues

Other revenues

Research and development costs

Research and development costs

Selling, general and administrative costs

Selling, general and administrative costs

Advertising costs are expensed as incurred. For the years ended December 31, 2010, 2009 and 2008, advertising costs were $98 million, $95 million and $81 million, respectively.

Stock-based compensation

Stock-based compensation

Income taxes

Income taxes

We provide for income taxes based on pretax income, applicable tax rates and tax planning opportunities available in the various jurisdictions in which we operate.

Collaborative arrangements

Collaborative arrangements

Cash equivalents

Cash equivalents

We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from date of purchase.

Available-for-sale investments

Available-for-sale investments

Inventories

Inventories

Derivatives

Derivatives

Property, plant and equipment, net

Property, plant and equipment, net


Asset Category	Years
Buildings and improvements		10-40
Manufacturing equipment		5-12
Laboratory equipment		8-12
Furniture, fixtures and other assets		3-15

See Note 12, Property, plant and equipment.

Intangible assets and goodwill

Intangible assets and goodwill

Convertible debt

Convertible debt

Recent accounting pronouncements

Recent accounting pronouncements

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2010

Summary of significant accounting policies (Tables) [Abstract]

Useful lives by asset category

Useful lives by asset category are as follows:


Asset Category	Years
Buildings and improvements		10-40
Manufacturing equipment		5-12
Laboratory equipment		8-12
Furniture, fixtures and other assets		3-15

Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2010

Stock-based compensation (Tables) [Abstract]

Components of stock-based compensation expense recognized in the Consolidated Statements of Income


	2010			2009			2008

Stock options	$	124		$	115		$	103
Restricted stock units		182			134			105
Performance units		47			35			54

Total stock-based compensation expense, pre-tax		353			284			262
Tax benefit from stock-based compensation expense		(120	)		(97	)		(89	)

Total stock-based compensation expense, net of tax	$	233		$	187		$	173

Weighted average assumptions used and the resulting grant date fair value of employee stock options


	2010		2009		2008

Closing price of our common stock on grant date	$	58.32	$	50.65	$	43.60
Fair value of stock options granted	$	20.97	$	18.35	$	14.50
Expected volatility		28.0%		39.6%		31.6%
Expected life (in years)		6.6		4.6		4.6
Risk-free interest rate		3.2%		2.1%		2.9%
Expected dividend yield		0%		0%		0%

Stock option information


						Weighted-
						average		Aggregate
				Weighted-		remaining		intrinsic
	Options			average		contractual		value
	(in millions)			exercise price		life (years)		(in millions)

Balance unexercised at December 31, 2009		50.8		$	59.50
Granted		6.7		$	58.32
Exercised		(1.3	)	$	46.13
Forfeited/expired		(9.4	)	$	64.72

Balance unexercised at December 31, 2010		46.8		$	58.66		3.6	$	110

Vested or expected to vest at December 31, 2010		46.0		$	58.71		3.5	$	109

Exercisable at December 31, 2010		31.7		$	61.05		2.1	$	58

Restricted stock units information


				Weighted-average
	Units			grant date
	(in millions)			fair value

Balance nonvested at December 31, 2009		8.8		$	50.00
Granted		4.1		$	58.19
Vested		(3.2	)	$	52.50
Forfeited		(0.4	)	$	51.96

Balance nonvested at December 31, 2010		9.3		$	52.67

Assumptions used and the resulting grant date fair value of performance units


	2010		2009		2008

Closing price of our common stock on grant date	$	56.90	$	47.63	$	44.62
Fair value of unit	$	62.06	$	48.22	$	36.91
Volatility		34.7%		34.3%		32.4%
Risk-free interest rate		1.3%		1.2%		2.0%
Expected dividend yield		0%		0%		0%

Income taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income taxes (Tables) [Abstract]

Provision for income taxes


	2010				2009				2008

Current provision:
Federal	$	636			$	325			$	866
State		52				85				82
Foreign		153				155				152

Total current provision		841				565				1,100

Deferred (benefit) provision:
Federal		(196	)			92				(86	)
State		43				(59	)			(43	)
Foreign		2		1				(8	)

Total deferred (benefit) provision		(151	)			34				(137	)

Total provision	$	690			$	599			$	963

Significant components of deferred tax assets and liabilities


	2010			2009

Deferred tax assets:
Intercompany inventory related items	$	306		$	351
Expense accruals		626			519
Acquired net operating loss and credit carryforwards		147			178
Expenses capitalized for tax		188			177
Stock-based compensation		269			229
Deferred revenue		117			128
Other		72			108

Total deferred tax assets		1,725			1,690
Valuation allowance		(80	)		(92	)

Net deferred tax assets		1,645			1,598

Deferred tax liabilities:
Acquired intangibles		(739	)		(882	)
Fixed assets		(181	)		(201	)
Unremitted foreign earnings		(118	)		(13	)
Other		(142	)		(125	)

Total deferred tax liabilities		(1,180	)		(1,221	)

Total deferred taxes, net	$	465		$	377

Reconciliation of total gross amounts of unrecognized tax benefits


	2010			2009			2008

Balance at beginning of year	$	1,140		$	1,113		$	922
Additions based on tax positions related to the current year		305			302			382
Reductions for tax positions of prior years		(110	)		(215	)		—
Settlements		(415	)		(60	)		(191	)

Balance at end of year	$	920		$	1,140		$	1,113

Reconciliation between the federal statutory rate and effective tax rate


	2010				2009				2008

Federal statutory rate applied to income before income taxes		35.0		%		35.0		%		35.0		%
Foreign earnings, including earnings invested indefinitely		(19.1	)	%		(19.6	)	%		(16.7	)	%
State taxes		1.6		%		1.1		%		1.4		%
Audit settlements		(3.1	)	%		(4.2	)	%		0.0		%
Credits, primarily research and experimentation		(0.9	)	%		(0.8	)	%		(1.1	)	%
Other, net		(0.5	)	%		0.0		%		0.6		%

Effective tax rate		13.0		%		11.5		%		19.2		%

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2010

Earnings per share (Tables) [Abstract]

Computation for basic and diluted EPS


	2010		2009		2008

Income (Numerator):
Net income for basic and diluted EPS	$	4,627	$	4,605	$	4,052

Shares (Denominator):
Weighted-average shares for basic EPS		960		1,016		1,070
Effect of dilutive securities		5		5		5

Weighted-average shares for diluted EPS		965		1,021		1,075

Basic EPS	$	4.82	$	4.53	$	3.79
Diluted EPS	$	4.79	$	4.51	$	3.77

Available-for-sale investments (Tables)

12 Months Ended

Dec. 31, 2010

Available-for-sale investments (Tables) [Abstract]

Fair values of available-for-sale investments by type of security


			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
Type of security as of December 31, 2010	cost		gains		losses			fair value

U.S. Treasury securities	$	5,044	$	50	$	(14	)	$	5,080
Other government related debt securities:
Obligations of U.S. government agencies and FDIC guaranteed bank debt		2,158		51		(1	)		2,208
Foreign and other		837		16		(1	)		852
Corporate debt securities:
Financial		2,252		53		(9	)		2,296
Industrial		2,441		71		(5	)		2,507
Other		307		10		(1	)		316
Mortgage and asset backed securities		841		5		(5	)		841
Money market mutual funds		3,030		—		—			3,030
Other short-term interest bearing securities		147		—		—			147

Total debt securities		17,057		256		(36	)		17,277
Equity securities		50		—		(2	)		48

	$	17,107	$	256	$	(38	)	$	17,325


			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
Type of security as of December 31, 2009	cost		gains		losses			fair value

U.S. Treasury securities	$	1,929	$	12	$	(6	)	$	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt		3,731		62		(1	)		3,792
Corporate debt securities		4,193		96		(4	)		4,285
Mortgage and asset backed securities		489		4		(2	)		491
Money market mutual funds		2,784		—		—			2,784
Other short-term interest bearing securities		55		—		—			55

Total debt securities		13,181		174		(13	)		13,342
Equity securities		63		—		(8	)		55

	$	13,244	$	174	$	(21	)	$	13,397

Fair values of available-for-sale investments by contractual maturity


Contractual maturity	2010		2009

Maturing in one year or less	$	4,118	$	3,444
Maturing after one year through three years		6,736		6,369
Maturing after three years through five years		5,812		3,207
Maturing after five years		611		322

Total debt securities		17,277		13,342
Equity securities		48		55

	$	17,325	$	13,397

Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets


Classification in the Consolidated Balance Sheets	2010			2009

Cash and cash equivalents	$	3,287		$	2,884
Marketable securities		14,135			10,558
Other assets — noncurrent		48			55

		17,470			13,497
Less cash		(145	)		(100	)

	$	17,325		$	13,397

Inventories (Tables)

12 Months Ended

Dec. 31, 2010

Inventories (Tables) [Abstract]

Inventories


	2010		2009

Raw materials	$	128	$	97
Work in process		1,382		1,683
Finished goods		512		440

	$	2,022	$	2,220

Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2010

Property, plant and equipment (Tables) [Abstract]

Property, plant and equipment


	2010			2009

Land	$	361		$	450
Buildings and improvements		3,392			3,293
Manufacturing equipment		1,802			1,462
Laboratory equipment		955			892
Furniture, fixtures and other assets		3,547			3,369
Construction in progress		631			910

		10,688			10,376
Less accumulated depreciation and amortization		(5,166	)		(4,638	)

	$	5,522		$	5,738

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2010

Intangible Assets (Tables) [Abstract]

Finite-lived intangibles


	Weighted
	average
	amortization
Intangible assets subject to amortization	period		2010			2009

Acquired product technology rights:
Developed product technology		15 years	$	2,872		$	2,872
Core technology		15 years		1,348			1,348
Trade name		15 years		190			190
Acquired R&D technology rights		5 years		350			350
Other intangible assets		10 years		627			541

				5,387			5,301
Less accumulated amortization				(3,157	)		(2,734	)

			$	2,230		$	2,567

Accrued liabilities (Tables)

12 Months Ended

Dec. 31, 2010

Accrued liabilities (Tables) [Abstract]

Accrued liabilities


	2010		2009

Sales deductions	$	1,144	$	970
Employee compensation and benefits		764		751
Clinical development costs		230		361
Sales returns reserve		339		211
Other		889		1,006

	$	3,366	$	3,299

Financing arrangements (Tables)

12 Months Ended

Dec. 31, 2010

Financing arrangements (Tables) [Abstract]

Carrying value and the fixed contractual coupon rates of borrowing under various financing arrangements


	2010			2009

0.125% convertible notes due 2011 (2011 Convertible Notes)	$	2,488		$	2,342
0.375% convertible notes due 2013 (2013 Convertible Notes)		2,213			2,088
5.85% notes due 2017 (2017 Notes)		1,099			1,099
4.85% notes due 2014 (2014 Notes)		1,000			1,000
5.70% notes due 2019 (2019 Notes)		998			998
6.40% notes due 2039 (2039 Notes)		996			995
6.375% notes due 2037 (2037 Notes)		899			899
3.45% notes due October 2020 (October 2020 Notes)		897			—
5.75% notes due 2040 (2040 Notes)		696			—
4.95% notes due 2041 (2041 Notes)		595			—
6.15% notes due 2018 (2018 Notes)		499			499
6.90% notes due 2038 (2038 Notes)		499			499
4.50% notes due March 2020 (March 2020 Notes)		300			—
Other notes		183			182

Total borrowings		13,362			10,601
Less current portion		(2,488	)		—

Total non-current debt	$	10,874		$	10,601

The principal balances, unamortized discounts and net carrying amounts of the liability components and the equity components of our convertible notes


	Liability component						Equity component
					Net carrying		Net carrying
December 31, 2010	Principal balance		Unamortized discount		amount		amount

2011 Convertible Notes	$	2,500	$	12	$	2,488	$	643
2013 Convertible Notes		2,500		287		2,213		829


December 31, 2009
2011 Convertible Notes	$	2,500	$	158	$	2,342	$	643
2013 Convertible Notes		2,500		412		2,088		829

The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements


		Notional amount
	Effective interest rate	2010		2009

2017 Notes	LIBOR + 2.5%	$	1,100	$	—
2014 Notes	LIBOR + 0.3%		1,000		1,000
2019 Notes	LIBOR + 2.6%		1,000		—
2018 Notes	LIBOR + 1.8%		500		500

		$	3,600	$	1,500

Aggregate contractual maturities of long-term debt obligations


Maturity date	Amount

2011⁽¹⁾	$	2,500
2012⁽²⁾		84
2013⁽³⁾		2,500
2014		1,000
2015		—
Thereafter		7,600

Total	$	13,684


⁽¹⁾		This amount represents the principal amount due for our 2011 Convertible Notes after full accretion of the debt discount.

⁽²⁾		This amount represents the accreted value of our zero coupon convertible notes due in 2032 as of March 1, 2012, the next date on which holders may put the debt to us for repayment.

⁽³⁾		This amount represents the principal amount due for our 2013 Convertible Notes after full accretion of the debt discount.

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2010

Stockholder's Equity (Tables) [Abstract]

Summary of activity under a stock repurchase program


	2010				2009				2008
	Shares		Dollars		Shares		Dollars		Shares		Dollars

First quarter		29.1	$	1,684		37.5	$	1,997		—	$	—
Second quarter		10.3		616		—		—		32.7		1,549	⁽¹⁾
Third quarter		6.6		364		—		—		—		19	⁽¹⁾
Fourth quarter		20.5		1,136		21.7		1,211		12.6		700

Total		66.5	$	3,800		59.2	$	3,208		45.3	$	2,268


⁽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 accelerated share repurchase program entered into in May 2008.

Components of accumulated other comprehensive income


	Foreign
	currency			Cash flow			Available-for-sale
	translation			hedges			securities			Other			AOCI

Balance as of December 31, 2007	$	59		$	(45	)	$	39		$	—		$	53
Other comprehensive income:
Foreign currency translation adjustments		(43	)		—			—			—			(43	)
Unrealized gains		—			155			92			—			247
Reclassification adjustments to income		—			—			(75	)		—			(75	)
Other		—			—			—			(11	)		(11	)
Income taxes		9			(60	)		(7	)		4			(54	)

Balance as of December 31, 2008		25			50			49			(7	)		117
Other comprehensive income:
Foreign currency translation adjustments		25			—			—			—			25
Unrealized (losses)/gains		—			(213	)		116			(12	)		(109	)
Reclassification adjustments to income		—			8			(42	)		—			(34	)
Other		—			—			—			5			5
Income taxes		(10	)		73			(28	)		6			41

Balance as of December 31, 2009		40			(82	)		95			(8	)		45
Other comprehensive income:
Foreign currency translation adjustments		(29	)		—			—			—			(29	)
Unrealized gains		—			186			155			1			342
Reclassification adjustments to income		—			(46	)		(90	)		—			(136	)
Income taxes		11			(55	)		(25	)		—			(69	)

Balance as of December 31, 2010	$	22		$	3		$	135		$	(7	)	$	153

Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2010

Fair value measurement (Tables) [Abstract]

Information about each major class/category of the companys' financial assets and liabilities measured at fair value on a recurring basis


	Quoted prices in		Significant other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Fair value measurement at December 31, 2010 using:	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Available-for-sale investments:
U.S. Treasury securities	$	5,080	$	—	$	—	$	5,080
Other government related debt securities:
Obligations of U.S. government agencies and FDIC guaranteed bank debt		—		2,208		—		2,208
Foreign and other		—		852		—		852
Corporate debt securities:
Financial		—		2,296		—		2,296
Industrial		—		2,507		—		2,507
Other		—		316		—		316
Mortgage and asset backed securities		—		841		—		841
Money market mutual funds		3,030		—		—		3,030
Other short-term interest bearing securities		—		147		—		147
Equity securities		48		—		—		48
Derivatives:
Foreign currency contracts		—		154		—		154
Interest rate swap contracts		—		195		—		195

Total assets	$	8,158	$	9,516	$	—	$	17,674

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	103	$	—	$	103

Total liabilities	$	—	$	103	$	—	$	103


	Quoted prices in		Significant other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Fair value measurement at December 31, 2009 using:	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Available-for-sale investments:
U.S. Treasury securities	$	1,935	$	—	$	—	$	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt		—		3,792		—		3,792
Corporate debt securities		—		4,285		—		4,285
Mortgage and asset backed securities		—		491		—		491
Money market mutual funds		2,784		—		—		2,784
Other short-term interest bearing securities		—		55		—		55
Equity securities		55		—		—		55
Derivatives		—		153		—		153

Total assets	$	4,774	$	8,776	$	—	$	13,550

Liabilities:
Derivatives	$	—	$	152	$	—	$	152

Total liabilities	$	—	$	152	$	—	$	152

Carrying value and estimated fair value of borrowings


	2010				2009
	Carrying value		Fair value		Carrying value		Fair value

2011 Convertible Notes	$	2,488	$	2,501	$	2,342	$	2,487
2013 Convertible Notes		2,213		2,479		2,088		2,374
2017 Notes		1,099		1,280		1,099		1,207
2014 Notes		1,000		1,101		1,000		1,075
2019 Notes		998		1,139		998		1,077
2039 Notes		996		1,149		995		1,102
2037 Notes		899		1,027		899		988
October 2020 Notes		897		857		—		—
2040 Notes		696		734		—		—
2041 Notes		595		564		—		—
2018 Notes		499		584		499		551
2038 Notes		499		607		499		582
March 2020 Notes		300		311		—		—
Other notes		183		214		182		206

Total	$	13,362	$	14,547	$	10,601	$	11,649

Derivative instruments (Tables)

12 Months Ended

Dec. 31, 2010

Derivative instruments (Tables) [Abstract]

Effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our cash flow hedge contracts


Derivatives in cash flow hedging relationships	2010			2009

Foreign currency contracts	$	191		$	(202	)
Forward interest rate contracts		(5	)		(11	)

Total	$	186		$	(213	)

Location in the Consolidated Statements of Income and the effective portion of gain/(loss) reclassified from accumulated other comprehensive income into earnings for our cash flow hedge contracts


Derivatives in cash flow hedging relationships	Statements of Income location	2010			2009

Foreign currency contracts	Product sales	$	47		$	(7	)
Forward interest rate contracts	Interest expense, net		(1	)		(1	)

Total		$	46		$	(8	)

Location in the Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for the derivative instruments not designated as hedging instruments


Derivatives not designated as hedging instruments	Statements of Income location	2010		2009

Foreign currency contracts	Interest and other income, net	$	32	$	(24	)

Fair values of both derivatives designated as hedging instruments and not designated as hedging instruments included in Consolidated Balance Sheets


	Derivative assets			Derivative liabilities
December 31, 2010	Balance Sheet location	Fair value		Balance Sheet location	Fair value

Derivatives designated as hedging instruments:
Interest rate swap contracts	Other current assets/ Other non-current assets	$	195	Accrued liabilities/ Other non-current liabilities	$	—

Foreign currency contracts	Other current assets/ Other non-current assets		154	Accrued liabilities/ Other non-current liabilities		103

Total derivatives designated as hedging instruments			349			103

Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		—	Accrued liabilities		—

Total derivatives not designated as hedging instruments			—			—

Total derivatives		$	349		$	103


	Derivative assets			Derivative liabilities
December 31, 2009	Balance Sheet location	Fair value		Balance Sheet location	Fair value

Derivatives designated as hedging instruments:
Interest rate swap contracts	Other current assets/Other non-current assets	$	90	Accrued liabilities/ Other non-current liabilities	$	—
Foreign currency contracts	Other current assets/Other non- current assets		63	Accrued liabilities/ Other non-current liabilities		152

Total derivatives designated as hedging instruments			153			152

Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		—	Accrued liabilities		—

Total derivatives not designated as hedging instruments			—			—

Total derivatives		$	153		$	152

Contingencies and commitments (Tables)

12 Months Ended

Dec. 31, 2010

Contingencies and commitments (Tables) [Abstract]

Minimum future rental commitments under non-cancelable operating leases


	2010

2011	$	140
2012		127
2013		119
2014		101
2015		88
Thereafter		434

Total minimum operating lease commitments	$	1,009

Segment information (Table)

12 Months Ended

Dec. 31, 2010

Segment Information (Table) [Abstract]

Revenues


	2010		2009		2008

Product sales:
Aranesp^® — U.S.	$	1,103	$	1,251	$	1,651
Aranesp^® — International		1,383		1,401		1,486
EPOGEN^® — U.S.		2,524		2,569		2,456
Neulasta^® — U.S.		2,654		2,527		2,505
NEUPOGEN^® — U.S.		932		901		896
Neulasta^® — International		904		828		813
NEUPOGEN^® — International		354		387		445
ENBREL — U.S.		3,304		3,283		3,389
ENBREL — Canada		230		210		209
Sensipar^® — U.S.		459		429		412
Mimpara^® — International		255		222		185
Vectibix^® — U.S.		115		97		108
Vectibix^® — International		173		136		45
Nplate^® — U.S.		129		78		13
Nplate^® — International		100		32		4
Prolia^® — U.S.		26		—		—
Prolia^® — International		7		—		—
XGEVA^tm — U.S.		8		—		—
Other — U.S.		—		—		30
Other — International		—		—		40

Total product sales		14,660		14,351		14,687
Other revenues		393		291		316

Total revenues	$	15,053	$	14,642	$	15,003

Geographical information with respect to revenues


	Years ended December 31,
	2010		2009		2008

Revenues:
United States	$	11,636	$	11,421	$	11,772
International countries		3,417		3,221		3,231

Total revenues	$	15,053	$	14,642	$	15,003

Geographical information with respect to long-lived assets


	December 31,
	2010		2009

Long-lived assets:
United States	$	3,248	$	3,525
Puerto Rico		2,079		1,920
International countries		195		293

Total long-lived assets	$	5,522	$	5,738

Revenues earned from major customers


	2010		2009		2008

AmerisourceBergen Corporation:
Gross product sales	$	7,678	$	7,179	$	7,099
% of total gross revenues		38%		37%		37%
% of U.S. gross product sales		47%		46%		46%
McKesson Corporation:
Gross product sales	$	3,913	$	3,694	$	3,594
% of total gross revenues		19%		19%		19%
% of U.S. gross product sales		24%		24%		23%
Cardinal Health, Inc.:
Gross product sales	$	2,813	$	2,841	$	2,823
% of total gross revenues		14%		15%		15%
% of U.S. gross product sales		17%		18%		18%

Quarterly financial data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2010

Quarterly financial data (unaudited) (Tables) [Abstract]

Quarterly financial data (unaudited)


	2010 Quarters ended
(In millions, except per share data)	December 31⁽¹⁾		September 30⁽²⁾		June 30		March 31

Product sales	$	3,760	$	3,759	$	3,613	$	3,528
Gross profit from product sales		3,188		3,172		3,060		3,020
Net income		1,022		1,236		1,202		1,167
Earnings per share:
Basic	$	1.09	$	1.29	$	1.25	$	1.19
Diluted	$	1.08	$	1.28	$	1.25	$	1.18


	2009 Quarters ended
(In millions, except per share data)	December 31		September 30⁽³⁾		June 30⁽⁴⁾		March 31⁽⁵⁾

Product sales	$	3,743	$	3,736	$	3,634	$	3,238
Gross profit from product sales		3,205		3,191		3,103		2,761
Net income		931		1,386		1,269		1,019
Earnings per share:
Basic	$	0.93	$	1.36	$	1.25	$	0.99
Diluted	$	0.92	$	1.36	$	1.25	$	0.98


⁽¹⁾		We recorded $113 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods and a $118 million ($74 million, net of tax) asset impairment charge associated with a strategic decision to optimize our network of manufacturing facilities and improve cost efficiencies.

⁽²⁾		We recorded $38 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods.

⁽³⁾		We recorded $100 million of income tax benefit, net due to the favorable resolution of certain prior years’ matters with tax authorities, net of a $28 million tax provision associated with certain prior period transfer pricing matters.

⁽⁴⁾		We recorded $115 million of income tax benefit as the result of resolving certain transfer pricing issues with the IRS for prior periods.

⁽⁵⁾		We recorded $25 million of income tax benefit, net resulting from adjustments to previously established deferred taxes, primarily related to prior acquisitions and stock option expense, due to changes in California tax law effective for future periods.

Summary of significant accounting policies (Details)	12 Months Ended
Summary of significant accounting policies (Details)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Buildings and improvements [Member]
Useful lives by asset category
Property, Plant and Equipment, Useful Life, Minimum	10	10	10
Property, Plant and Equipment, Useful Life, Maximum	40	40	40
Manufacturing equipment [Member]
Useful lives by asset category
Property, Plant and Equipment, Useful Life, Minimum	5	5	5
Property, Plant and Equipment, Useful Life, Maximum	12	12	12
Laboratory equipment [Member]
Useful lives by asset category
Property, Plant and Equipment, Useful Life, Minimum	8	8	8
Property, Plant and Equipment, Useful Life, Maximum	12	12	12
Furniture, fixtures and other assets [Member]
Useful lives by asset category
Property, Plant and Equipment, Useful Life, Minimum	3	3	3
Property, Plant and Equipment, Useful Life, Maximum	15	15	15

Summary of significant accounting policies (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of significant accounting policies (Textuals) [Abstract]
Royalty percentage earned by Amgen on net sales, as defined, of Epoetin alfa by Johnson & Johnson in the United States pursuant to a license agreement	10.00%	10.00%	10.00%
Royalty income earned by Amgen on net sales, as defined, of Epoetin alfa by Johnson & Johnson in the United States pursuant to a license agreement	$ 111	$ 128	$ 126
Advertising costs	$ 98	$ 95	$ 81

Acquisitions (Details) - Dompe Biotec, S.p.A [Member] $ in Millions	Jan. 04, 2008 USD ($)
Acquisitions (Textuals) [Abstract]
Purchase price	$ 168
The Company's existing ownership percentage in the acquired entity at the date of acquisition	49.00%
Purchase price allocated to net assets acquired other than goodwill	$ 63
Purchase price allocated to goodwill	105
Gain (loss) related to the reacquisition of marketing rights	$ 0

Stock-based compensation (Details) - USD ($) $ in Millions	12 Months Ended
Stock-based compensation (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Components of stock-based compensation expense
Total stock-based compensation expense, pre-tax	$ 353	$ 284	$ 262
Tax benefit from stock-based compensation expense	(120)	(97)	(89)
Total stock-based compensation expense, net of tax	233	187	173
Stock Options [Member]
Components of stock-based compensation expense
Total stock-based compensation expense, pre-tax	124	115	103
Restricted stock units [Member]
Components of stock-based compensation expense
Total stock-based compensation expense, pre-tax	182	134	105
Performance units [Member]
Components of stock-based compensation expense
Total stock-based compensation expense, pre-tax	$ 47	$ 35	$ 54

Stock-based compensation (Details 1) - USD ($)	12 Months Ended
Stock-based compensation (Details 1) - USD ($)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Stock Options [Member]
Weighted-average assumptions and resulting fair values
Closing price of our common stock on grant date	$ 58.32	$ 50.65	$ 43.60
Fair value of stock options granted	$ 20.97	$ 18.35	$ 14.50
Expected volatility (in percent)	28.00%	39.60%	31.60%
Expected life (in years)	6.6	4.6	4.6
Risk-free interest rate (in percent)	3.20%	2.10%	2.90%
Expected dividend yield (in percent)	0.00%	0.00%	0.00%
Performance units [Member]
Weighted-average assumptions and resulting fair values
Closing price of our common stock on grant date	$ 56.90	$ 47.63	$ 44.62
Fair value of unit	$ 62.06	$ 48.22	$ 36.91
Expected volatility (in percent)	34.70%	34.30%	32.40%
Risk-free interest rate (in percent)	1.30%	1.20%	2.00%
Expected dividend yield (in percent)	0.00%	0.00%	0.00%

Stock-based compensation (Details 2) - Stock Options [Member] shares in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) shares
Stock option information
Stock options unexercised, beginning balance \| shares	50.8
Stock options, granted \| shares	6.7
Stock options, exercised \| shares	(1.3)
Stock options, forfeited/expired \| shares	(9.4)
Stock options unexercised, ending balance \| shares	46.8
Stock options vested or expected to vest \| shares	46.0
Stock options exercisable \| shares	31.7
Weighted-average exercise price, unexercised beginning balance	$ 59.50
Weighted-average exercise price, granted	58.32
Weighted-average exercise price, exercised	46.13
Weighted-average exercise price, forfeited/expired	64.72
Weighted-average exercise price, unexercised ending balance	58.66
Weighted-average exercise price, vested or expected to vest	58.71
Weighted-average exercise price, exercisable	$ 61.05
Weighted-average remaining contractual life (years), unexercised	3.6
Weighted-average remaining contractual life (years), vested or expected to vest	3.5
Weighted-average remaining contractual life (years), exercisable	2.1
Aggregate intrinsic value, unexercised	$ 110,000,000
Aggregate intrinsic value, vested or expected to vest	109,000,000
Aggregate intrinsic value, exercisable	$ 58,000,000

Stock-based compensation (Details 3) - Restricted stock units [Member] - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Restricted stock units information
Nonvested units, beginning balance	8.8
Units, granted	4.1
Units, vested	(3.2)
Units, forfeited	(0.4)
Nonvested units, ending balance	9.3	8.8
Weighted average grant date fair value of units, outstanding	$ 50.00
Weighted average grant date fair value, granted	58.19	$ 51.24	$ 42.63
Weighted average grant date fair value, vested	52.50
Weighted average grant date fair value, forfeited	51.96
Weighted average grant date fair value of nonvested units, end of period	$ 52.67	$ 50.00

Stock-based compensation (Details Textuals) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) shares	May 06, 2009 shares
Stock-based compensation (Textuals) [Abstract]
Number of shares of common stock authorized to be issued under the 2009 Equity Incentive Plan		100
The amount of common stock available under the plan for future grants and/or issuances	70
Stock Option and Restricted Stock Units [Member]
Stock-based compensation (Textuals) [Abstract]
Total unrecognized compensation cost related to nonvested awards \| $	$ 499
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized	1.7

Stock-based compensation (Details Textuals 1) - Stock Options [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Stock-based compensation (Textuals) [Abstract]
Amount by which the pool of available shares will be reduced for each stock option granted	1
Period over which the grants of equity instruments vest	4 years	4 years	4 years
Total intrinsic value of stock options exercised during the year	$ 15	$ 57	$ 68
Grants Prior to April 26, 2010 [Member]
Stock-based compensation (Textuals) [Abstract]
Expiration period of stock options from date of grant	7 years	7 years	7 years
Grants On and After April 26, 2010 [Member]
Stock-based compensation (Textuals) [Abstract]
Expiration period of stock options from date of grant	10 years

Stock-based compensation (Details Textuals 2) - Restricted stock units [Member] - USD ($)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Stock-based compensation (Textuals) [Abstract]
Amount by which the pool of available shares will be reduced for other types of awards granted	1.9
Period over which the grants of equity instruments vest	4 years	4 years	4 years
Total fair value of units that vested during the year	$ 184,000,000	$ 139,000,000	$ 77,000,000
Weighted average grant date fair value, granted	$ 58.19	$ 51.24	$ 42.63

Stock-based compensation (Details Textuals 3)	12 Months Ended
Stock-based compensation (Details Textuals 3)	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008 USD ($)
Stock-based compensation (Textuals) [Abstract]
Number of common shares issued for each performance unit earned \| shares	1
Performance units [Member]
Stock-based compensation (Textuals) [Abstract]
Amount by which the pool of available shares will be reduced for other types of awards granted \| shares	1.9
Period over which the grants of equity instruments vest	3 years	3 years	3 years
Total unrecognized compensation cost related to nonvested awards	$ 48,000,000
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized	1
Units outstanding \| shares	2,700,000	2,900,000
Weighted average grant date fair value of units, outstanding	$ 49.49	$ 53.46
Units granted \| shares	1,000,000
Weighted average grant date fair value, granted	$ 62.06	48.22	$ 36.91
Number of units vested \| shares	600,000
Weighted average grant date fair value, vested	$ 36.91
Units, forfeited \| shares	100,000
Weighted average grant date fair value, forfeited	$ 47.97
Total fair value of units that vested during the year	$ 34,000,000	29,000,000
Performance unit liability awards paid		$ 30,000,000	$ 70,000,000

Income taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Current provision:
Federal	$ 636	$ 325	$ 866
State	52	85	82
Foreign	153	155	152
Total current provision	841	565	1,100
Deferred (benefit) provision:
Federal	(196)	92	(86)
State	43	(59)	(43)
Foreign	2	1	(8)
Total deferred (benefit) provision:	(151)	34	(137)
Total provision	$ 690	$ 599	$ 963

Income taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Deferred tax assets:
Intercompany inventory related items	$ 306	$ 351
Expense accruals	626	519
Acquired net operating loss and credit carryforwards	147	178
Expenses capitalized for tax	188	177
Stock-based compensation	269	229
Deferred revenue	117	128
Other	72	108
Total deferred tax assets	1,725	1,690
Valuation allowance	(80)	(92)
Net deferred tax assets	1,645	1,598
Deferred tax liabilities:
Acquired intangibles	(739)	(882)
Fixed assets	(181)	(201)
Unremitted foreign earnings	(118)	(13)
Other	(142)	(125)
Total deferred tax liabilities	(1,180)	(1,221)
Total deferred taxes, net	$ 465	$ 377

Income taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits)
Balance at beginning of year	$ 1,140	$ 1,113	$ 922
Additions based on tax positions related to the current year	305	302	382
Reductions for tax positions of prior years	(110)	(215)	0
Settlements	(415)	(60)	(191)
Balance at end of year	$ 920	$ 1,140	$ 1,113

Income taxes (Details 3)	12 Months Ended
Income taxes (Details 3)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Reconciliation between the federal statutory rate and effective tax rate
Federal statutory rate applied to income before income taxes	35.00%	35.00%	35.00%
Foreign earnings, including earnings invested indefinitely	(19.10%)	(19.60%)	(16.70%)
State taxes	1.60%	1.10%	1.40%
Audit settlements	(3.10%)	(4.20%)	0.00%
Credits, primarily research and experimentation	(0.90%)	(0.80%)	(1.10%)
Other, net	(0.50%)	0.00%	0.60%
Effective tax rate	13.00%	11.50%	19.20%

Income taxes (Details Textuals) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Income taxes (Textuals) [Abstract]
Decrease in valuation allowance for deferred tax assets	$ 12
Interest and penalties related to unrecognized tax benefits recognized in income tax provision	41	$ 57	$ 71
Accrued interest and penalties associated with unrecognized tax benefit's	90	125
Total foreign income before income taxes	3,100	3,100	2,600
Income taxes paid	1,344	$ 497	$ 673
Decrease in unrecognized tax benefits that is reasonably possible within the succeeding twelve months due to potential tax settlements	200
State taxing jurisdiction [Member]
Income taxes (Textuals) [Abstract]
Net operating loss carryforwards to reduce future taxable income	303
Operating loss carryforwards against which we have provided a valuation allowance	44
Tax credit carryforwards available to reduce future state income taxes which have no expiration date	110
Tax credit carryforwards for which a full valuation allowance has been provided	80
Investments in Foreign Subsidiaries and Foreign Corporate Joint Ventures that are Essentially Permanent in Duration [Member]
Deferred Tax Liability Not Recognized [Line Items]
Undistributed earnings of our foreign operations that are intended to be invested indefinitely outside of the United States	17,200
Additional income taxes required to be accrued and paid if earnings of foreign operations that are intended to be indefinitely invested outside of the United States were repatriated	$ 6,100

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Income (Numerator):
Net income for basic and diluted EPS	$ 1,022	$ 1,236	$ 1,202	$ 1,167	$ 931	$ 1,386	$ 1,269	$ 1,019	$ 4,627	$ 4,605	$ 4,052
Shares (Denominator):
Weighted-average shares for basic EPS									960	1,016	1,070
Effect of dilutive securities									5	5	5
Weighted-average shares for diluted EPS									965	1,021	1,075
Basic EPS	$ 1.09	$ 1.29	$ 1.25	$ 1.19	$ 0.93	$ 1.36	$ 1.25	$ 0.99	$ 4.82	$ 4.53	$ 3.79
Diluted EPS	$ 1.08	$ 1.28	$ 1.25	$ 1.18	$ 0.92	$ 1.36	$ 1.25	$ 0.98	$ 4.79	$ 4.51	$ 3.77

Earnings per share (Details Textuals) - shares shares in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Earnings per share (Textuals) [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	43	42	45

Collaborative arrangements (Details Textuals) $ in Millions	3 Months Ended								12 Months Ended
Collaborative arrangements (Details Textuals) $ in Millions	Dec. 31, 2010 USD ($)	Sep. 30, 2010 USD ($)	Jun. 30, 2010 USD ($)	Mar. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Sep. 30, 2009 USD ($)	Jun. 30, 2009 USD ($)	Mar. 31, 2009 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Collaborative arrangements (Textuals) [Abstract]
ENBREL sales	$ 3,760	$ 3,759	$ 3,613	$ 3,528	$ 3,743	$ 3,736	$ 3,634	$ 3,238	$ 14,660	$ 14,351	$ 14,687
Collaborative arrangements with Pfizer Inc [Member]
Collaborative arrangements (Textuals) [Abstract]
ENBREL sales									$ 3,500	3,500	3,600
Period required to pay percentage of net sales, after expiration of agreement in years									3
Collaborative arrangements with Pfizer Inc [Member] \| Selling, general and administrative [Member]
Collaborative arrangements (Textuals) [Abstract]
Profit share expense									$ 1,184	1,163	1,195
Recovery of direct costs									$ 87	$ 75	$ 77

Collaborative arrangements (Details Textuals 1) - Collaborative arrangements with Glaxo Group Limited [Member] $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Other revenues [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received	$ 75
Selling, general and administrative [Member]
Collaborative arrangements (Textuals) [Abstract]
Recovery of direct costs	$ 46	$ 29
Milestone payments deferred or capitalized [Member] \| Other revenues [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received		$ 45
Amortization period of payments received and deferred under collaborative arrangements, in years	13

Collaborative arrangements (Details Textuals 2) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 29, 2008 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Collaborative arrangements with Takeda Pharmaceutical Company Limited [Member] \| Other revenues [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received		$ 55
Collaborative arrangements with Takeda Pharmaceutical Company Limited [Member] \| Other revenues [Member] \| Milestone payments deferred or capitalized [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received	$ 300
Amortization period of payments received and deferred under collaborative arrangements, in years		20
Collaborative arrangements with Takeda Pharmaceutical Company Limited [Member] \| Research and development [Member]
Collaborative arrangements (Textuals) [Abstract]
Cost recoveries		$ 91	$ 112	$ 120
Collaborative arrangement for twelve clinical stage molecules with Takeda [Member]
Collaborative arrangements (Textuals) [Abstract]
Payments that may be received upon the achievement of various success-based milestones		307
Potential additional future worldwide development costs recoverable from Takeda through 2012		120
Collaborative arrangement for twelve clinical stage molecules with Takeda [Member] \| Other revenues [Member] \| Milestone payments deferred or capitalized [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received	200
Collaborative arrangement for Motesanib with Takeda [Member]
Collaborative arrangements (Textuals) [Abstract]
Payments that may be received upon the achievement of various success-based milestones		$ 175
Payment obligation of partner under a collaborative arrangement as a percentage of future worldwide development costs (excluding Japan)		60.00%
Collaborative arrangement for Motesanib with Takeda [Member] \| Other revenues [Member] \| Milestone payments deferred or capitalized [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments received	$ 100

Collaborative arrangements (Details Textuals 3) - Collaborative arrangements with Daiichi Sankyo Company Limited [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Milestone payments deferred or capitalized [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments made	$ 60
Research and development [Member]
Collaborative arrangements (Textuals) [Abstract]
Cost recoveries	$ 3	$ 64	$ 60
Cost Of Sales Excludes Amortization Of Certain Acquired Intangible Assets [Member]
Collaborative arrangements (Textuals) [Abstract]
Amortization period of milestone payments capitalized, in years	11

Collaborative arrangements (Details Textuals 4) - USD ($) $ in Millions	1 Months Ended			12 Months Ended
	Dec. 31, 2009	Mar. 31, 2008	Dec. 31, 2006	Dec. 31, 2009
Collaborative arrangements with Array BioPharma Inc [Member] \| Research and development [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments made	$ 60
Collaborative arrangements with Kyowa Hakko Kirin Co Ltd [Member]
Collaborative arrangements (Textuals) [Abstract]
The amount paid by Kyowa Hakko Kirin Co. Ltd to Amgen to reacquire the rights to KW-0761 (AMG 761) in the oncology setting				$ 20
Collaborative arrangements with Kyowa Hakko Kirin Co Ltd [Member] \| Research and development [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments made		$ 100
Collaborative arrangements with Cytokinetics Inc [Member] \| Research and development [Member]
Collaborative arrangements (Textuals) [Abstract]
Milestone payments made			$ 42
Payment to exercise an option to assume responsibility for development and commercialization of the lead drug candidate and related compounds				$ 50

Related party transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Related party transactions (Textuals) [Abstract]
Dividends received from related party	$ 0	$ 110	$ 8
Kirin-Amgen [Member]
Related party transactions (Textuals) [Abstract]
Ownership interest (in percent) in related party	50.00%	50.00%	50.00%
Company's share of profits of related party	$ 71	$ 72	$ 72
Carrying value of the company's equity method investment net of dividends received included in noncurrent Other Assets	377	306
Dividends received from related party	0	110	8
Royalties earned by related party from Amgen included in "Cost of sales (excludes amortization of certain acquired intangible assets)"	322	327	321
Amounts owed to related party included in Accrued Liabilities	62	104
Revenues earned by Amgen from related party included in "Other revenues"	96	102	124
Cost recoveries by Amgen from related party included in "Research and development"	$ 88	$ 96	$ 82

Cost savings initiatives and restructuring (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cost savings initiatives and restructuring (Textuals) [Abstract]
Restructuring plan charges		$ 34	$ 92
Property, plant and equipment impairments	$ 118	21	59
Restructuring plan and subsequently identified cost saving initiatives [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Restructuring plan charges		70	148
Restructuring plan and subsequently identified cost saving initiatives [Member] \| Other charges [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Staff separation costs		25	10
Restructuring plan and subsequently identified cost saving initiatives [Member] \| Integration related costs [Member] \| Selling, general and administrative [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Other restructuring costs		$ 32
Restructuring plan and subsequently identified cost saving initiatives [Member] \| Loss accruals for certain leases associated with restructuring plan [Member] \| Other charges [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Other restructuring costs			59
Restructuring plan and subsequently identified cost saving initiatives [Member] \| Asset impairment charges [Member] \| Other charges [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Other restructuring costs			$ 59
Optimization Of Manufacturing Network [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Carrying values of remaining assets	133
Optimization Of Manufacturing Network [Member] \| Asset impairment charges [Member] \| Other charges [Member]
Cost savings initiatives and restructuring (Textuals) [Abstract]
Property, plant and equipment impairments	$ 118

Other charges (Details) - USD ($) $ in Millions	12 Months Ended
Other charges (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other charges (Textuals) [Abstract]
Restructuring plan charges		$ 34	$ 92
Gains (loss) accruals for the settlements of certain legal proceedings		(33)	(288)
Property, plant and equipment impairments	$ 118	$ 21	$ 59
Optimization Of Manufacturing Network [Member] \| Asset impairment charges [Member] \| Other charges [Member]
Other charges (Textuals) [Abstract]
Property, plant and equipment impairments	$ 118

Available-for-sale investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Fair values of available-for-sale investments by type of security
Amortized cost	$ 17,107	$ 13,244
Gross unrealized gains	256	174
Gross unrealized losses	(38)	(21)
Estimated fair value	17,325	13,397
US Treasury securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	5,044	1,929
Gross unrealized gains	50	12
Gross unrealized losses	(14)	(6)
Estimated fair value	5,080	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	2,158	3,731
Gross unrealized gains	51	62
Gross unrealized losses	(1)	(1)
Estimated fair value	2,208	3,792
Other government related debt securities - Foreign and other [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	837
Gross unrealized gains	16
Gross unrealized losses	(1)
Estimated fair value	852
Corporate debt securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost		4,193
Gross unrealized gains		96
Gross unrealized losses		(4)
Estimated fair value		4,285
Corporate debt securities - Financial [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	2,252
Gross unrealized gains	53
Gross unrealized losses	(9)
Estimated fair value	2,296
Corporate debt securities - Industrial [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	2,441
Gross unrealized gains	71
Gross unrealized losses	(5)
Estimated fair value	2,507
Corporate debt securities - Other [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	307
Gross unrealized gains	10
Gross unrealized losses	(1)
Estimated fair value	316
Mortgage and asset backed securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	841	489
Gross unrealized gains	5	4
Gross unrealized losses	(5)	(2)
Estimated fair value	841	491
Money market mutual funds [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	3,030	2,784
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	3,030	2,784
Other short-term interest bearing securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	147	55
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	147	55
Total debt securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	17,057	13,181
Gross unrealized gains	256	174
Gross unrealized losses	(36)	(13)
Estimated fair value	17,277	13,342
Equity securities [Member]
Fair values of available-for-sale investments by type of security
Amortized cost	50	63
Gross unrealized gains	0	0
Gross unrealized losses	(2)	(8)
Estimated fair value	$ 48	$ 55

Available-for-sale investments (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Fair values of available-for-sale investments by contractual maturity
Maturing in one year or less	$ 4,118	$ 3,444
Maturing after one year through three years	6,736	6,369
Maturing after three years through five years	5,812	3,207
Maturing after five years	611	322
Total	17,325	13,397
Total debt securities [Member]
Fair values of available-for-sale investments by contractual maturity
Total	17,277	13,342
Equity securities [Member]
Fair values of available-for-sale investments by contractual maturity
Total	$ 48	$ 55

Available-for-sale investments (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets
Cash and cash equivalents	$ 3,287	$ 2,884	$ 1,774	$ 2,024
Marketable securities	14,135	10,558
Other assets - noncurrent	48	55
Total including cash	17,470	13,497
Less cash	(145)	(100)
Total	$ 17,325	$ 13,397

Available-for-sale investments (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Available-for-sale securities (Textuals) [Abstract]
Total realized gains	$ 115	$ 104	$ 124
Total realized losses	$ 25	$ 62	$ 49

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Inventories
Raw materials	$ 128	$ 97
Work in process	1,382	1,683
Finished goods	512	440
Inventories	$ 2,022	$ 2,220

Inventories (Details Textuals) - USD ($) $ in Millions	12 Months Ended
Inventories (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2008	Dec. 31, 2010
Inventories (Textuals) [Abstract]
Charge for the write-off of inventory, gross	$ 84
Denosumab inventory capitalized in preparation for its anticipated product launch upon regulatory approval		$ 258

Property, plant and equipment (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Property, plant and equipment [Abstract]
Land	$ 361	$ 450
Buildings and improvements	3,392	3,293
Manufacturing equipment	1,802	1,462
Laboratory equipment	955	892
Furniture, fixtures and other assets	3,547	3,369
Construction in progress	631	910
Property, plant and equipment, gross	10,688	10,376
Less accumulated depreciation and amortization	(5,166)	(4,638)
Property, plant and equipment, net	$ 5,522	$ 5,738

Property, plant and equipment (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Property, plant and equipment (Textuals) [Abstract]
Depreciation and amortization charges associated with property, plant and equipment	$ 594	$ 624	$ 648

Intangible assets (Details) $ in Millions	12 Months Ended
Intangible assets (Details) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	6
Gross carrying value before accumulated amortization	$ 5,387	$ 5,301
Less accumulated amortization	(3,157)	(2,734)
Intangible assets, net	$ 2,230	2,567
Acquired product technology rights - Developed product technology [Member]
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	15
Gross carrying value before accumulated amortization	$ 2,872	2,872
Acquired product technology rights - Core technology [Member]
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	15
Gross carrying value before accumulated amortization	$ 1,348	1,348
Acquired product technology rights - Trade name [Member]
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	15
Gross carrying value before accumulated amortization	$ 190	190
Acquired R&D technology rights [Member]
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	5
Gross carrying value before accumulated amortization	$ 350	350
Other intangible assets [Member]
Finite-Lived intangible assets
Weighted average remaining amortization period (in years)	10
Gross carrying value before accumulated amortization	$ 627	$ 541

Intangible assets (Details Textuals) $ in Millions	12 Months Ended
Intangible assets (Details Textuals) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Intangible assets (Textuals) [Abstract]
Estimated useful lives of amortized intangible assets other than goodwill, Minimum	5
Estimated useful lives of amortized intangible assets other than goodwill, Maximum	15
Weighted average remaining amortization period	6
Amortization charges associated with intangible assets	$ 423	$ 425	$ 425
Total estimated amortization of intangible assets for 2011	353
Total estimated amortization of intangible assets for 2012	331
Total estimated amortization of intangible assets for 2013	331
Total estimated amortization of intangible assets for 2014	316
Total estimated amortization of intangible assets for 2015	$ 309

Accrued liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Accrued Liabilities [Abstract]
Sales deductions	$ 1,144	$ 970
Employee compensation and benefits	764	751
Clinical development costs	230	361
Sales return reserve	339	211
Other	889	1,006
Accrued liabilities	$ 3,366	$ 3,299

Financing arrangements (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Carrying value of long-term borrowings
Convertible notes current	$ 2,488	$ 0
Convertible notes	2,296	4,512
Notes payable	8,578	6,089
Other notes	183	182
Total borrowings	13,362	10,601
Less current portion (2011 Convertible Notes)	(2,488)	0
Total non-current debt	10,874	10,601
0.125% convertible notes due 2011 (2011 Convertible notes) [Member]
Carrying value of long-term borrowings
Convertible notes current	2,488
Convertible notes		2,342
Less current portion (2011 Convertible Notes)	(2,488)
0.375% convertible notes due 2013 (2013 Convertible notes) [Member]
Carrying value of long-term borrowings
Convertible notes	2,213	2,088
5.85% notes due 2017 (2017 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	1,099	1,099
4.85% notes due 2014 (2014 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	1,000	1,000
5.70% notes due 2019 (2019 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	998	998
6.40% notes due 2039 (2039 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	996	995
6.375% notes due 2037 (2037 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	899	899
3.45% notes due October 2020 (October 2020 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	897	0
5.75% notes due 2040 (2040 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	696	0
4.95% notes due 2041 (2041 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	595	0
6.15% notes due 2018 (2018 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	499	499
6.90% notes due 2038 (2038 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	499	499
4.50% notes due March 2020 (March 2020 Notes) [Member]
Carrying value of long-term borrowings
Notes payable	300	0
Zero-coupon convertible notes due in 2032 [Member]
Carrying value of long-term borrowings
Convertible notes	83	$ 82
8.125% notes due 2097 (Other) [Member]
Carrying value of long-term borrowings
Notes payable	$ 100

Financing arrangements (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2006
Schedule of 2011 and 2013 convertible notes
Convertible notes current	$ 2,488	$ 0
Convertible Debt, Noncurrent	2,296	4,512
0.125% convertible notes due 2011 (2011 Convertible notes) [Member]
Schedule of 2011 and 2013 convertible notes
Principal balance			$ 2,500
Convertible notes current	2,488
Convertible Debt, Noncurrent		2,342
0.125% convertible notes due 2011 (2011 Convertible notes) [Member] \| Liability component [Member]
Schedule of 2011 and 2013 convertible notes
Principal balance	2,500	2,500
Unamortized discount	12	158
Convertible notes current	2,488
Convertible Debt, Noncurrent		2,342
0.125% convertible notes due 2011 (2011 Convertible notes) [Member] \| Equity component [Member]
Schedule of 2011 and 2013 convertible notes
Net carrying amount	643	643
0.375% convertible notes due 2013 (2013 Convertible notes) [Member]
Schedule of 2011 and 2013 convertible notes
Principal balance			$ 2,500
Convertible Debt, Noncurrent	2,213	2,088
0.375% convertible notes due 2013 (2013 Convertible notes) [Member] \| Liability component [Member]
Schedule of 2011 and 2013 convertible notes
Principal balance	2,500	2,500
Unamortized discount	287	412
Convertible Debt, Noncurrent	2,213	2,088
0.375% convertible notes due 2013 (2013 Convertible notes) [Member] \| Equity component [Member]
Schedule of 2011 and 2013 convertible notes
Net carrying amount	$ 829	$ 829

Financing arrangements (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Notional amount	$ 3,600	$ 1,500
Interest rate swap [Member]
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Notional amount	$ 3,600	1,500
Interest rate swap [Member] \| 5.85% notes due 2017 (2017 Notes) [Member]
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Effective interest rate	LIBOR + 2.5%
Notional amount	$ 1,100	0
Interest rate swap [Member] \| 4.85% notes due 2014 (2014 Notes) [Member]
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Effective interest rate	LIBOR + 0.3%
Notional amount	$ 1,000	1,000
Interest rate swap [Member] \| 5.70% notes due 2019 (2019 Notes) [Member]
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Effective interest rate	LIBOR + 2.6%
Notional amount	$ 1,000	0
Interest rate swap [Member] \| 6.15% notes due 2018 (2018 Notes) [Member]
The effective interest rates on notes after giving effect to the related interest rate swap agreements and the notional amounts of interest rate swap agreements
Effective interest rate	LIBOR + 1.8%
Notional amount	$ 500	$ 500

Financing arrangements (Details 3) $ in Millions	Dec. 31, 2010 USD ($)
Aggregate contractual maturities of all long-term debt obligations by maturity date
2011	$ 2,500
2012	84
2013	2,500
2014	1,000
2015	0
Thereafter	7,600
Total	$ 13,684

Financing arrangements (Details Textuals)	12 Months Ended
Financing arrangements (Details Textuals)	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Financing arrangements (Textuals) [Abstract]
Total debt issuance costs	$ 17,000,000	$ 13,000,000	$ 6,000,000
Interest expense, net	604,000,000	578,000,000	551,000,000
Interest paid, net of interest rate swaps	323,000,000	293,000,000	303,000,000
Interest costs capitalized	$ 33,000,000	$ 32,000,000	$ 22,000,000
0.125% convertible notes due 2011 (2011 Convertible notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	0.125%	0.125%
Convertible notes conversion ratio into common stock \| shares	12.5247
Principal amount of notes to which the common stock conversion ratio is applied	$ 1,000
Conversion price per share of convertible notes	$ 79.84
Effective interest rate on convertible notes	6.24%	6.24%	6.24%
Ratio of closing price of common stock to respective conversion price per share that needs to be exceeded in previous quarter to allow conversion	130.00%
Non-cash interest expense	$ 146,000,000	$ 136,000,000	$ 128,000,000
Interest expense, net	$ 149,000,000	$ 140,000,000	$ 132,000,000
0.375% convertible notes due 2013 (2013 Convertible notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	0.375%	0.375%
Convertible notes conversion ratio into common stock \| shares	12.5814
Principal amount of notes to which the common stock conversion ratio is applied	$ 1,000
Conversion price per share of convertible notes	$ 79.48
Effective interest rate on convertible notes	6.35%	6.35%	6.35%
Ratio of closing price of common stock to respective conversion price per share that needs to be exceeded in previous quarter to allow conversion	130.00%
Non-cash interest expense	$ 125,000,000	$ 118,000,000	$ 110,000,000
Interest expense, net	$ 134,000,000	$ 127,000,000	$ 120,000,000
5.85% notes due 2017 (2017 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	5.85%	5.85%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
4.85% notes due 2014 (2014 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	4.85%	4.85%
5.70% notes due 2019 (2019 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	5.70%	5.70%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
6.40% notes due 2039 (2039 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	6.40%	6.40%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
6.375% notes due 2037 (2037 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	6.375%	6.375%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
3.45% notes due October 2020 (October 2020 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	3.45%	3.45%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
5.75% notes due 2040 (2040 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	5.75%	5.75%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
4.95% notes due 2041 (2041 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	4.95%	4.95%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
6.15% notes due 2018 (2018 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	6.15%	6.15%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
6.90% notes due 2038 (2038 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	6.90%	6.90%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
4.50% notes due March 2020 (March 2020 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	4.50%	4.50%
Percentage of principal amount of notes that may be paid upon the occurrence of a change in control triggering event	101.00%
2009 Notes [Member]
Financing arrangements (Textuals) [Abstract]
Stated contractual interest rate on note	4.00%
Warrants issued concurrent with issuance of 2011 and 2013 convertible debt [Member]
Financing arrangements (Textuals) [Abstract]
Exercise price of warrants	107.90
Potential settlements of warrants (In May 2011) \| shares	31,300,000
Potential settlements of warrants (In May 2013) \| shares	31,500,000

Financing arrangements (Details Textuals 1) - USD ($)	12 Months Ended
Financing arrangements (Details Textuals 1) - USD ($)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2006
Financing arrangements (Textuals) [Abstract]
Other notes	$ 183,000,000	$ 182,000,000
Repayment of debt	0	1,000,000,000	$ 2,000,000,000
Other long-term debt	8,578,000,000	6,089,000,000
Convertible notes	2,296,000,000	4,512,000,000
4.50% notes due March 2020 (March 2020 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued	300,000,000
Other long-term debt	300,000,000	0
6.90% notes due 2038 (2038 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued			500,000,000
Other long-term debt	499,000,000	499,000,000
6.15% notes due 2018 (2018 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued			500,000,000
Other long-term debt	499,000,000	499,000,000
5.75% notes due 2040 (2040 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued	700,000,000
Other long-term debt	696,000,000	0
6.40% notes due 2039 (2039 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued		1,000,000,000
Other long-term debt	996,000,000	995,000,000
5.70% notes due 2019 (2019 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued		1,000,000,000
Other long-term debt	998,000,000	998,000,000
0.375% convertible notes due 2013 (2013 Convertible notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued				$ 2,500,000,000
Convertible notes	2,213,000,000	2,088,000,000
0.125% convertible notes due 2011 (2011 Convertible notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued				$ 2,500,000,000
Convertible notes		2,342,000,000
3.45% notes due October 2020 (October 2020 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued	900,000,000
Other long-term debt	897,000,000	0
4.95% notes due 2041 (2041 Notes) [Member]
Financing arrangements (Textuals) [Abstract]
Aggregate principal amount of notes issued	600,000,000
Other long-term debt	595,000,000	0
2008 Floating Rate Notes [Member]
Financing arrangements (Textuals) [Abstract]
Repayment of debt			$ 2,000,000,000
2009 Notes [Member]
Financing arrangements (Textuals) [Abstract]
Repayment of debt		1,000,000,000
Commercial Paper [Member]
Financing arrangements (Textuals) [Abstract]
Amount outstanding under commercial paper program	0
Maximum borrowing capacity under commercial paper	2,300,000,000
Line of Credit [Member]
Financing arrangements (Textuals) [Abstract]
Amount outstanding under syndicated, unsecured, revolving credit facility	0
Maximum borrowing capacity under a syndicated, unsecured, revolving credit facility	2,300,000,000
Annual commitment fees for syndicated, unsecured, revolving credit facility	0.0005
Shelf Registration Statement [Member]
Financing arrangements (Textuals) [Abstract]
Amount remaining under shelf registration statement	400,000,000
Amount that may be issued under a medium term note program established under the shelf registration statement	400,000,000
Amount outstanding under medium term note program	0
Notes due 2097 [Member]
Financing arrangements (Textuals) [Abstract]
Other long-term debt	100,000,000
Zero-coupon convertible notes due in 2032 [Member]
Financing arrangements (Textuals) [Abstract]
Convertible notes	$ 83,000,000	$ 82,000,000

Stockholders' equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2008	Sep. 30, 2008	Jun. 30, 2008	Mar. 31, 2008	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Stock repurchase program
Stock repurchases, in dollars	$ 1,136	$ 364	$ 616	$ 1,684	$ 1,211	$ 0	$ 0	$ 1,997	$ 700	$ 19	$ 1,549	$ 0	$ 3,800	$ 3,208	$ 2,268
Stock repurchases, in shares	20.5	6.6	10.3	29.1	21.7	0.0	0.0	37.5	12.6	0.0	32.7	0.0	66.5	59.2	45.3

Stockholders' equity (Details 1) - USD ($) $ in Millions	12 Months Ended
Stockholders' equity (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Accumulated other comprehensive income
Beginning balance, Foreign currency translation	$ 40	$ 25	$ 59
Beginning balance, Cash flow hedges	(82)	50	(45)
Beginning balance, Available-for-sale securities	95	49	39
Beginning balance, Other	(8)	(7)	0
Beginning balance, Accumulated other comprehensive income	45	117	53
Other comprehensive income:
Foreign currency translation adjustments	(29)	25	(43)
Foreign currency translation adjustments, Accumulated other comprehensive income	(29)	25	(43)
Unrealized gains/(losses) Cash flow hedges	186	(213)	155
Unrealized gains/(losses), Available-for-sale securities	155	116	92
Unrealized gains/(losses) Other	1	(12)	0
Unrealized gains/(losses) Accumulated other comprehensive income	342	(109)	247
Reclassification adjustments to income, Cash flow hedges	(46)	8	0
Reclassification adjustments to income, Available-for-sale securities	(90)	(42)	(75)
Reclassification adjustments to income, Accumulated other comprehensive income	(136)	(34)	(75)
Other		5	(11)
Other, Accumulated other comprehensive income		5	(11)
Income taxes, Foreign currency translation	11	(10)	9
Income taxes, Cash flow hedges	(55)	73	(60)
Income taxes, Available-for-sale securities	(25)	(28)	(7)
Income taxes, Other	0	6	4
Income taxes, Accumulated other comprehensive income	(69)	41	(54)
Ending balance, Foreign currency translation	22	40	25
Ending balance, Cash flow hedges	3	(82)	50
Ending balance, Available-for-sale securities	135	95	49
Ending balance, Other	(7)	(8)	(7)
Ending balance, Accumulated other comprehensive income	$ 153	$ 45	$ 117

Stockholders' equity (Details Textuals) - USD ($) shares in Millions	Dec. 31, 2010	Dec. 31, 2009	Sep. 30, 2008
Stockholders' equity (Textuals) [Abstract]
Amount paid in connection with the final settlement of an accelerated share repurchase program			$ 19,000,000
Additional amount authorized by the Board of Directors under a stock repurchase plan		$ 5,000,000,000
Amount available for stock repurchases under a Board of Directors approved stock repurchase plan	$ 2,200,000,000
Preferred stock shares authorized	5
Par value	$ 0.0001
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0

Fair value measurements (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Carrying value and estimated fair value of our convertible notes and other notes payable
Convertible notes current	$ 2,488	$ 0
Convertible notes	2,296	4,512
Notes payable	8,578	6,089
Total notes payable, fair value	14,547	11,649
Other notes	183	182
Other notes, fair value	214	206
Total borrowings	13,362	10,601
0.125% convertible notes due 2011 (2011 Convertible notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Convertible notes current	2,488
Convertible notes		2,342
Convertible notes payable, fair value	2,501	2,487
0.375% convertible notes due 2013 (2013 Convertible notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Convertible notes	2,213	2,088
Convertible notes payable, fair value	2,479	2,374
5.85% notes due 2017 (2017 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	1,099	1,099
Total notes payable, fair value	1,280	1,207
4.85% notes due 2014 (2014 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	1,000	1,000
Total notes payable, fair value	1,101	1,075
5.70% notes due 2019 (2019 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	998	998
Total notes payable, fair value	1,139	1,077
6.40% notes due 2039 (2039 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	996	995
Total notes payable, fair value	1,149	1,102
6.375% notes due 2037 (2037 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	899	899
Total notes payable, fair value	1,027	988
3.45% notes due October 2020 (October 2020 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	897	0
Total notes payable, fair value	857	0
5.75% notes due 2040 (2040 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	696	0
Total notes payable, fair value	734	0
4.95% notes due 2041 (2041 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	595	0
Total notes payable, fair value	564	0
6.15% notes due 2018 (2018 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	499	499
Total notes payable, fair value	584	551
6.90% notes due 2038 (2038 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	499	499
Total notes payable, fair value	607	582
Zero-coupon convertible notes due in 2032 [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Convertible notes	83	82
Notes due 2097 [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	100
4.50% notes due March 2020 (March 2020 Notes) [Member]
Carrying value and estimated fair value of our convertible notes and other notes payable
Notes payable	300	0
Total notes payable, fair value	$ 311	$ 0

Fair value measurements (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Fair Value Measurement (Textuals) [Abstract]
Notional amount	$ 3,600	$ 1,500
Foreign currency forward contracts [Member]
Fair Value Measurement (Textuals) [Abstract]
Foreign currency open contracts - cash flow hedges - notional amounts	3,200	3,400
Foreign currency open contracts - not designated as hedges - notional amounts	670	414
Foreign currency option contracts [Member]
Fair Value Measurement (Textuals) [Abstract]
Foreign currency open contracts - cash flow hedges - notional amounts	$ 398	$ 376

Derivative instruments (Details) - Derivatives in cash flow hedging relationships [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our cash flow hedge contracts
Unrealized gain (loss) on derivative instruments recognized in other comprehensive income, effective portion, net	$ 186	$ (213)
Forward interest rate contracts [Member]
Effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our cash flow hedge contracts
Unrealized gain (loss) on derivative instruments recognized in other comprehensive income, effective portion, net	(5)	(11)
Foreign currency contracts [Member]
Effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our cash flow hedge contracts
Unrealized gain (loss) on derivative instruments recognized in other comprehensive income, effective portion, net	$ 191	$ (202)

Derivative instruments (Details 1) - USD ($) $ in Millions	12 Months Ended
Derivative instruments (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Location in the Consolidated Statements of Income and the effective portion of gain/(loss) reclassified from accumulated other comprehensive income into earnings for our cash flow hedge contracts
Total	$ 46	$ (8)
Forward interest rate contracts [Member]
Location in the Consolidated Statements of Income and the effective portion of gain/(loss) reclassified from accumulated other comprehensive income into earnings for our cash flow hedge contracts
The amount of gain (loss) recognized in interest expense, net	(1)	(1)
Foreign currency contracts [Member]
Location in the Consolidated Statements of Income and the effective portion of gain/(loss) reclassified from accumulated other comprehensive income into earnings for our cash flow hedge contracts
The amount of gain (loss) recognized in product sales	$ 47	$ (7)

Derivative instruments (Details 2) - USD ($) $ in Millions	12 Months Ended
Derivative instruments (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Foreign currency contracts [Member] \| Interest and other income, net [Member]
Location in the Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for the derivative instruments not designated as hedging instruments
Derivatives not designated as hedging instruments	$ 32	$ (24)

Derivative instruments (Details 3) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Assets
Total derivatives designated as hedging instruments	$ 349	$ 153
Total derivatives not designated as hedging instruments	0	0
Total derivatives	349	153
Liabilities
Total derivatives designated as hedging instruments	103	152
Total derivatives not designated as hedging instruments	0	0
Total derivatives	103	152
Interest rate swap contracts [Member] \| Accrued liabilities/other noncurrent liabilities [Member]
Liabilities
Total derivatives designated as hedging instruments	0	0
Interest rate swap contracts [Member] \| Other current assets/other non-current assets [Member]
Assets
Total derivatives designated as hedging instruments	195	90
Foreign currency contracts [Member] \| Accrued liabilities/other noncurrent liabilities [Member]
Liabilities
Total derivatives designated as hedging instruments	103	152
Foreign currency contracts [Member] \| Accrued Liabilities[ Member]
Liabilities
Total derivatives not designated as hedging instruments	0	0
Foreign currency contracts [Member] \| Other current assets/other non-current assets [Member]
Assets
Total derivatives designated as hedging instruments	154	63
Foreign currency contracts [Member] \| Other Current Assets [Member]
Assets
Total derivatives not designated as hedging instruments	$ 0	$ 0

Derivative instruments (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Derivative instruments (Textuals) [Abstract]
Length of time hedged in foreign currency cash flow hedge	Approximately 3 years
Ineffective portions of cash flow hedging instruments (approximately)	$ 1	$ 1
Notional amount	3,600	1,500
Unrealized gain (loss) on the hedged debt	(105)	116
Offsetting unrealized gain (loss) on related interest rate swaps	$ 105	(116)
Derivative lower range variable interest rate	LIBOR plus 0.3%
Derivative higher range variable interest rate	LIBOR plus 2.6%
Foreign currency forward contracts [Member]
Derivative instruments (Textuals) [Abstract]
Foreign currency open contracts - cash flow hedges - notional amounts	$ 3,200	3,400
Foreign currency open contracts - not designated as hedges - notional amounts	670	414
Foreign currency option contracts [Member]
Derivative instruments (Textuals) [Abstract]
Foreign currency open contracts - cash flow hedges - notional amounts	398	$ 376
Foreign currency forward and option contracts [Member]
Derivative instruments (Textuals) [Abstract]
Amounts expected to be reclassified from accumulated other comprehensive income into income over the next 12 months - gain (loss)	(8)
Forward interest rate contracts [Member]
Derivative instruments (Textuals) [Abstract]
Amounts expected to be reclassified from accumulated other comprehensive income into income over the next 12 months - gain (loss)	$ (1)

Contingencies and commitments (Details) $ in Millions	Dec. 31, 2010 USD ($)
Minimum future rental commitments under noncancelable operating leases
2011	$ 140
2012	127
2013	119
2014	101
2015	88
Thereafter	434
Total	$ 1,009

Contingencies and commitments (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Contingencies and commitments (Textuals) [Abstract]
Future rental commitments for abandoned leases	$ 284
Rental expense on operating leases	115	$ 114	$ 120
Minimum contractual purchase commitments with third party manufacturers	121
Purchases under contractual purchase commitments	$ 68	$ 207	$ 196

Segment information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Segment information (Details) - USD ($) $ in Millions	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues:
Product sales	$ 3,760	$ 3,759	$ 3,613	$ 3,528	$ 3,743	$ 3,736	$ 3,634	$ 3,238	$ 14,660	$ 14,351	$ 14,687
Other revenues									393	291	316
Total revenues									15,053	14,642	15,003
Aranesp - U.S. [Member]
Revenues:
Product sales									1,103	1,251	1,651
Aranesp - International [Member]
Revenues:
Product sales									1,383	1,401	1,486
EPOGEN - U.S. [Member]
Revenues:
Product sales									2,524	2,569	2,456
Neulasta - U.S. [Member]
Revenues:
Product sales									2,654	2,527	2,505
NEUPOGEN - U.S. [Member]
Revenues:
Product sales									932	901	896
Neulasta - International [Member]
Revenues:
Product sales									904	828	813
NEUPOGEN - International [Member]
Revenues:
Product sales									354	387	445
ENBREL - U.S. [Member]
Revenues:
Product sales									3,304	3,283	3,389
ENBREL - Canada [Member]
Revenues:
Product sales									230	210	209
Sensipar - U.S. [Member]
Revenues:
Product sales									459	429	412
Mimpara - International [Member]
Revenues:
Product sales									255	222	185
Vectibix - U.S. [Member]
Revenues:
Product sales									115	97	108
Vectibix - International [Member]
Revenues:
Product sales									173	136	45
Nplate - U.S. [Member]
Revenues:
Product sales									129	78	13
Nplate - International [Member]
Revenues:
Product sales									100	32	4
Prolia - U.S. [Member]
Revenues:
Product sales									26	0	0
Prolia - International [Member]
Revenues:
Product sales									7	0	0
XGEVA - U.S. [Member]
Revenues:
Product sales									8	0	0
Other - U.S. [Member]
Revenues:
Product sales									0	0	30
Other - International [Member]
Revenues:
Product sales									$ 0	$ 0	$ 40

Segment information (Details 1) - USD ($) $ in Millions	12 Months Ended
Segment information (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Geographical information with respect to revenues
United States	$ 11,636	$ 11,421	$ 11,772
International countries	3,417	3,221	3,231
Total revenues	$ 15,053	$ 14,642	$ 15,003

Segment information (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Geographical information with respect to long-lived assets
United States	$ 3,248	$ 3,525
Total long-lived assets	5,522	5,738
Puerto Rico [Member]
Geographical information with respect to long-lived assets
International countries	2,079	1,920
International countries [Member]
Geographical information with respect to long-lived assets
International countries	$ 195	$ 293

Segment information (Details 3) - USD ($) $ in Millions	12 Months Ended
Segment information (Details 3) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
AmerisourceBergen Corporation [Member]
Revenues earned from major customers
Gross product sales	$ 7,678	$ 7,179	$ 7,099
Gross product sales to major customer (as defined) as a percentage of total gross revenues	38.00%	37.00%	37.00%
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales	47.00%	46.00%	46.00%
McKesson Corporation [Member]
Revenues earned from major customers
Gross product sales	$ 3,913	$ 3,694	$ 3,594
Gross product sales to major customer (as defined) as a percentage of total gross revenues	19.00%	19.00%	19.00%
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales	24.00%	24.00%	23.00%
Cardinal Health, Inc. [Member]
Revenues earned from major customers
Gross product sales	$ 2,813	$ 2,841	$ 2,823
Gross product sales to major customer (as defined) as a percentage of total gross revenues	14.00%	15.00%	15.00%
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales	17.00%	18.00%	18.00%

Segment information (Details Textuals)	12 Months Ended
Segment information (Details Textuals)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Segment Information (Textuals) [Abstract]
Number of major customers (as defined) accounting for more than 10% of total revenue	3	3	3
Threshold as a percentage of total revenues for determining a major customer for additional disclosures	10.00%	10.00%	10.00%
Percentage of worldwide gross revenues derived from major customers (as defined) on a combined basis	71.00%
Percentage of United States gross product sales derived from major customers (as defined) on a combined basis	88.00%
Major customers (as defined) accounting for more than 10% of gross trade receivables	3	3
Combined trade receivables for all major customers (as defined) as a percentage of net trade receivables	54.00%	53.00%
Percentage of net trade receivables due from customers located outside the United States, primarily in Europe	44.00%	45.00%
AmerisourceBergen Corporation [Member]
Segment Information (Textuals) [Abstract]
Amount due from major customer (as defined) as a percentage of gross trade receivables	exceeded 10%	exceeded 10%
McKesson Corporation [Member]
Segment Information (Textuals) [Abstract]
Amount due from major customer (as defined) as a percentage of gross trade receivables	exceeded 10%	exceeded 10%
Cardinal Health, Inc. [Member]
Segment Information (Textuals) [Abstract]
Amount due from major customer (as defined) as a percentage of gross trade receivables	exceeded 10%	exceeded 10%

Subsequent events (Details) $ in Millions	1 Months Ended
Subsequent events (Details) $ in Millions	Jan. 31, 2011 USD ($)
Upfront Payment for Acquisition [Member]
Subsequent Events (Textuals) [Abstract]
Payment for acquisition	$ 425
Contingent consideration for Acquisition [Member]
Subsequent Events (Textuals) [Abstract]
Payment for acquisition	$ 575

Quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Quarterly financial data (unaudited)
Product sales	$ 3,760	$ 3,759	$ 3,613	$ 3,528	$ 3,743	$ 3,736	$ 3,634	$ 3,238	$ 14,660	$ 14,351	$ 14,687
Gross profit from product sales	3,188	3,172	3,060	3,020	3,205	3,191	3,103	2,761
Net income	$ 1,022	$ 1,236	$ 1,202	$ 1,167	$ 931	$ 1,386	$ 1,269	$ 1,019	$ 4,627	$ 4,605	$ 4,052
Earnings per share:
Basic	$ 1.09	$ 1.29	$ 1.25	$ 1.19	$ 0.93	$ 1.36	$ 1.25	$ 0.99	$ 4.82	$ 4.53	$ 3.79
Diluted	$ 1.08	$ 1.28	$ 1.25	$ 1.18	$ 0.92	$ 1.36	$ 1.25	$ 0.98	$ 4.79	$ 4.51	$ 3.77

Quarterly financial data (unaudited) (Details Textuals) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009
Quarterly financial data (unaudited) (Textuals) [Abstract]
Net income tax benefit for resolution of prior period matters with tax authorities			$ 100
Income tax expense from resolution of certain prior period transfer pricing matters			$ 28
Income tax benefit from resolution of certain prior period transfer pricing matters				$ 115
Income tax benefit from changes in California tax law					$ 25
Income tax benefit for resolving certain transfer pricing issues with tax authorities	$ 113
Asset impairment charge associated with a strategic decision to optimize network of manufacturing facilities	118
Net of tax asset impairment charge associated with a strategic decision to optimize network of manufacturing facilities	$ 74
Income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods		$ 38

Valuation Accounts (Details) - USD ($) $ in Millions	12 Months Ended
Valuation Accounts (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Allowance for doubtful accounts
Balance at beginning of period	$ 32	$ 38	$ 39
Additions charged to costs and expenses	10	(6)	1
Other additions	0	0	0
Deductions	0	0	2
Balance at end of period	$ 42	$ 32	$ 38

Fair value measurement (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Assets
Total available-for-sale securities	$ 17,325	$ 13,397
Interest rate swap contracts	349	153
Derivatives	349	153
Total assets	17,674	13,550
Liabilities
Derivatives	103	152
Total liabilities	103	152
Foreign currency contracts [Member]
Assets
Foreign currency contracts	154
Liabilities
Foreign exchange contracts	103
Interest Rate Swap Contracts [Member]
Assets
Interest rate swap contracts	195
US Treasury securities [Member]
Assets
Total available-for-sale securities	5,080	1,935
Obligations of U.S. government agencies and FDIC guaranteed bank debt [Member]
Assets
Total available-for-sale securities	2,208	3,792
Other government related debt securities - Foreign and other [Member]
Assets
Total available-for-sale securities	852
Corporate debt securities [Member]
Assets
Total available-for-sale securities		4,285
Corporate debt securities - Financial [Member]
Assets
Total available-for-sale securities	2,296
Corporate debt securities - Industrial [Member]
Assets
Total available-for-sale securities	2,507
Corporate debt securities - Other [Member]
Assets
Total available-for-sale securities	316
Total debt securities [Member]
Assets
Total available-for-sale securities	17,277	13,342
Mortgage and asset backed securities [Member]
Assets
Total available-for-sale securities	841	491
Money market mutual funds [Member]
Assets
Total available-for-sale securities	3,030	2,784
Other short-term interest bearing securities [Member]
Assets
Total available-for-sale securities	147	55
Equity securities [Member]
Assets
Total available-for-sale securities	48	55
Quoted prices in active markets for identical assets (Level 1) [Member]
Assets
Derivatives		0
Total assets	8,158	4,774
Quoted prices in active markets for identical assets (Level 1) [Member] \| Foreign currency contracts [Member]
Assets
Foreign currency contracts	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Interest Rate Swap Contracts [Member]
Assets
Interest rate swap contracts	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| US Treasury securities [Member]
Assets
Total available-for-sale securities	5,080	1,935
Quoted prices in active markets for identical assets (Level 1) [Member] \| Obligations of U.S. government agencies and FDIC guaranteed bank debt [Member]
Assets
Total available-for-sale securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Other government related debt securities - Foreign and other [Member]
Assets
Total available-for-sale securities	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities [Member]
Assets
Total available-for-sale securities		0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Financial [Member]
Assets
Total available-for-sale securities	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Industrial [Member]
Assets
Total available-for-sale securities	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Other [Member]
Assets
Total available-for-sale securities	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Mortgage and asset backed securities [Member]
Assets
Total available-for-sale securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Money market mutual funds [Member]
Assets
Total available-for-sale securities	3,030	2,784
Quoted prices in active markets for identical assets (Level 1) [Member] \| Other short-term interest bearing securities [Member]
Assets
Total available-for-sale securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Equity securities [Member]
Assets
Total available-for-sale securities	48	55
Significant other observable inputs (Level 2) [Member]
Assets
Derivatives		153
Total assets	9,516	8,776
Significant other observable inputs (Level 2) [Member] \| Foreign currency contracts [Member]
Assets
Foreign currency contracts	154
Significant other observable inputs (Level 2) [Member] \| Interest Rate Swap Contracts [Member]
Assets
Interest rate swap contracts	195
Significant other observable inputs (Level 2) [Member] \| US Treasury securities [Member]
Assets
Total available-for-sale securities	0	0
Significant other observable inputs (Level 2) [Member] \| Obligations of U.S. government agencies and FDIC guaranteed bank debt [Member]
Assets
Total available-for-sale securities	2,208	3,792
Significant other observable inputs (Level 2) [Member] \| Other government related debt securities - Foreign and other [Member]
Assets
Total available-for-sale securities	852
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities [Member]
Assets
Total available-for-sale securities		4,285
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Financial [Member]
Assets
Total available-for-sale securities	2,296
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Industrial [Member]
Assets
Total available-for-sale securities	2,507
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Other [Member]
Assets
Total available-for-sale securities	316
Significant other observable inputs (Level 2) [Member] \| Mortgage and asset backed securities [Member]
Assets
Total available-for-sale securities	841	491
Significant other observable inputs (Level 2) [Member] \| Money market mutual funds [Member]
Assets
Total available-for-sale securities	0	0
Significant other observable inputs (Level 2) [Member] \| Other short-term interest bearing securities [Member]
Assets
Total available-for-sale securities	147	55
Significant other observable inputs (Level 2) [Member] \| Equity securities [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member]
Assets
Derivatives		0
Total assets	0	0
Significant unobservable inputs (Level 3) [Member] \| Foreign currency contracts [Member]
Assets
Foreign currency contracts	0
Significant unobservable inputs (Level 3) [Member] \| Interest Rate Swap Contracts [Member]
Assets
Interest rate swap contracts	0
Significant unobservable inputs (Level 3) [Member] \| US Treasury securities [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Obligations of U.S. government agencies and FDIC guaranteed bank debt [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Other government related debt securities - Foreign and other [Member]
Assets
Total available-for-sale securities	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities [Member]
Assets
Total available-for-sale securities		0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Financial [Member]
Assets
Total available-for-sale securities	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Industrial [Member]
Assets
Total available-for-sale securities	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Other [Member]
Assets
Total available-for-sale securities	0
Significant unobservable inputs (Level 3) [Member] \| Mortgage and asset backed securities [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Money market mutual funds [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Other short-term interest bearing securities [Member]
Assets
Total available-for-sale securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Equity securities [Member]
Assets
Total available-for-sale securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member]
Liabilities
Derivatives		0
Total liabilities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Foreign currency contracts [Member]
Liabilities
Foreign exchange contracts	0
Significant other observable inputs (Level 2) [Member]
Liabilities
Derivatives		152
Total liabilities	103	152
Significant other observable inputs (Level 2) [Member] \| Foreign currency contracts [Member]
Liabilities
Foreign exchange contracts	103
Significant unobservable inputs (Level 3) [Member]
Liabilities
Derivatives		0
Total liabilities	0	$ 0
Significant unobservable inputs (Level 3) [Member] \| Foreign currency contracts [Member]
Liabilities
Foreign exchange contracts	$ 0